INSURANCE

A Customer Interaction E-newsletter
Volume 1 No 1 December, 2016
Will
INSURANCE
Ever be Interesting?
...because YOU really matter

CONTENTS
04
07
09
12
14
NAICOM to issue guideline for... NIA boss seeks tax incentives for...
Will insurance ever be interesting? Staying healthy in this economy
Protect your home from break-ins with... Family secrets
Four new retail offices opened...
Insurers embrace prompt...
Effects of recession on families...
Salary for life
06
08
10
13
15
2 • FBNI&YOU • www.fbninsurance.com

FROM THE EDITOR
Greetings and a warm welcome to the very first issue of our customer
interaction e-newsletter, FBNI&YOU! We couldn’t be more
excited to have made it to this point.
In this maiden edition of FBNI&YOU, we will acquaint you with
some updates from the National Insurance Commission (NAICOM)
and Nigerian Insurers Association (NIA) for your guidance in relation
to insurance regulation and practice in Nigeria. We also have
health, safety, leadership and lifestyle tips for you to cope in this
ailing economy.
Published by the Marketing and Corporate
Communications Department of
FBNInsurance Limited
34, Marina, Lagos.
Contact Centre 01-9054810
Email: insuranceinfo@fbninsurance.com
Website: www.fbninsurance.com
To deepen our footprints in the retail space, we recently opened 4
new retail offices across the nation. Read more about these locations
in this edition.
All these and many more interesting and highly educative stories
we have packed in this maiden edition of FBNI&YOU for your reading
delight.
We would appreciate your feedback on content and structure
to make the next edition better. Kindly send us an email:
FBNIMandCC@fbninsurance.com. We will be glad to hear from you.
Copyright ® November 2016 by
FBNInsurance Limited
All rights reserved.
No part of this publication may be
reproduced or distributed in any form
or by any means, or stored in a database or
retrieval system, without the prior
written permission of the publisher.
Compliments of the Season!
Elizabeth Agugoh
FBNI&YOU • www.fbninsurance.com • 3

Industry News
NAICOM TO ISSUE OPERATIONAL GUIDELINE FOR
BANCASSURANCE, DISTRIBUTION CHANNELS
By Bankole Orimisan | The Guardian
National Insurance Commission (NAICOM),
has concluded plans to make available the
operational guidelines meant for regulating the
partnership business between the insurance
industry operators and other sectors in the distribution
channel in the country.
The Director, Authorisation and Policy, NAICOM, Pius
Agboola, revealed this during a seminar organised by
the Commission, for insurance and Finance journalists
held on Saturday, November 5, 2016 in Gombe State
that in the next few months the guidelines aimed at
regulating the partnership business in the insurance
industry will be released.
He said the Commission has drawn out guidelines that
would guide the industry on how to partner with other
sectors like the bank, the telecommunications sector in
order to bolster the sale of insurance products across
the country.
According to him, the guideline is still in the final stage
of modifications, after which it will be released to the
industry for its inputs and necessary corrections made
by the Commission before it is finally released to as an
operational partnership document.
sectors without the Commission being able to regulate
whom they are partnering with, saying that with the
guidelines such activities will be regulated.
On partnership with the bancassurance, he said the
commission intention was not to supervise what
the banks are doing but to be able to know what is
happening in the partnership.
He said the last time insurance operators met, they
demanded that the copy of the guideline be released
to the banking industry even though they already made
their contributions.
He said the Commission agreed to it for transparency
purpose, as there may be need for the banks to take it
up with the Central Bank of Nigeria (CBN), adding that
nothing had happened more than two weeks after the
guideline was given to them.
He assured that the Commission is willing to open talks
with the CBN or the banks in this regard.
Culled from The Guardian, November 7, 2016
Explaining the reason behind the guideline, he said it
was observed that operators are partnering with other
4 • FBNI&YOU • www.fbninsurance.com

