The Issue Of Life Insurance In Nigeria

‘Life Insurance’ is not a particularly common phrase in the developing world. In a country like Nigeria, the topic of Life Insurance isn’t brought up so much because a lot of citizen’s disposable income is infact their total income. This income is not even enough to cover their basic needs.
Looking at the classification of individuals in the society, obviously taking out the lower income individuals from the list of people looking to get life insurance. This leaves us with people in the middle-income range and high-income range. Individuals classified in the middle income range have to worry about medical bills, accommodation, transportation, fuel and other associated costs of living, implying that only a very small fraction of these people get to even think about life insurance plans. Lastly, individuals classified as high income earners within the country are the most likely to participate in a life insurance plan. However, some of them still do not participate in such schemes. We will therefore be taking a look at what life insurance means to a typical Nigerian, and also the top life insurance firms to work with. This is very useful to any reader, as it will encourage you to see life insurance from a different perspective.
Life Insurance – What it means to a typical Nigerian
Most Nigerians do not really know much about life insurance. However, with every passing year, more people are getting enlightened about the advantages of life insurance. The average Nigerian already finds it hard enough to fend for his family, so it seems pretty redundant to start looking out for where to save money for a rainy day. It already is a rainy day.
Thankfully, this opinion is changing daily, and due to the natural rugged nature of the Nigerian worker. One therefore has to make smarter life choices irrespective of the cost. Life insurance gives you and your family a level of comfort and safety in the event of a mishap. Life insurance would protect your family in the event that something happens to you. As a matter of fact, the tough nature of the country is what should spur each individual to seek out a better life for his or her family. For most families, a large share of the income is dependent on the father, who is the breadwinner. This means that in the event of an accident, illness or sudden demise of the breadwinner, the family would be thrown into greater turmoil. More and more Nigerians are beginning to realize this, and has attracted them to the idea.
What are the benefits of life insurance?
Life insurance provides a lot of benefits to any individual who purchases it. These include:
- A stable cover for risk: Life in the 20th century is filled with so many uncertainties. One cannot plan with utmost certainty of the outcome of tomorrow. With this in mind, it is very important to cover you and your loved ones in order to enjoy safety against unforeseen events.
- Life insurance helps to plan for life stages: Life occurs in several stages, and with every new level an individual faces, there is a lot more at stake. Life Insurance therefore helps to provide financial support in the occurrence of untimely death. It also serves as an investment. The money saved up with a life insurance company will always remain your money. Therefore, at every new level you experience such as your children’s marriage, education and even purchasing your dream home, it helps to have some money saved up. A lot of life insurance companies come with money back guarantee upon purchase of a plan within a period of time.
- Life insurance also promotes the spirit of thrift and saving: Whether or not you may realize it, saving away some money every month would help you develop a level of thrift. Individuals with the habit of long-term savings are often more likely to achieve their goals.
- Life insurance gives a system of assurance through annuities upon retirement: Your life insurance plan does not have to be all doom and gloom. A life insurance plan may also serve as a stable source of income after retirement. Infact, it is rated as one of the best forms of retirement planning. At some point, your body becomes to weak to work every single day, and you would still require some income. Therefore, the savings in the form of life insurance can also help to augment your levels of income.
With all of these benefits of insurance, it should be a no-brainer when it comes to purchasing life insurance from a firm in Nigeria. As a matter of fact, there are a lot of great insurance companies in the country.
Top Life insurance companies in Nigeria
These companies are a force to reckon with when it comes to the Life insurance spheres. They are:
- Aiico
- Custodian Insurance Plc
- Leadway Insurance
- Consolidated Hallmark insurance
- Niger Insurance Plc
- Gold link Insurance Plc
- IGI Insurance
- Mutual Assurance Plc
- Crusader
- NICON Insurance
What should you look out for when buying Life Insurance?
- When it comes to buying Life Insurance, it is always good to go with a well-known name. It is not to say that smaller firms are not as effective, but these big names are “well-known” because of the work they have put in. Think about it this way, when buying a car you would most likely go for a popular brand name like Mercedes or Toyota than buy a relatively unknown vehicle. While the unknown brand name may not be bad, it is generally safer to go with a well-known name.
- You must also follow a track record of success when it comes to buying a life insurance plan. This is your hard earned savings, so you should be wary of putting it into the wrong hands. You must therefore insist on well-known companies that have a track record of quick payouts and good customer service.
- You should also check out their testimonials. Be sure to look out for real testimonials from actual people around you, and not just what the marketers show you on a pamphlet.
With the developing world getting more enlightened on the benefits of Life insurance, Nigerians are starting to follow suit. There is a lot to gain when it comes to buying a life insurance plan. You just have to know what to look out for. Following the steps provided in this article would ensure that you get the best on any life insurance plan you purchase.
References
-All you need to know (Life insurance guides)
– www.vconnect.com (Life insurance)