How to Select the Best Life Insurance Plan for Your Family in Nigeria
When you die without insurance, your family inherits your love— and your bills.
You insure your house, your car, and even your business . Yet the person paying for them—you—remains uninsured.
“When Emeka died suddenly last year, his wife had to sell the car almost immediately to pay off his shop motorcycle and rent arrears. They had no life cover. That single event pushed their children into school dropouts. A modest life insurance plan would’ve spared them.”
Now that a lot of new policies have been drafted in 2025, Nigeria, this guide helps you pick the best life insurance for your family—with data, local examples, and relatable information you can use.
What Is Life Insurance?
Life insurance is an agreement where you pay premiums and if you die while the policy is active, your beneficiaries get a lump sum.
They can use it to:
- Cover daily expenses
- Pay off debts and loans
- Fund children’s education
- Handle funeral and burial costs
- Secure long-term financial stability
Life Insurance Types in Nigeria (With Examples)
| Type | What It Covers | When It Pays | When It Makes Sense | Cost Profile |
| Term Life | Death only during the policy term | If you die during 10, 20, or 30 years | Young families, new mortgages | Low to medium |
| Whole Life | Death any time + cash value | On death, whenever it happens | Long-term planners, legacy builders | Higher |
| Endowment / Investment-Linked | Death benefit + savings component | At maturity or death | People wanting both protection & savings | Medium to high |
| Group Life (Employer-based) | Basic life cover for employees | While in active employment | Staff of companies, cooperatives | Usually low (employer shares cost) |
Steps to Choose the Right Life Insurance Plan
1. Carry out evaluations
Know your dependents and the years of support they need. Outstanding debts? Also, aim for coverage of 10–15× your annual income
- Pick the insurance Type That Fits Your Situation
- Tight budget = term life insurance for high cover at lower cost.
- lifelong security and savings = whole life or endowment.
- Employed = group life as a base, then top up with private cover.
3. Compare Insurers Using Strong Criteria
Judge by financial strength, history, digital access and support, flexibility (payment mode, riders). The top insurers in Nigeria are: Leadway, AIICO, AXA Mansard, Custodian Life, Mutual Benefits.
4. Read Every Line of the Policy for:
- Premium frequencies
- Exclusions (suicide, risky jobs)
- Waiting periods before cover is active.
- When claims are valid and what documents are needed
5. Select a Trustworthy Beneficiary
Use someone reliable. Update if your life changes (marriage, more kids) and make sure your beneficiaries know about the policy.
- Confirm You Can Pay the Premiums Regularly
Know what happens if a payment is missed or you can downgrade or convert the policy. A lapsed policy is zero payout.
7. Add Optional Riders for Extra Protection
- Accidental death benefit
- Critical illness cover
- Waiver of premium (if disabled)
- Education or child benefit riders
8. Go Digital When Possible
You avoid shady middlemen and delays.
30-Point Checklist Before You Buy
- Get quotes from about three different NAICOM licensed insurers
- Ask for claim settlement ratio
- Choose and document beneficiaries
- Confirm riders and exclusions
- Ask what happens on policy lapse
Conclusion
The new 2025 insurance laws make it harder to get cheap policies once you’re over 40. Every year you wait costs more than money—it costs options.
