Insurance Premium In Nigeria and How it works

Insurance premium is one word that often get people confused especially if you are new in Insurance business. In this article we will discuss what Insurance premium is all about and how it works especially here in Nigeria to give you head up and as well boost your confidence to go out there and grab a policy of your choice.

Insurance premium is one word you cannot ignore when looking for an insurance coverage. We have gathered some tips that will help you understand more of what insurance premium is all about and how it works in Nigeria insurance industry.

What Is an Insurance Premium?

An insurance premium is the price tag of insurance policy. It is the total amount you are expected to pay for a single policy coverage. For example if you want buy health insurance coverage, there’s a price tag for that health insurance coverage. If you want car insurance coverage, there’s also a price tag for the car insurance coverage, that price tag is what is known as “premium “

Premium can be paid yearly or quarterly depending on the agreement you reached with your insurance company. It is usually paid during your policy renewal. And sometimes you are expected to pay your premium before your policy will be renewed.

How Does Insurance Premiums Work in Nigeria?

In Nigeria, when you register for a policy coverage, the insurance company expects you to pay a premium relatively to the policy you registered for. Depending on the contract agreement between you and your issuer. The premium (policy price) and the mode of payment should be stated clearly on the certificate that will be issued to you by the insurance company.

Sometimes the insurance company will expect you to pay the premium instalmentally. It can be monthly, quarterly or yearly which ever way, your mode of payment should be stated clearly on the agreement paper. Most times, the insurance company would require you to pay your premium complete before coverage will start.

How Much Does an Insurance Premium Cost in Nigeria?

The cost of insurance premium in Nigeria depends on the policy of your choice and also the risk associated to the policy. You might not have what it takes to understand the technicalities involved in comparing insurance premium of different companies to determine which one is best for for you. Which is why insurance experts advise that you consult insurance professional who can go the extra mile to shop for premium of different insurance companies on your behalf. This professionals are called “insurance Brokers “ one of their main duties is to source for insurance premium that can serve your needs at your level.

Other factors that also determines the price of insurance premium in Nigeria is your age and the area you live in. Research shows that the older you grow, the more likely your insurance coverage gets high.

Conclusion

You might not have enough money but want get covered. How to get a cheap premium in Nigeria depend on how versatile your research skills are. To save your self the energy of surfing the net or going from one insurance office to the other looking for the company with the cheapest premiums, it’s advisable you employ the services of an insurance broker to do the dirty job for you. Brokers work with different insurance companies, they can help you get the best offer. You should as well be careful while getting a broker because most of them are agents to some companies.

Related Article: What is the History of insurance in Nigeria

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