Although nobody plans to die, you cannot deal with uncertainties; you can prepare to deal with them. Death is inevitable hence the need to providing a ‘definite’ amount of money to serve the purpose of non-taxable amount at the time of death.
Simple put Life Insurance is a type of insurance whereby a contract or an agreement is made between an insurer and a policy owner. The insurer, also called the beneficiary pays a sum of money (called premium) to a company in order to receive death benefits when he/she dies.
Types Of Life Insurance Available in Nigeria
Life insurance has basically two types;
- Term Life Insurance
- Permanent Life insurance.
Irrespective of this there are many life insurance companies in Nigeria, each with an aim to achieving the needs and preferences of their customers.
Life Insurance Companies in Nigeria
- Allianz Nigeria Insurance
- AXA Mansard life insurance
- Industrial and general life Insurance
- Custodian and Allied Life Insurance
- AllCO Life Insurance
Benefits Of Life Insurance in Nigeria
Life insurance is important in African Countries like Nigeria where a huge sum of money is spent on funerals. Life insurance serves to ease the expenses created by the deceased as most deaths if not all, are imprompt. In brevity, the five major benefits of Life Insurance in Nigeria are:
- Provision of financial security and protection
- Death benefits; An appointed member of the deceased is paid an agreed sum of money.
- Monthly income received by the appointed nominee
- Your family feels secured because they can provide for themselves even in your absence
- You gain various valuable returns on your investment; some companies provide added bonuses.
N/B: The benefits of life insurance depends on the type of insurance one chooses.