GOODS-IN-TRANSIT:
Protect your investment
FBNI&YOU • www.fbninsurance.com • 5

Industry News
NIA BOSS SEEKS TAX INCENTIVES FOR
INSURANCE POLICIES By Nike Popoola | The Punch
The Chairman, Nigerian Insurers Association, Mr.
Eddie Efekoha, has said that the provision of
tax incentives for certain insurance policies will
contribute to the sector’s performance.
kidnappings, among other social maladies, have affected
the country’s economic growth and reduced national
income and power generation, and have also led to a
budget deficit.
He said this while addressing the theme, ‘The insurance
industry in Nigeria and capacity for business expansion’.
“Economic strategies that will contribute to insurance
business expansion include creation of employment
that will increase the purchasing power of Nigerians,
curbing inflation, implementation of economic policies
to stimulate the economic growth, and provision of tax
incentives for certain insurances,” Efekoha said.
According to him, the growth of a particular sector is
directly related to the performance of the economy of
the country.
He noted that shortly before the end of the administration
of former President Goodluck Jonathan, the country’s
Gross Domestic Product was rebased and Nigeria had
the largest economy worth over $500bn.
An aggregation of all these, according to him, will
impact the insurance sector and stunt its growth.
Speaking on the devaluation of the naira and its effects
on insurance stock price and the capital base of firms,
he said the industry’s ability to underwrite was a
function of its financial strength, which in turn was a
function of the prevailing economic realities.
He said other disturbing issues about the economy
included the slump in the global price of crude oil and
over-supply, scarcity of petroleum products, weakening
of the country’s external reserves position and rationing
of forex among eligible applicants.
Culled from The Punch, September 19, 2016
With the GDP currently at $296bn, he said Nigeria was
now the second largest economy in Africa after two
years at the top.
Efekoha is worried that terrorism, insecurity and
6 • FBNI&YOU • www.fbninsurance.com

Lifestyle
WILL INSURANCE EVER BE INTERESTING?
By Philip Bower | LinkedIn
In
the spirit of the title I
hope to bring a little
humour. In this article
we’ll cover some
interesting facts, dispel a few
myths, sample a few humorous
claims, and finally explore what the
future will look like and hold for the
insurance industry and newcomers.
I can genuinely say that two thirds
of Insurance professionals I meet
are damn passionate about what
they do. But let’s explore where the
industry might be going wrong and
what can be done to put it right.
Firstly, and to outsiders, insurance
is a language unto itself and
has a tendency to make things
complicated.
Secondly, there is little transparency
of premium pricing and the buyer will
seldom understand the assumptions
made by the underwriter. If the
customer doesn’t understand
the probability calculation of his
risk, then how likely is he to
fully appreciate the significance
of his own exposures? This has
a tendency to commoditise and
reduce the value which insurance
actually brings.
3 Things about Insurance;
It is intangible ie; you cannot
touch or feel it;
It’s a Policy that promises to pay
a claim without any guarantee
that a claim will ever be made
or indeed paid!
And lastly, risk is mostly
considered as downside and
so there is nothing exciting or
happy about paying a premium.
Although to some organisations,
particularly those who might be
involved in Mergers | Acquisitions
| Lenders, offloading risk can
certainly help transactions.
Positives!
There are some positives however
- new Technologies are driving
competition and lower premiums
for consumers and at the same
time customers can now interact
online and make choices about
levels of cover and what credits
they might receive for reducing
their risk.
Humorous Claims
An actual motor claim form
quoted: “The guy was all over the
road. I had to swerve a number
of times before I hit him.”
A microwave manufacturer
was sued when the Claimant
successfully filed a claim stating
that the labelling did not instruct
users not to dry her wet dog in
the microwave
A USA lawyer purchased a box
of expensive cigars and insured
them against flooding, storm
damage and mistakenly, fire. He
cleverly and successfully claimed
for fire damage after smoking
his cigars!
Continues on page 13...
FBNI&YOU • www.fbninsurance.com • 7

