Breaking Down Barriers to Life Insurance

By Dinah Tjahere, Broker Consultant, Old Mutual Namibia

Life insurance is generally perceived as a matter designated for the financially savvy. However, it is a key tool for financial stability that provides everyone with peace of mind. Unfortunately, many people, particularly those in underprivileged communities, struggle to obtain life insurance. These hurdles can stem from a combination of misunderstandings and constraints on traditional financial resources.

A key barrier is the idea that life insurance is just for the wealthy. This is simply not true! There are several economical options available to meet a variety of demands and budgets. The key is education. By spreading awareness about the many types of life insurance and its benefits, we can help people make informed decisions and protect themselves and their loved ones.

Another difficulty is restricted access to traditional financial services such as banks and credit. This can be a substantial barrier for those in low-income communities or who have not been incorporated into the financial system. Without these skills, qualifying for life insurance can seem like an insurmountable challenge. The approach is to promote financial literacy and improve access to basic financial services. By providing people with the knowledge and resources they need to develop solid financial habits, we can open the door to life insurance and a more secure future.

Sometimes the barriers are less visible. Language and cultural barriers can make it difficult for customers to grasp life insurance alternatives and make sound decisions. Insurance companies, government agencies, and community organisations all have a crucial role to play. By working together, we can dismantle structural barriers, advocate for fair regulations, and develop targeted outreach programmes for underserved communities. A multifaceted approach that considers both individual needs and systemic barriers is key to unlocking financial security for everyone through life insurance.

We must address this by delivering clear, culturally relevant information in different languages. By meeting people where they are in their financial journey, we can ensure that everyone has the help they need to make informed decisions regarding life insurance.

However, it is not only about reducing boundaries. We must also welcome new ways to increase access to life insurance. Technology has the potential to make a significant difference here. Imagine reaching remote places, expediting the application process, and lowering costs all using digital platforms and mobile apps! This would allow customers to simply compare options and purchase coverage from the comfort of their own homes. What is the good news?

We don’t need to go at it alone. Insurance companies, government agencies, and community organisations can partner with one another to overcome barriers and achieve financial stability for all through life insurance.