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Insurance Expert Exposes why Ghanaians take Loans for Funerals | Konnected Minds Podcast | YouTubeToText
YouTube Transcript: Insurance Expert Exposes why Ghanaians take Loans for Funerals
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Core Theme
This content emphasizes the critical importance of insurance and financial planning in Ghana, driven by personal experiences of hardship and loss, to protect individuals and their families from unforeseen financial devastation.
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I went to one of my father's friend to
get money to pay my brother's fees. He
drove me to a movie house. So he gave me
80 cities. I asked myself if you don't
buy insurance, you want your children to
suffer. Most Ghanaians don't believe in
insurance. Somebody will prefer to do
than to buy a life insurance because
some people think that it's a scam.
I have a client when she did the policy
2 months after and the mother died.
People think they'll die.
What is the purpose of insurance cover?
The purpose is for those you leave
behind. So why will you want to die and
make them suffer? I want a life plan of
500,000 up to the age of 17. How much
would I get? You pay a month. If nothing
happened to you, we'll give you 10
million Ghana cities. However, if you
should pass away, we are going to give
your beneficiaries 10 million and at the
end of the 15 years, we'll give them
another 10 million Ghana cities [Music]
[Music]
again. Hey, welcome to Connected Minds
podcast and my name is Derek Abite. Of
course, this podcast we explore wealth
mindset and success. And today's episode
we're going to focus on financial
planning and estate protection. This is
a crucial topic for securing your
future. Our special guest is Benedict
Auga and she's often called the
insurance queen of Ghana. Benedicta is a
leading financial consultant and she's
also known for her passion in educating
people on protecting their assets and
loved ones. We will have an informative
one-on-one conversation that is packed
with actionable tips and hacks that you
can apply in your own financial life.
Look, our guest uh Benedict's background
and why she's known as the queen of
insurance, it's really simple because
she is a top consultant in the financial
industry in Ghana and she's also a
member of the milliondoll round table
which is recognized for its exceptional service.
service.
She's here to help us understand how to
navigate those uncertainties with the
right insurance and financial planning
strategies from how wealthy individuals
use insurance uh for wealth protection
and why young people should get a life
insurance early because you know what
insurance is not only for the rich.
Listeners will also gain a clear
understanding of what insurance covers
and how claims work and the tangible
tips to secure their assets and their financial
financial
future. You know this it's a very
important conversation and I want
everyone to pay attention and if you
make it to the end please let me know in
the comments section. Let's welcome our
guest Benedicta. How did you set
yourself up on the journey of trying to
empower people to get insurance?
Okay. Um I'm the only daughter of my
parents and I have three
brothers and my parents moved to Nigeria
to seek for greener
pastures. Um they decided I should come
to Ghana to further my education.
Um, I attended Dura Memorial Maui School
and I have a
diploma in marketing from
UPS. Um, my life turned
around when my I went to Nigeria after
junior high
school. That's after my final exam. I
went to
Nigeria. Um, one night my dad fell
ill and he was we took him to the
hospital. The next day he was diagnosed
of prostrate cancer. Wow.
Then he we spent 3 days at the hospital
and in the night the night he was
discharged, armed robbers came to our home.
home.
They did away with all our valuables and
cash. It was at gun point. So you can
imagine a 12, 13 year old girl going
through that. Now my mom was a housewife
then. So she was not working. She had to
move from Nigeria to Benin to go start a
trade because her siblings are in Benin.
They're also seeking for greener vashes
there. So she started selling food and
all that. So this situation made me I
didn't start school with my colleagues
at Maui immediately. I spent about a
term at home and when I came life was
tough. You you know the situation the
bread winner is critically ill at the
house. So you know how things were not
okay. but with the help with of friends
and um some church members who supported
me through school. Now sometimes I go to
Benin to go help my mom to sell their
food and you know Benini they speak
French I speak English so you can
imagine the language barrier. So I have
to depend on the bonjour bona that they
taught us in school to roll. Anyway, some
some
days I go to AFLU bord to do kay. I was
a headquarter girl. So I take load from
a lum into a crossing the b just to get
some money to come to school. I'm saying
all this for you to know how passionate
I am about this job. It's not just a job
for me. For me it's I'm saving lives.
This is my way of evangelism.
So my dad was I was home for about 6
years. In 2010 I came to Ghana. I
started UPSA with my two younger
siblings. Right there
my my father the week I of my
matriculation my father passed
away and it was tough in school. I have
to wash my friends things. I have to
sell at Medina market. I sold shoes like
I did a lot just to survive with my
younger siblings with the help of my
mom. The little she gets she sends to
support. Now that's how the journey has
been just like any parent. Then I was like
like
26. My mom wanted me to settle
down. Did I? Yes. But the relationship
lasted for just 6 months.
