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What is life insurance? A plain-English guide for Nigerians

Life insurance is a contract: you pay an agreed premium and the insurer pays the stated benefit when a covered event happens, subject to the policy terms. Its job is protection, not a guaranteed investment return.

What to check

Compare the covered event, sum assured, premium schedule, waiting periods, exclusions and claim documents. Ask for the policy wording before you pay, not after.

What could change the answer

A low premium does not automatically mean good value. Cover can lapse when premiums are missed, and benefits vary by product, age, health and underwriting.

A practical next step

List the people who rely on your income, estimate the financial gap they would face, then compare suitable NAICOM-regulated policies against that need.

Reviewed 2026-09-09