Definitive Guide to Life Insurance Policy in Nigeria

Life insurance policy is an agreement with an insurance company. In exchange for premium payments, the insurance firms provide a lump-sum payment, known as a death benefit, to the heirs upon the insured’s death.

Life insurance policy in Nigeria beneficiary

Guides to life insurance policy in Nigeria

  • Life Insurance Policy in Nigeria: Consider life insurance as an investment

Some people are of the thought that taking out life insurance policy is a discarding of money. They’re totally erroneous. Did you know that you could get back all the money that you put in into life insurance? If only you can be faithful with your monthly payments?

According to the Managing Director of African Alliance Insurance, policyholders can get all their money back at when the tenure ends, provided that they will remember to pay the premium every month. An insignificant amount that is put in each month toward life insurance could be transformed into a lifesaving payout for your family if something bad should happen to you during your life insurance tenure.

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  • Life Insurance Policy in Nigeria: NAICOM has addressed insurance fraud

Historically, insurance companies unlawfully refused to pay when policyholders in good standing took out claims. Nigeria’s National Insurance Commission (NAICOM) has improved the situation. Restructurings have altered the insurance landscape in Nigeria. Today, if an insurance company tries to the fraud they get shut down by the government. All insurance companies need to meet the terms of the code of practice in order to remain in the industry.

  • Life Insurance Policy in Nigeria: More Nigerians are purchasing life insurance policies

Nigerian society is changing rapidly. In the past, young people could find a decent job without craving to attend school. Today, however, the finest jobs call for education. A primary school certificate doesn’t mean much anymore. Young people need at the very least a university degree to remain competitive both at home and abroad. But how will your children have the funds to get an education when you six feet? If you die without having taken out a life insurance policy, your children won’t get to go to school. They will be forced into taking tedious jobs in order to make a living.

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  • Life Insurance Policy in Nigeria: Insurance isn’t just for rich people anymore

One disadvantage of being rich is that you have to pay extra money to ensure what you have. If you don’t have property, you won’t have to pay as much for life insurance. Also, the less wealthy you are, the more life-threatening it is that you purchase life insurance today to preserve your family in case of emergency. If you are barely scraping by today, just think about how things will be if you die tomorrow. Even investing just N5,000 a month toward a life insurance policy will get you the coverage you need.

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  •  Life Insurance Policy in Nigeria: insured before you invest

It will be senseless to invest money if you don’t have insurance to safeguard your investments. If something bad happens, you and your household could lose everything. Monetary experts come to an agreement that it makes more sense to ensure against tragedy first before investing money in stocks, bonds, mutual funds or other financial products.