Entries by Ghanacompares

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Keeping Track of Your Insurance Policy

If you are like most people in Ghana, once you sign up for an insurance policy you do not take the trouble to make regular enquiries about what is happening. In fact, you only take note of your policy when you have to make premium payments or even worse, when you need to make a claim. This may not look like a big deal at first glance, but this article will explain why it is dangerous and what one can do to avoid it. For far too many people in Ghana, it is only when an unfortunate incident happens and they try to make claims that they find out that their insurance policy was more complex than they originally imagined. They find out that perhaps they may not have understood the terms as much as they thought they did. If one does not take the time to read the policy agreement and make enquiries from the insurance broker about anything they do not understand, then they could end up having trouble when it is time to make a claim. Another reason why it is important to keep track of an insurance policy is so that you can be sure that your premiums payment is up to date. Even though you can have a direct debit set up that allows periodic automatic deductions of premiums, it is still possible that you could be owing premiums because sometimes your account will have insufficient funds to make the transfers. There could also be some technical difficulties in transferring. Whatever be the cause, you do not want to be caught in a situation where you are owing premiums when you go to make a claim. So now that the importance of keeping track of your policy is established, the methods through which you can track your policy will be discussed. Most insurance companies in Ghana allow you to track your policy through an electronic system on their website. This system allows you to see how much in total you have paid in premiums and how much you are owing in premiums. Another way to […]

01/04/2017 by
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Is insurance a scam? 

A popular but unfortunate perception among some people in Ghana is that the whole business model of insurance is a scam. Just search for “insurance” and “scam” on google and you will be sure to see several arguments by people in conspiratorial tones about how the insurance companies do nothing but take people’s money in the form of premiums and give nothing back. To be fair, some insurance companies do nothing to prevent this kind of perception. They offer bad policies that are expensive but do not offer any premium refunds. To make it worse, some of these companies make it very difficult for a policy holder making a claim to receive their benefits. Such bad practices certainly give insurance a bad name but let us not blame what is a poor choice of policy on the business model of the whole industry. Insurance makes sense. Think about it for a minute. Because nobody knows what will happen, it seems prudent to make small periodic payments so that in the incidence of a large misfortune you could be spared from bankruptcy. It is very possible that one could keep paying premiums without ever having to make a claim. But that does not make insurance a scam. That is simply due to the fact that there are several events that are random and unpredictable. Also, the premiums paid may not be recovered but whenever someone who faces misfortune is reimbursed by an insurance company, you can consider it as your premiums going out to help someone else in need. Another regular argument made by people who consider insurance to be a scam is that if you invested your insurance premiums in the financial markets, you could have returns which would be more than enough to cover you in the event of any misfortune. Therefore, they argue, investing your money in financial instruments is a better protection than an insurance policy. This argument is flawed for the following reasons. Firstly, in order to reap large returns from investment, you usually have to wait for a long period. What do you do if […]

01/04/2017 by
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Keeping Track of Your Insurance Policy

If you are like most people, once you sign up for an insurance policy you do not take the trouble to make regular enquiries about what is happening. In fact, you only take note of your policy when you have to make premium payments or even worse, when you need to make a claim. This may not look like a big deal at first glance, but this article will explain why it is dangerous and what one can do to avoid it. For far too many people, it is only when an unfortunate incident happens and they try to make claims that they find out that their insurance policy was more complex than they originally imagined. They find out that perhaps they may not have understood the terms as much as they thought they did. If one does not take the time to read the policy agreement and make enquiries from the insurance broker about anything they do not understand, then they could end up having trouble when it is time to make a claim. Another reason why it is important to keep track of an insurance policy is so that you can be sure that your premiums payment is up to date. Even though you can have a direct debit set up that allows periodic automatic deductions of premiums, it is still possible that you could be owing premiums because sometimes your account will have insufficient funds to make the transfers. There could also be some technical difficulties in transferring. Whatever be the cause, you do not want to be caught in a situation where you are owing premiums when you go to make a claim. So now that the importance of keeping track of your policy is established, the methods through which you can track your policy will be discussed. Most insurance companies allow you to track your policy through an electronic system on their website. This system allows you to see how much in total you have paid in premiums and how much you are owing in premiums. Another way to keep track of your insurance policy […]

01/04/2017 by
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THE NEED FOR PRIVATE HEALTH INSURANCE TO GHANAIANS