I couldn't so I ran away because the
pressure from my family that I have to
make it work I had to run away and came
back to Ghana and when I came a friend
helped me. So one day I think the lady
who brought me to my company, she went
to sell to one of my helper
prosper and he was the one who and she
told asked him do you know anybody
looking for a job and I was looking for
a job and he said okay I have my sister
this this and I
started and I went through. So on the
17th of April 2015, I graduated from my
training and I started working and it's
been a decade and I'm sitting right in
front of you as a financial consultant.
Wow. You've done amazing. Yes. You've
done amazing. Yes. But but there's
something about you that makes it so
it's almost very personal to you. Yes. [Music]
[Music]
And when I read the post that you you
put out there, it's very informative and
it's almost as if you're trying to get
everybody to get a cup. Yes. I wish
everybody in Ghana will have an
insurance. Why? Because of my personal
experience, the things I've gone
through, you know, it's not everything
we can say, but it's it's it's tough out
there. I
remember is it one of the days I went to
uh one of my father's friend a close
friend we my they sacked my younger
brother for fees and I went to him to
get money to pay my brother's fees just
when I went to him and I told him guess
what he did he drove me to a movie
house to have canal knowledge of me to
before he'll give me how much was it? 50
Ghana cities. Wow. Yes. So he gave me 80
cities. This was a friend of of my dad.
Yes. Very bosom friend of my
dad. So I asked myself and a lot of
people I'm sure after watching this
podcast if they might want to speak.
A lot of children out there are going
through this kind of things
whereby even to get a job especially the
ladies I won't say the men are also
abused just that you know men you don't
speak about it often you are able to
hold on but women they take advantage of
us so for me is very personal if you
don't buy
insurance you you want your children to
suffer M you you think you went through
that because dad could not put certain
measures in place prior to his demise?
Yes. Because when he had prostrate
cancer he was around
45 thereabouts. So let's assume my
100,000 some
assured policy example he would he would
be paying around 180 cities 50 pesos
for 100,000 cover and with prostrate
cancer if he had that amount and they
gave it to us one do you think my mom
will go to Benin to start selling do you
think I'll be a
kayo at a flaw border. You know the
risks at being a kayo there. I was
sleeping in cars and some of the the the
the drivers we want to sleep. I have
canal knowledge or with
you and I there was a guy there I will
never forget him. His name iswami if
he's watching this podcast I'm telling
him thank you. He always fought for me.
He he he he covered me and when the
drivers do that he'll give me money. I
go to your mother in Nigeria, go back to
Nigeria to go and you know then I'll go
to Nigeria, help my mom a bit, get money
and come back. So I believe that if my
dad had at
least a 100,000
cover, it would have taken me far to
even finish school quickly, start work
quickly and all
know there was a time I was involved in a
a
conversation and then I was telling this
couple that they should go for a life
insurance cover this was over a
conversation we're having in the
UK and the lady straight away very
quickly before I could even finish she
said now the reason why I don't want us
to go for a life insurance cover is
because I don't want one person to kill
the other to take the
money. You see what people think about
when they think about a cover. Mhm. Yes.
Traditionally, most Ghanaians don't
believe in insurance because we have
been psyched or we rather go for landed
properties or we go
for loans or mortgages.
Right? Or we go we buy a car or we do
treasury bill. In fact, common suzu,
somebody will prefer to do suzu than to
buy a life insurance. It's because of
the perception. No, because some people
think that it's a scam. Okay, that's
what the first thing some do their
religious belief. They think that
that
um my religion especially my Muslim
brothers they don't spend a lot for
funeral. So after the funeral the what I
will spend only let's say thousand
cities for the funeral. What happened?
Well but then what's really the truth?
What what is the purpose of an insurance
cover? A life cover. The purpose is for
those you leave behind and I always say
this phrase if you are a good
trustee the question is are you a good
trustee okay you have a child right if
we are on a story building if your child
is up let's say there's fire here and
your child is at a balcony and you ask
your child
to drop you are down and you said jump
I'll catch you do you think your child
will jump. Yes. Why do you think your
child would jump? You've done it several
times. You trust me. She trusts you. So
your child will jump because she trusts
you. And that child trust you with their
future. I believed my daddy will pay my
fees and he told me that I he wants me
to be the first president, female
president of Ghana. That's what he told
me. And he will buy car for me when I'm
coming to the university. Did he fulfill that
that
dream? No. I think I won't forgive him.
