Konnected Minds Podcast

Insurance Expert: Why Life Insurance Isn't Just for the Rich but a Lifeline for Those Left Behind - Benedicta Wugah

• Derrick Abaitey

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What happens when the unthinkable occurs and you're gone too soon? Who will pay your children's school fees? How will your family maintain their standard of living? These aren't comfortable questions, but they're vital ones.

In this powerful conversation, Benedicta Wugah—known throughout Ghana as the "Insurance Queen"—shares her heartrending journey from poverty to becoming a financial protection advocate. After losing her father to cancer with no insurance coverage, teenaged Benedicta was forced to become a "kayayo" (head porter) at Ghana's borders, facing exploitation and abuse just to pay for schooling. This personal trauma transformed into purpose as she dedicated her life to preventing others from suffering similar fates.

"Most Ghanaians don't believe in insurance," Benedicta explains, addressing widespread misconceptions head-on. Many view policies as scams, bad omens, or luxuries for the wealthy. Yet with funeral costs averaging 50,000-60,000 cedis, families often resort to loans or deplete savings during their most vulnerable moments. Benedicta demystifies various insurance products—from pure life plans covering critical illness and death to endowment policies with investment components—explaining how coverage can be secured for as little as 3 cedis monthly.

Through compelling client stories, including a man whose one million cedi policy now supports his widow and children with annual payments, Benedicta demonstrates that insurance isn't merely about death benefits but about creating financial legacies. As she poignantly states, "Insurance helps you make a will before you make money."

Ready to rethink how you protect your loved ones? This episode offers clear, actionable advice for securing your family's future regardless of your income level. Subscribe now and join the conversation about true financial security that extends beyond your lifetime.

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Speaker 1:

I went to one of my father's friends to get money to pay my brother's fees. He drove me to a movie house so he gave me 80 cedars. I asked myself if you don't buy insurance, you want your children to suffer? Most Ghanaians don't believe in insurance. Somebody would prefer to do suicide than to buy a life insurance, because some people think that it's a scam to sit down to buy a life insurance. Because some people think that it's a scam. I have a client when she did their policy two months after and their mother died. People think they'll die.

Speaker 2:

What is the purpose of insurance cover?

Speaker 1:

The purpose is for those you leave behind, so why will you want to die and make them suffer?

Speaker 2:

I want a life plan of 500,000 up to the age of 70. How much would I pay?

Speaker 1:

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 again.

Speaker 2:

Hey, welcome to Connected Minds Podcast. My name is Derek Abayte. 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.

Speaker 2:

Our special guest is Benedicta Uga, 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'll 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, benedetta's background and why she's known as the queen of insurance. It's really simple because she's a top consultant in the financial industry in Ghana and she's also a member of the Million Dollar Round round table, which is recognized for its exceptional service.

Speaker 2:

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 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 future. You know this is 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?

Speaker 1:

Okay, I'm the only daughter of my parents and I have three brothers. My parents moved to Nigeria to seek for greener pastures. They decided I should come to Ghana to further my education. I attended Dora Memorial Maoli School and I have a diploma in marketing from UPSA. My life turned around when I went to Nigeria. After junior high school, that's after my final exam, I went to Nigeria.

Speaker 1:

One night my dad fell ill and we took him to the hospital. The next day he was diagnosed of prostate cancer. Then we spent three days at the hospital and the night he was discharged. Anne Roberts came to our home. They did away with all our valuables and cash. It was at gunpoint. So you can imagine a 12, 13-year-old girl going through that Now.

Speaker 1:

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 are also seeking for greener vaches there, so she started selling food and all that. So this situation made me I didn't start school with my colleagues at Maule. Immediately I spent about a time at home and when I came life was tough. You know the situation. The breadwinner is critically ill at the house, so you know how things were not okay. But with the help of friends and some church members who supported me through school, now sometimes I go to Benin to go help my mom to sell their food. You know Benin, they speak French, we speak English, so you can imagine the language barrier. So I have to depend on the bonjour bonsoir that they taught us in school to roll. Anyway, some days, derek, I go to Aflau border to do kayaye. I mean, I was a head porter girl, so I take load from Lume into Aflau, then Aflau, crossing the border, 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 does. I was home for about six years.

