Health insurance is a way of spreading the risks of incurring medical costs over a group of individuals or households, protecting the individual from a catastrophic financial loss in the event of a serious illness. Insurance, therefore, spreads the burden of payment for illness among all the members of the scheme whether they are ill or healthy, poor or wealthy. By their very nature, insurance plans act as financing agents: they receive funds from employers, households, and the government and use these funds to purchase health care for their beneficiaries. Therefore, the main components of insurance schemes are collecting revenue, pooling resources and risks, and purchasing quality goods and services.
Insurance is taking a wider and stronger leap in Nigeria, thus creating competition among the insurance companies. Health insurance is becoming very popular in the public and private sector organizations because it helps employees have control over their income especially in the event of an illness or situations that require medical attention. In this case, they do not have to pay their medical bills as a lump sum or out of pocket.
Due to competition and other factors, buying health insurance these days can be quite tricky because it almost seems like every company out there is just trying to make quick money. However, with the right tips on what to look out for and knowing how to read between the lines, it is possible to get the best possible deal on health insurance.
This tricky problem shouldn’t discourage you, though; as there are a lot of great health insurance companies in Nigeria.
At the end of this post, you should know the exact function of health insurance (many people still don’t know this), you will also learn about the benefits of health insurance and what exactly it covers including the small prints. This knowledge is incredibly valuable to those forward thinking individuals who like to plan for tomorrow.

The hard truth is that the price of medical care seems to go higher and higher every year. This high cost makes health insurance a very relevant topic. Unfortunately, our culture and lack of finances in these parts of the world do not afford everyone the forward thinking nature they should assume. Thankfully, there are a lot of affordable health insurance companies with great plans that can cover you and your family. These programs would save you a lot of money and time in the long run. Knowing about health insurance would also help you save on medical bills as well as bail you out should your medical condition deteriorate.

What is Health Insurance and how does it work?

Health insurance often falls within two categories; an indemnity plan, which reimburses you in the event of an illness and a managed care plan, by health maintenance organizations (HMOs). The indemnity plan would allow you the privilege of selecting your doctor and also pay for your medical bills. Afterward, the insurance company would reimburse you. On the other hand, a managed care plan provides wider coverage on medical issues. They provide healthcare in the form of medical institutions, doctors and a lot of other health care provisions.

What is the function of Health Insurance?

Health insurance exists to provide a more affordable basis through which patients can visit medical institutions and get treated without having to pay out of their pockets.

Benefits of Health Insurance – How it works

No individual plans to get sick; neither can anyone predict when exactly he or she would fall ill. With the high prices attached to healthcare solutions these days, routine medications and surgeries are getting more expensive. For example, fixing a leg fracture can be pretty expensive in a good hospital. Having a health insurance plan ensures that you do not have to cover the entire fee on your medical bill. Some health insurance plans allow you pay as little as 35% of your health bill, which is immense if honestly considering the amount saved. So for example, if the cost of your surgery or procedure is N100,000, all you have to pay is N35,000, and your HMO or health insurance plan would pay the remaining N65,000. Amazing isn’t it? Unfortunately, very few people are aware that this even exists in the country. Let’s take a look at some of the top insurance companies in Nigeria today.

Major Insurance Companies in Nigeria – in no particular order

Hygeia, Total Health Trust, Clearline International, Healthcare International, Mediplan Healthcare, Redcare, AxaMansard, Avon, MultiShield Nigeria Ltd, Premium Health Ltd.

What exactly do they, and should they cover? All you need to know about the small print

Like any business in the world, health insurance companies are out to make a profit. Irrespective of how well they provide healthcare, their ultimate goal is still to make private profits. You must, therefore, keep this in mind when buying insurance.

Before signing up for any insurance plan, try to read as much as you can on the contract. Don’t purchase a plan just because of what you see on the flier. You must look out for:

Know what your deductibles are
Never sign up for an auto renew
Do a lot of research on plan quality
Know the rules of your plan

I hope this was useful.

Wishing you good health and happiness,

Dr Nse

Author: Dr. Nse