But I forgiven him. Right? He didn't
know. It's ignorance. I'm sure somebody
has spoken to him about insurance. And
there are a lot of people out there who
might who have the perception of what
the lady said. So people think they'll
die. I have a client who came under my
post and say she did when she did the
policy two months after and the man the
mother died and she felt that because
she did the insurance that is why the
mother died. That's such a limiting belief.
belief.
What? Wow.
Yes. Yes. So that's some of the beliefs
you have and as I said the people but
insurance is not for you. As I said,
it's for those you will leave behind.
They trust you. So why will you want to
die and make them
suffer? We are not spelling doom. And
all insurance policies even though
there's death in it, there are some you
get lump sums at the end of the term.
Okay. So it's not just about debt,
critical illness, all those things. Talk
to us about all of it. Okay. So we have
different types. We have the pure life
plan that covers your critical illness,
permanent disability and death.
We have one that covers you for it's an
endowment plan. So the endowment plan
has um an investment component in it. So
let's say Derek I'm insuring you said oh
the kind of school and lifestyle your
family is you want 10 million Ghana to
discover that in the event you pass away
we should give your family 10 million.
Derek, I'm telling you at the end of the
term, if nothing happened to you, we'll
give you 10 million Ghana
cities. However, okay, if you should pass
pass
away, let's say you paid for 2 years and
you you are doing it for 15 years and
you pass away, we are going to give your
beneficiaries 10 million annually,
they'll come for 10% of the 10
million till the end of the 15 years.
And at the end of the 15 years, we give
them another 10 million Ghana cities again.
Okay. All right. So you see within the
time you passed your dream was to maybe
your daughter you wanted to go to have
go to a certain school university to you
did 15 let me go over you did a 15 year
thing you took let's say 2 million Ghana
cities as your cover example for 15
years and you paid
for 2 years touched God called you we'll
pay your
beneficiaries 2 million Ghana Ghana
that's called the death benefit at that
point. Now every year if you were alive
there's an income you'll be bringing on
board just like my story your child will
still be going to school this house need
to be maintained the car need to be full
right the standard of living the kind of
school they attending they still need to
continue that school it's not because
daddy is gone so I I was attending stnt
regency which is like um one of the top
schools in
Lagos right but Because of my dad's
situation, I dropped I went to a very
small school. So this the annual amount
is going to be paying you paying them
10% till the end of the 15 years. Your
goal was 1 million. So we are saying
that goal will not be shut down. At the
end of the 15 years, we'll give them
another 1 million Ghana cities again.
Well, I guess the biggest question is
how much does it cost? I [Music]
[Music]
earn I earn and I'm going to talk
about a local Ghanaian and then we're
going to talk about a diaspora. I earn
2,000 cities every month. Okay.
2,000 cities every month. Okay. So, what
cover can I have for a 35 year old man
who earns 2,00 2,000 Ghana cities to
protect me? Yeah. Okay. So for me I the
advice I give is either your summer
should either be 10 times your annual
income. So okay that's um that will be
240 cities 24,000 Ghana. That's 2,000 *
12, right? Okay. Time 10 * 10, right?
That's 240,000, right? Ghana cities. So
that's the um what I advise you to do to
take Okay. For for how many years? So
depending on if you have a child, so I
use the last the age of the last child.
Okay. The age of the last child. That's
what I used to project or advise you on
the term. But if you don't have a child,
I ask you what are your goals or what do
you want what do you want to um achieve?
So like me, I have a cover of 1 million.
I don't celebrate birthday but my 50th
birthday I want it to be big. Okay. So
that's so I have a policy for that.
Right. Aha. So for this person he'll be
paying around 550 cities every month.
Every month from the 2,000. Yes.
Okay. If it is too much, you can start
with 100,000 which is the minimum.
Increase it annually by an escalator
till the end of the term. By the end of
the term he will get around let's if we
even add 10% or 15% he will still get
around the 240,000 Ghana. See the
question I always ask when it comes to
insurance is I know that insurance
companies make a lot of money. the
insurance companies. I mean, I've been
paying comprehensive for like and
usually I get an accident and I I fix it
myself, right? I know insurance
companies may make a lot of money.
You're not supposed to fix it. Well,
because you know, do you know because
you know what happens? Do you know what?
As soon as you go and fix it, your
premium goes up the next the next year.
that to be able to do an insurance that
really would make sense,
there has to be interest also paid
on the
payout. Okay. For insurance and I think
that's some concerns of people.
