Accidents don’t give you head ups and even if they do?. Sicknesses and hospital bills don’t wait  until salary week. A single fire can wipe out years of hard work. Smart Nigerians don’t joke with insurance. It is not even about fear. It is about protecting your future.

Right now, the insurance market is crowded with options. Every marketer promises the best deal, because who won’t? The truth still is, not all policy will fit your life’s budget. So how do you know the right policy for you? 

This comprehensive guide walks you through how to pick the best providers, as a first timer or as a pro without wasting your money or falling for fake offers.  

1. What Exactly Is Insurance? 

In layman’s terms, you pay a premium to an insurance company, if a covered incident happens such as an accident, theft, illness— the insurance company pays you or your beneficiary. 

Common types of insurance in Nigeria:

• Life Insurance – Paid to the family after one’s death. 
• Health Insurance/ HMOs – Covers medical expenses.
• Car Insurance –(Third-party motor insurance is compulsory in Nigeria by law.)
• Property Insurance –  Protects your home, shop, or office against fire, flood, or burglary. 
• Travel Insurance – Covers when things go wrong internationally — emergencies, missing luggage’s. 
• Business/Commercial Insurance – Protects your business assets. 

2. How do you know what Insurance You Need? 

Don’t just copy someone else, ask yourself:

• What do I want to protect the most? (My life, my family, health, car, business?)
• What risks do I face daily? (e.g., frequently on the road, poor health, high risk job?)
• In the case of an incident to what I want to insure, can I afford a replacement? 
• Do I need short-term cover or long-term savings?

A landlord might want to go for property insurance against a breadwinner who might choose life insurance. 

3. Understand the Different Types of Insurance in Nigeria

• Life Insurance: Best for breadwinners, parents, orphanage owners or people with dependents.

• Health Insurance (HMO): Important for everyone. Examples include HMOs like AXA Mansard, Hygeia, or Reliance HMO start from around ₦15,000–₦30,000 yearly for basic plans.

• Motor Insurance: Mandatorily every driver must get a third-party insurance by law. Comprehensive cover usually costs 3–5% of your car’s value.

• Property Insurance: Useful for homeowners, landlords, and shop owners.

• Travel Insurance: A must for international travelers like ambassadors , travel agents, pilots. 

• Education/Investment Plans: Can be used to secure college fees for dependents or children. 

 Ask your insurer for a product guide and brochure.

4. Always buy from NAICOM-Licensed Insurers. 

Fraud is not new in the insurance space. 

Verify a company’s license through: 

• www.naicom.gov.ng
• Request the license number from the provider
• Check online reviews and complaint history

Qualities of a reliable insurer:

• Transparent policies
• Quick claims processing
• Reliable customer service
• Good reputation

 Don’t be carried away even if the premium is low, if the company is reputable , go for it. 

5. Compare Multiple Insurance Plans

Just like you compare phones and brands before purchase; 

Compare:

• Premiums costs in  Monthly/annual coverage. 
• Coverage (inclusions and  exclusions)
• Maximum claim that can be paid out . 
• Deductibles ( amount you pay before the benefits). 
• Extras benefits– Wellness programs, loyalty bonuses, etc.

 It’s best to go through these with brokers. 

6. Ask The Right Questions 

• What risks are really covered?

• How is the premium calculated?

• Penalties for missed payments?
• Is there a chance for an upgrade, a cancellation, or renewal?
• Are there any hidden fees?

If the answers are unclear, it’s best to walk away. 

7. Read the Fine Print Carefully

The real deal is in the policy. Never skip it. Watch out for: 

• Exclusions like pre-existing health conditions, driving without license, intentional damage…
• Renewal rules 
• Grace periods for missed payments. 
• Claim timelines

8. Budget Wisely for Premium Payments

Insurance plans should not “send you back to your village”. Choose a plan that is in line with your budget. 

Avoid missing payments and ask for discounts if multiple policies are purchased. 

9. Microinsurance for Low-Income Earners

Premiums from ₦500–₦2,000/month without medical tests, with simple documentation and proper coverages. 

 Ask your trade union or cooperative about available plans or visit the NAICOM microinsurance page.

10. Review and Update Your Policy Regularly

Update your policies as life changes. Marriage, Children, New beneficiaries, New properties, Extra car … 

Review all policies once a year to stay protected and avoid surprises.

Conclusion

Insurance is not formality or luxury, it’s a safe and rewarding plan if rightly done.  

Quick recap:

• Know your needs.
• Compare multiple plans.
• Use NAICOM-licensed companies.
• Read the fine print.
• Budget wisely.
• Review regularly.

Call to Action

Don’t wait until something goes wrong.

• Visit NAICOM’s website and confirm your insurer today.
• Compare at least 3 policies before paying any premium.
• Share this guide with a friend who needs it.