The impact of life insurance on the public

Protect Your Future with Life Insurance

Author: Suranjith Godagama
An author publication

Reviewed by Dr. Nimal Sedera

Being an author of a few books on the subject of life insurance with experience in selling life insurance policies I read Suranjith Godagama's book with immense interest and enthusiasm. Though there is a big boom in life insurance in Sri Lanka, very little has been done to educate the people of the usefulness of life insurance.

Companies use funds on advertising insurance products and recruiting agents to promote life insurance. Some insurance companies even sponsor tele dramas for this purpose. But these activities do not produce tangible results.

The people think that only insurance companies stand to benefit from life insurance.

Therefore, they must be made aware of the benefits of life insurance to the individual and the family.

The author begins the book with a quotation from Sir Winston Churchill on the impact of life insurance.

Sacrifices

“If I had my way, I would write the word “Insure” over the door of every cottage.. and upon the blotting book of every person, because I am convinced, that for the sacrifices that are inconceivably small, families can be secured against catastrophes, which otherwise would smash them forever..”

Sir Winston Churchill emphasised the need to buy life insurance.

He said insurance cushioned the weight that would have otherwise fallen on the state on the death of a breadwinner.

The author deals with the subject diving into eight key chapter and guides the reader on what insurance could do to serve his needs. The need of insurance is different from person to person and the volume of insurance affordable also varies according to the income of the buyer.

One shortsighted statement I have often heard as an insurance-agent is that it is difficult it would be for the family to manage in case he is not there support them.

Volume

The chapter on, “Financial need calculations” is the most important one.

It guides the buyer him how to calculate the volume of insurance needed and for what duration they are needed.

For instance, I purchased a large insurance policy while my children were studying abroad.

As I needed to have peace of mind that they will be able to continue their studies even if I am not there to support them.

Once they were employed I stopped paying further premiums. With the guidance of the book anybody can learn to measure all his life insurance needs and select the suitable insurance package according to funds.

The book is an eye opener to the Board of Insurance and the Institute of Insurance in Sri Lanka as to how they could be of use to the public in a life insurance awareness campaign.

In the introduction to this book the former CEO of Aviva Insurance Deepal Sooriyaarachchi very correctly says, “Life insurance is something to be bought and not sold.