How to Build Wealth Through Insurance Investment in Nigeria

Most Nigerians think insurance is only useful when something goes wrong — like accidents or death.
But in reality, modern insurance products now offer both protection and profit.

In 2025, leading companies like Custodian Life Assurance, Leadway Assurance, and AXA Mansard introduced flexible savings, investment, and annuity plans that help Nigerians build wealth and protect their loved ones.

This post explains everything you need to know about insurance investment and annuity plans in Nigeria — how they work, types available, benefits, and why every smart investor should consider them.

What Is Insurance Investment?

An insurance investment plan is a financial product that combines life insurance protection with long-term savings and returns.

It means that while your money grows through investment returns, your family is also covered in case of death, disability, or emergencies.

Example:
If you invest ₦20,000 monthly in a 10-year life assurance plan:
You enjoy life protection throughout the period.
You get your investment + interest at maturity.
If death occurs before maturity, your family gets the sum assured + investment value.
So you’re protected and earning — two benefits in one.

What Is an Annuity Plan?

An annuity is an insurance contract that pays you a fixed income regularly — usually after retirement or at a specific age.

You invest a lump sum (or periodic amount), and the insurer pays you back monthly or quarterly for life or a set period.

Example:
You invest ₦5 million in a Custodian annuity plan at age 60.
You could receive ₦250,000–₦300,000 every quarter for life — guaranteed.
This means you’ll never run out of income, even after retirement.

ALSO READ; Top ten insurance companies in Nigeria

Types of Insurance Investment Plans in Nigeria

1. Endowment Plans

These combine life insurance and savings. You receive a lump sum after a fixed term, or your beneficiaries get paid if you pass away before maturity.

Best for: Long-term savings and family protection.
Example: Custodian “Smart Investment Plan.”

2. Investment-Linked Insurance

Part of your premium goes into investments like mutual funds or bonds. Returns depend on market performance.

Best for: People seeking higher returns with moderate risk.
Example: AXA Mansard “Investment Plus Plan.”

3. Education Insurance Plans

Designed to help parents save for their children’s education.
Best for: Parents planning secondary or university tuition.
Example: Custodian

4. Retirement/Annuity Plans

You invest once or over time and receive guaranteed income after retirement.
Best for: Retirees and employees planning long-term financial stability.
Example: Custodian “Retiree Life Annuity Plan.”

Benefits of Insurance and Annuity Investment in Nigeria

Guaranteed Returns: Your money grows steadily regardless of market volatility.
Life Protection: Your family gets financial support even in your absence.
Tax Advantages: Some plans offer tax relief under Nigerian law.
Retirement Security: You get stable income after you stop working.
Wealth Transfer: Benefits can be passed on to dependents tax-free.
Peace of Mind: Combines savings discipline with protection.

Sample Return Breakdown (Typical 10-Year Plan)

Monthly Contribution Term (Years) Estimated Value at Maturity Total Payout (Death/End)
₦20,000 10 ₦3.4 million – ₦4.2 million ₦5 million (sum assured)
₦50,000 10 ₦8.5 million – ₦10 million ₦12 million (sum assured)
Figures vary depending on insurer and investment performance.

Common Mistakes Nigerians Make with Insurance Investments

1. Buying without understanding the plan terms.
2. Ignoring maturity or surrender conditions.
3. Stopping contributions too early
4. Choosing unlicensed insurance agents.
5. Assuming all insurance is “fordeath

How to Start Your Insurance or Annuity Investment

• Identify your goal – education, retirement, or general savings.

• Choose a reputable provider – Custodian, Leadway, AXA Mansard, AIICO, Old Mutual.

• Decide your contribution plan – monthly or annual.

• Request a benefit illustration – see your projected returns.

• Read all terms carefully before signing.

• Stay consistent with premium payments.

• Review your plan yearly.

Why Smart Nigerians Choose Insurance Over Regular Saving

Unlike bank savings that earn 3%–4% yearly, insurance-linked investments earn 8%–12% interest, plus risk protection.
This means even if you never withdraw, your money grows faster and is always safe.

Conclusion

Insurance and annuity investment plans are the silent wealth builders most Nigerians ignore.

They don’t just protect you — they pay you. Whether you’re saving for your children’s future, your retirement, or long-term financial freedom, these plans offer security, returns, and peace of mind in one package.

The best time to start is now. Talk to a licensed financial advisor or reach out to a trusted firm like Custodian Life Assurance to explore the plan that fits your goals.