Many Africans abroad carry heavy financial responsibilities: a spouse and children abroad, parents and siblings back home, a mortgage or rent, and perhaps a building project in Nigeria. Yet few have life insurance. If the main earner died unexpectedly, families could face financial hardship in two countries at once.
Here’s what you need to know about life insurance.
What Life Insurance Does
Life insurance pays a sum of money to your chosen beneficiaries if you die during the policy term. It can help your family:
- Pay rent or the mortgage
- Cover living costs
- Fund children’s education
- Pay off debts
- Cover funeral or repatriation costs
- Continue supporting relatives back home
Types of Life Insurance
Term life insurance covers you for a set period, such as 20 or 25 years. It’s usually the most affordable option and suits most families.
Whole life or permanent insurance covers you for life and may include an investment or savings element. It’s more expensive.
Employer life cover is often included in benefits packages, usually as a multiple of salary. It’s useful but may end when you leave the job.
How Much Cover Do You Need?
Consider:
- Outstanding mortgage or rent commitments
- Your family’s living costs for several years
- Children’s education costs
- Debts
- Support for dependants back home
- Funeral and repatriation expenses
Subtract existing savings and employer cover. The remaining gap is the cover to consider.
Can Visa Holders Get Life Insurance?
Many insurers offer policies to visa holders and permanent residents, though some ask about residency status, length of stay and travel plans. Be honest in your application. Misrepresentation can lead to claims being refused.
Health and Lifestyle Questions
Insurers ask about your age, health, family medical history, smoking and occupation. Premiums are generally lower when you’re younger and healthier, so buying earlier often saves money.
Travel to Nigeria and Africa
Some policies ask about frequent or long travel. Check whether your policy covers death while travelling or living temporarily outside your country of residence.
Choose Beneficiaries Carefully
Name beneficiaries clearly and keep their details updated. Consider:
- Your spouse
- Your children, possibly through a trust
- Parents or dependants back home
In some countries, placing a policy in trust can help payouts reach beneficiaries faster and may have tax advantages. Get advice on this.
Tell Your Family
Many policies go unclaimed because families don’t know they exist. Tell your spouse or a trusted person about your policy and where to find the documents.
Shop Around
Compare policies from several insurers or use a regulated adviser. Check that insurers are regulated in your country. In the US, the National Association of Insurance Commissioners provides consumer information on life insurance and links to state regulators.
Combine With a Will
Life insurance works best alongside a will that covers your assets abroad and back home, guardianship for children and your wishes for your family.
Review Regularly
Review your cover when your life changes: marriage, a new baby, a new home, a job change or large debts. Your protection should grow with your responsibilities.
Don’t Forget Critical Illness and Income Protection
Life insurance pays out on death, but serious illness or long-term inability to work can also devastate family finances. Critical illness cover pays a lump sum if you’re diagnosed with specified serious conditions, while income protection replaces part of your salary if illness or injury stops you working. Check what your employer already provides, then consider whether additional cover makes sense for your household.
Final Thoughts
Life insurance is one of the most loving financial decisions you can make. For diaspora families supporting loved ones across continents, it ensures your care continues even if you’re no longer there. Start with affordable term cover, choose beneficiaries carefully and tell your family where to find it.