Income Protection In Africa: Behavioural Science, Cultural Truths, And The Stories We Don’t Tell

When we think about financial planning, many of us start with what we can see:

• Savings

• School fees

• Reliable vehicles

• Plots of land

Income protection insurance, by contrast, protects something less visible but far more fundamental: our ability to earn.

The Science Behind the Belief: Optimism Bias

Behavioural science tells us that humans are not naturally wired to safeguard the invisible components of existence. Across many West African communities, a second layer is at play: social expectations around:

• Resilience

• Family responsibility

• The belief that “somehow, we will manage.”

This isn’t a weakness; it’s actually a powerful cultural strength that encapsulates:

• Mutual support systems

• Extended-family safety nets

• Communal problem-solving traditions

All are potent forces, but they can also create blind spots. In behavioural economics, this is sometimes framed as the optimism bias: the belief that bad things are less likely to happen to us personally. In contexts where faith, community, and determination have helped people endure genuine hardship, the optimism bias is often reinforced by lived experience:

• “We survived before; we’ll survive again”

This is a profoundly human narrative. However, although optimism is empowering, it can lead us to postpone important decisions. Income protection insurance is one of them.

Present Bias and Diffusion of Responsibility

Present bias is our tendency to prioritise today’s needs over tomorrow’s risks. In many African households, financial obligations stack high:

• Supporting younger siblings

• Contributing to parents’ well-being

• Participating in community commitments

• Navigating rising living costs

When every naira, cedi, franc, or shilling already has a set destination, the concept of income protection, an invisible benefit for an uncertain future, can feel abstract. This is where the rich ancient African culture of storytelling illuminates the emotional logic behind the decision. Consider this all-too-familiar scenario:

• Someone falls ill or has an accident

• The immediate family rallies

• Extended relatives pitch in

• Friends organise small contributions

• Religious communities might help with meals or temporary support

This network is strong and comforting in times of need, but it has finite resources. As weeks stretch into months, fatigue grows, contributions decrease, and savings drain. The unspoken truth emerges:

• Everyone wants to help, but no one can carry another family’s financial burden forever

Behavioural scientists call this diffusion of responsibility, a phenomenon in which the knowledge of shared support can undermine the feeling of a need for personal contingency planning. When we know we can rely on many people to step in, it feels as if the community itself is a form of insurance. But that only works for so long and peters out if the situation becomes long-term.

Income Protection: Conclusion

Income protection insurance transforms the dynamics we have discussed. It doesn’t replace the community; it protects it from financial overextension. It preserves the dignity of the affected person while reducing the emotional burden on those who care for them.

In the end, income protection isn’t about predicting misfortune; it’s about respecting the intertwined nature of:

• Family

• Community

• Personal responsibility

Behavioural science explains why we too often delay this decision, and storytelling reveals what happens when we don’t. The solution is practical support that strengthens, rather than replaces the networks we value most.