Introduction

Losing a loved one is devastating, and the last thing you want is confusion over how to access the financial protection they left behind. If you are the beneficiary of a life insurance policy in Nigeria, or you hold an endowment policy approaching maturity, understanding the claims process is essential. This guide walks you through every step of making a life insurance claim in Nigeria, from the documents you need to the timelines you should expect, so you can secure your benefits without unnecessary delays.

What Is a Life Insurance Claim and Why Does It Matter?

A life insurance claim is a formal request to an insurance company for payment of the benefit outlined in a policy. Depending on the type of policy, this payment may be triggered by the policyholder's death, the maturity of an endowment plan, or the voluntary surrender of a policy with accumulated cash value.

In Nigeria, life insurance claims matter because they provide critical financial support at vulnerable moments. For families who have just lost a breadwinner, the death benefit can cover funeral costs, settle outstanding debts, keep children in school, and maintain the household's standard of living. For policyholders with maturity-type policies, the claim represents the return on years of premium payments. If you are unfamiliar with how these savings-type policies work, our guide on types of insurance-backed savings plans in Nigeria breaks down the different structures and what each one pays out.

Despite this importance, many Nigerians remain sceptical about whether insurers actually pay claims. A 2025 directive from the National Insurance Commission (NAICOM) acknowledged that the industry's most pressing challenge is a deficit in public trust and emphasised that timely and fair claim settlement is the key to restoring confidence. The good news? Regulatory reforms under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 have introduced stronger protections for policyholders, including mandatory settlement timelines and penalties for delays.

Types of Life Insurance Claims in Nigeria

Before you begin the claims process, it helps to understand which type of claim applies to your situation. There are three main categories.

Death Claim. This is the most common type. When the policyholder (the life assured) dies during the policy term, the named beneficiary files a claim to receive the death benefit, a lump sum paid out by the insurer. This applies to term life, whole life, and endowment policies.

Maturity Claim. This applies to endowment and whole life policies that include a savings component. If the policyholder survives to the end of the policy term, they receive a maturity benefit, a lump-sum payout that may include the sum assured plus any accumulated bonuses. The policyholder files this claim themselves. If you hold one of these policies and want to understand how your returns compare to other options, read insurance savings plans vs mutual funds: key differences.

Surrender Value Claim. If a policyholder decides to terminate a policy with a cash value component (such as a whole life or endowment policy) before it matures, they may be entitled to a surrender value. This is typically available only after at least three years of premium payments and is usually a fraction of the total premiums paid. Term life policies do not have a surrender value. Before surrendering, it is worth understanding what you stand to lose. Our article on what is an insurance-backed investment plan? explains how the savings component builds over time and why early exit is costly.

What You'll Need: Document Checklist

Gathering the right documents before you contact the insurer is one of the most important things you can do to speed up the process. The exact requirements vary by insurer and claim type, but the following covers what most Nigerian life insurance companies require.

For a Death Claim:

• Completed benefit/death claim form (provided by the insurance company)
• Original or certified copy of the death certificate, issued by the National Population Commission (NPC) or a hospital
• Medical certificate of cause of death, signed by the attending physician
• Original policy document (or a sworn affidavit if the document is lost)
• Proof of identity of the claimant/beneficiary: national ID card, international passport, voter's card, or driver's licence
• BVN (Bank Verification Number) of the claimant
• Burial certificate or mortuary receipt
• Police report, required where death resulted from an accident, violence, or any unnatural cause
• Attending physician's report (some insurers request this separately)
• Any other document the insurer may specifically require

For a Maturity or Surrender Claim:

1. Completed claim/encashment form
2. Original policy document
3. Proof of identity of the policyholder
4. BVN and bank account details for payment
5. Original receipts of premium payments (some insurers)

Pro Tip: Make multiple certified copies of the death certificate as soon as possible. You will need them for the insurance company, banks, pension administrators, and other institutions. Keep the originals in a safe place.

How to Make a Life Insurance Claim: Step-by-Step

Step 1: Locate the Policy Documents. Before anything else, find the life insurance policy document. It contains critical information including the policy number, the sum assured, beneficiary details, the insurer's contact information, and any exclusions. If the policy document cannot be found, contact the insurer. They maintain records and can issue a replacement or verify the policy using the policyholder's details and ID.

Pro Tip: The policyholder should tell their beneficiaries about the existence of the policy while they are still alive. If you suspect a deceased family member had a policy, but you are unsure which company, contact NAICOM for guidance.

