BUSINESS MONDAY: PROTECTING ECONOMIC FUTURE

ALTHOUGH Barbados is going through some economic challenges, persons are still acquiring life insurance policies as a means of helping to safeguard their economic future as well as that of their relatives.

So says Kweku Reid, the President of the Barbados Association of Insurance and Financial Advisers (BARAIFA), which groups the life insurance segment of the insurance industry in Barbados.

Reid told the media that what is quite evident is a shift in the behaviour and preference of those acquiring life policies. Individuals, according to him, are going for the life policies as opposed to endowment plans, mutual funds and investment-type plans.

“So we have seen a fallback in the sales of the latter,” he said.

“I think this is because people are feeling more comfortable in seeing that the economy is improving, more people are investing and there is an overall relaxation in the mood of individuals,” said Reid.

“But we are seeing an increase in life policies by persons who are looking for security going forward,” Reid told the media.

He explained that people are much alerted to the fact that they need to protect their families and protecting income for their children, especially when they decide to pursue university and other studies.

“So yes, there definitely was an increase in 2019 as compared to 2018,” the BARAIFA President said following a meeting the association held on Friday at the Lloyd Erskine Sandiford Centre.

From what he has seen life policies are ranging from $100 000 to $750 000 and according to him, you have people who are investing in properties.

He acknowledged that the cost of properties is increasing and as such, the cost of securities for mortgages is also on the increase.

Reid, who works with Sagicor Life, said that the increase in acquiring life insurance stemmed mainly from the marketing campaign which insurance companies have undertaken among the public.

“There was a presentation last month aired on CBC that looked at how insurance works compared to term insurance, endowment, pensions and mutual funds,” he explained, while adding that more of this needs to be done.