Health
STAYING HEALTHY IN THIS ECONOMY
By Angela Enita Omoru-Obule
As humans, we all have 24 hours in a day. For
the 9-5ers like us, we spend a minimum of
9 hours in the office, 5 days a week. This
leaves us with some 15 hours to carry out our
various daily activities –including hours in traffic, for
Lagosians- and also to catch some sleep in preparation
for the following day.
The general misconception about maintaining a healthy
lifestyle is that it is expensive. On the contrary, you
can live a healthy lifestyle by adjusting certain things
in your life. In fact, imbibing specific habits could be all
that is needed to leading a healthier, less stressful life.
So then, how does one lead a healthy lifestyle without
running afoul of this economy?
1. Exercises: Stay limber by carrying out exercises for
about 30 to 45 minutes daily. This should include
stretches which will improve flexibility, giving you better
balance, a straight back, less pain and fatigue, improved
athletic performance, and even a clearer mind.
Remember that it is dangerous to delve into exercises
routines without carrying out at least 10 minutes of
stretches and 20 to 35 minutes on your preferred
exercise routine. And this is entirely cost-free! There
are tens of specific exercise routines on the internet.
Find them out, start exercising today.
2. Water: Despite being surrounded by water
dispensers, how much water do you drink? Remember
that water makes up about 60% of your body so it is
advised that you drink at least 2 to 3 litres of water a
day. This helps you stay hydrated all day long.
3. Develop Healthy Habits: Retraining yourself to
imbibe habits that will help you to live longer and
healthier such as regular check-ups with your doctor,
Periodically checking your BMI (Body Mass Index) to
ensure that you are not overweight, controlling your
stress level and ensuring that you take out time to
relax, have adequate hours of sleep, take brief walks so
as to improve blood circulation and much more. These
habits might seem expensive, but with our HMO and
a consciousness of being, you can make this work for
you.
4. Improve on eating habits: Most office environments
are surrounded with various delicacies and sometimes
we can’t help but indulge ourselves. Bringing healthy
food from home to cut down funds spent on oily
and fatty food might be a good start on the journey
towards a healthy lifestyle. Have more fresh fruits
and vegetables instead of snacks stuffed with flour.
Pour out the oil in that Ewa Agoyin, opt for boiled or
roasted...
Continues on page 11...
8 • FBNI&YOU • www.fbninsurance.com

Safety Tips
PROTECT YOUR HOME FROM BREAK-INS WITH
THESE SAFETY TIPS
M
ake it difficult for someone to conceal
themselves while breaking in. Avoid tall/
thick shrubs around your windows and
doors.
Having good exterior lighting helps. If you own your
home and can afford a motion sensor floodlight, please
install one. When a motion light kicks on, you know
someone is out there.
You know your neighbourhood more than anyone.
If you stay in a middle class area, avoid having stuff
in plain sight that shows affluence. If you have an
expensive car, keep it in a garage. If you have nice stuff
in your house, keep your blinds closed. Never show off
wealth in the midst of little.
Burglars usually case a neighbourhood before they
rob it. They know when you leave for work. They know
when your neighbours leave for work. If you have
neighbours that are home during the day, it will make
your house a riskier break-in. Or better still, stay in a
gated estate with adequate security.
If you have a security system, don’t put one
of those “Protected by XYZ” stickers on your door.
Knowing which brand of security system can provide
enough info on how to disable it. Get a generic sticker.
Or, simply ignore.
Get a dog. They say a dog is man’s best friend, this
is very true. You don’t need to break the bank getting
one; a healthy average sized dog can do the job. After
all, its job is to raise alarm whenever anything unusual
is happening around your home.
Ensure your locks are foolproof. If you rented an
apartment and the locks do not look strong enough
for you, please change them and get the type of locks
you want.
Remember, the goal isn’t to make your house
completely break-in proof. It is simply to make your
house a less attractive target than the other houses in
your neighborhood. Look at the surrounding houses and
adjust accordingly.
However, no matter how hard you try, getting a
Burglary Policy from FBN General Insurance gives you
peace of mind over your property even when you are
far from home.
Call 01-9054810
FBNI&YOU • www.fbninsurance.com • 9