Insurance is not an investment. We need
to separate the two. Okay. Insurance is
not an investment. Insurance is
indemnifying you to where you were
before. It's putting you at the state
you were before the event
occur. So that's why when you have a
car, you can't insure one car with two
companies. So maybe your car, you insure
it with the company A, you insure with
company B. No, you can't do it. But
because the moment you want to insure
with the two companies it means that you
are making
profits. So if an event if there should
be something like that the two companies
will come together and pay you that is
for the property the car the vehicle
insurance those ones but for life I
can't quantify your life I can't say
Derek you are worth 2 million Ghana
cities or 5 million Ghana cities. So in
a way so far as you have affordability
for the life insurance there is
possibility of you in quotes making
profit but when you go
in to insurance with h making profit or
interest you will not see the need for
it and that is one of the challenge of
most Ghanaians. So when you sell so how
much will I make? No, look at the what
if I pass away? What if I am critically
ill? I'm sure you're on social media.
You've seen a lot of people coming on
social media begging for 100,000 Ghana
cities. And I always say like 35 years
for a pure life cover critical illness.
You'll pay around 90 cities 50 pesos a
month. If you take me through that where
I want a life plan of 500,000 Mhm. up to
the age of 70, how much will I pay? You
pay 450 cities 50 pesos a month.
Okay. And what if I live beyond age 70?
At your 70th birthday, at the end of the
term, we give you all your total
contributions without an interest. Total
contributions. Yes. If whichever
whichever is less. So let's assume you
paid um 200,000 but then the payout was
supposed to be half a million. Half a
million. You still pay me 200,000. still
pay you 200,000. Naturally, we are not
supposed to give you
anything. That's the natural thing
because imagine you paid 450 for 6
months. That should be let's say 50 * 6
that's 3,000. It should be around 3,000
cities. In your seventh month, you
become critically ill. We will pay your
beneficiaries 250,000 Ghana cities. If
after two years like my dad he was
critically ill for some time he was on a
policy he passed away they'll pay your
beneficiaries another 500,000 Ghana
cities again we've paid out 250 remember
and we are paying because you passed
away we are paying another 500,000 Ghana
cities too okay okay I get it I get it
where do you think we get the money from
other people yes I have been paying for
10 years mm M my foster father is not
dead. My mom is not dead. They are all
alive and have been paying. But I have a
client who paid for 9 months. Okay. And
the parent passed away and she got the
claim. Can you So it's just like
welfare, our church welfare. So to break
it down for the lane man which 80% of
our in the workforce in Ghana fall under
the informal sector. Yep. So I want to
break it down because they'll be
listening to this for them to
understand. Let's go. Insurance is like
welfare like your church
welfare. So I do the welfare. Cojo papa
lost the mother. We paid me I've been on
it for 10 years. My father has not
passed away but I'm still paying. Why am
I paying? So that the day my father pass
away, the welfare will pay me.
Okay. So this is the moment you
understand insurance like welfare, you
are good to go. Let me stop it here for
a minute. If you've been watching this
show, I want you to subscribe and become
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of changing the lives of people on this
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the family, connect with us, hit the
subscribe button and let's carry on the
conversation. So majority of my audience
are between the age of 24 to about 44.
Yes. I want us to go down on the younger audience.
audience.
Okay. They always listen to me on
conversations about mindset, money,
success. And today we are talking about
financial planning. Yes. So essentially
all I'm saying is that after you've made
the money um you really want to secure
yourself, you need to put it into you
need to have an insurance. Yes. But the
real question
is how can a 24 year old boy see the
need to have an insurance a life cover
at that age?
Okay. So for a 24 year old boy what are
your goals? What are your aspiration?
For me when you come to me I ask you
some I do some fact find fact finding
sorry now the reason I do the factf
finding is to know are your parents
alive okay
oh my dad is alive my mom is alive
that's great do you have dependent are
you married do you have children so now
based on this questions I know what to
tell you so let's assume you are my
client and you have your parents are
life you have a depend you are married
you have dependence I'll ask you where
do you see your child in the next 15
years oh I want my child to go to
university I want my child to be a
doctor that's what they say and I I
follow up okay you know how much it
costs today for at medical school do you
know how much it cost um it's around 60 to
to
100 yes for upkeep
school fees, accommodation
around 100,000. That's great. Now, how
much are you earning
monthly? Oh, some people are open to
give you exact amount. Someone will say,
"Oh, I'm earning around maybe
4,000." Then I'll tell you that we need 20%
20%
of that money of that money to go into
your to go into insurance. 20%. Yes,
please. 20% of any income. Yes. Monthly
income. I see. To go into insurance.
