Sagicor: Building safety net vital

The anxiety created by the experience of COVID-19 as it relates to the
potential for financial hardship due to resulting economic stagnation
and loss of income, has showcased the value of life insurance to an
individual and their family during times of uncertainty. This from
Sagicor’s Vice President – Barbados Sales, Gay Griffith.

“What this experience has taught many, is the importance of building a
safety net for themselves and their families, as one significant event
or change in circumstance has the potential to cripple a household,”
he said.

“Certainly, no one started 2020 expecting to suffer a reduction in
income from working less hours or being laid off from work temporarily
due to prolonged business closure; however, life is full of
uncertainties which we should try our best to prepare for.”

Griffith stated that the purchase of a life insurance policy is one of
the best ways to build this net, pointing specifically to the way in
which the accumulated cash value element of the policy can be used by
the policyholder in emergency situations.

“When an individual takes out a life insurance policy, over time this
policy accumulates cash value that can be accessed via a loan. This
gives the ability to borrow short-term from the policy for any number
of reasons, such as paying for home renovations, financing education,
or even debt consolidation,” explained Griffith.

“In this case however, we are focused on those individuals who may
have lost their jobs and therefore find themselves in a position where
they cannot meet their financial obligations. Being able to access
funds from their policy would allow them to ‘ride out’ the difficult
period and when they get back on their feet, they can start the
process of loan repayment.”

The Sagicor executive emphasised that this is even more critical for
individuals who are the sole or primary breadwinner in the household.
“If the primary breadwinner loses their job, becomes critically ill or
dies, the policy will provide financial support to their family. The
same can be said for business owners, where if the key individual
dies, the policy would take care of the business’ outstanding debts,
which would otherwise have become the responsibility of the family.”