Fiction | Short Story
SECRETS By Jacqueline U. Agweh
B
FAMILY
ehind the fresh fish market
stood our house. A shabby
two-storey building that
appeared to be tilting to the
left, as though avoiding punches
from the wind. Inside, it was dark
and dingy, even in the sunniest
weather. No one could tell what
its original colour had been many
years earlier.
On our street, there were no fences
to separate the houses because
nobody living there owned valuables
worth protecting. In truth, our
neighbourhood boasted countless
pick pockets and money doublers
who preyed on the poorest of
the poor. For the first sixteen
years of my life, we lived in this
neighbourhood; a family of eight, in
one single room!
There were also at least forty
families living in the other ‘face
me, I face you’ rooms, and no
one could really say he knew all
his neighbours. Almost everyone
sat outside or wandered up and
down the street before retiring for
the night as it was always too hot
indoors.
In our neighbourhood, cooked food
business of every variety thrived
because few families cooked their
meals; the obvious reason being that
most kitchens shared boundaries
with filthy outdoor toilets and
bathrooms in backyards sprouting
algae on the floors and walls. An
evil fishy stink pervaded the air
like an ominous perfume every
second, every minute, day in, day
out, and became our very nature,
such that only total strangers ever
commented on the stench. Nobody
obeyed the cleaning rosters pasted
by our landlord’s madam, whose
husband cared less as long as his
ever-increasing rents were paid as
at when due!
Maybe unconsciously, it was
this oppressive odour that made
everyone avoid the zinc-walled
toilets, except when the urge to
obey nature became unbearable. It
was indeed more convenient to pay
a token sum and use the nearby
portable toilets and bathrooms
managed by brisk business men who
had found a niche in the forsaken
place. And their merchandise were
always in high demand!
“Nature” called one morning and
unfortunately, there was no vacant
cubicle in the usual place of respite
so I had no choice but to risk our
backyard “horror”. Warily, a scarf
wrapped around my nose, like an
amateur ninja, I approached our
toilets. And that was when I saw
my father. He was sitting on an
old stool in the stinking backyard,
weeping silently as he stared
dejectedly at a piece of paper in
his hands. He was alone.
I was stunned. Father was never
10 • FBNI&YOU • www.fbninsurance.com