Speaker 1:

In 2010, I came to Ghana. I started UPSA with my two younger siblings Right there. My father, the week 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 Mad dinner market. I sew 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, any parents.

Speaker 1:

Then I was like 26. My mom wanted me to settle down. Did I? Yes, but the relationship lasted for just six 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, my 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 Detono, and he was the one who and she 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, front of you as a financial consultant.

Speaker 2:

Wow, you've done amazing.

Speaker 1:

Yes, you've done amazing yes.

Speaker 2:

But there's something about you that makes it so. It's almost very personal to you.

Speaker 1:

Yes.

Speaker 2:

And when I read the post that you put out there, it's very informative and it's almost as if you're trying to get everybody to get a cover yes, I wish everybody in ghana will have an insurance.

Speaker 1:

Why? Because of my personal experience, the things I've gone through you, my father's friends a close friend 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 carnal knowledge of me to before he would give me how much was it? 50 Ghana cedars, Wow. So he gave me 80 cedars.

Speaker 2:

This was a friend of.

Speaker 1:

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 would 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 it's very personal. If you don't buy insurance, you want your children to suffer.

Speaker 2:

You think you went through that because dad could not put certain measures in place prior to his demise?

Speaker 1:

Yes, because when he had prostate cancer he was around 45 thereabouts. So let's assume my 100,000 summer short policy example he would be paying around 180 CDs 50 pesos for 100,000 cover and with prostate cancer, if he had that amount and they gave it to us, when do you think my mom will go to Benin to start selling? You think I'll be a kayayo at Aflau border. You know the ricks. That's been a kayayo there.

Speaker 1:

I was sleeping in cars and some of the drivers want to sleep, have carnal knowledge with you, and there was a guy there. I'll never forget him. His name is Kwame. If he's watching this podcast, I'm telling him thank you. He always fought for me, he covered me and when the drivers do that, he'll give me money. I'll 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 hundred thousand cover, it would have taken me far to even finish school quickly, start work quickly and all that cover. It would have taken me far to even finish school quickly, start work quickly and all that, yes.

Speaker 2:

so I know there was a time I was involved in a conversation and then I was telling this couple that they should go for a life insurance cover this was over a conversation we were 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.

Speaker 1:

Yes, traditionally, most Ghanaians don't believe in insurance because we have been sacked or we'd rather go for landed properties. Or we go for 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 susu. Somebody would prefer to do susu than to buy a life insurance, as because of the perception, because some people think that it's a scam. Okay, that's what. The first thing Some do their religious belief. They think that my religion, especially my Muslim brothers, they don't spend a lot for funeral, so after the funeral I would spend only, let's say, a thousand cedis for the funeral. What happened?

Speaker 2:

But then what's really the truth? What is the purpose of an insurance cover, A life cover?

Speaker 1:

The purpose is for those you leave behind. And I always say this Fritz, if you are a good trustee, the question is are you a good trustee? 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 is at a balcony and you ask your child to drop? You are down and he said jump, I'll catch you. Do you think your child will jump? Yes, why do you think your child will jump?

Speaker 2:

you've done it several times.

Speaker 1:

You trust me she trusts you, so your child will jump because she trusts you and that child trusts you with their future. I believed my daddy would pay my fees and he told me that he wants me to be the first female president of Ghana that's what he told me and he'll buy a car for me when I'm coming to the university. Did he fulfill that dream? No, I think I won't forgive him. But I've 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 have the perception of what the lady said. So people think they'll die. I have a client who came under my post and said when she did the policy two months after and the mother died, and she felt that because she did the policy two months after and the mother died, and she felt that because she did the insurance, that is why the mother died.