Now, out of that 20%, I'll break it down
based on your needs. So, this person
needs an education policy. This person
needs an endowment plan to plan for his
future or retirement. This person needs
a pure life plan, which you call income
protection plan. Yeah. where critical
illness I've spoken about it earlier
critical illness permanent disability
and death this person needs this and
this person needs a funeral
policy also so based on this I'll
explain the details of the policy for
you and most times I get them
understanding me and I share my personal
story to yes I share my personal story
to them and because I don't want any
child to go through what you what I went
through. I'm in a diaspora. I'm in the
UK. Yes. And I've got my mom and dad
living in Ghana. Yes. But
now how do I go about getting a cover
for them?
Okay. I want to thank the insurance
industry. Now we are going digital. So
you can we have the conversation as I
speak. I'm going to have a zoom meeting
this evening. Okay. With a group of
friends in the diaspora. So we can do
our meetings via zoom. We talk, we go
through the process, you send your
details and we sign on the cover. But
who is going to pay every month? You
will pay. Okay. From your bank account.
From your bank account in Ghana. And
it's going to be in Ghana. Right. So the
person needs to have a bank account in
in Ghana. Yes. Yes. So we deduct from
your account in Ghana. Yes. And some
people maybe they had an account they
are not using and I just told them okay
let's use it to complete the
formalities. Now you can pay through
mobile money. So you just pay through
mobile money. You know, you spoke about
um the funeral cover. Yes. And I've done
some research and I realized that the
average funeral cost in Ghana is between
30,000 to 38,000 which is around maximum
$4,000. Yes. I'm not sure whether that's
a true statement, but I don't know what
you what figures you have. Um um it
depend on your status. It depend on what
you want to do. But I think in my
experience just last month a client made
a claim. The figures are around that
figure. But she I think the total cost
was around 50,000. Okay. 50 to 60,000
for the funeral because why I say so the
coffin an average coffin is like 4,000 ciders.
ciders.
The graveyard was I think 8,000 ciders.
This is from a client. I don't know how
true it is, but this is what she said.
Now, the food is costing 60 cities per
plate and they are expecting about 400
people. Wow. For the event. That's way
more than that. That's way more than
38,000 already. Yes. Then the drinks,
the canopy, I think canopy like um the
music and it's like a three or 4 day
event, isn't it? Yes. So that cost is
something I I can't imagine how people
are able to do this. How do they do it
traditionally? How do people and and
Yeah. How do they cater for this? Okay.
So some people go for a loan.
What? They go for a loan, sir. For a
loan. Yes, please. Okay.
They go for a loan and some the family
come together and contribute and maybe
maybe we are we are we are four siblings
let's say my mom pass away maybe the
total the family will say you guys
should bring 20,000 okay so the four of
us will share 5,000 5,000 each then the
family they will also contribute the
money from their end they'll cut they
will give everyone a quot now the after
the funeral the the monies people
donated they share the money they share
it like okay you you paid 5 20 30,000
take this one paid this take out of the
contribution so you hear that some
family will say right
right
like they've they've done a funeral and
they've lost that means they didn't get
money from enough contribution from um
those who to see them. So this is in the
hope I'm going to take a loan for the
funeral in the hope that when the guests
come in they will contribute enough for
me to go and offset that debt depth. Yes.
Yes.
Yes. Yes. Or some people take their
savings or their investment and this
week I did a I said you can't it's it's
it's not good. It's it's not financially
prudent to use your savings to do a
funeral. It's not it's not financially
prudent to do that at
all. So while daddy was strong and
working in his 30s and 40s, mommy was
strong and working, they should have had
a cover. Yes. That would take care of
them when they die as well as the
children. The children. Yes. That's it.
That's all we saying. That's all we are
saying. That's all we are preaching and
that's what I am preaching. Not just
about death, critical illness. Some
people can be sick for three years. You
have an accident even.
Yes. I had a client last year. I felt
really I felt that if I have not
achieved anything as an insurance agent,
this is
fulfilling. He had an accident. He's
over 38 years. He had an accident and he passed
passed
away and he bought a 1 million Ghana
cities cover the policy I explained and
it was around March. Yes, around March
last year and he passed away. It was a
very devastating moment. The
family kind of took over some things
from the woman. You know, if they don't
like you as a woman, no, no, frustrate
your life. And I said, "If you love your
family as much as you care, you say you
you love them, you protect your life."
And I'm glad, let's call him Mr. Ata.
