- Insurance is a way to save for your future and also ensure you are protected from financial loss. One can save money for future events like university fees, setting up a business, going on a trip abroad, buying a house/car or for retirement.

 

When something bad happens, such as an illness or a car accident, your insurance will cover some or all of the costs to fix the damage, depending on your policy.

• Education
• Health
• Motor
• Accident and general losses
• Life plan
• Investment savings

• A policy is a contract between you and your insurance company
• You promise to pay the insurance company a premium and the insurance company promises to pay your claims as they arise.

• A premium is the amount of money you pay for your insurance coverage
• You can pay it weekly, monthly, once a year or in case of saving insurance you can deposit more whenever you have extra money.
• Each person can have different premium depending on their needs and risk.

 

You pay a certain amount of money to the insurance company and in return they pay for your doctor’s fee, medicine, surgery, and even for your parent to stay with you.

 

In insurance, risk is the potential of loosing something of value e.g. physical health, assets like a car, home, tablet, etc.

For example: what could happen to your favorite toy?

It could get damaged, be stolen or lost. These are examples of risks. If you had insured your toy and it gets lost you can claim to the insurance company to repair or replace it.

 

A formal request  to an insurance company asking for a payment based on the terms of the insurance policy.

• The child education policy is  specially designed as a savings tool to provide your parents with a means to pay for your secondary and university fees
• It is important to start planning for education as early as possible. The education insurance assures that whatever happens in the future, the child can continue with their studies e.g. if the parent is taken ill or in case of death.

• This is whereby one saves money for a certain period of time. The money earns interest during this time.
• For example one can save Ksh 1000 every year and after 5 years, they will have Ksh 1215.
• With this money, they can set up a business, go on a trip abroad, buy a house/car or retire.

• Insurance can seem expensive, but it works out cheaper than having to pay for all of the cost of accidents or illnesses yourself without any help.
• When something unexpected happens (risk), you will be more likely to afford the costs if the insurance company is helping you pay to fix the damage. 
• That’s why the say having insurance will give you “peace of mind.”