Life Insurance... My 630k mistake


What is life insurance really? and what are the benefits?

Life insurance is the contract between an individual and an insurer where the insurer guarantees an amount to be paid to the policyholder after their death, relapse of the insured period, or in other cases, life-altering injuries and diseases.

This sounds great on paper, but below are the pros and cons of Life insurance


As a financial instrument, Life insurance does not protect your finances from inflation. In Kenya, the average annual inflation rate for the past 20 years has been 6% per annum. This means that the premiums you pay today on receiving them they will have lost a 6% annually hence incurring a loss in relation.

Life insurance is not a savings scheme nor an investment

The interest in life insurance is very small compared to other investment and financial tools such as money markets, land shares, or even savings accounts.

Cashing out

It's not like other investments where you cash out any time you can. For you to really benefit you have to wait for the specified time on your contract. in my case I have a 15-year policy and I can only fully cash out after the end of the term with little to no benefits after every Five years.