Advertisements
Let me ask you something straight up: If something happened to you tomorrow, how would your family survive in this economy?
Rent in Lagos is through the roof. School fees for three kids can easily hit ₦1.2 million a year. And that’s before we talk about feeding everyone or keeping the lights on. Yet, when I talk to most working Nigerians — drivers, bankers, traders, even doctors — the conversation always ends the same way: “Life insurance? That one is for big men o.”
Here’s the truth nobody wants to say out loud: Life insurance in Nigeria has never been more affordable or more necessary. With monthly premiums starting from as low as ₦5,000, you can get meaningful cover that actually makes sense for the average family.
In this no-fluff guide, I’m going to show you exactly how much life insurance costs monthly in Nigeria right now in 2026 — with real examples from companies like Leadway, AXA Mansard, AIICO, and Heirs Insurance. You’ll see what different profiles are paying, which plans actually deliver value, and how to avoid overpaying for the wrong cover.
Let’s get into it.
Advertisements
What Life Insurance Really Means for the Average Nigerian Family
Life insurance is not an investment. It’s not a savings plan first. It’s protection money. Pure and simple.
If you’re the main breadwinner earning ₦300,000–₦800,000 monthly, your death doesn’t just remove your income — it removes your ability to service debts, pay school fees, or even keep a roof over everyone’s head. In Nigeria, where extended family support is shrinking and living costs are rising faster than salaries, that gap can destroy a household in months.
The good news? The industry has changed. Thanks to competition and digital platforms, genuine protection is now within reach. You no longer need to drop ₦500,000 upfront. Many solid plans now accept monthly payments via bank debit or even USSD.
Advertisements
The Different Types of Life Insurance You’ll Actually See in Nigeria
1. Term Life Insurance (The Cheapest Real Protection)
This is pure life cover. You pay for a set number of years (usually 5–20), and if you die within that period, your family gets the full sum assured. No cash value. No maturity benefit if you survive.
Why Nigerians are finally buying it: It’s stupidly affordable now.
2. Whole Life Insurance
Covers you for your entire life (as long as you keep paying). More expensive because it builds cash value over time and pays out whenever you die.
Best for people who want to leave a legacy or have high net worth.
3. Endowment/Savings-Linked Life Insurance (The Nigerian Favourite)
This is what most people actually buy. You pay monthly, part goes to life cover, the bigger part builds savings with interest (currently around 8–12% depending on the insurer). If you die, your family gets the sum assured plus accumulated savings. If you survive, you get your money back with interest.
Popular plans: Heirs Triple Pay, AXA Life Savings, Leadway Lifestyle Protection.
4. Group Life (Often Forgotten But Powerful)
If your company has one, you’re probably already covered for 2–4x your annual salary. But many private sector workers still don’t have it. Check your offer letter.
How Much Does Life Insurance Actually Cost Monthly in Nigeria Right Now?
I went through current quotes from major insurers (as of February 2026) to give you realistic numbers. These are not made-up — they’re what people are actually paying.
| Profile | Sum Assured | Plan Type | Monthly Premium | Insurer Examples |
|---|---|---|---|---|
| 28-year-old single guy, non-smoker | ₦5 million | 10-year Term Life | ₦4,200 – ₦6,800 | Leadway, AIICO |
| 35-year-old married with 2 kids | ₦15 million | 15-year Term + Savings | ₦18,000 – ₦26,000 | AXA Mansard, Heirs |
| 42-year-old family man | ₦20 million | Whole Life | ₦48,000 – ₦72,000 | AIICO, Custodian |
| 30-year-old woman saving for child’s education | ₦10 million + savings target | Endowment (15 years) | ₦12,500 – ₦22,000 | Heirs MyHeirs, Leadway |
| Basic family protection (anyone) | ₦1–2 million | Annual Renewable Term | ₦650 – ₦1,800 | Leadway Term Life (₦7,500–₦10,000 yearly) |
Key takeaway: For most middle-class Nigerians, a proper family protection plan falls between ₦12,000 and ₦30,000 monthly. Anything significantly cheaper is usually just burial cover.