Speaker 2:

That's such a limiting belief, what? Wow, yes.

Speaker 1:

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. 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 death. Critical 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.

Speaker 1:

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 an investment component in it. So let's say, derek, I'm ensuring you said oh, the kind of school and lifestyle your family is. You want 10 million ganas 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 happens to you, we'll give you 10 million ganas to this. However, if you should pass away. Let's say you paid for two years and 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'll give them another 10 million. Ghana cities again.

Speaker 1:

Okay, alright 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. So you did 15 let me go over. You did a 15 year time. You took, let's say, 2 million Ghana cities as your cover example for 15 years and you paid for 2 years tortured. God called you as you'll cover example for 15 years and you paid for two years Tattooed, god called you.

Speaker 1:

We'll pay your beneficiaries 2 million ganasides. 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 needs to be maintained, the car needs to be full right, the standard of living, the kind of school they attend. They still need to continue that school. It's not because daddy is gone. So I was attending ST&T Regency, which is like 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 their 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.

Speaker 2:

Well, I guess the biggest question is how much does it cost? I earn, and I'm going to talk about a local Ghanaian, and then we're going to talk about the diaspora. I earn 2,000 cities every month. I earn 2,000 CDs every month. Okay, 2,000 CDs every month.

Speaker 1:

Okay.

Speaker 2:

So what cover can I have for a 35-year-old man who earns?

Speaker 1:

2,000 CDs every month to protect me. Okay. So for me the advice I give is either your summer share should either be 10 times your annual income, so that's, that would be 240. Say this 240,000, so that's 2,000 Times, 12 Right Okay Times, 10 Times 10 Right, that's 240,000 Right. So that's the what I would advise you To take. Okay, for how many years? So, depending on, or 40,000, right, so that's the what I would advise you to take.

Speaker 2:

Okay, for how many years?

Speaker 1:

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 to 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 I have a policy for that Right.

Speaker 1:

So for this person, he will be paying around 550 CEDIS every month, every month from the 2000 yes okay if it is too much, he 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 say, if we even add 10% or 15%, he will still get around the 240,000 ganas.

Speaker 2:

See, the question I always ask when it comes to insurance is I know that insurance companies make a lot of money. Insurance companies, I mean, I've been paying comprehensive for like, and usually I get an accident and I fix it myself. Right, I know insurance companies may make a lot of money, you're not supposed to fix it.

Speaker 2:

Because you know what happens. Do you know what happens as soon as you go and fix it, your premium goes up the next year. So it's I usually say that to be able to do an insurance that really would make sense, say that To be able to do an insurance that really would make sense, there has to be interest also paid on the payout.

Speaker 1:

Okay For insurance and I think that's some concerns of people Insurance is not an investment. We need to separate the two. 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 or came. So that's why, when you have a car, you can't insure one car with two companies. So maybe your car? You can't insure one car with two companies. So maybe your car, you insure it with company A, you insure it 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 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.

Speaker 1:

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 for us, we have affordability for the life insurance. There is possibility of you, in quotes, making profits. But when you go in to insurance with making profits or interest, you will not see the need for it, and that is one of the challenge of most Ghanians. 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 CDs and I always say like 35 years for a pure life covered critical illness. You'll pay around 90 CDs, 50 pesos a month.

Speaker 2:

If you take me through that where I want a life plan of 500,000 after the age of 70, how much would I pay?

Speaker 1:

You'll pay 450 to these 50 pesos a month.

Speaker 2:

Okay, and what if I live beyond age 70?

Speaker 1:

At your 70th birthday at the end of the term, we give you all your total contributions without an interest. Total contributions.

Speaker 2:

Yes, If whichever is less.

Speaker 1:

So let's assume you paid 200,000.

Speaker 2:

But then the payout was supposed to be half a million. Half a million. You still pay me 200,000. You still pay 200,000.