Mr. Ata did that policy. We paid the
family 1 million Ghana cities. That's
the wife because she was the trustee. We
gave her 1 million Ghana cities. This
year, she came for her first 100,000 and
we are going to pay for the next 10
years. He did a 10 years plan. we are
going to pay for the next 10 years and
we we will pay another 1 million at the
end of the term. I mean this all sound
well and good are there in the
situations where you guys don't pay out
one if you don't meet the waiting
period. What does that mean? That's
okay. So there's a duration for you to
pay before you qualify for the for the
benefits. So let's assume 6 months. Some
are 6 months. Some policies are one
year. So let's assume we start today.
Your policy starts from 1st June. So
June, July, August, you pass uh you pass
away within that period. If it's true an
accident like my client for accidental
debts, there are no waiting period we
pay out. But if it's a natural like
sickness, those ones we return the um
depending on the policy. For some
policies, we return the premium you pay
back to you. But for some that's the end
of the policy. So if you don't meet the
waiting period, we won't pay. I have a
life cover in the UK. Can I have a life
cover in Ghana as well? Yes. Yes. Yes.
For life covers, you can have as many as
you can. Okay. Because we can't cost
your life. I said it in my earlier
submission. I can, as I say, I think my
cover is about 2 million Ghana cities
because I know if something happened to
me today, I'm the bread winner of my
home. So I don't want my siblings to
suffer. So you can have as much and you
can buy with any company. You can buy
with company A, company B, company C,
but we don't tie you for life insurance.
You know, it's definitely better to have
I think you mentioned better to have a
cover than not to have at all. Than not
to have or even, you know, they start
doing a GoFundMe page for when the
person is critically ill. Yes. or um you
know passes away you know especially we
see that a lot with the celebrities um
it happens a lot I mean I don't
understand it's 400
50 c 50 cities a month it's because of
the mindset I said one the religious
mindset that's the first one the second
one is people think it's a scam we are
not used to it and
Their education is low. Okay. Okay. And
we speak a lot of insurance jargon like
you say I said what waiting period. I
felt you should know but the your
audience watching us will not know what
waiting period is. So I need to explain
it is the duration for you and because
excuse me the sales people are working
on commission. So they are in a hurry to
go. So instead of educating, we are
selling. Right? Let me stop you here for
a minute. If you've been watching this
show, I want you to subscribe and become
part of the family. We are on a journey
of changing the lives of people on this
channel and we appreciate you for being
here. But if you haven't become part of
the family, connect with us. Hit the
subscribe button and let's carry on the
conversation. A lot of people are also
saying that insurance is for rich
people. Yes, that's it's just something
for the rich. If you've made all your
money, you know, um
um what do they call them? Trust fund
babies or something like, you
know, so the average broke man is not
going to think about it at all. Why why
should they? Yes, it's true. It's true.
See, I spoke to my uncle before coming
to the show. He told me that that that
is the problem. One, the education is
low. Two, the policies seem expensive.
But I can tell you confidently today, we
have policies of that you can pay three
Ghana cities, three cities, 111 CD,
three. Wow. Look for a 5,000 cities
cover. Okay. All right. 5,000 cities.
Yeah, that's not bad. But you see, it's
always also the value of the money,
right? The value. The value that it
retains over time. Yes. So, for example,
500,000 today. If you pay me 500,000
today, in about 20 30 years, 500,000 is
not going to have the same value as is
probably almost in Ghana right now. 10
years, that's half of that. 10 years ago
when I started, people who I sold to
told me the same same thing that oh
50,000 for a year is very small. Yeah.
But today is still without let's assume
they didn't even take escalator. 50,000
today still make something even if it
can't meet their needs or settle all
their needs it will do something. So we
have measures to help you which is the
escalator. So you see people complain I
do the insurance and every year
they just increasing it. People say that
a lot. So but do you do that? Do you
increase policies? We tell you but why I
tell you I don't understand. We increase
the premium to curve against inflation.
What you just said? So as your premium
increase, your sum assured also
increases. Well, no, hold on. If you
have a fixed payout, 500k fixed payout,
there's no incremental interest on it.
No. Do you still increase premium? Um um
the monthly? No. Okay. But if you have
annually, not monthly, annually,
it do you still increase it annually?
No. If you say you don't want increment,
it will be flat for you. Okay, cool. But
why do people go for increment? Because
500 to,000 today, as you said, has
value, right? But 500,000 15 years from
now will not have the same value like it
has today. So we we advise you to take
an increment. Your premium will increase
and your sum assure the 500,000 will
increase relatively. So like me I
started my funeral policy with
30,000 Ghana cities and I took an
increment of 30%. So and annually I
started I think 89 cities. So annually
my premium was increasing. Now today I
pay around 600 and something and it has
increased to my sum has increased from 30,000
30,000
to 15,000 Ghana cities. Yes.
