Top 5 Best Insurance Policies Every Nigerian Family Needs (2024)

It is essential for you to have insurance policies. Has the saying “Some Nigerian families are just one illness away from poverty” ever occurred to you? Yes, that is accurate. Even if we make a concerted effort to avoid thinking negatively about our lives and families, the truth is that you will have to borrow money, sell your possessions, or find another method to make ends meet if you don’t save money or have a way to pay for emergencies. Even savings may not be sufficient, depending on the gravity or duration of the emergency.

That is the role of insurance. It serves as a safety net, guaranteeing that no matter how difficult things get, you will never drop below a certain point.

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Here are 5 insurance policies as a Nigerian family you should purchase as part of your overall financial plan to protect you and your family from everything life may throw at you.

HEALTH INSURANCE

This covers your bills in the event that you have medical costs. Your provider will cover a wide range of expenses, including emergency and accident care, outpatient care, medical treatments, dental care, prescription drugs, and much more, depending on the amount of coverage you select.

As a Nigerian family, it is especially helpful if you have small children or ageing parents that require constant care. A minor fever or a straightforward gastrointestinal ailment can cost you N20,000 every visit if your child doesn’t have health insurance, and most children experience at least one of these episodes every quarter.

Put simply, this coverage gives you peace of mind that your hospital bills will be taken care of if and when you require treatment, and it fixes the cost of hospital bills for the entire year.

LIFE INSURANCE

Life insurance is the second essential type of insurance. “I don’t call it life insurance, I call it love insurance,” author Farshad Asl was cited as saying.

How much would you be willing to spend now, if you could ensure that your child will have the education you desire for them, regardless of what happened to you? You would do anything for your child because you love them, and there is no price too high. That is the way to approach this policy.

We gladly purchase clothing and toys for our kids, but we forget to purchase them what will matter most—a bright future.

HOME INSURANCE

You can think about your family material belongings once you have safeguarded your most valuable things. Your home is most likely the most expensive item you own if you are a landlord. In the event that it is destroyed, it would be wise to make sure you don’t lose your investment.

Your house or property may be damaged by fire, water, burglary, or other specified risks, and home insurance protects you against monetary losses as a result.

If you rent, you can insure the items in your home and leave the building up to the landlord’s maintenance. These days, home insurance can cover things like the cost of paying for alternate housing if your house is uninhabitable and your legal responsibility for any guests who may get hurt on the job.

CAR INSURANCE

To begin with, driving an uninsured vehicle on Nigerian roads is prohibited by law. There are two primary types of auto insurance: third-party and comprehensive car insurance

Car insurance can assist you in paying the expenses that you would be obligated to pay if you or a designated driver is at fault for any property damage, personal injury, or death of a third party while operating your car. The annual premium for this kind of insurance is as little as N5,000.

In addition, you can sustain personal harm or losses when driving your vehicle due to a mishap, fire, or theft. Purchasing an insurance coverage that covers the out-of-pocket costs resulting from such incidents might be wise.

RETIREMENT ANNUITY

Even while you don’t need insurance to save money for retirement, insurance does offer a helpful product called an annuity. You can use the policy in the event that your retirement funds run out.

If they weren’t compelled by law to save for retirement, many people wouldn’t. Even so, any sizable financial gains would be greatly reduced by the impacts of excessive inflation. You can purchase an annuity, which will continue to pay you a set sum for the remainder of your life even if your retirement funds are depleted. It also has the added benefit of, should you pass away within a certain time frame, leaving your spouse or other dependents with the remainder of your savings.

In conclusion, many people choose not to purchase insurance because it can deplete their current income. But it’s a modest thing to pay now to avoid paying more than you can afford to later.

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