Despite growing awareness around financial planning in Nigeria, insurance remains one of the most misunderstood and under adopted financial tools. Many Nigerians associate insurance with confusion and mistrust and hold several misconceptions about it. These misconceptions have prevented them from securing and enjoying the financial protection that insurance can give them.
Dispelling these myths is important as it is the only way to ensure that people have the correct information that will enable them to view and use insurance as the empowering financial tool that it is. In this article, we discuss in-depth five recurring myths that have fed the apathy Nigerians have towards insurance.
Myth 1: Insurance Is Complicated
Many people believe insurance is complicated by design, filled with legal jargon and hidden clauses that the average person cannot understand. This perception is far from the truth. Risk management is the core of insurance, which involves paying a small premium today to protect yourself and your loved ones from large, unexpected expenses tomorrow.
Coronation Life Assurance has made great efforts to simplify how insurance is presented, purchased, and managed. Clarity is the main thing we prioritize in our policy design process, using plain language that is easy to understand by all, irrespective of their educational level.
We have also invested in digital platforms that allow users to explore different policy options, calculate their premium, and file a claim by themselves using their phone or laptop. If you are capable of using an app to transfer money, book a cab, or shop online, then you are digitally literate, and insurance won’t be complicated for you.
Myth 2: Insurance Companies Don’t Pay Claims
Several Nigerians distrust insurance companies because of a damaging misconception that policyholders are hardly paid claims. This false, yet longstanding myth is due to a gap in the understanding of policy terms which is only discovered after a claim is filed.
Paying claims is a legally binding responsibility that insurers have to their policyholders, on the condition that they meet all the requirements for the payout stated in the policy document.
Industry data further proves this wrong:
- In 2023, the industry paid a total of N713 millionto individuals and N843 million to businesses.
- In 2024, individuals received N47 billion, while businesses were paid N1.79 billion.
- So far in 2025 (YTD), individual claims have already reached N04 billion, with N625 millionpaid to businesses.
Coronation Life Assurance has contributed significantly to these figures, fulfilling our promise to policyholders and backing our commitment to deliver when it matters most. Over the past three years, we have consistently honoured claims, whether large or small, for individuals and businesses alike; demonstrating that insurance is not just about selling policies but about showing up when life happens.
Insurance companies have been proactive in combating this myth through pre-claim consultations to help their customers fully understand what their policy covers and how to properly file a claim before any incident occurs.
Read our article on how to file a claim here
Myth 3: Insurance Is For The Wealthy
Another common myth in circulation is that insurance is a luxury reserved only for the wealthy to use in protecting their assets. This prevents people from recognizing that insurance is one of the most inclusive financial instruments available.
Several insurers like Coronation Life Assurance have created a variety of affordable, accessible life assurance products and plans for individuals across income levels.
From premiums that cost the same as a loaf of bread to flexible payment frequencies that sync with your income cycle, insurers have found ways to lower the barrier of entry to getting insurance coverage for everything.
This is particularly beneficial for lower-income earners who have a greater need for insurance because they usually do not have a safety net to fall back on. For them, an insurance policy could be what prevents them from plunging into debt after an incident.
Myth 4: You Can Worry About Insurance Later
Young people postpone getting insurance till they believe they need to, usually when they get married, have children, and have other assets. Buying insurance early, especially life insurance, significantly lowers premiums, increases options, and establishes a foundation of financial discipline.
The adversities of life have no age requirement, so being young doesn’t shield an individual from critical illness, medical bills, funeral costs, or even retirement.
Insurance providers are making it easier for young people to get insurance early with youth-focused products that use relatable language and lifestyle-based value propositions.
With insurance, the earlier you start, the better off you’ll be.
Myth 5: Insurance Is Rigid
There is a misleading assumption that insurance is rigid and once you choose a product or plan, you have to stick with it even if your life evolves. This is false because insurance has been made very customizable by insurers.
Insurers have made an effort to offer modular plans that can scale alongside the needs of their policyholders.
For example, if you had a health insurance policy before getting married, you can add your spouse to it. If you both become parents shortly, you can add your child to the policy and also invest in an education savings rider.
Insurance can be curated to your ever-changing needs; therefore, it is not rigid.
Reviving Trust in Insurance Through Great Service
Insurance is more than a product and premiums. It is a promise to those that we serve that starts with trust, clarity, and consistency. We ensure that every interaction with us, physically or digitally, leaves you convinced that we are committed to empowering and protecting you thoroughly.
This is why we have designed self-service platforms, customer-friendly education series, and partnered with SMEs and digital communities to make insurance more accessible. We are convinced that by doing this, we can dispel these myths and meet people at the point of their needs with insurance, ultimately making insurance their new normal.
Coronation Life Assurance strives to change the narrative of insurance in Nigeria. We hope that more Nigerians begin to think of insurance as a smart decision that protects them at every point in their lives and gives them the liberty to focus on what truly matters.
To read more articles from Coronation Life Assurance LTD, please visit https://coronation.ng/insights/
If you are curious about how we can be of service to you, please contact us via email at contactcentre@coronationinsurance.com.ng or call 02-012275475, 02-012275476.
