This Is How Insurance Works!

Nov 17, 2017 , , , , ,

This Is How Insurance Works!

According to available data, out of the 170 million people currently in Nigeria, less than 2 million have an insurance policy. As a matter of fact, insurance penetration in Nigeria is still a far cry from what it should be. Insurance can be very tricky and still confuses a lot of people, especially those that have never had a proper orientation on it.

Recently, Nairaland got buzzing with the unfortunate incident of a woman who went to an Airtel office to register her SIM card and later died from complications that arose from an accident that occurred there. As it stands now, the family has sued Airtel, though the telecommunication company through their insurance company has paid a N3million compensation due for such an incidence. Comments on the post-fired shots at the insurance company, ‘decrying’ how the claim settlement was too small, considering the circumstances surrounding the woman’s death.

Read also: Nigerian SMEs and the Risks of Being Uninsured

However, what they fail to understand is that insurance works with predetermined policies and insurance products, with predetermined premiums payable and calculable compensation for claims. It is not about sentiment.

This article, therefore, seeks to shed some light on three popular misconceptions about what insurance is.

Insurance does not thrive on sentiment

This Is How Insurance Works!

Insurance is not about sentiments; it is about predetermined premiums and calculable settlements for claims. When you buy into a specific insurance policy, you get an insurance cover to protect against unforeseen circumstances under that cover. Each policy has a premium payable monthly or as may be required. In the unfortunate event of accident, loss, death or injury, the policyholder is entitled to make a calculable claim for compensation, which the insurer is obliged to pay.

Everyone needs insurance

Insurance is not a waste of your money. Nigerians are one of the most religious people on earth. However, while we all have what/who we believe in, and know how important it is to put out a positive energy into each day, it is also wise to take up insurance plans that would cover us from the eventualities of life. Better safe than sorry, right?

Here Are The Benefits 94.6million Uninsured Nigerians stand To Lose

Insurance is not too expensive

This Is How Insurance Works!

Unlike the popular opinion, insurance is not as expensive as it is widely believed to be. Weighed against the background of the peace of mind and cover from loss an insurance policy provides, insurance is not expensive. Then, insurance is not only for ‘big men’ as many believe. In fact, different insurers provide affordable options that cater to the need of different cadres of the society.  For instance, Leadway’s Home Flexa provides insurance cover for personal accidents, property loss, private health plan and family benefit worth up to N500, 000, for a total premium of N12, 885 per annum.

Seeking A Very Affordable Insurance Plan? Home Flexa Is the Bomb!

To find out more about other affordable policies in our offering, call our customer care lines on (01) 2800 700, 2800 701, 0908 404 0404, 0812 999 7070 or send an email to

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