sober: a man roughened on all sides
by misfortune, eternally cocooned in
the fantasy world excessive alcohol
created. Something was wrong and
yet I couldn’t go to him; we were
not friends.
I hid and watched, suddenly
forgetting my pressing need to use
the toilet.
A short while later, he wiped his
eyes, slipped the paper into his
trouser pocket and opened a bottle
of locally brewed gin. Sloppily, he
tipped its contents into his mouth.
It dribbled down his chin, soiling his
shirt, and impatiently he scrutinized
the empty bottle, before hurling it
into the gutter. It scattered into tiny
shards and his puzzled eyes stared
at the gleaming mess for several
moments before he staggered
towards the fish market; to hassle
mother as usual for money to buy
the liquid devil that consumed his
world.
Father was ill, had been for a
long time. His yellowed eyes and
scrawny figure told the whole story,
but stubbornly, he rebuffed medical
care. Even mother’s offer to pay
his hospital bills often earned her
vicious slaps before he arrogantly
staggered out to seek his drinking
buddies, whose company he clearly
preferred to ours. My five sisters
and I frequently defended mother,
believing father treated her like
filth because she had produced only
females. Strangely, mother always
defended him vehemently. “He’s a
good man at heart,” she pleaded
with us time without number, a
faraway look in her eyes as she
perhaps recalled the husband of her
youth.
I just knew I had to read that paper
in his pocket to know why he had
wept.
The following morning, I offered
to wash his clothes. He was lying
on the only bed in the room; we
referred to it as, ‘father’s bed’,
because years ago, after weaning
her youngest daughter, mother had
abandoned their bed for our raffia
mats on the floor.
Mother was delighted, though
somewhat surprised because I had
stopped washing my father’s clothes
a long time ago. He was taken
aback, and at first he refused, but
mother insisted and he grudgingly
accepted. I rushed to the backyard
with his clothes and searched his
trouser pockets until I found the
crumbled and slightly damp paper.
It was a retrenchment letter; the
words sharp and direct. Dated nine
years earlier, the ‘nice’ words told my
father the organization appreciated
his hard work, he was a priceless
staff, but they were right-sizing and
his services as a welder were no
longer required. They wished him
success in his future endeavours.
At first, I was dazed, and then bitter
tears stung my eyelids; for indeed,
my father had succeeded, but only
in his drunken endeavors!
Long ago, my father had been
a strong hard working man, but
gradually he had changed. Nobody
understood why and we had ceased
to be friends: he had succumbed too
easily to whatever harsh obstacle life
had thrown his way. I couldn’t stand
it, as I realized his retrenchment
letter was his waterloo.
I washed his clothes with all the fury
I could muster, battering them, as it
dawned on me he was sacrificing us
in his protracted cowardly bitterness.
Suddenly, I heard his rasping voice
calling my name, and silently I
turned to stare him. He looked frail,
pitiable. And without saying a word,
I picked up his prized letter and
placed it in his outstretched hand.
He clutched my soapy hand and we
gazed into each other’s eyes, but
it was too late to explain the sad
truth of his life to me. I had found
him out.
After that day, we never discussed
the letter; he was too proud.
“Take care of your mother,” he
whispered sadly one night, his hollow
eyes watery pits of regret. By the
next morning, we discovered he had
died quietly in his sleep.
His letter was my secret now, my
mother and sisters never knew
about it, and I do not know if I
will ever let them know his secret,
or maybe I will; some day, when
I become successful in my future
endeavours!
Only time will tell…
STAYING HEALTHY IN
THIS ECONOMY
.
By Angela Enita Omoru-Obule
..continued from page 8
food instead of fried foods etc.
Eat right and well, your body will
thank you.
Staying healthy can be very affordable.
Just commit to it and you’d realise
how much misconception you’ve
been carrying around. Make it a
point of duty to imbibe the habit
of exercise and healthy living during
and after office hours; this way we
live longer lives.
FBNI&YOU • www.fbninsurance.com • 11

Company News
FOUR NEW RETAIL OFFICES OPENED NATIONWIDE
In
Abraka.
order to further reach the uninsured in
Nigeria, leading insurance company,
FBNInsurance Limited, has opened four new
retail offices in Umuahia, Eket, Orlu and
incontestable.”
FBNInsurance Limited is an FBNHoldings company
associated with the Sanlam Group SA.
A press statement released by the Marketing and
Corporate Communications department of the company
reads in part: “Insurance penetration in Nigeria is still
very low despite the rapid growth of the industry. For
us at FBNInsurance, we are committed to availing every
Nigerian of our unique products wherever they are. In
our five-year existence, we have always leveraged on
the expansive retail network of First Bank of Nigeria
Limited. This strategy has worked for us and that is
why we have opened FBNInsurance retail offices inside
FirstBank branches in Uzuakoli Rd., Umuahia; Nkwere
Rd., Orlu; Grace Bill Rd., Eket; and Police Station
Rd., Abraka. Now, the good people of Umuahia, Orlu,
Eket and Abraka can access qualitative FBNInsurance
products and services right in their neighbourhood.”
It will be recalled that at the company’s 2015 Annual
Retail Awards, Christened TRAC 2015, the Managing
Director of FBNInsurance Limited, Valentine Ojumah,
credited the company’s growth to a virile retail team
which he described as a team “of outstanding salesmen
and women whose passion and sales acumen are
12 • FBNI&YOU • www.fbninsurance.com

