“When disaster strikes, many people rely on family, friends, or church members to raise funds in Nigeria. But how long can that model last in a country where everyone is also battling rising costs? Insurance is not un-African, it’s the structured version of that same communal support.”

Why then do people avoid insurance? Shall we call them the 3Ms—myths, mistrust, and misinformation.

From “insurance is for the rich” to “claims take forever”.  This thinking has been costing people far more than premiums ever will. Affordable and reliable insurance exists, you just need to know where to look. Let’s expose the truth.

Myth 1: “Insurance is Only for the Rich”

Truth: Insurance is for every single person. Insurance can even be made for kids. 

• Microinsurance plans start from ₦500–₦2,000 per month, covering illness, theft, or accidents.
• Third-party motor insurance, which is mandatory by law, costs less than some monthly data bundles.
• HMOs like Hygeia, NHIS, Avon HMO now sell affordable health cover to artisans and self-employed workers.

👉 If you can earn money, you can be insured.

Myth 2: “Insurance Companies Don’t Pay Claims”

Truth: Licensed insurers do pay. The main problems come from fake policies or incomplete documents.

• NAICOM (Nigeria’s insurance regulator) publishes a list of approved insurers at naicom.gov.ng.
• Claims get denied when there is a case of:
  • Expired or unpaid policies
  • False declarations
  • Missing paperwork
• Digital insurers like ETAP and AXA Mansard now process simple claims in days, not months, even online.

👉 Always confirm the company is NAICOM-licensed. 

Myth 3: “Insurance is a Waste of Money”

Truth: Insurance instead saves oney when disaster strikes.

Imagine losing a shop worth ₦4 to fire. Without insurance, you lose everything. With it, you recover.

Faith is good, but financial planning is biblical too. Even Joseph stored grain in Egypt for seven years, not because God was absent, but because wisdom is also protection.

Myth 4: “Insurance is Too Complicated”

Truth: The core idea of insurance is that you pay a small amount now so you don’t face a financial storm later.

• Insurers now send one-page summaries.
• Mobile-friendly apps and USSD codes (e.g. Leadway, AXA Mansard) let you buy in 5 minutes.
• Customer reps services explain policies in English, Yoruba, Hausa, Igbo, and Pidgin.

Myth 5: “Only Big Companies Need Insurance”

Truth: Small businesses lose the most without cover.

👉 Small businesses packs like “NaijaCover” from Leadway start at ₦1,000 per week. Even if your business is informal.

Myth 6: “Insurance is Haram or Un-African”

Truth: Takaful insurance exists in Nigeria, compliant with Islamic finance. Non-Muslims also subscribe because payouts are mutual and transparent.

Myth 7: “You Can Only Buy Through Brokers”

Truth: Not anymore. You can buy directly through:

• Insurer websites and apps
• Banks
• Fintechs like Cowrywise and Paga
• HMOs

Myth 8: “Life Insurance is for Old People”

Truth: The younger you are, the cheaper it is.

• A 28-year-old teacher pays far less than a 55-year-old trader for the same cover.
• It ensures dependents (children, spouse, parents) don’t suffer if anything happens.

Myth 9: “I Don’t Need Insurance Because I’m Careful”

Truth: You can’t control natural disasters like floods, reckless drivers, or armed robbers.

Insurance is not about predicting disaster. It’s about preparing for it.

Myth 10: “Claims Take Forever”

Truth: Claims are faster now.

• Some microinsurance plans pay instantly with USSD confirmation.
• With proper documents, bigger insurers close claims in 7–14 working days.
• NAICOM now penalizes insurers for unnecessary delays.

Quick Guide: Myths vs Reality

Conclusion

Insurance in Nigeria has been clouded by myths for too long. Through digital tools, microinsurance, and better regulation, protection through insurance is now easier and cheaper. Don’t wait for a fire, accident, or hospital bill to teach you a hard lesson.

Verify providers on NAICOM.gov.ng and start today.”