How To Easily Buy Life Insurance in Nigeria (2024)
Do you want to buy life insurance in Nigeria and you are looking for how to go about it? Read on
It is impossible to overestimate the value of a life insurance coverage and the financial security it offers. The following are some benefits of owning life insurance. A source of income after retirement, emergency readiness, and post-mortem support for departed loved ones.
Purchasing life insurance can be perplexing if you have never done so before. Buying life insurance is not like buying any of the other numerous types of coverage available.
This article explains the procedures to take when purchasing life insurance.
HOW TO BUY LIFE INSURANCE IN NIGERIA
Follow these 7 steps to purchase life insurance easily in Nigeria.
STEP 1: ASSESS IF YOU REQUIRE LIFE INSURANCE
You must first decide why you need life insurance. The goal of life insurance is to provide for a policyholder’s surviving family members, such as their parents, spouse, or children.
In addition, life insurance can be used as a retirement plan and to pay off debts and mortgages.
STEP 2: SELECT A LIFE INSURANCE PLAN TYPE.
Term and permanent life insurance are the two types of insurance coverage. There are also two types of permanent life insurance: universal and whole. The cost of term life insurance is lower than that of permanent life insurance in Nigeria. Which form is right for you will depend on your needs for life insurance.
- Term Life Insurance: For the majority of individuals, term life insurance is the most affordable and most used type of life insurance. It offers protection for a predetermined amount of time, typically 10 to 30 years. Beneficiaries receive financial support from it. The sum assured from your insurer will pass to designated beneficiaries if the insured dies during the term. Term life insurance benefits terminate when the policy’s term expires.
- Whole Life Insurance: This type of permanent life insurance has recurring premiums that build up a cash value over time. A whole life policy may require premium payments from the insured for a predetermined period of years or until death.
- Universal Life Insurance: The second type of permanent life insurance is called universal life insurance. There are additional investing alternatives and cumulative cash value with universal life insurance. For people who are interested in financial investments, this is a good option.
STEP 3: LOOK FOR AND COMPARE SEVERAL LIFE INSURANCE OFFERS
Once you’ve determined what form of insurance will best meet your needs, you need to locate and evaluate appropriate insurers. No two businesses are alike. Differences in benefits, charges, or policies will always exist.
Look for insurers who offer tailored plans and flexible coverage. Analyse the company’s customer service, claims procedure, and financial stability as well. Make sure their service is excellent and beneficial.
STEP 4: COMPARE LIFE INSURANCE QUOTES
Get quotations for life insurance from the providers you have chosen to buy from. To find out how many premiums you’ll be paying for your policy, ask your insurance agent for quotations. This will assist you in choosing the best offer.
You may obtain quotations from most businesses using the quote generators found on their websites. Also, their agents may provide this.
You need to enter some personal information in order to receive a quote.
STEP5: COMPLETE THE APPLICATION
You have to fill out an application after selecting the coverage that best fits your needs from your list. Your age, employment, gender, and other pertinent personal information will be needed, in addition to a driver’s licence or national identity number.
For verification, your medical history will also be inquired about, therefore you might need to get a report from your physician. It helps you figure out what kind of charges you should expect.
STEP 6: GET READY FOR THE MEDICAL EXAM BY THE INSURER
Before granting approval for coverage, life insurance companies typically require applicants to undergo a physical and medical examination.
STEP 7: AWAIT AUTHORIZATION
Upon the completion of the medical examination and the processing of your application. An insurance company’s underwriter decides whether you qualify for coverage. They also choose the extent of your coverage. It may require several days, contingent upon the insurance provider.
Your policy documentation will be mailed to you to sign if you are qualified. Additionally, you get to choose how your premiums are paid.
CONCLUSION
Most life insurance companies‘ websites allow applicants to submit their applications online. It is a speedy procedure. Recall that no single policy is ideal for all situations. To determine which solutions best suit your needs, you will need to conduct additional research. By following these steps, you can easily purchase life insurance in Nigeria to protect yourself and your loved ones financially.
