Types of Insurance

There are different types of insurance that could be taken in Nigeria today, some of which are:  

1. Life Insurance:

There are two types of life assurance policies. One of these is whole life assurance and the other is endowment assurance policy. A whole life assurance policy is taken by an individual to cover his lifetime. A sum is payable to his dependents only when he dies. With an endowment assurance policy, the money is paid after a specified number of years or at the death of the assured, whichever comes first.

The policyholder typically pays a premium, either regularly or as one lump sum. Expenses such as funeral expenses are part of the benefits that may be included.

2. Motor Vehicle Insurance:

This type of insurance covers risks against damages, and losses involving motor vehicles. Some motor vehicle policies are;

a. Comprehensive Policy:

The comprehensive policy is the best motor vehicle insurance coverage and the most expensive because the policy covers the insuredThe insured is the party (ies) (person or firm) having property covered against risk. They are covered by an insurance policy. More vehicle, occupants, and damage to the third party in case of an accident.

b. Third-party, Fire, and Theft:

This policy covers the Insured for death/injury to a third party and liabilities, including fire and theft of the vehicle, while the policy lasts.

c. Third-party Only:

This policy does not cover the insured vehicle but only the third-party vehicle. The passengers and non-passengers who suffer injuries, caused by an accident, will be compensated.

3. Fire Insurance:

This policy is taken to cover all risks associated with fire. It covers the loss of properties through accidental fire outbreaks.

4. Burglary of Theft Insurance:

This type of insurance cover is taken against forceful breaking and entry into a dwelling place or business premisesThe premises of a property consist of the land and buildings on it, usually of a business or organization. More for theft.

5. Marine Insurance:

This policy is taken to cover all risks associated with vessels moving on high seas or territorial waters.

6. Aviation Insurance:

This policy is taken to cover all risks associated with the use of aeroplanes of various types such as passenger planes, cargo planes, aircraft owners, and any possible loss that may occur as a result of air accidents or disasters.

7. Fidelity Guarantee Insurance:

This policy is usually taken by an organisation against the loss that might arise if a worker placed in a position of trust, or charged with the responsibility of keeping huge sums of money, is dishonest, fraudulent, or misappropriates funds.

8. Pension Insurance:

A pension fund is a type of insurance where an employee contributes part of his or her current income to an insurance company with the aim of building a fund for his or her retirement.

9. Health Insurance:

Health insurance is coverage paid for by an individual to help cover the cost of possible future illness and surgical expenses.

The health insurance company will reimburse the insured for incurred expenses from illness or injury. Employers often include this in employer benefit packages as a means of enticing quality employees, with premiums partially covered by the employer but often also deducted from employee paychecks.