Insurance has played a pivotal role in protecting lives in Nigeria. It creates an opportunity for people to protect their properties. But, what of their lives? Is there a provision for it? This question has bothered the minds of millions.
Thankfully, several insurance companies offer assurance of life. Of course, they do not directly protect you from harm. On the contrary, they make provision for your beneficiaries to not be left without hope. They can enjoy the benefits from you even when you are long gone. This article is designed to help you see the process of Life Insurance in Nigeria
What You Need To Know About Life Insurance Plans in Nigeria
Before opting for a life insurance plan, here are some things you need to do:
Determine How Much Life Insurance Do You Need
When starting on a life insurance it is advisable to think of how much coverage you need. It could be a good idea to purchase a life insurance policy that will adequately provide for the long-term needs of your family.
Among these are the future home payments and the cost of schooling for your spouse and kids. Purchasing a life insurance policy that will suffice to meet your family’s immediate needs can also be a good idea. The daily living expenditures of your children and spouse are included in these demands.
Choose The Kind Of Life Insurance You Need
Choosing between term and permanent life insurance is the next important factor to think about when choosing the right kind of life insurance coverage.
• Term Life Insurance
From the name, you can tell what it is for. The “term” of the policy refers to this time frame. You do not receive a death benefit when the policy expires at the end of the term.
It is good to note that term life insurance is less expensive than whole life insurance. However, most people choose this option. Permanent life insurance usually has a greater premium than term life insurance.
• Whole Life or Permanent Insurance
Life Insurance that never expires This policy is valid for your lifetime. Until the end of the policy, you make a monthly payment of a set amount of money.
The monthly policy payments are subsequently paid from the investment’s profits. In the course of this article, we will highlight the benefits and limitations of these insurance covers.
Choose The Kind Of Payment Coverage You Want
This is one of the important aspects of payment coverage. You would be required to select between guaranteed and variable insurance coverage. Regardless of the duration of the policy, guaranteed coverage always pays the same sum after the insured person’s death.
A variable policy’s annual payout varies according to the performance of the business that sold the insurance. However, the cost of guaranteed is very high. They are a preferable option for people who have dependents. If you want to save money on your life insurance and do not have any dependents, variable policies are a fantastic option.
Select The Best Life Insurance Cover
The last factor to take into account when selecting the best life insurance coverage is the provider. Life insurance policies are sold by numerous companies, each of which has advantages and disadvantages of its own.
Depending on the kind of policy you select, this changes. The best life insurance providers are known for their dependability and trustworthiness. To make sure you get the best bargain available, compare life insurance providers before enrolling in a policy. Make sure the company you have selected is a reputable one. Additionally, you should confirm that the coverage you select is the best fit for your family.
Types of Life Insurance Cover
Here are the types of life insurance cover:
Term Life Insurance
Term Life Insurance simply covers the insured against death for a specified period. A Term life insurance has so many benefits some of which include:
Affordable
The major benefit of insurance is that they are more cheaper than permanent insurance coverage. It can be paid for a short period. Probably, between two to five years. This insurance policy provides continuous payment for your family after death. For Term Insurance, some companies offer as low as N10,000 yearly for a cover.
Protection
Oftentimes, single parents always tilt to this kind of insurance coverage. This is because, in the event of death, their offspring have something to fall on. The funds given to them are very important because it would help them deal with expenses. As a parent, why don’t you take out this coverage just in case of unforeseen circumstances?
Easy to Comprehend
Term insurance is very easy to understand. All you need to know is the period your insurance is going to cover you. Also, you need to find out if the payment plan is going to be regulated during this period.
Whole Life or Permanent Insurance
The whole life insurance covers the insured against death for the whole life. There are so many benefits of permanent insurance coverage. Some of them include:
No Expiry Date
The beauty of wonkuge insurance is that they don’t have an expiry date. They are very much for anyone to understand. It serves as a benefit for your friends in case unfortunate events occur. Your offspring do not have anything to worry about.
Enough Fund For Beneficiary
There are enough funds for beneficiaries. Your offspring do not have anything to worry about. Once an unfortunate events occur, they would simply get paid. However, the insurance company has to verify the death before releasing payment.
Additional Funds
There are other benefits of the life insurance policy. You can simply get a reward from the insurance company. Most insurance companies like Leadway Assurance would give a N25,000 sum after payment. This sum would run for six months. This amount is added to help the family bear with the loss of the organization.
Conclusion
All in all, the insured stands a chance of taking care of his or her family after a loss. Although, it may not be physically but financially. There are so many insurance companies in Nigeria that offer life assurance coverage.