Speaker 1:

Naturally, we are not supposed to give you anything. That's the natural thing. Because imagine you paid 450 for six months. That should be, let's say, 50 times six, that's 3,000. It should be around 3,000 cities. In your seventh month you become critically ill. We will pay your beneficiaries 250,000000 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 under policy, he passed away You'll pay your beneficiaries another 500,000 Ghana cities. Again, we've paid out 250,000, remember, and we are paying because you remember and we are paying because you passed away. We are paying another $500,000 to this.

Speaker 2:

Okay, Okay, I get it.

Speaker 1:

I get it.

Speaker 2:

Where do you think we get the money from? From other people?

Speaker 1:

Yes, I have been paying for 10 years. My foster father is not dead, my mom is not dead, is not dead. My mom is not dead, they are all alive and I've been paying. But I have a client who paid for nine months, okay, and the parents 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 lame man, which 80% of our, the workforce in Ghana, fall under the informal sector. So I want to break it down because they'll be listening to this for them to understand. Insurance is like welfare, like your church welfare. So I do the welfare. Kojo Papa lost their 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, their welfare will pay me, okay? So this is the moment you understand insurance like welfare. You are good to go.

Speaker 2:

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. 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.

Speaker 2:

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 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?

Speaker 1:

Okay, so, for a 24-year-old boy, what are your goals, what are your aspirations For me? When you come to me, I ask you some. I do some fact-finding, sorry. Now, the reason I do the fact-finding is to know are your parents alive?

Speaker 2:

Okay.

Speaker 1:

Oh, my dad is alive, my mom is alive, that's great. Do you have dependents? Are you married? Do you have children? So now, based on these questions, I know what to tell you. So let's assume you are my client and your parents are alive. You have a, you are married, you have dependents. 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 follow up. Okay, you know how much it costs today for at medical school. You know how much it costs today at medical school. You know how much it costs. It's around 60,000 to 100,000. Yes, for upkeep, school fees, accommodation Around 100,000. That's great. Now, how much are you earning monthly? Some people are open to give you exact amount. Some will say I'm earning around maybe 4,000. Then I'll tell you that we need 20% of that money to go into insurance.

Speaker 2:

20%, yes, please 20% of any income.

Speaker 1:

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, 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. Yes, I share my personal story to them and because I don't want any child to go through what I went through, I'm in a diaspora.

Speaker 2:

I'm in the UK, yes, and I've got my mom and dad living in Ghana.

Speaker 1:

Yes.

Speaker 2:

But now, how do I go about getting a cover for them?

Speaker 1:

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 with a group of friends in the diaspora, so we can do meetings via Zoom. We talk, we go through the process, you send your details and we sign on the cover.

Speaker 2:

But who is going to pay every month?

Speaker 1:

You will pay Okay from your bank account, From your bank account in Ghana.

Speaker 2:

It's going to be in Ghana, right? So? The person needs to have a bank account in Ghana.

Speaker 1:

Yes, so we deduct from your account in Ghana. Yes, and some people maybe they had an account they are not using. 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.

Speaker 2:

You know you spoke about the funeral cover.

Speaker 1:

Yes.

Speaker 2:

And I've done some research and then I realized that the average funeral cost in Ghana is between $30,000 to $38,000, which is around maximum $4,000.

Speaker 1:

Yes.

Speaker 2:

I'm not sure whether that's a true statement, but I don't know what figures you have.

Speaker 1:

It depends on your status, it depends 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.

Speaker 1:

Okay 50 to 60,000 for the funeral. Because why I say so? The coffin an average coffin is like 4,000 cedars. The graveyard was, I think, 8,000 cedars. This is from a client. I don't know how true it is, but this is what she said. Now their food is costing 60 cedars per plate and they are expecting about 400 people for the event.

Speaker 2:

That's way more than that. That's way more than 38,000. Yes, Then their drinks, their canopy, I think their music, and it's like a three or four day event, isn't it?

Speaker 1:

Yes, so that cost is something I can't imagine how people are able to do this?

Speaker 2:

How do they do it Traditionally? How do people and how do they cater for this?

