Today I’m going to show you all you need to know about life insurance in Nigeria, from scratch.

A lot of questions have been asked with regards to the life insurance policy. Questions like; how sure am I that my beneficiaries will get the promised finance when I die? At what age should I get a life insurance policy? Is life insurance a waste of money? And more.

Questions like these deserve serious answers especially in an underdeveloped country like Nigeria before indulging in the policy.

And, in this no-nonsense guide, I will answer all your questions and help you choose the right life insurance company in Nigeria.

The Topic Overview

What exactly is life insurance?

Life insurance is an agreement between an insurer and a policyholder (the person entitled to the insurance). The policyholder will be paid a benefit if, unfortunately, he dies within the agreed time.

For instance, let’s say you got “term life insurance” from a reputable insurance company. And sadly, you died within the agreed 10-30 years.

The company is entitled to pay a certain benefit to the beneficiaries of the insurance.

Now that you understand what life insurance is, it’s time for me to explain more about how to get life insurance in Nigeria.

Steps to get Life Insurance in Nigeria

1. Assess Your Financial Capacity
Access if your financial health is good enough for the kind of life insurance policy you desire.

For instance, if you desire a ₦1 million life insurance benefit. You should weigh, when you add life insurance annual expenses (which could be ₦50,000 and above). To your other expenses, and subtract them from your annual income. If it will affect your financial health?

If yes, then you can go for lower life insurance benefits, but if no, then carry on. You don’t just want to indulge in coverage that will affect your family’s feeding or children’s school fees.

2. Decide Whether You Really Need Life Insurance Policy
Though most people do need a life cover. But some individuals don’t, especially if you are financially free.

If you have enough wealth to leave behind for your spouse and children, and you don’t have any debt they will have to pay. You probably do not have to bother with any life insurance.

However, if you are not in this category, then ​acquiring life insurance in Nigeria is necessary.

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