Wow. I'm just really thinking around how
people would take loans for funerals. I
mean, there was a situation where one of
my uncles passed away in the UK and they
couldn't afford to even bring his dead
body here or even give him a beitting
barrel over there. That's my father's story.
story.
The day they brought my father, they
brought him in a pickup, his dead body
from the mry, we we they had three
people. They were burying three people
that day. And the the the other
families, they came in a house. But
because my dad was poor, they brought
him in a pickup, the pickup boots, and I
vowed. and Ecclesiastes
10:19b has been my
vest. I don't want to be poor. Money
answer all things.
So I a vow that no matter what I do,
even if I won't leave property, I won't
leave money for my dependent, I will
leave money for them.
I'll leave money for them. without money
they can buy and build or do anything
they want to do in my demand in my
absence and the Bible says if you are
not given a good burial because some
people say if they won't bury me throw
me they should throw me away on the
street the Bible says I'm a Christian so
that's why I'm quoting the Bible if you
are not given a good burial an infidel
is better than you or you are a
stillborn is better than you yes
I see yes and Um I guess since you are
talking about biblical quotes and this
is money. I can also say this one. I
don't know where the quote is but it's
somewhere in the Bible that says that a
good man leaves inheritance for his for
his children children you know. So this
is very important that we talk about our
financial planning especially if you are
if you're part of my audience where we
are so focused on building our lives.
Yes. You know because look I'm not just
having this conversation because you
know I just want to have an episode out.
I have a cover you know and it's it's
beautiful. I I keep telling my wife and
I telling my children that it's very
important what we have done for them at
this age. There are certain plans that
I've put together for these kids and for
my wife that I I I don't know if today
you should pass away. Beautiful. If you
should pass away today, your wife will
leave your legacy. And I say you need to
have an insurance to do your will before
you make money. Yes, insurance helps you
to make a will before you make money.
You see the way I'm so babbling and like
if I die today, my family will be rich.
I don't have a car. I don't have a
house. I don't have maybe liquid cash.
But I know if I should pass on today, my
family will be they will be millionaires
because you because I have covered
myself at least enough for now to my
capacity of my income. So even if you are
are
earning 500 cities, please three cities
coco money do insurance.
Has there been any client of yours where
you've paid out towards their funeral?
Personally, for my personal No, no, no,
no, no. As for your from your company?
Yes. The the guy who died last year.
Okay. We gave you actually paid We gave
them the family 1 million. Okay. We gave
them 1 mill the wife. Sorry, not family.
Okay. That's his family now. So, we gave
his nuclear family 1 million. I see.
annually she she came this year for
100,000 she don't receive it till the
10th year and at the 10th year they'll
come for another 1 million Ghana cities
again wow yes okay
okay is there any question that I could
have asked you that I haven't that we
can still talk about
yes um maybe how do we reach out now how
is the claim process like okay let's go
because some people feel the claim
process is cumbersome these are some of
the the conception misconception of
people that the claim processes are
cumbersome all right talk to but now um
we've made it so simple we've
digitalized it from anywhere so like you
maybe covered your parents and you are
in UK and they pass away you just send
you the details so what you need for
life insurance you need medical cause of
death or death certificate kids. Okay.
If the person passed away in the house
or through an accident, you need a police
police
report to that's what the second thing.
Then you need your ID card and your
parents ID card. So for the ID cards, we
take health insurance, snate card,
voters ID, any Ghanaian ID card, right?
National ID, we take them. Then we need moy
moy
receipt. If you are a Christian or the
person is in the moy, we need mary
receipt for our brothers who are not
Christians or they don't take their
people to mury. They need um someone a
legal person to write on a letter head
to state that okay a the abd person has
passed away. So for the Muslims they are
imam in their mocks can do that on but
it should it needs to be on a letter
head. Okay. Then um after that you need
maybe burial permit. I'm giving all the
documents for some is either or but if
you have all it is good it makes the
claim process
faster. So these are the basic things
you need for a claim process for debt.
If it is for critical illness, the
doctor will give you a report. We'll
also give you a form to send to the
doctor and the doctor will fill it. We
just want to know the severity of the
illness and we pay out.
