Can Insurance Really Save You Money? Here's What Most Nigerians Don't Know

Have you thought of how many times you’ve told yourself that this is the month you start saving? Then, your motivation dwindles, and your funds suddenly disappear. Many Nigerians desire a strong financial buffer against unexpected events and recognise the importance of having funds set aside for unforeseen circumstances. However, there are several factors that make it difficult to save in Nigeria.

Insurance companies offer various products that make saving easy and profitable. Yet, they are grossly underexplored. Many Nigerians still believe that banks are the only financial institutions where they can save their money, but this is not true.  

Before Emeka knew better, he was your typical hardworking Nigerian businessman. He had invested ten years into his fabrics business, shipping colorful ankara, lace, and brocade from China to his massive shop in Idumota Market in Lagos. As he sat at his work desk at home to reconcile his accounts after a long day at the shop, it dawned on him that things were not adding up.

He discovered several charges from his bank that he had neglected to pay attention to; account maintenance fee, card fee, transfer charges, SMS charges, and stamp duty. All amounting to a tangible sum that made his eyes widen in disbelief. In that moment, Emeka thought about the endless issues he had encountered with his bank in the past two weeks.

There was always something wrong. From network downtime, transaction limits, failed transfers, and a frozen account containing his funds.

‘’Is this how I’ll keep losing my money?” Emeka thought. The banks that were supposed to keep his money safe were doing the opposite, and he had to find a solution soon. Later that night, Emeka was in bed scrolling through Instagram when he came across a post about Coronation Insurance Savings that made him sit up.

He was intrigued at how well the product suits business owners like him who want more than traditional banking can offer. The next morning, he reached out to an advisor to explore his options. 

Here’s What Most Nigerians Don’t Know 

Unlike the traditional savings account with banks, insurance has proven to be a better option for savings. Insurance companies offer flexible savings and investment plans, encapsulated with insurance benefits that are tailored to the needs of various people.

The benefits of these plans can be accessed upon the occurrence of the insured event within the agreed-upon period, while the payment of the funds saved or invested occurs at maturity.

Here are four reasons why saving in an insurance company like Coronation is profitable:

• Automatic Insurance

Imagine a savings account that not only helps you grow your money but also offers you insurance coverage at no extra cost.

Every deposit you make doesn’t just build up your savings; it also guarantees built-in protection for both you and your funds. Whether it’s coverage for life, health, or other unexpected events, you’re assured of an added layer of financial security simply by saving.

You get to enjoy the peace of mind that comes from knowing your money is working for you while simultaneously protecting you without any hidden fees.

• Higher Returns than Traditional Savings

While banks offer savings rates around 6%, some insurance products, like investment-linked or endowment plans, can yield 8% to 12% annually, especially with lump-sum investments.

These plans combine life coverage with long-term investments in diversified portfolios, potentially outperforming fixed savings accounts over 5–10 years. However, they have mandatory lock-in periods, so it’s crucial to align your choice with your financial goals and risk tolerance. 

• No Hidden Charges

Saving with an insurance provider frees you from the unexpected fees that often come with traditional bank accounts.

There will be no need to worry about ATM charges, account maintenance fees, SMS alerts, withdrawal and transfer costs, bill payment deductions, or other electronic banking service charges that eat into your funds.

Insurance savings plans don’t impose recurring or surprise charges, allowing your money to grow without being chipped away. It’s a more transparent and cost-effective way to ensure steady financial growth with no deductions or surprises.

• Disciplined Saving Habit

Insurance savings plans enforce a structured approach by requiring fixed, regular premium payments. This commitment builds a habit of saving consistently, making it harder to withdraw impulsively – unlike regular bank savings, which are more accessible and easier to spend. It helps you stay on track with long-term financial goals. 

Insurance is More Than Protection

Insurance isn’t just about protection. It’s also a smart way to save and grow your money.

For Nigerians like Emeka, who are seeking financial stability without the hidden charges and limitations of traditional banking, insurance savings plans are a practical and rewarding alternative.

With higher returns, built-in coverage, and the discipline to stay on track, it’s time more people knew that insurance is more than a safety net, but an effective tool for building financial freedom.

As more Nigerians begin to explore alternatives to traditional banking, insurance savings plans are emerging as a trusted and strategic option for building real financial freedom. They offer the structure many people need to stay disciplined, the returns that make long-term saving worthwhile, and the added security that comes with built-in protection.

This approach isn’t just about money – it’s about peace of mind, future stability, and financial independence. It’s about knowing that your efforts today are planting seeds for the life you truly want tomorrow.

So, the next time you think about saving, think bigger.

Think beyond the bank. Think insurance that works smarter – for your goals, your growth, and your future.

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