One importance of this private health insurance is to provide patients with health care services that could not be provided by the national health insurance. Also, it enables one to be able to save enough in order to cater for unexpected ailment that cost of treatment is high. “It is however interesting to note that, Private health insurance remains relatively rare in Ghana although it has become common in the last few years.” By world Health Organization (WHO). In as much as it requires quite a lot of contribution as compared to the national health insurance, one is able to choose what type of ailment should be covered as well as how much will be contributed over a time frame due to its flexibility. Also, 64% of healthcare financing in Ghana comes from the private sector. Private health insurance should be considered if one can afford it. Expat also benefit from this insurance because it enable them to be transferred from one healthcare within the country or outside the country. In as much as the government seeks to offer easy, affordable and accessible healthcare to the people of Ghana through the National Health Insurance (NHIS), it has also authorized the operation of private health insurance schemes in Ghana under the National Health Insurance Act, 2012(Act 852) which is being regulated by the National Health Insurance Authority. Private health insurance is flexible. It provides its customers with choices as to the type of health care packages to choose from. The hospital cover and general treatment cover are part of the health insurance policies that can be offered. There are about 11 authorized private health insurances in Ghana. The private health insurance is purchased to cover some or all of the costs of healthcare as a private patient. However, before one signs on to any of the insurance policies there is the need to compare the plans of different companies and choose the most economic one that best suits us. GhanaCompares Blog Team  

24/03/2017 by
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6 tips for your insurance

The private health insurance in Ghana has been authorized by the National Health Insurance Act, 2012(Act852) which is being regulated by the National Health Insurance Authority Insurances are done in order to plan ahead or protect one in times of unexpected calamities. Many Ghanaians also insure themselves to avoid surprises. However, there is the need to know the various policies that these insurance covers as well as the cost of the insurance which could be affordable to Ghanaians. GhanaComapres.com will give you 5 tips on how to make the right decision on your insurance. 1. One challenge facing most Ghanaians is their inability to revisit their insurance policies they have undertaken for years. This is certainly not the best way to be insured. When one has insured him or herself under any of the health policies, there is the need to do follow-ups and comparisons to find out new policies, certain changes or adjustment to the health insurance. Also there might be new entrants who may offer cheaper cost or same cost for the same policies. Changes can certainly be made to any of the health insurance policies. This is one thing most Ghanaians do not know hence the need to guide them. GhanaCompares.com can guide you or help you compare the policies easily,  this comparison websites can save you time and money on your insurance. 2. When getting an insurance in Ghana it is important to take the right corresponding coverage. Set the right deductible when signing for an insurance. A higher deductible reduces your premium, therefore, because one will be in need of much healthcare, a higher premium with lower deductible will be efficient. Cost maybe lowered through a premium tax credit. 3. Another purpose of health Insurance is to ensure that one is covered in times of health emergency which at a point in time, one might not be financially able to bear and the insurance should be in our interest. Private health insurance is also flexible in terms of purchase of health insurance policies that best suits us. So it makes it easier for one to […]

24/03/2017 by

Why big banks in Ghana are fleeing the mortgage market

When it comes to residential mortgages, big banks in Ghana are waving the white flag. The increasing housing deficit in Ghana raises much concern about the need to delve into housing delivery in the country. The annual housing demand of about 100 000 units is not being met, as about only 40 000 housing units currently being delivered per annum. It is worth stating that, government has over the years made some provisions to reduce the housing in the country. Players include the Social Security and National Insurance Trust (SSNIT) and the State Housing Company (SHC). However, these developments, driven by the state institutions have not been able to make any significant dent in the demand, as state housing institutions produced less than 40,000 units in a 10-year period 1991 to 2000, that is according to data from the Ministry of Works and Housing. Apparently, the state’s effort alone has not been significant in addressing the deficit which has therefore called for private individual involvement in the housing delivery. Banks have over the years rolled out mortgage loans to individuals as a measure to meet the country’s huge housing needs. A mortgage loan is a loan obtained to finance the purchase of real estate, usually with specified payment periods and interest rates. Ghana’s quest to reduce the almost two million housing deficit may take a long time as the past few years have been tough for banks’ mortgage businesses. Economic Imbalance The general slowdown in economic activities has forced some big banks in Ghana to give up on mortgage loans. They argue the development has also increased the cost of mortgages making it unattractive to prospective home buyers. Over the period big banks like Access Bank, First Atlantic Bank, Capital bank, Fidelity bank, First National Bank, GT Bank, NIB, GN Bank, Stanchart and UBA have stopped offering mortgage loans. For many analysts, that step is only expected. Professor Kwabena Anaman of the Institute Of Statistical, Social and Economic Research says: “The fact is that the cost of capital and compliance have convinced many bankers that giving home loans to Ghanaian […]

