Understanding Insurance: Is insurance a scam?

“Life happened”, a phrase sometimes uttered by people who have been overwhelmed and left desperate by the uncertainties of life. Life is uncertain indeed. All we are guaranteed is now. Others say today is guaranteed, but not every moment is, and even if it is, we cannot guarantee that the complete span of the day would not be marred by sudden unforeseen eventualities. Sometimes, these uncertainties meet us at a time we are not prepared, and in such moments, our eyes search to-and-fro, frantically turning our heads, anxious and desperate for a solution which unfortunately may sometimes take too long in coming or never at all reach our shores. But in the dying embers of hope, is a bright light, waving to seek our attention, setting our hope ablaze, which would not disappoint. It brings with it a solution, a prop to lean on till we can stand again. It bears on it the name, “Insurance”.

Insurance is indeed a life saver for many who have encountered it. It has been a bosom friend to many, continuing its lingering and refreshing friendship even when the policyholder is still long gone by overflowing its genuineness and support to the beneficiaries of the policyholder. However, there have been stories about how unreliable Insurance has been. Many have even been pained so much as to refer to Insurance as a scam. Indeed, all these stories are real to the ones who experienced them. However, there are stories about Insurance that inspire, restore hope, and rejuvenate. And yet all perceptions bring to bear real opinions of Insurance.

But today, we want to invite you to go on a journey with us. Let us explore together and bring an answer to the question still looming on the minds of many, which is whether insurance is a scam. Everyone seeks to learn the truth of a matter, and this is one worthy question that deserves all the attention it can get. So here we go, the foundation of your consent being our propeller. Join us, as we take you on a journey to find the answer to this question: Is insurance a Scam?

There have been several comments surfacing on the internet over the years about insurance being a scam. Some have said that insurance is just another way owners of insurance companies unjustly enrich themselves. They claim that the companies intentionally refuse to pay claims just to retain premiums paid by clients.? Others have said that insurance companies are quick to increase premiums but not willing to increase or revise the benefits.? Insurers are quick to take premiums but slow to pay claims. They come up with all forms of clauses to prevent them from paying claims. They market products that do not deliver what was promised or make it difficult to cancel policies.

Insurance is far from being a scam. Many people have benefitted from insurance policies. Did you know that football players get their legs insured? For instance, Lionel Messi and Christiano Ronaldo have insurance for their legs spanning several millions of dollars. Several other footballers and athletes also have insurance for their legs and other body parts since they make a living from these insured body parts (personal body insurance). Their insurance policies are designed to protect their financial interests in the event where there is an injury that could affect their careers. If these great footballers and athletes find it essential to get some form of insurance, does the widespread belief that insurance is a scam hold true?

You would agree with us that life is uncertain. Though most people wish this fact were only an illusion, it is as real as life itself. No matter how well we plan and how carefully we see to it that our plans go into fruition, there is sometimes that blow that sends all our carefully constructed plans tumbling down. This can be very disheartening, but the fact is, good times do not last forever. They often, without notice, take wings and fly, having no regard for our carefully planned out lives and struggles. This, however, is a continuous occurrence of life and therefore requires us to have some security, a buffer to reduce the shock and trauma these unforeseen circumstances take us through. This is where insurance comes in to save the day.

There have been several testimonies about how insurance has been of immense help when unforeseen circumstances occur. People who have had their dreams thwarted by accidents have been able to depend on Insurance to keep on with their lives. Some have also been inflicted with sudden illnesses, like cancer, forcing them to give up their professions. As a result, they have had to rely on insurance, which has provided immense support to them and their families.? For others, insurance came to their rescue when their buildings or shops were completely gutted by fire. Even though these insurance policies did not take away the pain of their losses, they gave them financial stability, allowing them some peace of mind.

Life insurances have helped surviving spouses of deceased persons on several occasions by, for instance, paying for funeral expenses, family bills, their children’s school fees, and other expenses. People who have been hit by drunk drivers while walking on pedestrian walkways and suffered serious injuries have been able to cover their medical expenses with the help of disability insurance. Sometimes, these people are unable to work again and therefore solely depend on the benefits of their disability insurances to meet their needs. Others who have also yearned to retire early have been able to make this dream a reality due to annuities they purchased while in gainful employment. Others who retired at the legal age for retirement, have also been able to enjoy some benefits due to insurance policies they bought during their working life.

Additionally, insurance has enabled individuals to compensate those they may have unintentionally harmed, such as in the case of motor vehicle accidents. It has also provided an avenue for parents to save up for their children’s future. Most people have survived hardship because of benefits they have enjoyed from insurance policies their spouses or parents took in their life.

Insurance is a solution, a pacifier that always waits at the door to be let in. Insurance, therefore, helps to reduce the extent of worry or anxiety associated with the consequences of unforeseen circumstances. It also eases the financial burden of the family especially in cases where the deceased person was the breadwinner of the family.

The non-payment of a claim may be due to several factors, and key to this is the fact that several people do not know or understand their rights and responsibilities under a policy. People will see insurance as a scam because they do not understand what insurance is and what benefits they can get from buying an insurance policy.

Contrary to popular opinion, insurance is not a scam.

Join us on our next episode on what insurance is, as well as your rights and responsibilities as policyholders.?