A friend asked me how insurance reduces risk, and here’s my reply: “When you buy insurance, you transfer the risk of facing an uncertain loss in exchange for a safety net at the payment of a premium.

“Here’s a simple scenario: When you pay for life insurance with a partial or permanent disability component, in the event of an insured incident, your dependents are covered without breaking the bank. Had you not had this policy and something serious happened, you would be responsible for those bills."

“However, by taking out a life insurance policy, you transfer the risk of financial loss to the insurance company instead of assuming the entire financial risk yourself.”

Life insurance involves paying a small monthly premium in exchange for a large sum of money should you or the insured pass away. Future living expenses, like a mortgage and your children’s educational expenses and/or college tuition, can be covered by a death benefit.

Most potential clients assume that having insurance means you are wishing death for yourself and the insured. Many of these comments have come to me, and my response has always been that no one wishes death on themselves or their families.

However, having a funeral policy means you are offering your loved ones peace of mind should the unfortunate happen.

It is essential to buy insurance if you wish to keep your dependents financially sound after your death. A life insurance policy is not an option, but a wise choice in this fast-paced world. It serves as a safety net for your dependents.

In our part of the world, where funerals are customary and expensive, in the event of an unforeseen circumstance, your dependents will give you a befitting burial as tradition demands.

Also, life insurance is not expensive. The reality is that it has flexible premiums and packages from which you can choose. You can always opt for a life insurance package with corresponding payouts that suit your current income levels. Another advantage of having a life insurance policy is that the payouts are tax-free. Your beneficiaries will receive the exact lump sum as promised at the beginning of the policy, without any tax deductions.

Now, here are my two cents on buying a life insurance policy. If you want to register an insurance policy, my brief advice is for you to understand the type of policy you are signing on to and check if you can afford to pay premiums for the medium to long term.

Finally, before you buy an insurance policy, ask yourself if you really need that policy, or another type of policy is likely to better serve you. There are many products on the market, but not all policies may befit your needs.

Do not be lured into buying an insurance policy you do not need. Take some time to map your needs to the policy offering in a bid to get the best fit for you.

Always remember that life insurance is not for the wealthy only, it is for anyone who seeks to remain financially sound. No matter your income level, there is always a policy for you.

Life insurance ensures that your loved ones are well taken care of when you pass away.

Life is short, and time is fleeting. Get a life insurance policy today before the unfortunate happens to yourself or your loved ones.