Even with increased awareness, many Nigerians still misunderstand insurance. Misconceptions often prevent people from getting the coverage that could shield them during emergencies. In this article, we’ll uncover the truth behind some of the most widespread insurance myths in Nigeria.
Myth 1: “Insurance is only for the wealthy”
The Truth:
Insurance isn’t just for rich individuals or big corporations. Today, there are budget-friendly options that cater to everyone—from students to market traders. Microinsurance and mobile-friendly plans can cost as little as ₦500 to ₦2,000 per month.
Think about it: If you can buy mobile data or subscribe to streaming services, you can afford basic insurance.
Myth 2: “Insurance companies never pay claims”
The Truth:
While some people have faced delays—usually due to incomplete paperwork or policy misunderstandings—many reputable insurers in Nigeria settle legitimate claims without problems.
Pro tip: Work only with licensed companies, understand your policy, and keep good records of your payments and claims.
Myth 3: “I don’t need insurance—God will protect me”
The Truth:
While spiritual beliefs matter, insurance is part of being proactive and responsible. Just as you lock your home or wear a helmet, insurance helps you prepare for the unexpected.
Remember: Insurance isn’t a lack of faith—it’s smart planning.
Myth 4: “All insurance is a scam”
The Truth:
This idea mostly stems from dealing with fake agents or unregistered firms. Nigeria’s insurance sector is regulated by NAICOM, which ensures that licensed companies follow strict standards.
Quick check: Visit naicom.gov.ng to confirm whether a company is legitimate before purchasing any policy.
Myth 5: “Only large businesses need insurance”
The Truth:
Small businesses are often more vulnerable to losses and may struggle to recover after setbacks. Business insurance can protect your inventory, shop, tools, and even your staff.
Bottom line: Whether you run a barbing salon or sell on the roadside, your business is worth protecting.
Myth 6: “Insurance is too difficult to understand”
The Truth:
Modern insurance providers are making it easier than ever to get covered. Many now offer support via WhatsApp, apps, and local language guides to simplify the process.
Advice: Never hesitate to ask questions. A trustworthy insurer will walk you through everything you need to know.
Myth 7: “If I don’t make a claim, I’ve wasted my money”
The Truth:
Insurance is like having a spare tire—you hope you never need it, but it’s there when trouble comes. The peace of mind it provides is worth more than the premium itself.
Think of it as: Buying protection, not wasting money.
Final Thoughts
Holding onto false beliefs about insurance can do more harm than good. It might cost you your savings, your business, or your health. The reality? Insurance works—when you choose the right provider, ask the right questions, and understand what you’re signing up for.
Don’t let fear or misinformation keep you exposed. Get informed, explore your options, and take control of your financial security.
