Life insurance is one of the most important aspects of personal finance and family security and yet it’s a topic that is surrounded by a lot of confusion and skepticism in Nigeria. What is it? Why do I need it? Is it expensive? Which policy is right for me?
Unpacking life insurance!
Joining us here to answer your questions and shed some light on the subject is Yomi Onifade, who is a Divisional Director at AXA Mansard.
Joining us here to answer your questions and shed some light on the subject is Yomi Onifade, who is a Divisional Director at AXA Mansard. Yomi and his team at AXA Mansard are running a campaign tagged Bonus Life on their Life Insurance Savings Plan. AXA Mansard wants every eligible Nigerian to gift themselves with Bonus Life which is an amazingly simple Savings plan with great investment returns and Bonus life-long insurance cover.
So Yomi, let’s start with the basics: what is life insurance?
Life insurance is a protection against financial loss that would result from the premature demise of an insured person. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the demise of the insured. The amount paid by a life insurer depends on the the level of cover in the agreement.
How many Nigerians have life insurance?
Based on the statistics our team has compiled, less than 1.5% of Nigeria’s adult population has life insurance cover which is extremely low. This was even lower before the Regulator National Insurance Commission - NAICOM commenced a series of initiatives over the past few years to improve penetration. So we are getting there and working towards improving Insurance coverage in Nigeria to get to the levels of other countries like in Finland where 59% of the people are covered. Other countries we could compare Nigeria with include Norway with 55.1% coverage. In Africa, South Africa has 27% of its adult population with life Insurance and Kenya also with 15% adult life insurance. In summary, there is a need for all stakeholders to continue working to improve life insurance coverage in Nigeria and this is one of the key reasons why AXA Mansard’s Bonus Life is good for Nigerians
Why is life insurance important?
If you are retired or you have no financial dependents, the reality is that you do not need life insurance. In Nigeria, however, most people have a number of dependents. Even if your children are old enough, most of us have other people we care for: spouses, parents, extended family members etc. In the case of an accident or demise, life insurance helps to compensate those left behind for what are often considerable financial consequences: final expenses, outstanding debts, school fees and lost income.
Why don’t more Nigerians have it?
The main reason people are not covered is that they perceive insurance as being extortionately expensive. A typical premium will cost in the range of N20,000/ month. This might seem like good value when said in the same breath as the financial consequences discussed above. But, when taken as a standalone expense without contextualisation, many see it as being too expensive.
For this reason, many Nigerians prefer to put their money in a savings account to provide some psychological reassurance in case of an accident. Today, there are significant number of Nigerians who leave their money in traditional savings accounts that are often yielding less than 2% interest.
How does the Bonus Life savings solve a problem for the Nigerian consumer?
Being sufficiently covered would provide real peace of mind for a huge number of Nigerians. As mentioned above, we know that there are a number of barriers preventing many from taking out policies. That’s why we have Bonus Life.
Bonus Life allows Nigerians to benefit from life insurance without having to pay a N20,000 premium. It is essentially a savings plan like the one you have with your regular bank. You enjoy all the returns of a regular savings plan but the key differences are two-fold: a) you earn superior interest (more than 5%) and b) simply for saving regularly, you get Bonus life insurance cover in case of an accident.
Getting started is easy - simply click here to share a few details and a member of our team will be in touch to explain how you can start enjoying your Bonus.
What’s the catch?
No catch. AXA Mansard is offering Nigerians Bonus Life because we want to build strong relationships with our customers and address the problem that we were well placed to solve.
Fill out a few details here and one of our teams will be in touch to help you get started.
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