Yinka was ecstatic. For months she had saved up to buy the latest iPhone. And today she had done it! She had gone to the best iPhone store in town and purchased one. The feeling she felt was one of great pleasure and accomplishment because it was quite expensive.
While waiting to pay at the checkout counter Titi, a store canvasser walked over to her. “Madam, congratulations on your purchase of the latest iPhone. We also sell insurance in case of screen or liquid damage. It will cost around 10% of the cost of your device to get it insured.”
“Well, I’m always very careful with my handsets,” Yinka responded. “I’ll just buy a case to protect the phone and it will be fine.” “Besides the money for insurance is much and I don’t have it now.”
A few days later…
Yinka was at a photo shoot for a fashion brand by the pool of a 5-star hotel. In between several shots her phone rang. It was her brother. As she engaged him in conversation she lost her footing and fell headlong into the pool. Upon being rescued she discovered much to her dismay, that her brand new iPhone had stopped working!
She tried everything to get it to power up, to no avail. On returning to the store she discovered that she would have to pay nearly 40% of the value of the phone to repair it. “If only I had listened to the store canvasser the other day,” she thought to herself. “I would have paid ten percent of the value to protect me from having to cough out forty percent for repairs.”
Sadly many people behave like Yinka when it comes to device insurance. You hear things like, “Nothing will happen to my device.” Or, “I didn’t plan to spend on insuring my device.” But device insurance is too important to simply ignore.
Here are 10 reasons why it is so:
High Cost of Repairs
One of the downsides of tech gadgets is the fact that repairs and replacement of damaged and defective parts can be quite expensive. In many cases you could be spending nearly 40% – 50% of the cost of purchasing the device just to repair it.
Investing in a robust device insurance policy could drastically reduce your cost outlay by as much as 80%.
Tech Gadgets are Pricey and Expensive
Smartphones, tablets, laptops and all other tech gadgets are usually pricey. Every year manufacturers add a few additional benefits and introduce new models into the market place. Devices are essentially “lifestyle” driven and positioned as premium.
Thus it makes sense to get the most out of your devices by using them for as long as possible. Device insurance will go a long way towards your achieving this.
Dwindling Purchasing Power
In case you haven’t noticed, the value of what your money can buy continues to drop over time. What N100,000 can buy now will not be the same in 1 years time. Prices for tech gadgets and devices will continue to rise and rise.
While this happens the value of your earnings will remain stagnant, or even dwindle. This will cause many people to cut off certain expenditure. You can still get the best out of your current devices even when it may become harder to replace them with device insurance.
Accidents can, and will Happen
No one knows tomorrow. You can’t even predict what will happen 5 minutes from now. That’s why you must protect your valuables as much as possible and reduce your risks.
Truth is, living life itself is a risk. Unexpected occurrences and unplanned outcomes can arise at any time. However it behoves on you to mitigate and minimize their impact on you, where possible.
Device Insurance is Protection
In your journey through life you need protection. There’s no better feeling than being protected just in case something unexpected occurs. And that’s basically what insurance is. Protection.
According to the dictionary insurance can be defined as, “a thing providing protection against a possible eventuality.” It pays to be protected against damage to your devices always.
Device insurance guarantees compensation for specified damage to your devices in return for the payment of a specified premium. Premiums paid are usually far less in value than the claims a customer is entitled to if something happens.
In other words you’re getting a further compensation towards the resolution of the eventuality experienced. Now that’s wonderful news.
Peace of Mind
In addition to being protected device insurance will give you peace of mind. You’re far less likely to be worried when something happens if you are insured against it.
And that peace of mind in the midst of the storms of life is extremely priceless. This also translates to a sense of security.
Reduction of Out-of-Pocket Payments
Imagine how much Yinka has to cough out to repair her iPhone. This was definitely unplanned and is quite substantial.
But with a device insurance cover this huge outlay would have been minimized significantly. At most she would have just added a more reasonable amount.
Some Insurers offer additional benefits
Benefits vary from company to company, or depend on the nature of the device insurance cover. For instance some insurers can provide you with a temporary replacement for your damaged device until it is repaired.
Device Insurance provides coverage for varying risks
There are so many risks that can occur to one’s devices. Theft, Screen and liquid damage, faulty charging port or earphone jack are just some examples.
Again this varies between different service providers. But a top range plan essentially covers two or more of these risks when they occur. And at a reasonably priced premium because it has to be a competitive. This would definitely benefit subscribers.
In conclusion device insurance might seem like a novel idea to many in Africa but it isn’t. In most developed countries people have always relied on it to protect their devices. And it’s surely one of the initiatives that makes it easy to afford the best devices for personal use.
It’s definitely not too late for Yinka. She can still take up a device insurance cover even after repairing her phone this time. Who’s to say that one of the risks listed above doesn’t happen again?