Lifestyle
Industry News
INSURERS
EMBRACE
PROMPT
CLAIM
SETTLEMENT
WILL INSURANCE EVER BE
INTERESTING?
...continued from page 8
The future of the insurance business
Perhaps the killer question is why
I would recommend anyone to join insurance. So, what’s in store for the
Industry over the next two decades?
Firstly, and it goes without saying, that relationships/understanding of the
customer and their business, are prerequisites to success. But as we’ve
touched on above, insurance is not immune to technology and increasingly
higher customer expectations.
Secondly, globalisation will require insurance executives to design and deliver
more complex solutions to respond to multinational and interconnected
risks, and there are new areas such as drones, driverless cars, and space
travel which bring interesting and new challenges.
Risk-based/risk-conscious decision-making, supported by sophisticated
data analytics, will be the ‘norm’ for buyers in 15-20 years. And as
regulations/moral standards drive the subject of Risk up the corporate
ladder, insurance & risk professionals have the opportunity to raise their
profile at Client Board level.
The World’s Population is forecast to grow to 9bln by 2030, retirees
will be wealthier and the population will be ageing. That means more life
insurance, travel policies, more cars on the road, and a greater number of
houses being built. There will be +50% requirement for food, and 50%
more demand for energy, culminating in higher productivity and bigger need
for insurance. Culled from LinkedIn, May 19, 2016
“
By Philip Bower | LinkedIn
If you can’t fly, then run, if you can’t run, then walk, if you can’t walk,
then crawl, but whatever you do, you have to keep moving forward.
Martin Luther King Jr.
“
In line with the Insurers’
Committee’s efforts to
improve service delivery and
overall public perception of
the insurance industry, it
has identified prompt claims
settlement as a critical
objective.
Therefore, members of the
Committee have agreed to
reduce the maximum duration
for settling claims from
90days to 30days following
the execution of a discharge
voucher. Failure to settle
claims within the 30days will
require the concerned insurer
to pay the claims along with
interests based on prevailing
CBN interest rates.
It is expected that this
policy, if duly implemented,
will compel underwriters to
revamp the processes adopted
to processing claims. This
should also gradually improve
the image of the industry in
the medium to long term.
Culled from: http://naicom.
gov.ng/content?id=191
FBNI&YOU • www.fbninsurance.com • 13

Economy
EFFECTS OF RECESSION ON FAMILIES AND
HOW TO COPE By David Quilty
During any recession,
news stories about
unemployment figures take
centre stage while the
families dealing with the recession
suffer, often quietly. People work
hard just to stay afloat in hopes
that the economy will turn around
soon, but often to no avail.
1. Jobs and Employment
Job loss affects the stability of
families and individuals. Our status,
self-worth, health, and well-being
can be drastically impacted by the
loss of a job. While many who lose
their jobs use the time for growth
and exploration, many suffer from
depression, alcoholism, and denial.
Long-term solutions can include
working closely with headhunters
and recruiters to find a
higher-paying job, going back to
school while on unemployment,
and relocating. The relationships
fostered with head-hunters can
help with a job search, but the
process takes time.
While many families do their best
to carry on as if nothing is wrong
with the world, recessions can have
a profound effect on their day-today
interactions and the way they
live. Families may not be able to
avoid the effects of the recession,
but they can make changes that
can improve their situations and
help them prepare for the future,
while they wait for an economic
upswing.
Below are some of the effects of
recession on families, and the ways
to combat those effects.
With unemployment rates running
extremely high during a recession,
individuals and families struggle
to find work to pay the bills each
month. The inability to find work
can be frustrating, terrifying, and
depressing, and can lead to even
more problems. When a parent is
unemployed, things can seem bleak.
Tips and Strategies:
Short-term solutions might include
filing an unemployment claim,
borrowing money from friends or
family, and taking a lower-paying
job.
Instead of waiting for the perfect job
to appear, consider taking a parttime
job to bring in some income
while working with a head-hunter
to find the right career. Going back
to school for additional studies can
also help with a job search. It might
be time for transition to a new line
of work. Choose new career paths
wisely, based on the job market and
the outlooks for great career fields.
Moving to a new town for a job can
open up new career opportunities
as well. Relocating shouldn’t be
seen as a last resort. In fact,
being open to job opportunities
14 • FBNI&YOU • www.fbninsurance.com

