What Does Insurance Mean to the Average Nigerian?
As much as we hate tragedy, it’s an inevitable part of life. Sometimes you’re lucky to see the signs and take actions to avoid them but in most cases you’re not. They happen and leave you with sad memories, huge losses and regrets. If you accept that reality then you can plan right to avoid making that situation worse than it could be. Now, let’s talk about Insurance.
The average Nigerian has heard about Insurance but is not so concerned about it. This might either be because they don’t have much clarity on the subject, they don’t trust the system or they are just indifferent. This has led to a low adoption of Insurance in Nigeria.Irrespective of the category you fall in, you need the security of insurance.
Insurance is a contract of reimbursement between two parties, the insurance company and the individual (insured). This legal agreement binds the insurance company to make good the losses of the insured when the unexpected happens. This unexpected event includes car accidents, fire outbreaks, sickness or even death. On the other hand, the insured is required to pay a premium either monthly or quarterly in return to enable the insurer to fulfill its part when the time comes.
Any business or individual can seek insurance from an insurance company, however, it’s up to the insurance company to approve the request after thoroughly reviewing the applicant.
What are the types of Insurance?
1. Life Insurance: If you want to ensure your loved ones financial security even in your absence then this is for you. This contract offers you financial compensation in case of any death or disability. Some policies even cover you after retirement. You can either make a lump-sum payment or make periodic payments to the insurer.
2. Vehicle Insurance: This policy protects you against physical damages that could arise from accidents involving your vehicle. It could also offer financial compensation against theft of vehicles or damages as a result of natural disasters.
3. Home Insurance: This provides liability coverage against accidents or assets in the home. The home cover compensates you for damage to your home or valuables within them due to natural or man-made disasters such as fire outbreak, theft, flood, earthquakes, e.t.c.It not only offers financial protection to your home but also takes care of the valuables inside the property.
4. Health Insurance: This covers medical expenses incurred by the insurer. Most companies include this in the employer benefit packages as a means of enticing quality employees. In this case, a high percentage of the cost is covered by the employer while the rest is deducted from the employees’ salary. policies for specific diseases. Managed health insurance requires insurers to receive treatment from a network of designated healthcare providers. If they seek care outside the network, the insurer may not cover the expenses incurred.
5. Education Insurance: This secures your child’s education even of your absence. The funds can be used to pay their tuition, hostel fee and even illness expenses. Under this plan, your child’s future is assured, while the parents or guardian is the plan owner.
6. Travel Insurance: This plan caters to the risks associated with travelling. These risks could range from baggage losses, cancelled trips, illness or injuries sustained during the trip.