By Ade Fashola
Dear Readers,
Last week I wrote on loss of Employment vis-à-vis Salary Insurance and some people sent me questions asking me why they should buy salary insurance. I cannot be more alarmed. I have therefore decided to write this week on the need for every employee to buy Anchor Loss of Employment Insurance(LoEIS) or a Prestige Salary protection insurance shield (PSPS).
Do you know?
That Job loss is a daily occurrence? That job loss can occur without warning? That your personal wellbeing and self-worth – physically, psychologically and otherwise can be impaired as a result of a job loss? That your family can suffer because of a job loss? That job loss can strain relationship? Have you ever lived with someone who lost his or her job? If you don’t know, now you know.
One thing is sure, if you are in a paid employment, you will exit in one out of this four occurrence, Death, Retirement, Resignation and Termination. For the first two that is Death andRetirement, most employers already have plans for them by way of group life insurance and pension scheme. For retirement, you must have a plan in place before you resign from a job. The issue is termination of employment, this could be very devastating. This is what this product is set to address. Before the emergence of this product, there is no insurance coverage for this kind of exit from job in Nigeria.
The good news is that your salary can be guaranteed after a job loss. Yes it is true. There is Loss of Employment Insurance and also Salary Insurance.
Today, Nigeria insurance industry can be proud of its advancement bringing to life modern and relevant products outside of traditional ones in the Insurance Industry.
In the face of population growth, globalization and general advancement, capitalism continues to push on with its target to maximize profit. As the tides rise and fall, be it the company facing regulatory or operational issues, be it economic or political impact that goes beyond your management or yourself, job loss is inevitable and is a likely devastating experience.
A classic example is the pandemic that has impacted globally this year. Without notice the world lost over 21 million jobs. Nigeria has it share, and the statistics is still rising. Organizations are now researching alternative systems to work environment as we know it. Zoom recorded alarming profit in the first half of the year. The bottom line is no one can be sure of anything that will be constant especially a paid employment.
Regardless of savings or investment reserves which provide temporary relief , they are barely sufficient to protect you from personal financial responsibilities and maintaining the same life style as when in employment. This is felt more as a lot of companies have scrapped gratuity hence most jobs are operating on the “pay-as-you go” basis.
Even with the progress regarding contributory scheme, the accessibility is once after months of job loss with a restricted amount of accrued compulsory savings as mandated by law between employee and employers.
Virtually everyone in paid employment will gladly receive any additional income aside notice in lieu allowance or for some, severance pay – this is what the product stands for – pay the insured, the salary earned last in the employment for a period of time.
Salary insurance protects your financial obligations even after loss of job. Most of us buy stuff in advance of our salary, if that salary stops abruptly without any plan, this could lead to heart attack. Salary insurance helps to guarantee the continuation of your children’s education and welfare. Most of our children’s education are dependent on our salary for those who have the children in a private school including their welfare. Loss of job could affect continuation of their education .This product immunes the employee against frustration and psychological breakdown that follows loss of job. Furthermore, this type of insurance cover inspires the confidence of being a staff and not a slave in your workplace. The most important benefit of this insurance cover is, its help in maintaining economic stability and general standard of living of persons that may be affected by loss of employment.
The policy also goes further to help you avoid redundancy by helping you to return to work as soon as you get an opening even if the pay is less than your previous employment because it has an inbuilt coverage called supplementary benefit. In the event of a member gaining new employment or having an income generating activities during the benefit paying period and his/her new salary is lower than the existing insured income, the policy shall provide the shortfall to place you in your original position as it was immediately before the occurrence of loss of job. There is dignity in labor.
Another benefit is single sum benefit, upon cessation of employment, the insured may apply for payment of a Single Sum Benefit on the ground of advanced age if it is proven such member may no longer be interested in future employment or in a case of impaired health. However, such request shall be subjected to discretion of the insurance company which can be achieved by submission of documentary evidence.
In addition to all the aforementioned, In a situation where the insured member of the scheme dies during the benefit payment period i.e after he or she has loss his or her job and he or she is already receiving benefit and suddenly, death occurred, a death benefit of agreed sum assured stated in the policy schedule shall become payable to the beneficiary on record.
Like I said last week, I am not allowed to mention insurance companies, but you can get enormous resources from the website (www.salaryinsured.com). Please be careful of the insurance company you are dealing with, some insurance companies do not have capacity. Caveat Emptor. Surely I can be of help, you may private chat me or send me an email.
Please insure your Salary. Your life and your family depend on it. God bless you.