What constitute a critical illness? So
depending on the policy and the
documents, the illnesses that cover. So
illnesses that make you not to work for
3 months or more. Okay? Example, renal
failure. All cancerous diseases are
covered. Um stroke,
stroke,
blindness, madness, sorry, not
like lost your loss of mind, loss of
sight. So a lot there's a lot of
illness. So depend. So just read your
documents when speaking to the agent.
Ask them to show you the what the policy
cover. And I think this is something h
our most Ghanaians don't do. They don't
ask those questions and they don't read.
They don't read. So for me, after we I
signed the policy, I send you the
document. I send the document and I send
you the claim document as well. So right
from the word go, we are good to go. You
know what to do. And sometimes I ask the
client explain what I told you. Explain
it for me. Okay. To me. I want to know
that you understand what I said.
If for example the payout is 500k, do
you pay it all out complete or you pay
it in bits? No, depending on the claim.
If it's death, we pay 500 out outright.
Okay. Great. Great. We pay. But if it's
the income protection policy, so if you
are critically ill, you are covered half
of the 500,000. So that's we pay 250,
you are still on cover. If permanent
disability occur after depending on the
degree of disability, you will get up to
500,000. So if you lost like your arm
here and the doctor says this disability
is let's say 50%. So that means we'll
pay you 50% of the 500,000
then you come again for in the event
death should occur we'll pay another
500,000 again. Okay. So you can do
multiple claim on the income protection policy.
policy.
I have some favorite questions here that
I usually ask. Okay. The first one is
motivation or discipline.
I am a disciplinarian. So discipline.
Okay. Why do you think it's important?
So when discipline fail, when motivation
fails, discipline keeps you going.
People can't keep motivating you always.
But when you are disciplined, you are
able to go far. Even in the midst of
adversities, you push through. Yes, I
could have told you today that I can't
be here honestly. at and on my way I
told the guy that I might be 10 minutes
late because looking at the time from
when I picked the Uber to hit this place
it's a calculation and I hate to be
late. So I told him I might be 10
minutes late kindly pardon me. So, I was
so happy I got here on time. But to some
people, oh, they don't care. It's 11
Ghana time. 11:30 is fine. But no, 11 is
11. If I tell you that A B C D is what
my policy do, believe me, that is what
the policy do.
So, I've done a policy here.
20 million Ghana cover. Okay. But then I
passed away in Dubai. How would that
work? Were you in Ghana when you signed
the policy? Yep. Yes. We'll pay. So we
need the documents from
Dubai because the moment anybody die,
they will give medical cause of death.
You have your Ghanaian ID, your Ghanaian
ID cards. So we we'll contact the
hospital. So your family will just
forward the details email. Now we are
digital so you send it to us on email
and we we will do our checks. Now
another thing is there are lot of
fraudulent claims out there. I want to
use your platform to state it maybe the
industry is quiet on
it but a lot of people are are doing
fraudulent claims. Okay. Last year a
post went viral where somebody wrote
that how will an insurance company ask
um somebody to bring for when they give
weighing card
okay that the person was he was
advocating for someone that the
insurance company asked the person to
bring weighing card of the diseased you
see it's funny right so the people
tagged me on Facebook on that post and I
picked it up. Okay, Derek. And I
immediately I called because I know a
few people at NIC because he tagged NIC
and I called the person asked for the
story, got the story and I called NIC
that no company A is not paying this so
so client. What is the issue? The long
and short of it is that the person
covered somebody he didn't have
insurable interest on. So when we say
insurable interest, we have people if
they pass away, you will feel it
financially. So you Derek, I can't cover
you. I'm not your sibling. I'm not your
spouse. I'm not
your, you know, I'm not your anything
close to you. So I won't get up and do
insurance for you because So this
situation, the person knew that that
person was sick. So he went to do
insurance for the person. Wow.
Then the event death didn't even occur.
I don't know how he got all the
documents and brought it to the company
and if you have processed claim for a
long time when the documents is not
correct you will know. So they asked him
to bring the weighing card of the person
and that's what made the person go
haywire. At the end of the day, they
just had to, you know, they he should
have been arrested
and brought out so that people will know
that people are doing fraudulent
claim. We save almost 1.4 million Ghana
cities 2 years ago on fraudulent claim.
I see. Yes.
But what's the best advice you've ever received?
received?
Never give up.
Never ever never give up. No matter what
you are going through, the sun will
definitely shine on you. When the
journey gets tougher, know that that is
when the your breakthrough is
coming. I've enjoyed this conversation.
Thank you so much for coming. And if
you've been here and if you didn't make
it to the end, you're a champion. Leave
a comment and let me know that you
definitely did. My name is Derek Abite.
Stay connected. [Music]
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