Over time, insurance in Nigeria has evolved to encompass different areas of life for which protection is needed.

These different insurance types include:

1. Life Insurance

Life insurance is unarguably the most popular type of insurance which provides financial protection for your loved ones in the event of your death.

In addition to providing financial security for your loved ones after you die, many life insurance policies also offer valuable living benefits, such as interest on savings, tax rebates, and cash back.

2. Motor Insurance

This type of insurance is required by law for all drivers in Nigeria. It covers the cost of damage to other vehicles and property in the event of an accident.

Motor Insurance is divided into two which include: third-party insurance and comprehensive insurance. As the name implies, third-party insurance only covers the cost of damage to other vehicles and property, while comprehensive insurance covers damages to the vehicle of the third party and to your vehicle, as well as providing additional benefits.

3. Travel Insurance

This type of insurance provides financial protection for your trip, including medical expenses, trip cancellation, and lost luggage. This basically is a safety net that gives you peace of mind knowing that you're protected whenever you travel out of Nigeria.

It is a good idea to purchase travel insurance if you are planning to travel outside of Nigeria because it's a legal document that is required when you want to travel or follow the japa wave.

4. Health Insurance

Health insurance policies in Nigeria are popular due to the provision of compulsory HMOs by the government and some private organizations.

With the rising cost of healthcare in the country, this type of insurance provides protection for you and your family in the case of medical contingencies through payment for medical expenses and a wide range of medical services.

5. Education Insurance

Education insurance is a financial plan that helps to ensure that your child's education is taken care of financially, in the eventuality that you can no longer provide for them in the future. With an education policy, the education of your child is guaranteed no matter what happens to you.

Why Do You Need Insurance?

Having insurance is necessary for many reasons. Here are a few of them:

1. It helps you save money

Although you spend money to buy an insurance policy, in actual sense, it helps you save money in the long run.

For instance, having health insurance will help you save money that you would have spent on hospital expenses. This is the same way you save the money you would have spent on fixing your vehicle and the vehicle of the third party in the case of a collision.

2. It protects you from unforeseen circumstances

Life is unpredictable, and anything can happen at any time. That's why it's important to have insurance. Insurance can protect you from financial losses in the event of an accident, illness, or other unforeseen event.

When you buy insurance, you're essentially pooling your risk with a group of other people. If something happens to you, your insurance company will pay for your losses, up to the limits of your policy. This can help you cover the cost of medical bills, repairs, or even replacement income.

3. It provides financial support when you need it

No one knows what the future holds. Unexpected events such as injuries, accidents, illnesses, and even death can have a devastating impact on our lives. They can cause emotional and financial strain, making it difficult to cope and rebuild. Insurance can help to ease the burden of these events, providing financial support and peace of mind so that you can focus on healing and moving forward.

Cost of Insurance

The cost of insurance in Nigeria varies depending on the type of coverage you need, the level of risk involved, and your age, amongst others. It is important to shop around for quotes from different insurers to get the best possible price.

Here are some of the factors that can affect the cost of insurance:

Type of Coverage: The type of coverage you need will have a big impact on the cost of your insurance. For example, the cost of term life insurance will vary from that of third party motor insurance.

Level of risk: The level of risk involved in your activities will also affect the cost of your insurance. For example, people who live in areas with a high crime rate may pay more for home insurance than people who live in safer areas.

Age: Your age can also affect the cost of your insurance. Young drivers typically pay more for car insurance than older drivers. Young people usually get cheaper life insurance policies than older people.

With all this, it is evident that although misconceptions may arise, insurance is not just important, it is a necessity that cannot be overlooked. This is why at Ombrella, we seek to offer you a safe space where you can learn more about insurance, understand it, simplify the process and get policies that work for you and those you love.

With Ombrella, you get matched to different policy providers that offer you different policies and benefits that suit your needs and your pocket, while offering you convenience, affordable policies, 24/7 customer support and much more.

Don’t let those misconceptions stop you from protecting your loved ones and securing their future. Get covered today!

We can help. Explore the various policies you can get through Ombrella here.