in different areas can significantly
widen a job search.
2. Family Life
The stress of not finding work, and a
loss of income, can lead to damaging
inter-family relationships that can
take years to mend. Sometimes
families must borrow money from
relatives or friends, which can result
in tense situations.
Some families must change their
plans, sell their homes, switch
schools, and cancel vacations. In
other households, there is even an
unfortunate increase in child abuse
cases.
Tips and Strategies:
Families can work together to cope
with the changes brought on by
an economic downswing. In fact,
a recession may positively impact
a family, as families tend to stay
home together, and spend more
time together.
Instead of pricey nights out at
restaurants, take the family to a
local park for an evening picnic or
have a cheap family game night.
Avoid hotels during a weekend trip
in favour of camping in the woods.
Instead of buying more video games,
take children hiking and fishing.
Look at the experience as an
opportunity to spend more time
with the children, and make the
most of the time spent as a family.
3. Lifestyle Changes
Reduced income leads to reduced
entertainment, dining, and
extracurricular activity expenses.
People cut back on extras during
a recession, so many families must
make drastic changes to their
pre-recession lifestyle. This means
fewer trips, shared experiences, and
missed opportunities because of a
lack of funds.
Tips and Strategies:
The lifestyle changes brought
about by recession will include a
period of adjustment. Families must
allow themselves time to adapt,
and understand that children may
not fully understand the financial
implications affecting the family.
Talk with children about how things
will change, and be realistic about
expenditures and outcomes. It’s a
great time to teach your kids about
money management.
Don’t build up expectations about
what might change in the future.
After a period of unemployment, belttightening
may still be necessary, as
the impacts of unemployment can
be far-reaching. Instead, focus on
changes that need to happen now,
and how the family can make the
best of the situation.
4. Investing
Family budgets may not
accommodate short and longterm
non-residential investments
during a recession. Families may
put investment accounts on hold,
hoping to play catch-up at a later
date. Families may also be tempted
to invest money because of the
reduced expense of stocks, but
without any expendable income,
investing may not be feasible.
This can have devastating effects
on retirement accounts and savings
accounts. It may also become
necessary to tap into investments
and retirement funds for cash.
Tips and Strategies:
Using retirement funds to pay bills
should be a last resort, because of
the retirement account tax penalties
and the loss of future income. If using
money earmarked for retirement or
college funds becomes unavoidable,
withdraw small amounts, and only
use the money to pay essential bills,
like the mortgage, car payments,
and utilities.
5. Business Opportunities
Entrepreneurs may lack funds
available for borrowing or starting
new companies during a recession.
Innovation often comes from the
small business segment, but a
lack of funding, coupled with a
downturn in spending, may make
small business owners nervous and
unwilling to take big risks.
For unemployed entrepreneurs
looking to start a new venture, this
lack of funding can really hamper
their chances of success.
Tips and Strategies:
This is likely not the right time
to start a new business and the
business idea may need to be put
on hold. Continue to research new
ideas, and look for investors or
business partners, but focus efforts
on earning an immediate income to
support the family.
6. Real Estate Value
Many families depend on the value
of their homes as part of their
retirement plan. During a recession,
however, real estate values fall
drastically and foreclosures increase,
forcing many families out of their
homes. Real estate can no longer be
viewed as a safe investment during
an economic downturn.
Tips and Strategies:
Over time, real estate values may
turn around, so families should try to
maintain ownership of their homes if
at all possible. Homeowners may
be able to avoid foreclosure by
refinancing mortgages.
Continues on page 17...
FBNI&YOU • www.fbninsurance.com • 15

