Insurance key to financial stability, says expert


INSURANCE is  key to attaining financial stability, says Professional Life Assurance managing director Rajagopal Krishnaswamy.

Mr Krishnaswamy said in an interview that insurance enabled people to transfer some of the risks that faced on a daily basis, be it educational, investment or funeral needs.

He said one could not over-emphasise the need to take up insurance as it was key to attaining financial stability in one’s life.

“As Professional Life Assurance Limited, we have affordable insurance plans you can get as individuals such as education policies, Flexi Save, the Lady Saver and the BantuBonsa life plan,” he said.

Mr Krishnaswamy said a number of financial institutions were offering loans which most people had taken up even when the interest rates were very high.

“While I am not discouraging borrowing, I would like to encourage every citizen in Zambia to embrace the culture of saving,” he said.

He said that one efficient form of saving was to take a life insurance policy because it mitigated risk and offered a tax efficient way of savings, adding that all benefits received from a life policy were tax exempted.

Mr Krishnaswamy said insurance such as medical was a primary employee benefit which formed part of any compensation package.

He implored Zambia employers to offer medical insurance to their employees and dependants.The managing director noted that his company clearly understood the need of insurance and that was why it had various products for customers running on the market.