Let’s discuss insurance myths. To be honest, insurance isn’t top of mind for most people in Nigeria. When people hear the word “insurance,” they associate it with something only wealthy people need or a big scam.

But the truth is, insurance isn’t a luxury. It’s a lifeline. A safety net that protects you in the face of unforeseen events. 

The insurance industry in Nigeria has suffered from years of misconceptions. People don’t even trust insurance. These perceptions have left many people unprotected and unprepared in times of crisis simply because they believed what they heard. 

But it’s never too late to embrace insurance, especially with the industry’s technological advancements. Insurance is now digital. 

Today, we’re going to separate fact from fiction. If you’ve ever hesitated to get insured or felt like insurance is a scam, this article is for you. Read on because we’ll debunk 7 of the most common insurance myths. 

7 Lies About Insurance You Should Stop Believing 

Myth 1: “Insurance is for only rich people” 

This is the easiest to fall for out of all the insurance myths. Many people believe that insurance is a luxury. They think it’s reserved for CEOs, expatriates, and the elite. But this is far from the truth. In reality, insurance is for everyone, from small business owners and artisans to salaried workers and freelancers. 

Myth 2: “Insurance companies never pay claims”

This comes from stories and historical cases of poor customer service in the industry. While some providers have had issues, the narrative has changed.

Insurance claims are now faster than ever. You can get payouts within 24 to 72 hours of submitting the required documentation. Thanks to increased regulation, digitisation, and competition, the Nigerian insurance industry is more transparent.  

Also, don’t forget that many claims are not denied because insurers are wicked but because some customers fail to understand the terms of their policy. You should read your policy documents, ask questions, and provide accurate information. 

The key is to choose a trusted insurance provider, submit truthful information, and follow due process. When you do, your chances of a successful claim go way up.

Myth 3: “I don’t need insurance — God will protect me”

As a deeply religious country, many Nigerians believe that divine protection makes insurance unnecessary. And while faith is powerful, it doesn’t cancel out wisdom or planning.

Think about it, you lock your doors at night even though you believe God will keep you safe. You go to the hospital even though you believe God is your healer. Insurance is another protection layer. It doesn’t mean you lack faith.

Insurance is a way of being responsible for yourself and your loved ones. It ensures that if anything goes wrong, there’s a system to help you recover. Faith and insurance can co-exist. One is spiritual. The other is practical.

Myth 4: “I’m young and healthy — I don’t need insurance yet”

Many young people believe that insurance is only necessary when you’re older, sick, or married. However, the reality is that life doesn’t wait for the “right time” to occur.

Accidents don’t consider your age, and sickness doesn’t regard how fit you are. Emergencies can arise when you least expect them. 

The ideal time to secure insurance is when you’re young and healthy, as premiums are generally lower, and you are more likely to be approved without complications.

Whether it’s health insurance or even gadget protection, don’t postpone until a crisis strikes. Get covered now, and your future self will appreciate it.

Myth 5: “Insurance is too hard to understand”

Navigating insurance can feel daunting. Terms like “premium,” “deductible,” “exclusion,” and “underwriting” can confuse even the most intelligent among us. 

The good news is that insurance is becoming more transparent and more accessible. Several Nigerian insurance companies are now using everyday language to explain their products. 

Some even provide customer service in local languages or Pidgin English. Online platforms and mobile apps simplify buying plans, making claims, and monitoring coverage.

Insurance isn’t rocket science. Once you eliminate the jargon, it’s about spending a little now to safeguard a lot later.

Myth 6: “Insurance is a scam”

This myth is rooted in Nigeria’s history of mistrusting financial services, from failed banks to fraudulent Ponzi schemes. So, it’s no surprise that some people associate insurance with the same negative connotation.

But the truth is legitimate insurance is not a scam. Insurance is a globally recognized financial tool supported by regulations and risk management principles. 

The National Insurance Commission (NAICOM) supervises insurers in Nigeria, ensuring that licensed companies operate fairly and transparently.

The key is to work with registered, reputable insurance companies like MyCovergenius. Do your research, verify their licensing, and read reviews.

Scams exist in every industry, but that doesn’t mean the industry itself is a scam. Insurance is a legitimate way to protect what matters to you. Your health, business, and future.

Myth 7: “Insurance is only for emergencies”

While insurance is beneficial in emergencies, it also serves other important purposes. It provides peace of mind, supports long-term financial planning, and is essential for accessing loans, schools, or international travel.

For example, our health insurance plans include wellness packages like gym access and therapy sessions. Insurance isn’t solely about preparing for the worst. It’s about enhancing your life today, knowing that you’re protected.

Final Thoughts: Protecting Yourself is Not a Myth

We understand. Insurance in Nigeria still needs to improve awareness and trust. However, clinging to these insurance myths will not benefit you when life happens.

Let go of the myths. Let go of the fear. Let go of the notion that insurance isn’t “for people like you.”

Insurance is for you, whether you’re hustling in Lagos, running a shop in Kano, or freelancing from your home. It’s your safety net, backup plan, and smart move in an unpredictable world.

So the next time someone says, “Abeg, insurance is a scam,” you’ll know better. And hopefully, you’ll educate them on the benefits of insurance.