Hi, fam. As salaam alaykum warahmotullah  wabarakatuh.

INSURANCE! When you hear that word, what comes to your mind?

In typical Nigerian settings, I know most people will say ‘waste of money, lol.

First, let me start by saying I’m an insurer in the making and before I chose to study Insurance as a course, I used to have that same notion. Nigerians, over time, have passed the myth that Nigeria’s insurance companies don’t pay financial compensation. We are also quick to use the “the God forbid” phrase whenever we think of bad incidents.

Well, guess what? Bad things also happen to good people, and the valid question is, how prepared are you!?

Insurance can mean different things to different people; it could be a blanket for keeping one warm during cold weather; it could also be a fan keeping you cool on sunny days or an umbrella during the rainy seasons. But in the end, it SHIELDS you.

Having established the fact that ‘Nigerian insurance companies don’t pay financial compensation’ is a myth, In sha Allah, I’m going to take you through the do’s and don’t of Insurance. We should know that we don’t have the power to predict when things might go wrong in life, but we certainly have the opportunity to prepare for the uncertainties.

At this point, there is no need for me to further explain or give you reasons why you need an insurance policy especially if you run a large scale business or own a car. Having established the fact that you need insurance, it is essential to know what to expect from an insurance policy in case you might be opting for one in the nearest future.

An insurance policy is an agreement between a policy holder and an insurance company. The document contains what is covered and other details and conditions of the agreement. Sometimes, the terms in this document can be confusing due to the use of specific jargons; The following details may be contained in some or all of   insurance policies:

Policy number

 Duration of cover

Underwritten by



 Insured item

Additional name insured.

These and other information explaining the terms and conditions of the policy should be found.

Read also; To Fellow Entrepreneurs. It’s not a must you must be the boss

Why is it so important to examine your policy ?

It’s best to review what is covered in your policy; I guess this why most Nigerians think insurance companies don’t pay back.

 It is one thing to cover theft and it is another to cover fire. Let me break it down; Mr A buys a policy against theft and he didn’t have prior knowledge that the policy only covers theft. Now, there was a fire accident at his shop; if Mr A files a claim, it won’t be granted because his policy covers theft not fire. See, this is why it is very important to understand your policy well before filing claims and also before buying one.


It is advisable to carryout due research before purchasing a policy. You want to be sure that the policy you are applying for is exactly what you need or better still, is ideal for your needs. Here are some tips to consider before choosing an insurance policy;

Affordability; it is important you check your purse before buying a policy. You don’t want to buy a policy you can’t hold on to for long.

Consider the payout terms; be very sure you familiarize yourself with the payout terms of the policy, and be sure you are ok with the conditions. This is because some policy payout terms require a long waiting period which might not be too good for you.

Benefits; I really can’t stress enough on this. It is very important that you compare policy benefits. Several insurance policies offer different benefits. So, compare the policies you intend to take among other insurance companies to ensure you are receiving the best of the bests.

Before signing any document, ensure you have a financial advisor or an insurance broker. This is because most times, legal contracts can be difficult to understand, but with their help, the terms of your policy can be explained better to you.  Also, make sure you ask as many questions you can. Remember, it’s your money;  do not be afraid to ask until you are satisfied.

Finally, as Muslims, it is important to note that not all insurance policies are within the scope of our religion. That’s why our next gist would be about Islamic insurance policies and how we can go about them. So, look out for it so you get full knowledge about Insurance.

Ok! With that few points of mine I hope I have been able to convince and not to confuse you that having an insurance policy isn’t a bad idea as some or should I say most Nigerians paint it. Lol

That’s all for today. Thanks for reading through. I hope you liked it and it was helpful.

written by Kehinde Taiwo Sherifat


  1. Pingback: Self-development is key but we should try to honour our paces

  2. Pingback: Just when I thought real estate is not a spiritual being

Leave a Reply