What to know about insurance in Nigeria

insurance in Nigeria

Insurance is a means of protection from financial loss. Usually, it is against the risk of a contingent or uncertain loss. Insurance can also be defined as the transfer of risk from one entity (the insured) to another (the insurer). It may be for individuals, groups, or whole communities. There are different types of insurance policies and coverage options in Nigeria that you should know about. These include life insurance, property insurance, and health care insurance

 

What are the types of insurance policies available in Nigeria?

There are two major types of insurance policies in Nigeria: life and property. However, both life and property are not insurance policies alone but two different products that are regulated and protected under the insurance law. Life insurance This type of insurance covers death, disability, or deprivation. It depends on when one falls into the zone of the policy. There are four life classes: 1. Infant (0-6 years) 2. Young child (0-12 years) 3. Adolescents (13-18 years) 4. Old adult (19-55 years) Life insurance can also be called upon as a payment for debt or indemnity. As a result, the payment for death or disability will be a lump sum, or annuity. A life insurance policy is purchased by the policyholder or the person paying for the policy to be purchased.

 

Who should buy an insurance policy and why?

Anybody in Nigeria that has at least a monthly income is a potential customer of an insurance policy, including minors, the disabled, those under the age of 22 years, jobless graduates and retirees. In Nigeria, it is usual for the insureds to pay the sum assured (the amount they hope to recover in the event of an eventual claim) on the day they buy the policy. When a person buys insurance, it is usually during the annual renewal of the policy. The renewals are a crucial period of insurance. Therefore, the policy should be renewed at least once in a period of 12 months, depending on the type of policy. Some policies are for one year, but some for two, three and four year periods.

 

The 5 best insurance companies in Nigeria to consider for 2021

Overall, it is a good move for every individual, especially the ones involved in major purchases, like a home, to have insurance. There are a few major insurance companies operating in the country. They provide the best insurance coverage, and some other niceties like the lowest premium, best customer service, and limited premium rate. Though there are over 30 different insurance companies operating in Nigeria, here are the top 5 best insurers for individuals in Nigeria, according to professionals. Nationwide General Insurance It was recently listed by CVM24 as the best insurance provider in Nigeria. The company has offices in Abuja, Port Harcourt, Lagos, and Port-Harcourt. It has a great reputation for quality service.

Conclusion

Life insurance is the long-term right to receive a specified benefit from the life of a deceased person or designated beneficiary. It is usually paid by the policyholder’s estate to an insurer in the event of death. The homeowner’s health insurance covers the damage to the property of the insured from any type of harm or injury to the occupants. It does not only pay for medical expenses but also includes some part of cost of hiring a cleaning company or visit to a surgeon. The business owner’s health insurance includes coverage for loss of income and fixed capital equipment in the event of disability and death. It also covers health coverage and retirement expenses. It is usually limited to the company’s employees.

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