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Safeguarding one’s Financial Future: Passing on a Significant Legacy

Safeguarding one’s Financial Future:  Passing on a Significant Legacy

July 5, 2019 at 1:15 PM

It’s been often said that if wealth was a result of hard work, then every African would be a millionaire. It is generally argued that we have a history of working harder than any other people on the face of the earth and toiling without receiving commensurate reward. However, despite the global downturn, the opportunities for Ghanaians to create and build wealth in Ghana are greater now than any other time. 

According to the World Bank, Ghana has one of the world’s fastest growing economies with a projected growth rate in excess of 8.0%. With a booming tech sector, major offshore oil deposits, expansion in agricultural production and coffee exports along with almost three decades of political stability, Ghana is often referred to as the Star of Africa. For the first time in our history, we have a generation of upwardly mobile, financially independent individuals with the financial freedom our ancestors could have only dreamt of. It is imperative that we find a way to pass wealth from one generation to the next and leave an inheritance for our loved ones. We must be determined to break the cycle of intergenerational poverty. Life insurance offers one of the best ways to break the cycle of intergenerational poverty, safeguard our financial future and leave a significant legacy.


Life Insurance Can Create Multigenerational Wealth

Life insurance is a contract between you and an insurance company, that in exchange for your scheduled/ periodic payments, (known as premium) guarantees a prearranged sum of money for your loved ones when you pass on.

The primary purpose of life insurance is to guarantee a cash payment to one or more beneficiaries should the insured, pass away. It can also be triggered in the event of critical illness/ dread disease or should the insured become permanently incapacitated.

 In the case where, one happens to be the significant income earner in the family, the family will most likely undergo a serious financial hardship should any of the above mentioned unfortunate events occur. Even when a non-working spouse passes away the surviving spouse could find him /herself dealing with higher costs for childcare or even adult day care for an elderly relative. In many instances, family members struggle to find the funds to manage the difficulties that arise from such negative life outcomes 

Life insurance is designed to help alleviate those financial hardships. An appropriately valued life insurance policy generally serves as replacement income for the family immediately without having to wait for letters of administration or the deceased testament. The key is ensuring that family and other dependents have enough coverage in the event of misfortune.

In addition, to paying the cost of living expenses for loved ones, life insurance can offer them a substantial financial inheritance that can be used for their savings and other wealth building schemes. Individuals can bequest all or part of the life insurance proceeds to their children or the next generation.


Life Insurance is Affordable and Can be Customized to Your Needs

Life insurance proceeds can be as low as GHS1,000 or in excess of millions , since it can be tailored to meet the client’s financial worth. It can be designed to pay just burial expenses or be extended to pay expenses and provide savings for loved ones. Consequently, this allows wealth to be passed to the next generation. While the cost of life insurance depends on various factors, such as age, gender, health and type of policy, it generally costs far less than one might imagine.

Premium can be paid monthly, quarterly or yearly and could be as little as GHS10 per month, depending on the scope and level of cover. Each person’s needs, financial goals and circumstances are different and a life insurance agent will be able to assist you in determining the policy that fits your needs.

Let’s work together to end the cycle of intergenerational poverty.


Grace Vandecruze, the writer, is the Founder and Managing Director of Grace Global Capital LLC, a financial services firm which specializes in advising insurance companies on strategic and innovative initiatives. She also has a passion for teaching financial literacy and financial empowerment.