The insurance most Ghanaians choose to buy, rather than are made to, is funeral cover. A funeral here is expensive and comes with no notice, and a family that has to raise the money in a week often borrows at terrible terms to do it.
The kinds of cover
| Policy | Pays | Worth knowing |
|---|---|---|
| Funeral policy | A fixed sum soon after a death, for the policyholder and usually named family | Cheap, quick to pay, small. Often covers parents and parents-in-law |
| Term life | A larger sum if you die within the term | Nothing back if you survive it. The cheapest way to protect dependants |
| Whole life / savings plans | A sum on death, plus a savings value | Costly, and surrendering early can return less than you paid |
| Education plans | A savings plan aimed at school fees | A savings product with life cover attached |
| Mobile (MoMo) cover | Small funeral, life or hospital cash sums | Bought and paid from your wallet |
Cover sold through mobile money
Life and funeral cover were the first insurance most Ghanaians could buy on a phone, and they are still sold through the networks’ menus and apps. These are microinsurance products, and the NIC’s rules say the policy must say so, carry the Commission’s microinsurance logo, and be licensed by it before it is sold.
Things to check before you dial in:
- Which insurer is behind it. The network sells it; an insurance company pays. The product terms name it. Check that company at nic.gov.gh/entities/verify.
- How the premium is taken - every month from your wallet. If the wallet is empty on the day, the cover can lapse.
- Who can claim, and how. The family member who will claim needs to know the policy exists, the number it is on, and what to do.
The traps
- Waiting periods. Most funeral and life policies pay nothing, or only for an accidental death, if the death comes within the first months. Read when full cover starts.
- Lapses. Missed premiums stop the cover. Check whether there is a grace period, and whether a lapsed policy can be reinstated.
- Non-disclosure. If you hid an illness when buying, the insurer can refuse the claim. Answer the health questions truthfully.
- Surrendering a savings plan early. In the first years, a savings plan often returns less than was paid in. Ask for the surrender value in writing before you sign up, and before you cancel.
- Beneficiaries. Name them on the policy and keep it current. A policy without a living beneficiary pays into the estate, which can take a long time to settle.
Tell somebody
A life policy nobody knows about pays nobody. Keep the policy number, the insurer’s name and its claims contact with your other important papers, and tell the person you have named that it exists.
— Funerals in Ghana — Inheritance without a will — Making a claim — Insurance in Ghana