Retirement Planning
DO YOU WANT TO EARN SALARY FOR LIFE?
The retirement party was as colourful as the
celebrant’s career. For the retiring paediatrician,
Dr. Sylvanus Ikechukwu, however, his mind was
far from the back-slapping and wine-guzzling
going on around him. He knew exactly what he wanted
in retirement.
Surely, he was not going to take up any job again
having worked actively for the past 41 of his 69 years,
sacrificing family and his youth for the Hippocratic Oath.
Now that the children were already fathers and mothers
themselves, he was determined to spend the rest of his
life seeing the modern world with Anne, his devoted
wife of 43 years. But the snag was choosing the right
investment that will help fund that lifestyle without ado.
“Happy retirement, Uncle.” Chidinma, his niece who
worked as an Annuity Sales Manager at FBNInsurance,
interrupted his soliloquy. A couple of you’re-now-a-biggirl,
where-is-your-husband pleasantries later, Chidinma
had introduced her company’s Guaranteed Lifetime
Retirement Income plan to him. It was exactly what the
venerable doctor needed: salary for life.
Retiring soon or know someone who is? Be like Dr.
Ikechukwu, choose FBNInsurance Guaranteed Lifetime
Retirement Income plan.
Call 01-9054810
16 • FBNI&YOU • www.fbninsurance.com

Fire Insurance
...continued from page 15
7. Credit and Debt
During a recession, families must still pay the household
bills, and try to get out of debt. Bankruptcy, judgments,
and late payments can all hurt your credit score.
Your credit history impacts credit card and loan interest
rates, insurance rates, and even job opportunities, as
some companies review applicants’ credit histories.
Tips and Strategies:
Families should prioritize expenses and pay bills in order
of importance. Some bills can be paid late, but other
bills must be paid on time in order to avoid foreclosure,
eviction, or property repossession.
Recessions can lead to a reduction in borrowing,
and families may become more fiscally responsible
following an economic downturn. Less debt and more
responsibility can lead to smarter money management,
and a stress-free financial life.
8. Determine Necessities
Families must understand the difference between needs
and wants during a recession. Families need a safe place
to live, clothing, food, and access to affordable health
care. As priorities shift for many families during an
economic downturn, they can focus on the necessities,
and learn more about their innate survival skills.
Tips and Strategies:
Learning how to prioritize expenses, adapting to a
loss of critical income, and making lifestyle changes
will be hard. Families can cope during this period of
adjustment by relying on each other, becoming a true
support network. Celebrate successes as a family, and
acknowledge each other’s efforts to become solvent.
Take control of the situation to reduce the negative
impacts of the recession, and to set a good example for
the rest of the family.
In conclusion, the effects of a recession on families last
a lot longer than the duration of a recession. Ultimately,
almost everyone suffers during an economic downturn.
Families can survive by adapting to a new lifestyle,
working together, and making changes to improve their
future.
HERE’S A PIECE OF
ADVICE FOR THIS SEASON
No one knew how the fire started.
But everyone saw it consume the neighbourhood in a
conflagration that screamed devastation. By the time
the fire was put out by a combined effort of halfempty
fire extinguishers and the Fire Services, three
houses and seven cars had been completely razed.
The Johnsons were the worst hit. New in the
neighbourhood, their home and two cars were burnt
to ashes. For the family of five, it was a sordid
reminder of the uncertainty of life as we know it.
The Fire Fighters blamed the harmattan for the rapid
spread of the fire.
But Mr Akinniyi Johnson had no one else to blame
but himself. He knew he should have had his property
insured against Fire and Special Perils. He could
still remember the exact words of the FBN General
Insurance Financial Advisor who had tried to talk him
into buying the policy: “You’ve got a very beautiful
house Sir, let me put together a convenient policy
for you to protect it against all eventualities. Life
happens, you don’t want to be caught napping.”
He wished he had heeded the advice…
The Harmattan is almost here. Protect your properties
from life’s uncertainties, take out an FBN General Fire
and Special Perils policy today. Call 01-9054810
FBNI&YOU • www.fbninsurance.com • 17

18 • FBNI&YOU • www.fbninsurance.com