Speaker 1:

Okay, so some people go for a loan.

Speaker 2:

What.

Speaker 1:

They go for a loan sir.

Speaker 2:

For a loan.

Speaker 1:

Yes, please. Okay, they go for a loan and some their family come together and contribute and maybe maybe we are four siblings. Let's say my mom passed maybe the total. The family will say you guys should bring 20,000. So the four of us will share 5,000, 5,000 each. Then the family will also contribute their money. From their end they will cut, they will give everyone a quota Now, after the funeral. The money people donated, they share. The money they shared it's like, okay, you paid 530,000, take this one paid this, take out of their contribution. So you hear that some families will say Right.

Speaker 1:

You see, like they've done a funeral and they've lost. That means they didn't get money from enough contribution from those who came to see them.

Speaker 2:

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, Debt yes, yes, yes.

Speaker 1:

Or some people take their savings or their investments that debt Debts, yes, yes, yes. Or some people take their savings or their investments and this week I did a point. I said you can't, it's not good, 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.

Speaker 2:

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.

Speaker 1:

Yes, that's it. That's all we're saying, that's all we are saying, that's all we are preaching, and that's it. That's all we are 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.

Speaker 1:

You have an accident even an accident and it's not working anymore. Yes, I had a client last year. I felt, really I felt that if I have not achieved anything as an insurance agent, this, 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 away and he bought a one million Ghana cities cover, the policy I explained. It was around March yes, around March last year and he passed away. It was a March, yes, around March last year and he passed away. It was a very devastating moment.

Speaker 1:

The family kind of took over some things from the woman. I know, if they don't like you as a woman, don't frustrate your life. And I said if you love your family as much as you care, you say you love them, you protect your life and I'm glad let's call him Mr Atta. Mr Atta did that policy. We paid the family one million ganasidas. That's the wife, because she was the trustee. We gave her one million ganasidas. This year she came for her first hundred thousand 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. He did a 10 years plan. We are going to pay for the next 10 years and we will pay another 1 million at the end of the term.

Speaker 2:

I mean this all sound well and good. I've had this in the situations where you guys don't pay out one if you don't meet the waiting period.

Speaker 1:

What does that mean? That's okay, so there's a duration for you to pay before you qualify for the benefits.

Speaker 1:

So let's assume six months. Some are six 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 away within that period. If it's true an accident, like my client, for accidental deaths, there are no waiting period. If it's true, an accident, like my client, for accidental deaths, there are no waiting period, we pay out. But if it's a natural, like sickness, those ones we return 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.

Speaker 2:

I have a life cover in the UK. Can I have a life cover in?

Speaker 1:

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 breadwinner 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.

Speaker 2:

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, 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 you know, passes away. You know, especially we see that a lot with the celebrities, it happens a lot. I mean I don't understand, it's 400 50.

Speaker 2:

CDs 50 CDs a month.

Speaker 1:

It's because of the mindsets. I said one, the religious mindsets. That's the first one. The second one is people think it's a scam, we are not used to it and there's not enough education. The education is low.

Speaker 2:

Okay.

Speaker 1:

And we speak a lot of insurance jargons, like you said. I said waiting period. I felt you should know, but your audience watching us will not know what waiting period is, so I need to explain. It is the duration for you and because the salespeople are working on commission so they are in a hurry to go. So instead of educating, we are selling, right.

Speaker 2:

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.

Speaker 1:

Yes, that's true, it's something for the rich If you've made all your money.

Speaker 2:

You know what do they call them. Trust fund babies or something like that, you know. So the average broke man is not going to think about it at all, why should they? Yes, it's true, it's true.

Speaker 1:

See, I spoke to my uncle before coming to the issue. He told me 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 that you can pay. Three Ghana cities, three cities, one one, one city three for a 5,000 cities cover Okay.

Speaker 2:

All right, 5,000 cities, yeah, that's not bad. But you see, it's always also for a 5,000 cities cover. Okay, all right, 5,000 cities here, 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, it's not going gonna have the same value as it's probably almost in ghana right now 10 years.

