Some industry players in the Life Assurance sector have blamed the low patronage of the service to misconception and misunderstanding of life assurance policies.
They argued that there is a negative perception about life assurance policies as most people think it is a policy for people who may die soon.
Outlining some difficulties in selling such policies, the Zonal Manager at Eisich Life Assurance, Isaac Danso, pointed out that most Ghanaians are not enlightened on the benefits of life assurance, hence do not patronize it.
“In fact the perception is up there. Nobody wants to talk about the death factor but the hard truth is that it will hit us. It is just about the mentality. Some people don’t even see why in this current economic situation, they should be having GHS10,000 or GHS20,000 sitting in their account for their mother or father to pass so they can use that for their funeral,” he said.
“They will rather use that money for investment. So it is just about changing the mindset,” he added.
Mr. Danso explained that a life insurance policy is a contract with an insurance company in exchange for premium payments.
According to him, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured’s death.
Opinion of some Ghanaians
Sharing her thoughts on the topic, Jemilatu, a lady who works with an investment company told Citi Business News the whole idea of saving towards one’s death is not right.
“Actually, I am not into the funeral policy. I am not scared of the death factor, I shouldn’t be but the funeral policy itself should not be there. I don’t think it is advisable for anybody to do it. For all you know you could even die before your parents do. That alone should even put you off,” she said.
Mr. Kyei Mensah, a trader also told Citi Business News the stress in accessing claims makes insurance in general unattractive.
“I don’t want it. Usually when time for claiming comes, you will just be stressed and not get it. You will have to take a lawyer to fight for you that is why I am not interested.” he stated.
Mr. Danso however was however hopeful that Ghanaians will soon embrace the policy.
“Gradually, the perception is being changed based on the education. And this is where I entreat the industry players to step further in educating the client. It is just about the perception and at the end of the day, you realize that you go to talk to people about life insurance and they don’t struggle to buy It.” he added.
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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana