AN EVALUATION OF MARKETING OF TERM ASSURANCE IN NIGERIA

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ABSTRACT

A close look at the Nigeria insurance market indicate that the sale and purchase of term, assurance policy is declining.  And this decline was assumed an unpro-portinate dimension since the Nigerian’s independence in 1969, hence it calls for urgent attention.This research therefore is intended to provide empirically both the conceptual and operational views of what term assurance means to the insurers, insurance intermediaries and the insuring public. It lay’s particular emphasis on the various elements that determine and affect the successful marketing of a term assurance policy from the view point of an insurance intermediary.The analytical model used is integrated into theory, logic practical and worked out in percentage. It was discovered that lack of education awareness, motivation and adequate training and government imposed constraints inhibits the successful marketing of term assurance policies in Nigeria.The researchers therefore gave some advance suggestion, recommendations based on the findings which hopefully will alleviate the problems in successful marketing of term assurance policies in Nigeria.

CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

Term assurance is one of the types of life assurance.It is defined as a contract that furnishes life assurance protection for a limited number of years. The face value of the policy being payable only if death occurs within the stipulated term and nothing being paid in case of survival.

Customarily, term assonance policy was issued in 1983 A.D, Richard marine premium of sixteen pounds (16) percent for a term of 1113 months with sum assured of 64.66 the effective date of the policy  was from 18th June 1583 to 17th June 1854.

During the course of the policy, the assured died on the 9th of May 1584 and the sixteen underwriters who subscribed to policy had to redeem their obligation after courts judgment in favour of the assureds beneficiaries in a suit instituted by the assures  challenging the validity of eh developed a large number of term assurance products each suited or designed to meet the requirements of different types of customers.

These products include:

Renewable term Assurance: this option permits the insured at the expiration of the first term period or at the end of any subsequent term period to renew the policy without a medical examination and irrespective of eth insured health at the time of renewal

Convertible term Assurance: this insured has the option to converted the policy to a permanent  types of contract upon a proper adjustment in the premium charge without medical examination.