Friday, August 13

7 types of insurance in Nigeria

Insurance does a whole lot more for you than you know! Not only does it protect you against situations like fires and accidents, but it also protects you and your family from unexpected financial mishaps too.

There are various types of insurance products including: health insurance, automobile insurance, travel insurance, and life insurance.

Here are 7 common types of insurance in Nigeria.

  1. Home insurance – A house is the biggest investment most Nigerians make, so it is important that it is insured. You can pay a bit extra to obtain guaranteed replacement coverage, which mandates that the insurer will replace your home if it is destroyed. If you only specify a certain amount of coverage, you could end up paying the difference if it doesn’t meet all your replacement expenses.
  2. Homeowner’s insurance – This helps protects your movable assets including devices like laptops and mobile phones. Items covered under this policy are covered if they are damaged or stolen even outside your home/premises..
  3. Health insurance - When you have a health insurance policy you are entitled to a broad range of free preventive care, tests, consultations, and screenings. Most plans also come with perks that don’t directly involve medical care, including gym membership discounts, telemedicine amongst others. By taking advantage of these benefits, you can live a healthier life while maximizing the value of your health insurance.
  4. 3rd party car insurance - In Nigeria, the minimum car insurance expected of a car owner is the 3rd party car insurance. Car insurance is a must if you are looking to drive a vehicle on Nigerian roads. Insuring your car isn’t something you opt in or out of, it’s a legal obligation on the part of the vehicle owner or driver to ensure that they arrange the necessary cover to cover for damages against other road users. There is also comprehensive car insurance that covers all parties during any accidents.
  5. Life insurance –It’s the cheapest and most simple insurance you can get. Life insurance works the best for most people. You pay the premium and you’re insured. Apart from giving your loved ones something to fall back on in the event of death, many life insurance policies also come with great living benefits such as interest on savings, tax rebates, cash back among others Two good examples of life insurance policies are life savings and education plan.
  6. Travel Insurance: It gives you peace of mind when you travel outside Nigeria, knowing that you’re covered by your travel insurance plan. Travel insurance protects you whenever you travel outside your country of residence. It provides cover for accidental damages, emergency evacuation, medical emergencies etc. It’s also a legally required document when you are travelling outside Nigeria.
  7. Mobile Phone Insurance: Although, it’s just becoming popular in Nigeria. Mobile phone insurance is gradually gaining ground in Nigeria, as more people are seeing the importance of buying a cover to protect their expensive tech gadgets, not only phones, against damages.

Whilst we all hope to avoid mishaps, life usually happens, and that’s why getting an insurance plan is important. An insurance plan covers you against any future risk life may throw at you, helping you return to your current status without losing financially.