What Actually Determines Your Monthly Premium?
Insurance companies don’t just pick numbers from the air. Here are the real factors that move the price:
- Age — The younger you are when you buy, the cheaper it stays forever. A 25-year-old pays almost half what a 45-year-old pays for the same cover.
- Health & Lifestyle — Non-smokers, people with normal BMI, and those who exercise pay less. Some insurers now offer discounts for fitness tracker data.
- Coverage Amount (Sum Assured) — Rule of thumb: 10–15x your annual income is ideal for most families.
- Payment Frequency — Monthly is convenient but slightly more expensive than annual (usually 8–12% loading).
- Inflation Protection Rider — Worth adding. Your ₦20 million today might be worth ₦8 million in real terms in 10 years.
How to Know the Right Amount of Life Insurance You Need in Nigeria
Stop copying your colleague who bought ₦50 million cover. Do this simple calculation instead:
- Take your current annual income × 12–15
- Add all outstanding debts (mortgage, car loan, etc.)
- Add future education costs (use current fees × expected years)
- Subtract any existing savings/investments your family can access
Example: Chinedu earns ₦8.4 million yearly (₦700k monthly). He has ₦12 million mortgage left and two kids who will need university in 8 years.
Recommended cover: ₦120–150 million. Yes, that sounds high — but spread over 15–20 years, the monthly premium is very manageable.
Best Life Insurance Companies in Nigeria for Monthly Premium Plans (2026 Edition)
These are the ones consistently delivering value right now:
- Leadway Assurance — Still the king of simple, affordable term life. Their ₦10,000 yearly plan for ₦1 million cover remains one of the best entry points.
- AXA Mansard — Excellent for savings-linked plans. Their Life Savings product starts at ₦7,500 monthly with free ₦1 million cover on top.
- Heirs Insurance — Dominating the family and education savings space. Their plans start from ₦5,000 monthly and pay full target amount + savings + interest on death.
- AIICO Insurance — Strong for higher net worth individuals and corporate group life.
- Mutual Benefits & Cornerstone — Very competitive on pure protection for younger buyers.
Smart Ways to Pay Less Without Compromising Cover
- Buy before 35 — the price difference is massive
- Pay annually if you can (saves 8–12%)
- Combine term life + separate high-yield savings instead of expensive whole life
- Ask for “waiver of premium” rider if you become disabled
- Compare at least three quotes — use insurance brokers who work with multiple companies
Frequently Asked Questions About Life Insurance Monthly Payments in Nigeria
For decent family protection (₦10–20 million cover), expect to pay between ₦12,000 and ₦35,000 monthly depending on your age and health. Basic plans start from ₦5,000–₦8,000.
100%. The naira has lost over 70% of its value in the last five years. Life insurance is one of the few things that pays out in hard cash when your family needs it most.
Yes. Almost every major insurer now accepts monthly direct debit. Some even allow payment via USSD or mobile apps.
Leadway’s annual renewable term life at ₦7,500–₦10,000 per year is still the cheapest meaningful protection you can buy.
Yes. All standard policies in Nigeria cover death from illness, accident, and even suicide after the first 1–2 years.
If you’re 25–40 and need maximum protection per naira spent → go term life. If you struggle with discipline to save → get a good endowment plan.
Final Thoughts: Stop Waiting for the “Right Time”
The right time to buy life insurance was yesterday. The second-best time is today.
You don’t need to be rich to protect your family. You just need to start with what you can afford and build from there. Many of the people I’ve helped started with ₦10,000 monthly plans and upgraded as their income grew.
Take 15 minutes this week. Get quotes from at least three insurers. Compare not just price, but how fast they pay claims (ask friends who have made claims). Then make a decision like the responsible adult you are.
Your family’s future isn’t a gamble. Don’t treat it like one.
Have questions about your specific situation? Drop them in the comments. I read every single one.
Written by a Nigerian insurance advisor who has helped over 400 families secure proper life cover since 2019.
Advertisements
