Types of Insurance In Nigeria

Do you want to know the types of insurance in Nigeria? Keep reading this article as we explore more on it. 

You have access to insurance in Nigeria can protect you and your loved ones from financial risk. 

According to reports, less than 1% of Nigerians own an insurance policy. Whether you like it or not, life happens as you are better covered than sorry. 

Moreover, there are many types of insurance policies available to you in Nigeria; some have over the years become compulsory due to government regulation. 

In this article, we will talk about the types of insurance and benefits in Nigeria. 

READ MORE: What Are the Different Types of Car Insurance

Types of Insurance Policy Available In Nigeria 

• Health Insurance 

It is one of the famous insurance covers in Nigeria, health insurance policies can cover basic patient screening tests, medical consultation, free preventive healthcare and treatment for certain illnesses. 

Also, the premium plans provide access to other benefits like Telemedicine, memberships, Spas and many more. 

• Automobile Insurance 

Car insurance in Nigeria is compulsory by law when you want to drive any car on Nigerian roads. Also, auto insurance is a valuable protection for car owners, and there are diverse car insurance policies in Nigeria. 

Moreover, third-party insurance covers the minimum expected by the law of any car owner. 

The 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 diverse forms and terms for a life insurance policy in Nigeria. The insured family or loved ones are paid the insured benefits by the policy provider in the event of the insured death.  Moreover, the duration for this type of insurance is 10 15, 2 or 30 years. 

• Home Insurance 

A home insurance policy in Nigeria runs a fixed of 10 to 20 years. It covers the damage to your property even in fire, accident or natural disasters like floods. 

Moreover, the premium for the policy often depends on whether you want a full or partial cover and also. 

• Home Owner Insurance 

A homeowner’s insurance policy in Nigeria covers all movable assets on the policyholder’s property. 

Moreover, digital or electronic like your laptops, refrigerators, gaming consoles and many more can be covered in the case of theft or damage. 

However, owners of property or tenants can purchase the type of insurance cover. Some insurance gives in Nigeria refer to it as Householder Insurance.

• Travel Insurance 

Travel insurance gives insurance coverage for the insured during a trip. This type of insurance covers medical emergencies and accidents. Moreover, there’s travel insurance for trips within and outside Nigeria, but most insurers focus on international travel. 

• Device Insurance 

Also famous as Phone Insurance, Device Insurance in Nigeria covers the insured device for a premium for liquid screen or liquid damage to their device. Moreover, the cover can be complete or partial to the cost of repairing or replacing an appliance. 

However, it eliminates the frustration of paying for broken or lost devices that in devise cases are usually unforeseen by the owner. 

• Events Insurance 

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. 

READ MORE: 7 types of insurance in Nigeria

Benefits of Owning an Insurance Policy in Nigeria

• Protect Your From Financial Loss 

The insurance policy protects your finances from all sorts of unforeseen risks that would lead to financial loss. 

However, the average amount for the insurance premiums paid for a while to the insurance provider will reduce the impact of illness, deaths, loss and accidents on your finances. 

• Improvement in Your Cashflow Management 

The coverage your insurance policy gives will assist you in improving your ability to manage your cash flow. Even when the policy doesn’t provide 100% for the uncertain incident, it gives 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 

This insurance gives you the unique opportunity to take loans from your policy provider. There is 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 can likely be able to continue caving in the event of loss, illness or an unforeseen life event than someone who doesn’t have an insurance policy. 

READ MORE: Types of Insurance Policies in Nigeria

Conclusion 

Living without insurance puts you at considerable risk and constant financial loss when life happens to you. nobody knows when they will fall ill or experience any form of loss. In many cases, Nigerians see insurance as payment for what would not happen rather than what might happen.