19/03/2017 by

12 Banks shun mortgage financing

Twelve out of the 31 banks in the country do not offer mortgage loans to customers, data from the Bank of Ghana (BoG) has shown. The data, which was released in the week ending February 17, showed that Access Bank, Capital Bank, Energy Bank, Fidelity Bank, First Atlantic Bank and First National Bank do not offer mortgage loans. Others include GT Bank, NIB, Omnibank, Societe Generale Bank, Sovereign Bank and the Universal Merchant Bank. The data on the Average Percentage Rate and Interest Rate (AI) also revealed that Unibank Ghana Limited charged 45.5 per cent interest on mortgage loans, making it the highest in the sector. Standard Chartered Bank and the Bank of Baroda charged the lowest interest rates at 18.4-33.0 per cent and 24.5-28.8 per cent, respectively. UBA Bank, HFC Bank, Stanbic Bank, Zenith Bank and ADB were also charging 32.4 per cent, 31.1 per cent, 29.4 per cent, 29 per cent, and 28.9 per cent respectively. The industry average of interest rates that consumers were paying on mortgage loans stood at 33.3 per cent. Housing deficit The Executive Secretary of the Ghana Real Estate Development Association (GREDA), Mr Samuel Amegayibor, told the Graphic Business in an interview that the decision by some of the banks not to give mortgage loans and the high interest on them was one of the reasons for the increasing housing deficit. He said most of the housing deficits were coming from low to middle-income workers who were finding it difficult to acquire decent accommodation due to the high cost of houses in the country. He believed that decision of some banks would only worsen the situation. He therefore urged the banks to support the industry to come out with well-structured mortgage products to address the challenges of people in the low-income bracket. Until this is done, he said, the country would not get anywhere in its fight against the housing deficit. The country’s housing deficit keeps widening as many citizens have been unable to afford decent accommodation. It is estimated that the country’s population could reach 32.2million in 2020, with about 57 per […]

19/03/2017 by
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Banks with top three highest mortgage loans

The latest Annual Percentage Rate (APR) and Average Interest (AI) report by the Bank of Ghana has shown that GCB Bank offers the highest interest on mortgages as at the end of February. Potential home buyers would be charged as much as 40.3 percent on loans they contract from the bank. Meanwhile Bank of Baroda will offer you the lowest interest rate on your home loans as you will be charged between 24.5 and 28.8 percent. The infograph below gives the top three high offering interests on mortgage loans. Source : citibusinessnews.com

19/03/2017 by
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How to decide between building and taking a mortgage

There are generally four ways by which people in Ghana acquire property. They can inherit it, build it, buy it straight out or acquire it by taking a mortgage. Since not everyone has the fortune of inheriting property and very few people in Ghana can afford to buy property outright, this article will focus on building and acquiring property by taking a mortgage. Building a property is arguably the most popular way through which Ghanaians acquire property. The building is usually completed over a long period and it is not uncommon to see people put the finishing touches to their property only after they receive lump sums from pensions. Mortgages are not as popular as building, but they are gradually showing themselves as an alternative. There are more financial institutions going into the mortgage business and the increased promotion and competition that this brings is drawing more interest from formal sector workers. In comparing these two options, the relative cost, convenience and the security of both methods must be examined. Cost is unsurprisingly the first factor that comes to people’s minds when they are thinking of acquiring property. Building is usually a popular option because it allows people to move at their own pace i.e. they construct faster when they have come by some money and they take a break during times of financial difficulty. Mortgages, on the other hand, usually include fixed periodic payments which do not vary with a person’s income and this serves as a disadvantage. However, when one gets a mortgage, the person is able to plan better in terms of managing cost. This is because the sum to be paid is always known and one can therefore plan to meet the payments. When it comes to convenience, mortgages are undoubtedly superior. For starters, once a mortgage is agreed on, you can immediately move into your property while you pay it off. This is not possible when you’re building, as you have to reach a decent level before you can move in. Also, when it comes to mortgages, you don’t have to worry about finding the […]

19/03/2017 by
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Why everyone should have a life insurance policy

Most Ghanaians view insurance as a game of chance. If you are lucky, you could get a large sum to indemnify you even if you have paid just a little in premiums. If you are unlucky, you pay premiums for years and never have to make any claims although you may get a little by way of premium refunds. This way of thinking about insurance is not entirely wrong. After all, insurance provides for a way for the fortunate to subsidise the unfortunate with the understanding that no one knows on which side of the coin s/he may fall. However, there is one form of insurance which is guaranteed to pay out for your premiums. It is a form of insurance so secure that it is often called “assurance”. It is a life insurance policy. What makes life insurance so special from other kinds of insurance policies in Ghana? It is because everyone will die. That is guaranteed. This means that someone will get paid from the policy and therefore it is not a game of chance. Having life insurance is a must to ensure that the people who depend on you are not left destitute after your passing. But apart from the certainty of the payments, there are other reasons to have life insurance for yourself or your family members. One of them is that life insurance has a tax benefit. The law allows life insurance premiums to be deducted from the chargeable income of an individual, therefore reducing the tax burden of that individual. Another reason to have life insurance is that it is an effective way of saving for the next generation. You can think of the premiums as money that is being set aside for the benefit of the named beneficiary. So, with all these benefits – the certainty of payment, the fact that it is a form of savings and the tax benefits – it is clear that a life insurance policy should be something that everyone should have in Ghana. Having established that fact, the next step is to look at how one should […]

19/03/2017 by