Speaker 1:

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 funeral there is very small, yeah, but today is still without. Let's assume they didn't even take escalator. 50 000 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 yeah, I do the insurance and every year they are just increasing it. People say that a lot.

Speaker 2:

But do you do that? Do you increase policies? We tell you, but why do you increase policies? I don't understand.

Speaker 1:

We increase the premium to curve against inflation what you just said. So as your premium increase, your sum assured also increases. No hold on.

Speaker 2:

If you have a fixed payout 500k fixed payout there's no incremental interest on it. No, do you still increase premium? No, the monthly no, okay. But if you have, Annually, not monthly.

Speaker 1:

Annually, 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?

Speaker 2:

for increment.

Speaker 1:

Because 500,000 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 advise you to take an increment. Your premium will increase and your sum assured. The 500,000 will increase relatively. So, like me, I started my funeral policy with 30,000 ganasidus and I took an increment of 30%. So annually I started with, I think, 89 cedis, so annually my premium was increasing. Now today I pay around 600 and something and it has increased to. My sum of short has increased from 30,000 to 115,000 ganassidis.

Speaker 2:

Yes, Wow, I'm just really thinking around how people would take loans for free loans. I mean there was a situation where one of my uncles passed away in the UK. 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 befitting burial over there.

Speaker 1:

That's my father's story. The day they brought my father, they brought him in a pickup, his dead body, from the mortuary. They had three people they were burying three people that day and the other families. They came in a hearse but because my dad was poor, they brought him in a pickup their pickup boots.

Speaker 1:

And I vowed and Ecclesiastes 10, 19b has been my verse I don't want to be poor. Money answereth all things. So I vowed that no matter what I do, even if I won't leave property, I won't leave money for my dependents property. I will leave money for my dependents. I will leave money for them. I'll leave money for them. With that 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, 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 a stillborn is better than you.

Speaker 2:

Yes, I see.

Speaker 1:

Yes.

Speaker 2:

And I guess, since you are talking about people, look how quoting this is money.

Speaker 1:

I see yes.

Speaker 2:

And I guess, since you are talking about look how cool it is, 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 lives in inheritance for his children. So this is very important that we talk about our financial planning, especially if you are part of my audience where we are so focused on building our lives.

Speaker 1:

Yes.

Speaker 2:

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 beautiful. I keep telling my wife and I tell 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, plans that I've put together for these kids and for my wife that I don't know.

Speaker 1:

If, today, you should pass away, 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.

Speaker 2:

Yes.

Speaker 1:

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. There will be millionaires because you've covered I have covered myself, at least enough for now to my capacity, of my income. So even if you are earning 500 CDs, please three CDs. Cocoa money, do insurance.

Speaker 2:

Has there been any client of yours where you've paid out towards the Afeno? Personally, for my personal no no, no, no, no, as for your, from your company.

Speaker 1:

Yes, the guy who died last year.

Speaker 2:

Okay, you actually paid.

Speaker 1:

We gave them their family one million. Okay, we gave them one million. Their wife sorry, not family, okay, that's his family now. So we gave his nuclear family one million, I see. So we gave his nuclear family one million Annually. She came this year for 100,000. She don't receive it, so that 10th year and at the 10th year they'll come for another one million. Ghana cities again.

Speaker 2:

Wow, yes, okay, okay, berekta, is there any question that I could have asked you? That I haven't that, we can still talk about.

Speaker 1:

Yes, 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 misconceptions of people that the claim processes are cumbersome.

Speaker 2:

Alright, talk to me.

Speaker 1:

But now we've made it so simple, we've digitalized it from anywhere. So, like you, maybe you covered your parents and you are in UK and they passed away Just send you the details. So what you need for life insurance, you need medical, cost of death or death certificates. Okay, if the person passed away in the house or through an accident, you need a police report. So that's the second thing. Then you need your ID card and your parents' ID card. So for the ID cards, we take health insurance, snit card, buddhist ID, any Ghanaian ID card, right, national ID we take them.

