Building a Legacy with Insurance

Picture a high school teacher in Ikuu Boys with a love for teaching and a low profile tea farmer to sustain a young household. A typical Kenyan father of three David did not harness any millions in his account though he wished to provide for his children a figure that was above Ksh 40 million. In what ways was this goal possible for him, and more importantly, how was he able, despite leading an apparently normal life? That was not the secret of the lottery win—it was life insurance. Curious how he did it? I’d like to introduce you to this wonderful man Let’s go through more details of his life.
Investments are associated with buying real estates or stocks but none can be more valuable than life insurance investment. You make a small commitment of paying a small monthly contribution to be shielded from financial loss to pay millions in education, debts, or lives. In contrast to the risky business both in investment and payment, life insurance has definite amounts paid in and assured earnings in return. What about investing your family’s future, is it not the best investment anyone could

make?

For instance, David shows us how life insurance builds a legacy from modest recurring premiums. Life insurance was the decision that, at the age of 37, David was able to make to provide for his family. He paid Ksh 27,000 monthly for 23 years.

Here’s the math:

– Total premiums paid: 27,000 × 12 months × 23years = Ksh 7.45 Million.

Even if he paid this amount, his policy had a promise to pay Ksh 40 million to his beneficiaries in the event of his premature demise in the term.

This is made achievable by how life insurance operates. Money collected from many policyholders is pooled and the funds invested so that it grows. Programs such as that of David – most probably a term insurance plan – are made to offer as much protection as possible for fairly small premiums.