Insurance : Importance, Types and Benefits In Nigeria 2022
Insurance : Importance, Types and Benefits In Nigeria 2022
In Nigeria The life and property of an individual/citizen are surrounded by the risk of death, disability or destruction. These risks may result in financial losses. Insurance is a prudent way to transfer such risks to an insurance company in Nigeria.
What is Insurance In Nigeria?
Insurance In Nigeria is a legal agreement between two parties i.e. the insurance company (insurer) and the individual (insured). In this, the insurance company in Nigeria promises to make good the losses of the insured on happening of the insured contingency. The contingency is the event which causes a loss. It can be the death of the policyholder or damage/destruction of the property.
It’s called a contingency in Nigeria because there’s an uncertainty regarding happening of the event. The insured pays a premium in return for the promise made by the insurer.
Insurance In Nigeria 2022 (Importance, Types and Benefits)
How does insurance work In Nigeria?
The insurer in Nigeria and the insured get a legal contract for the insurance, which is called the insurance policy. The insurance policy has details about the conditions and circumstances under which the insurance company in Nigeria will pay out the insurance amount to either the insured person or the nominees. Insurance in Nigeria is a way of protecting yourself and your family from a financial loss.
Insurance In Nigeria 2022 (Importance, Types and Benefits)
Generally in Nigeria States the premium for a big insurance cover is much lesser in terms of money paid. The insurance company in each states takes this risk of providing a high cover for a small premium because very few insured people actually end up claiming the insurance. This is why you get insurance for a big amount at a low price.
Insurance In Nigeria 2022 (Importance, Types and Benefits)
Any individual or company in Nigeria can seek insurance from an insurance company, but the decision to provide insurance is at the discretion of the insurance company in Nigeria.
The Nigerian insurance company will evaluate the claim application to make a decision. Generally, insurance companies in nigerian refuse to provide insurance to high-risk applicants.
What are the types of insurance available in Nigeria?
Insurance in Nigeria can be broadly divided into three categories:
Life Insurance In Nigeria 2022
As the name suggests, life insurance in Nigeria is insurance on your life. You buy life insurance in Nigeria despite all the security challenges to make sure your dependents are financially secured in the event of your untimely demise. Life insurance in Nigeria is particularly important if you are the sole breadwinner for your family or if your family is heavily reliant on your income. Under life insurance In Nigeria, the policyholder’s family is financially compensated in case the policyholder expires during the term of the policy.
Health Insurance In Nigeria 2022
Health insurance in Nigeria is bought to cover medical costs for expensive treatments. Different types of health insurance in Nigeria policies cover an array of diseases and ailments. You can buy a generic health insurance in Nigeria policy as well as policies for specific diseases. The premium paid towards a health insurance policy in nigeria usually covers treatment, hospitalization and medication costs.
Car Insurance In Nigeria 2022
In Nigeria Today, a car insurance is an important policy for every car owner. This insurance in Nigeria protects you against any untoward incident like accidents. Some policies also compensate for damages to your car during natural calamities like floods or earthquakes. It also covers third-party liability where you have to pay damages to other vehicle owners in Nigeria.
Education Insurance In Nigeria 2022
The child education insurance in Nigeria is akin to a life Nigerian insurance policy which has been specially designed as a saving tool. An education insurance in Nigeria can be a great way to provide a lump sum amount of money when your child reaches the age for higher education and gains entry into college (18 years and above). This fund can then be used to pay for your child’s higher education expenses in any universities.
Under this Nigerian insurance, the child is the life assured or the recipient of the funds, while the parent/legal guardian is the owner of the policy. You can estimate the amount of money that will go into funding your children’s higher education using Education Planning Calculator In Nigeria.
Home Insurance In Nigeria 2022
We all dreaming of owning our own homes in Nigeria. Home insurance in Nigeria can help with covering loss or damage caused to your home due to accidents like fire and other natural calamities or perils. Home insurance in Nigeria covers other instances like lightning, earthquakes etc.
What are the tax benefits on insurance in Nigeria 2022?
Apart from the safety and security benefits of buying insurance in Nigeria, there are also the income tax benefits that you can avail in Nigeria.
- Life insurance in Nigeria premium of up to 50 million Naira can be claimed as a tax-saving deduction under Section Of Nigerian Law
- Medical insurance premium of up to 10 Million Naira For yourself and your family and 20 Million Naira for your parents can be claimed as a tax-saving deduction under Section Of Nigerian Law
Insurance In Nigeria 2022 (Importance, Types and Benefits)
Be it life insurance in Nigeria, health insurance in Nigeria or general insurance in Nigeria, you can buy an insurance policy in Nigeria offline as well as online. Just like there are insurance agents in Nigeria who will help you buy a policy, there are websites as well that you can buy a policy from. Ensure that you have done your research before choosing and investing in an insurance policy.
