Insurance: Waste or Wisdom

Today lets talk about insurance. Is it a financial win or a financial ruin because for so many people insurance refer to paying for something you hope to never use. Infact, let's use Health insurance as a case study because am enrolled in the National Health Insurance Scheme (NHIS), and in most cases the monthly deduction happens but the benefit often feels invisible.

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The issue of whether insurance is a waste of money or a good investment depends on various factors. But in my opinion, insurance is not a waste of money because whether it is used for us or for others, the fact remains that the money generated was used for a good cause.

The main reason for insurance is to have somewhere to rely on when the evil day comes and the expenses is beyond our capabilities. Life happens, and sometimes the most unexpected tragedy happens in the most unexpected time. Ordinarily, days like this are capable of draining your life savings and putting you in debt. But if you are insured, your day of loss becomes your day of redemption

It was the early part of 2021, and I was very sick. Infact my blood pressure was so high that I could see my heart pounding from my chest. It was so serious to the extend that I was transferred from my state hospital to a Federal Hospital in a different state. This were actually the days I refer to as my evil days because I thought I would die.

During this period my financial capabilities could not handle the bills and expenses that came with my treatment and everything, but I was under the NHIS coverage and the contract was that they would pay 90% of my huge bills while I only pay 10%.

This was the period I understood how helpful insurance could be. If I was left to pay the full 100% of my bill at that time, I would have still be in debt till today, lol. In my case, God actually intervened and healed me, and since then I have been perfect in health.

My experience is not something I hope/wish for someone but this experience taught me about the importance of insurance regardless. Think of it this way; if insurance only collected exactly what it paid out per person, it would be a savings account and no longer insurance.

What we are actually paying for is protection against financial catastrophe disguised as medical bills. It's actually a win and not totally a waste because your "wasted" contribution this month funded someone's emergency medication attention. Next month it might be you who need care, their contributions fund yours.

Sometimes we do not have the power to control what happens to us, but what we can control is how we invest our funds. If you have a liitle money to spare monthly for insurance then why not. It's actually a wise decision, all you need is to understand your coverage, as well as how and when to get your benefits.

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Insurance Schemes are not useless as they have proven to reduced health expenditures for millions of people around the world. Yeah, sometimes it's oversold but the difference lies in what happens when you actually need the protection you've been paying for.