Life Insurance Options for Nigerians Living Abroad (2024)

As a Nigerian living and working abroad, have you given much thought to what would happen to your loved ones back home if the unthinkable occurred?

Life is unpredictable, and securing a robust life insurance policy can provide vital financial protection and peace of mind for your family in case of an untimely event. With so many options available in the global insurance market, going through the international life insurance policies can be overwhelming. Where do you even begin?

This comprehensive guide aims to simplify the process by exploring the key life insurance solutions tailored for Nigerians residing overseas.

WHY DO YOU NEED A LIFE INSURANCE?

Before we dive into the various policy types, it’s crucial to understand why life insurance is so important, especially for Nigerians living overseas.

Tragically, if you were to pass away unexpectedly, your loved ones back home could face significant financial hardship without a proper safety net.

Life insurance ensures that your family receives a lump sum payment or recurring income to help cover expenses, clear outstanding debts, pay for your children’s education, and maintain their standard of living.

LIFE INSURANCE OPTIONS FOR NIGERIANS LIVING ABROAD

In this following paragraphs, we’ll explore some of the key life insurance options available to Nigerians residing abroad.

TERM LIFE INSURANCE

One of the most affordable and straightforward life insurance options is term life insurance. These policies provide coverage for a specific period, typically ranging from 10 to 30 years. If you were to pass away during the policy term, your beneficiaries would receive a predetermined death benefit payout.

Term life insurance is particularly suitable for Nigerians living abroad who need temporary coverage during their working years or until their children become financially independent.

WHOLE LIFE INSURANCE

Whole life insurance, also known as permanent life insurance, offers lifelong coverage as long as you continue paying the premiums. Unlike term life policies, whole life insurance accumulates cash value over time, which you can borrow against or withdraw if needed. This type of policy is generally more expensive than term life insurance, but it provides a guaranteed death benefit payout regardless of when you pass away.

UNIVERSAL LIFE INSURANCE

Universal life insurance is another form of permanent life insurance that combines lifelong coverage with a flexible premium structure and investment component. With this policy, a portion of your premium payments goes towards the death benefit, while the remaining amount is invested in a tax-deferred account. The cash value of this investment can be used to pay premiums or accessed as a loan or withdrawal.

Universal life insurance offers more flexibility than whole life insurance, but the investment performance and policy costs can impact the long-term sustainability of the coverage.

ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) INSURANCE

For Nigerians living and working in high-risk environments or occupations, Accidental Death and Dismemberment (AD&D) insurance can be a valuable addition to their life insurance portfolio.

This type of policy provides a lump sum payment to your beneficiaries if you were to pass away due to an accident or sustain severe injuries resulting in dismemberment. AD&D insurance is often offered as a rider (additional coverage) to a primary life insurance policy or as a standalone policy.

GROUP LIFE INSURANCE

Many employers offer group life insurance as part of their employee benefits package. This type of coverage is typically less expensive than individually purchased policies, as the risk is spread across a larger group of insured people.

However, the coverage amount may be limited, and the policy is usually tied to your employment status. For Nigerians living abroad, it’s essential to review the details of any group life insurance offered by their employer and consider supplementing it with additional individual coverage if necessary.

INTERNATIONAL LIFE INSURANCE PROVIDERS

When shopping for life insurance as a Nigerian living abroad, you’ll have the option to purchase policies from local insurers in your host country or from international providers that specialize in expatriate coverage. Some reputable international life insurance companies that cater to Nigerians living abroad include:

• Prudential International
• AXA International
• Zurich International Life
• Generali Global Life
• RL360 (formerly Royal London 360)

These providers offer life insurance products designed specifically for expatriates and individuals with international lifestyles. Their policies often feature flexible payment options, coverage portability across multiple countries, and dedicated support services for policyholders living abroad.

CONSIDERATIONS FOR NIGERIANS LIVING ABROAD

When evaluating life insurance options as a Nigerian living abroad, there are several important factors to consider:

• Currency: Determine whether you prefer to pay premiums and receive payouts in Nigerian Naira or the currency of your host country. Some international providers offer multi-currency options.
• Residency and Tax Implications: Your country of residence and tax obligations can impact the structure and taxation of your life insurance policy. Consult with a financial advisor or tax professional to ensure compliance.
• Beneficiary Designations: Clearly specify your beneficiaries and their respective shares of the death benefit. This is especially important if you have family members residing in different countries.
• Policy Portability: If you plan to move between countries, look for policies that offer coverage portability, allowing you to maintain your policy without interruption or additional underwriting.
• Health and Medical Underwriting: Be prepared to undergo medical examinations and health screenings as part of the underwriting process, especially for larger coverage amounts.
• Exclusions and Limitations: Carefully review the policy terms and conditions, particularly any exclusions or limitations that could affect your coverage, such as restrictions on certain high-risk activities or pre-existing medical conditions.

CONCLUSION

Life as a foreigner comes with its fair share of complexities, but ensuring your family’s financial security shouldn’t be one of them.

All you have to do is to carefully evaluate your unique circumstances, understand the various life insurance policy types, and partner with reputable international providers. Then you can find a coverage solution that perfectly aligns with your needs and those of your loved ones back in Nigeria.

Remember, life insurance isn’t just about protecting your family’s future; it’s about giving you the ultimate peace of mind to fully embrace the opportunities and experiences that come with living abroad.

So, take the time to explore your options, seek professional guidance if needed, and prioritize this crucial aspect of your financial planning – because your family’s well-being is priceless.