Having access to insurance in Nigeria can protect you and your loved ones from financial risk. According to reports, less than one per cent of Nigerians own an insurance policy. Whether we like it or not, life happens, and you are better covered than sorry.
There are several types of insurance policies available to you in Nigeria; some have over the years become compulsory due to government regulation. Before we look at the types of insurance policy coverage available to you in Nigeria, let us take a look at the top benefits of being insured.
Benefits of Owning an Insurance Policy in Nigeria
Protects Your from Financial Loss: An insurance policy protects your finances from all sorts of unforeseen risks that would lead to financial loss. The average amount for insurance premiums paid over a while to the insurance provider will reduce the impact of illness, deaths, loss and accidents on your finances.
Improves Your Cashflow Management: The cover your insurance policy provides helps you improve your ability to manage your cash flow. Even when the policy doesn’t provide 100% cover for an uncertain incident, it offers a worthy buffer for your finances.
Government Policy: Sometimes in Nigeria, in some instances like Auto insurance, government laws and regulations make it a must for you to be a policyholder and as a law-abiding citizen, doing is the right thing to do and in your best interest.
Loans: Some insurance covers provide you with the unique opportunity to take loans from your policy provider. Such an opportunity can be a source of help when in desperate need of money.
Helps Insured Build a Savings Culture: Being an insurance policyholder can help you build a savings culture. You are more likely to be able to continue caving in the event of a loss, illness or an unforeseen life event than someone who doesn’t have an insurance policy.
8 Types of Insurance Policy Available In Nigeria
Health Insurance: Arguably one of the most popular insurance covers in Nigeria, a health insurance policy can cover basic patient screening tests, medical consultation, free preventive healthcare and treatment for certain illnesses. More premium plans provide access to other benefits like Gym memberships, Telemedicine, Spa and many more.
Automobile Insurance: Car insurance in Nigeria is compulsory by law if you want to drive any vehicle on Nigerian roads. Auto insurance is a valuable protection for car owners, and there are different car insurance policies in Nigeria. The third-party auto insurance cover is a minimum expected by the law of any car owner. This policy covers collision and non-collision damages, theft, fire or loss for other road users but does not cover damage to the insured or their property.
Life Insurance: There are different forms and terms for a life insurance policy in Nigeria. The insured family or loved one(s) are paid the insured’s benefits by the policy provider in the event of the insured’s death. The expected duration for this type of insurance is 10, 15, 20, or 30 years.
Home Insurance: A home insurance policy in Nigeria runs a fixed term of 20 or 10 years. It covers the against damage or destruction to your property even in fire, accident or natural disasters like flood. The premium for this policy often depends on if you want a full or partial cover and also.
Home Owner Insurance: A homeowner insurance policy in Nigeria covers all moveable assets on the policyholder’s property. Digital or electronic devices like your television, laptops, refrigerators, gaming consoles and many more can be covered in the case of theft or damage. Owners of property or tenants can purchase this type of insurance cover. Some insurance providers in Nigeria refer to it as Householder Insurance.
Travel Insurance: Travel insurance in Nigeria provides insurance cover for the insured during a trip. This type of insurance cover medical emergencies and accidents. There’s travel insurance for trips within and outside Nigeria, but most insurers focus on international travel covers.
Device Insurance: Also more popularly known as Phone Insurance, Device insurance in Nigeria covers the insured device(s) for a premium from loss, screen or liquid damage of their device. The cover can be complete or partial to the cost of repairing or replacing such an appliance. However, it eliminates the frustration of paying for broken or lost devices, which in many cases are usually unforeseen by the owner.
Events Insurance: I recently came across a video on social media were a couple of their wedding venue went up in flames. This is the type of uncertainty hosting an event can come with; an event insurance policy would protect guests from accidental injuries, loss or damage of equipment and other liability claims.
What we have captured here is not an exhaustive list of insurance policy’s available in Nigeria; we have focused more on insurance plans for individuals than a corporate insurance policy in Nigeria. Such insurance policy may include Marine Insurance, Aviation Insurance, Engineering Insurance, Oil and Gas Insurance, Manufacturing Insurance, General Business Insurance and many more.
In closing, living without insurance puts you at considerable risk and constant financial loss when life happens to you. Nobody wakes up and says today they will fall ill or experience any form of loss. In many cases, most Nigerians see insurance as payment for what would not happen rather than what might happen. Speak to an insurance broker today to protect yourself and your loved ones. Who knows, doing so might be the start of your freedom from financial loss; get insured today.