Things To Consider Before Buying Life Insurance in Nigeria (2024)
Buying life insurance is one of the most important financial decisions you will ever make. The financial security that insurance provides in the worst-case situations is one of its benefits.
Many people quickly sign up for insurance coverage without thinking through what they need. You can steer clear of making bad life insurance judgements.
We’ll go over some items to think about before purchasing life insurance in Nigeria in the paragraphs that follow.
THINGS TO CONSIDER BEFORE BUYING LIFE INSURANCE IN NIGERIA
Here are things you need to note before you buy life insurance in Nigeria.
WHAT YOU NEED
You must ask yourself precise questions, including what percentage of the family income you supply, in order to ascertain how much insurance coverage you require. Which people depend on you?
If the worst happened to you, how long will your loved ones be able to handle it? Your ability to pay and the amount of coverage you require will be determined by the answers to these questions.
COMPARE LIFE INSURANCE POLICIES
The two primary types of life insurance are as follows:
Firstly, term life insurance policies, which typically have a 10- to 20-year term and cheaper rates. The second option is permanent life insurance, which covers a person for the duration of their life (as long as the premium requirements are satisfied).
INSURANCE COMPANY’S CLAIMS HISTORY
Anyone planning to get insurance should check the insurer’s track record of paying claims. Check to see if the insurance company has a respectable ratio of claims paid. Ask questions to find out why claims aren’t accepted.
HOW COST-EFFECTIVE IS THE LIFE INSURANCE PLAN
You can determine what kind of insurance plan you can afford by reviewing the reasons why you need coverage. Verifying that you can afford the premiums for the duration of the policy is crucial. Savings-inclined protection plans are an option if you require more coverage.
CONSULT WITH AN INSURANCE BROKER
An insurance broker can assist you in taking your demands and those of your dependents into account, as well as your financial situation.
AGE
Your life insurance will be less expensive the younger you are. The market for insurance is one of calculated risk. A person’s life expectancy decreases as they age. Thus, you can take advantage of the cheaper premiums on life insurance for young people if age is still on your favour.
THE STATUS OF YOUR HEALTH
It may be necessary to get a medically underwritten coverage in order to receive the best insurance rates. Your insurer must confirm your medical and health history in order to do this. The more health you have, the more affordable your insurance will be.
THE INFLATION RATE
The effects of inflation may have an impact on your dependents’ future demands. Therefore, before determining the quantity of coverage you require, you should take the effects of inflation into account.
CHOOSE YOUR PAYMENT PLAN FOR LIFE INSURANCE PREMIUMS
There are several ways to pay the premiums for these insurance policies. Select the approach that you find most convenient.
NOTIFY YOUR BENEFICIARIES OF YOUR LIFE INSURANCE POLICY
For a variety of reasons, including wanting to surprise their beneficiaries, some people withhold the specifics of their life insurance policy from them. As a result, a life insurance policy’s benefits may go unclaimed. Notify your beneficiaries of your insurer as soon as your insurance policy is issued. Inform them of the locations where they can get pertinent records and documentation in case they need to file a claim. Alternatively, let a trustworthy associate or your lawyer know.
CONCLUSION
If you follow the above information, you can feel secure knowing your loved ones are covered financially with the help of an insurance plan. Understanding the fundamentals is crucial to preventing costly mistakes in the future.
