Life Insurance Rate Plan in Nigeria (2024)

Life insurance has become an essential consideration for many Nigerians seeking financial security.

But with the current economic situation in the country, understanding the latest life insurance rate plans can be a daunting task.

life insurance in Nigeria

In this article, we delve into life insurance rates in Nigeria for the year 2024. We will shed light on the factors that influence these rates and how you can make informed decisions to protect your loved ones.


Before we delve into the specific rate plans, it’s essential to know the fundamental concept of life insurance.

Life insurance is a contract between an individual (the policyholder) and an insurance company. In exchange for regular premium payments, the insurance company agrees to provide a lump sum payment (the death benefit) to the designated beneficiaries upon the policyholder’s demise.

Rate plans, also known as premium payment structures, determine how policyholders pay for their life insurance coverage. These plans vary in terms of premium amounts, payment frequencies, and duration, offering flexibility to suit different lifestyles and financial circumstances.


Below, we have highlighted the common types of life insurance rate plans in the country.


The level term rate plan is one of the most popular and straightforward options available in Nigeria. Under this plan, policyholders pay a fixed premium amount for a predetermined period, typically ranging from 5 to 30 years. The premium remains constant throughout the term, providing certainty and predictability in budgeting.

This plan is ideal for individuals seeking temporary coverage during their working years or while carrying significant financial obligations, such as mortgages or children’s education expenses.


As the name suggests, the increasing term rate plan involves gradually increasing premium payments over time. The initial premiums are lower, making it an attractive option for those with limited financial resources. However, the premiums gradually increase at a predetermined rate, usually annually or every few years.

This plan can be beneficial for individuals who anticipate their income to grow over time, allowing them to keep pace with the increasing premium payments.


The decreasing term rate plan works in the opposite manner to the increasing term plan. Policyholders start with higher premiums, which decrease over time according to a predetermined schedule. This plan is particularly suitable for those with substantial financial obligations early in their careers, such as mortgages or business loans, as the decreasing premiums align with their decreasing liabilities.


Whole life insurance, as the name implies, provides coverage for the policyholder’s entire lifetime. The premiums for whole life rate plans are typically higher than term life insurance, but they remain level throughout the policy’s duration. This plan combines a death benefit with a cash value component that accumulates over time, offering policyholders the potential for tax-deferred growth and the ability to borrow against the cash value if needed.

Whole life insurance is often recommended for individuals seeking permanent coverage and a potential source of supplemental retirement income.


The limited pay rate plan is a variation of whole life insurance, offering policyholders the option to pay premiums for a specific period, typically 10, 15, or 20 years. After the limited payment period, the policy remains in force for the policyholder’s lifetime, and no further premiums are required.

This plan can be advantageous for individuals who want to secure lifelong coverage while enjoying the flexibility of paying premiums over a shorter timeframe.


Endowment rate plans combine life insurance coverage with a savings component. Policyholders pay premiums for a predetermined period, and if they survive until the end of the term, they receive the full sum assured (the death benefit). However, if the policyholder passes away during the term, their beneficiaries receive the death benefit.

Endowment plans are popular among individuals seeking a combination of life insurance protection and a lump sum payout at the end of the term, which can be used for various purposes, such as retirement planning or funding children’s education.


When selecting a life insurance rate plan in Nigeria, it’s important to consider several factors to ensure you make the most suitable choice for your circumstances:

  • Coverage Needs: Assess your life insurance coverage requirements based on your age, income, financial obligations, and long-term goals. This will help determine the appropriate level of coverage and the duration for which you need it.
  • Budget: You should look at your current financial situation and future income projections to determine the premium amount you can comfortably afford. Different rate plans offer varying premium structures, allowing you to choose the one that best fits your budget.
  • Financial Goals: Consider your long-term financial objectives, such as retirement planning, children’s education, or leaving an inheritance.
  • Life Stage: Your life stage plays a significant role in choosing the right rate plan. For example, young individuals with limited financial resources may prefer term life insurance, while those nearing retirement may opt for whole life or endowment plans.
  • Riders and Additional Benefits: Many insurance companies in Nigeria offer optional riders and additional benefits that can be added to your life insurance policy. These can include accidental death benefits, critical illness coverage, or disability income protection.


We know it can be complex to go through the various life insurance rate plans, especially for those unfamiliar with the insurance industry. It’s advisable to consult with a licensed insurance agent or financial advisor who can guide you through the process, assess your unique circumstances, and recommend the most suitable rate plan for your needs.

Professional advisors can also provide valuable insights into different insurance companies’ offerings, their financial strength, and customer service reputations, ensuring you make an informed decision.

We at Insurance Infofinder will help you get solutions to your problems regarding anything insurance in Nigeria. We will be happy to hear from you.


In conclusion, life insurance rate plans in Nigeria offer a range of options to cater to diverse financial needs and life stages. By carefully considering the factors outlined above, you can choose a rate plan that provides the necessary protection for your loved ones.

Remember, life insurance is an investment in your family’s future, ensuring their well-being even in your absence. Here’s an opportunity to safeguard their tomorrow, today.

Mfonobong Daniel

I am Daniel, a professional financial blogger, an insurance agent and financial adviser. Join me as I unravel and breakdown the mysteries behind insurance policies in Nigeria.

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