Speaker 1:

Then we need mortuary receipts. If you are a Christian or the person is in the mortuary, we need mortuary receipts. For our brothers who are not Christians or they don't take their people to mortuary, they need someone, a legal person, to write on a letterhead to state that, okay, the A, b, c, d person has passed away. So for the Muslims, their imam in their mocks can do that, but it needs to be on a letterhead, okay. Then after that you need maybe burial permit. I'm giving all the documents, for some it's 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 deaths. If it is for critical illness, the doctor will give you a report, will 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 constitutes a critical illness?

Speaker 1:

so, depending on the policy and the documents, the illnesses that cover cover so illnesses that make you not work for three months or more. Example renal failure. All cancerous diseases are covered, Stroke, blindness, madness Sorry, I lost my mind of sight. So a lot, there's a lot of you know so depending. So just read your documents when speaking to the agents, ask them to show you the what's the policy cover. And I think this is something, uh, 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 I signed the policy, I send you the documents, I send the documents and I send you the claim documents as well. So, right from the word go, we are good to go. You know what to do, and sometimes I ask the clients explain what I told you. Explain it for me, Okay, To me. I want to know that you understand what I said.

Speaker 2:

If, for example, the payout is 500K, do you pay it all out complete or you pay it in bits?

Speaker 1:

No, depending on the claim, if it's death, we pay 500 outright.

Speaker 2:

Okay, great.

Speaker 1:

But if it's the income protection policy. So if you are critically ill you are covered half of the 500,000. So that will pay 250. You are still on cover If permanent disability or care 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 claims on the income protection policy.

Speaker 2:

I have some favorite questions here that I usually ask. Okay, the first one is motivation or discipline.

Speaker 1:

I'm a disciplinarian, so discipline.

Speaker 2:

Okay, why do you think it's important? Disciplinarian, so discipline Okay.

Speaker 1:

Why do you think it's important? So when discipline fails, when motivation fails, discipline keeps you going. People can't keep motivating you always, but when you are disciplined, you are able to go, for even in the midst of adversities, you push through. Yes, I could have told you today that I can't be here, honestly, but, 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 a hidden 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 ABCD is what my policy do, believe me. That is what my policy do. Believe me, that is what the policy do.

Speaker 2:

So I've done a policy here 20 million cover.

Speaker 1:

Okay.

Speaker 2:

But then I passed away in Dubai. How would that work?

Speaker 1:

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'll contact the hospital. So your family will just forward the details on the email. Now we are digital, so you send it to us on email and we will do our checks. Now another thing is there are a lot of fraudulent claims out there. I want to use your platform to say it. Maybe the industry is quiet on it, but a lot of people are doing fraudulent claims. Last year, a post went viral where somebody wrote that how will an insurance company ask somebody to bring when they give weighing card?

Speaker 2:

Okay.

Speaker 1:

That the person was. He was advocating for someone that the insurance company asked the person to bring weighing card of the deceased. You see it's funny, right? So people tagged me on Facebook on that post and I picked it up.

Speaker 2:

Okay.

Speaker 1:

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 their story, got their story and I called NIC. They're like no company A is not paying this so-and-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 anything close to you, so I won't get up and do insurance for you.

Speaker 1:

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 document 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, he should have been arrested and brought out so that people will know that people are doing fraudulent claims. We saved almost 1.4 million Ghana cities two years ago on fraudulent claim. I see yes.

Speaker 2:

Predator, what's the best advice you've ever received?

Speaker 1:

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 your breakthrough is coming.

Speaker 2:

I've enjoyed this conversation. Thank you so much.

Speaker 1:

Thank you.

Speaker 2:

And if you've been here and if you did make it to the end, you're a champion.

Speaker 1:

Leave a comment and let me know that you definitely did.

Speaker 2:

My name is Derek Abaite. Stay connected.