The term Insurance must go with the term “guarantee” because no matter how bad the outcome of an insured event is, it has been guaranteed that either the insurance company pays in cash or replaces the damaged thing.
So then, insurance is a guaranteed protection against a loss. It is basically a kind of risk management against any form of uncertainty. That is to say when you handover or transfer your risk due to unforseen events that may occur, you are simply insuring your life or the property.
How long has insurance being in existence?
During the 3rd and 4th millennial BC, the Chinese, Indians and Babylonian traders had practiced a method of transferring risk.
Now, how were they doing this and why were they even doing it?
Well, let’s say they were ignorant of the fact that what they were doing was only precautionary measures of preventing whole lost of belongings. What these Chinese could do was that; the traders with many goods would divide the goods and give certain portions to different colleagues or relatives for the fear being rubbed on the way an accident that might damage his goods. Though these were not total protection but rather preventive measures.
How many types of insurance do we have?
Some people may list up to ten or even more types of insurance to include car, house, health, life and so on. But basically I can say there are only two broader types of insurance;
1. Life insurance: this is the type of insurance where the insured (individual) transfers the risk of death to the insurer (insurance company). This is done so to cover an individual’s life should any event of death occurs the company after verification from the deceased family pays certain amount as was recorded in the policy agreement to the family.
Death is eminent which means we can’t prevent it, no matter how long we try to prolong our age we must surely die someday.
2. Property insurance: Another form or type of insurance is the property insurance, when you insure your house or vehicle or any other property again the risk of involving in an accident (as in vehicle) or flooding, earthquakes, collapse (as in house) once any of these events happens, the insurance company either replaces the property or give an amount of money as the property is valuated.
These are the two broader types of insurance, it is from life insurance that we should have health insurance, and any other insurance related to life. Likewise the property insurance.
The two Best insurance companies to choose in Nigeria 2021?
1. Prudential Zenith: Prudential Zenith life is part of Prudential PLC.
Prudential PLC, incorporated and registered in England and the Wales. Prudential PLC is a holding company with some of whose subsidiaries are authorized and regulated as applicable by the Hong Kong Insurance Authority and other regulatory authorities. Prudential Zenith Appears to be the most highest paying claims in Nigeria with over 6m people insured.
2. Stanbic IBTC Insurance Limited:
Stanbic IBTC Insurance Limited is owned by the Stanbic IBTC bank. The Insurance company has products designed for everybody as low as N5,000. You can choose from the range of products as design by the company. A visit to the company’s site may be helpful.
This insurance companies have reportedly paid claims worth or N200 billion just the previous year of 2020 and hopefully may do in the future time and which is why you won’t hesitate to give them a trial.
Inasmuch as insurance could be a protective services against life and acquired property, looking out for the very best insurance companies that could pay claims as when due is more preferable to most people and which is why we outlined the two above.