Top 5 Best Life Insurance Companies in Nigeria (2020)
While not everyone needs life insurance it’s certainly a good option for specific types of people. In this article we cover the most reliable trustworthy life-insurance providers in Nigeria.
Before going to one of the below-mentioned companies we’d strongly recommend educating yourself on what the various life-insurance types that are offered in Nigeria and which one would be best for you and your family.
We’ll give an outline of deciding below, however we’d recommend further research before speaking to a life insurance dealer/company, as they’re often going to push more expensive (full life insurance) plans even if they aren’t the best option for you.
Choosing The Best Life Insurance Plan For You:
Before we get into the specific companies we’d say are the best in Nigeria we want to include a brief introduction to the types of plans they offer. We’ll focus on the top 3-4 types of plans — the other types we personally wouldn’t even consider, as the various other types of life insurance just aren’t very good compared to the types we’ll cover — as the other types are too specific and just aren’t practical or beneficial to most families/individuals.
The first type is Term Life Insurance — Term Life Insurance is the best option for folks who aren’t as settled down. If you aren’t the sole provider for your family, or own a home, and are single or married then this choice is likely the best for you, as it’s one of the cheapest for the benefit you get. These plans will give your beneficiary a large lump-sum payment if you, ahem, “expire.”
The second type we’d recommend is Mortgage Life Insurance — This plan is only for you if you own a house/apartment that you or your parents live in and if you died they’d simply pay off the remainder of the loan balance. This is a great budget option if you have a family or take care of your parents and want to ensure that they don’t lose the house if you died — as they’d get a paid-off home if that ever occurred and never would have to worry about a place to live again. This plan is the cheapest on average and is great if your spouse has a job as well and earns enough to continue paying for food/bills other than housing.
The Third type we’d recommend would be a “family benefit plan” — it’s called different things at each insurance company, but this plan gives your family a set income per month paid from the insurance company for a set time period you choose when you sign up for the life insurance plan. This is good if you already own a home, or don’t want to be a home-owner and prefer to rent, and you have a family that you want to not have to worry about income if you died. This plan is particularly good if your partner/spouse isn’t very knowledgeable in finances and you want to make sure they don’t waste a lump-sum benefit and instead want them to receive a stable income that they’d be more likely to use on normal living expenses.
The Fourth type we’d consider/recommend would be just a simple celebration-plan — It only covers burial/funeral fees. This is a decent option for single people who simply want to make sure if you did experience an “unfortunate incident,” then your parents/family wouldn’t be on the hook for funeral expenses as well as grieving your loss — we’d say this is a good option for single young people or older people who lack a savings, but it isn’t a good choice for families in our opinion.
With this overview out of the way we’ll cover the best insurance providers in Nigeria — including the 5 that are the best overall and that we’d consider using ourselves. We’d recommend getting quotes from 2 -> 3 of the below companies for the specific plan you’re interested in, then choosing the cheapest option, as all of the below insurance companies are 100% trustworthy in our view and aren’t going out of business anytime soon.
Our Personal Choice For Life-Insurance: Leadway Insurance
Leadway is our personal choice for Life Insurance in Nigeria — if we were getting life insurance today in Nigeria this would be the company we’d be going with. They seem to have the best financials of any insurance company while having comparable pricing to other insurance companies in Nigeria.
They also have a good modern website that allows you to get a quote for their insurance online after filling out a simple form — which we really like. It shows they’re a modern well-managed company that stays with the times.
Leadway Insurance has 3 of the plans we would say are good choices for life insurance — They have Mortgage Protection Plans, Family Benefit Plans, and Term Insurance, which is the best choices for most people in Nigeria in our opinion. Best of all — from what we’ve heard from other policy holders who had the misfortune of having to actually collect the life-insurance benefits, they pay out in as little as a day to a few days if you have the correct documents (death certificate).
Our Second Choice: AIICO Insurance PLC
If we weren’t going to go with Leadway, our second choice would be AIICO, as they have the next best financials and plan choices in our view. Truthfully we’d go with either AIICO Insurance or Leadway depending on the price they quote us — as they’re about as good as one another in our view.
AIICO Insurance has a relatively good website and has 3 of the 4 recommended life-insurance plans that we think would be best for most people. They have Mortgage Protection Plans, Term-Life Insurance Plans, and Memorial (Burial) Insurance plans. Unfortunately, they do not have family-protection plans, so if that’s what you’re looking for we’d recommend going with Leadway instead.
Much Like Leadway they have locations in all big cities in Nigeria including tons all over Lagos, which makes opening an account easy and convenient despite them not always having the option to get a quote online.
An Overall Great Life Insurance Choice: AXA Mansard
While we see this company as just as financially sovlent and trustworthy as the above two (our favorite) choices, and they have locations throughout all of Nigeria and a great website much like them as well, they only have 2 out of the 4 life insurance plans we would say are best for most people.
AXA Mansard also seems to charge slightly more than them (not by much) for life insurance — which doesn’t seem to be for a particular reason. I believe this is because they employ more customer-service people, as unlike the other insurance companies we mention you can contact AXA Mansard through Facebook, Twitter, their website, email, or even Instagram.
Overall if you don’t mind paying a bit more for better/convenient customer service, then they’re a great insurance company — although as we mentioned above they only have 2 of the 4 recommended life-insurance choices to choose from. Namely their “instant plan” (term life) and their “life celebration plan” (Burial).
An Overall Good Choice: ARM Life Insurance
ARM is a well-capitalized Insurance Company that offers all 4 of the life-insurance plans we would consider — as well as online payment of the dues on all their policies if you prefer to pay digitally.
If you aren’t interested in paying digitally you can set up automatic payments or pay in a lump-sum when you originate your policy, or you could go into a physical location — the problem is ARM doesn’t operate throughout all of Nigeria, and in fact they only have a couple physical locations in Lagos.
Overall ARM wouldn’t be our first choice, however we definitely wouldn’t have an issue with someone in the family seeking insurance through them. I’m pretty confident they’re not ever going out of business and they have relatively good customer service, digital features, and policies. They just don’t have any key selling points/advantages to the other insurance companies we mentioned in this article. They’re just an overall good trustworthy choice — not the best in every category, or even in a specific category, but just good overall.
An Overall Decent Choice (Great for Some): Mutual Insurance
The Reason this would be our last of 5 choices, is while they have quite a few interesting plans their customer service isn’t quite up to notch with the other companies we covered here in our opinion, and their financial conditions aren’t as rock-solid. Their financial conditions still are better than most insurance companies in Nigeria, but I don’t think them going out of business is impossible.
Furthermore their website isn’t the best as it doesn’t allow online quotes, or live-chat, or online payments like most of the other companies we’ve mentioned in this article have as features on their website.
Despite this we’re including this account as they have a unique plan that other providers don’t — and that’s a Term Policy that includes disability insurance as well as health-insurance to some degree. This is quite unique and offers a fantastic choice for business owners or independent contractors that don’t have health insurance — or for people who simply do not want health insurance. You can read more about the account on this page of their website.