Step 2: Notify the Insurance Company Promptly. Contact the insurer as soon as possible after the triggering event, whether it is a death, policy maturity, or a decision to surrender. Most insurers accept notification by phone, email, or a visit to a branch office. Prompt notification is important because some policies require claims to be filed within a specific timeframe (often 90 days of the event), and delays can complicate the process. During this initial contact, the insurer will explain their specific claims procedure, provide you with the claim form, and list the documents they need.

Step 3: Complete the Claim Form. Fill out the insurer's official claim form carefully. For a death claim, this typically requires the beneficiary's personal details, the policyholder's details, the policy number, the date and cause of death, and bank account information for the payout. Double-check every field. Errors or missing information are among the most common causes of delays. If you have ever dealt with a rejected health insurance claim, you will recognise the pattern; our article on why health insurance claims get rejected in Nigeria covers the documentation pitfalls that apply across insurance types.

Step 4: Gather and Submit Required Documents. Collect all the documents from the checklist above and submit them along with the completed claim form. Ensure you submit originals where required and keep copies of everything you hand over. Ask for an acknowledgement receipt from the insurer confirming what they received and when.

Pro Tip: Submit complete documentation in one go wherever possible. Piecemeal submissions slow things down and increase the chance of something being misplaced.

Step 5: Cooperate with the Insurer's Investigation. The insurance company will verify the claim. This typically involves confirming the policyholder's identity, checking whether premiums were up to date, verifying the cause of death (for death claims), and ensuring the claim falls within the policy's coverage terms. In some cases, the insurer may appoint a loss adjuster or investigator. Respond to any requests for additional information promptly and keep a record of all communication.

Step 6: Receive Payment. Once the insurer approves the claim, the benefit is paid to the designated beneficiary, usually via bank transfer. The death benefit is typically a lump sum. For maturity or surrender claims, the payout is made to the policyholder directly. Under the NIIRA 2025, insurers are required to settle admitted claims within 60 days of notification.

Step 7: Follow Up If There Are Delays. If your claim is taking longer than expected, follow up with the insurer in writing (email is ideal for creating a paper trail). Reference your claim number, the date you submitted your documents, and request a status update with a clear timeline. If the insurer is unresponsive or you believe your claim is being unfairly delayed or denied, you have the right to escalate the matter to NAICOM.

How Long Should a Claim Take? (NIIRA 2025 Timelines)

The Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law by President Tinubu on 31 July 2025, introduced significant protections for policyholders. One of the most impactful provisions is the mandatory 60-day claims settlement timeline. All admitted claims are to be settled within 60 days of notification, or within such period as NAICOM may prescribe.

If an insurer fails to meet this deadline, the NIIRA 2025 imposes penalties including monthly compound interest on the outstanding payment. This is a major shift from the previous regulatory regime, where claims could languish for months or even years with little consequence for the insurer.

The Act also established the Insurance Policyholders' Protection Fund, which provides a financial safety net for policyholders if an insurer becomes insolvent or is unable to fulfil its obligations. This means your claim has a layer of protection even if the worst happens to your insurance company. The NIIRA 2025 reforms apply across all insurance types. The same 60-day rule that protects life insurance beneficiaries is also strengthening car insurance claim settlements and health insurance payouts.

In practice, straightforward death claims with complete documentation are often settled in four to eight weeks. Complex claims, those involving investigation of suspicious circumstances, incomplete documentation, or disputed beneficiary designations, may take longer.

Common Mistakes That Delay or Derail Claims

Understanding where things typically go wrong can help you avoid the same pitfalls. Here are the most common mistakes Nigerian policyholders and beneficiaries make.

1. Not Knowing the Policy Exists. This is more common than you might think. A policyholder takes out a life insurance policy but never tells their spouse, children, or intended beneficiaries. When they pass away, the family does not know a policy exists and never files a claim. Always inform your beneficiaries about your policy, where the documents are stored, and which company it is with.

2. Incomplete or Incorrect Documentation. Missing a single document, particularly the death certificate or the medical certificate of cause of death, can stall your claim for weeks. Errors on the claim form, such as a misspelled name or wrong policy number, are equally problematic. Take the time to verify every detail before submission.

3. Delayed Notification. Some beneficiaries wait months before contacting the insurer, either because they are unaware of the policy, overwhelmed by grief, or unsure of the process. While understandable, delays reduce your leverage and may complicate the claim. Notify the insurer as early as possible.

4. Allowing the Policy to Lapse. If the policyholder stopped paying premiums before their death and the policy lapsed, the insurer may not be obligated to pay the death benefit. If you hold a life insurance policy, ensure your premiums are always current. Set up an automatic debit or standing order if possible.

5. Not Escalating When Necessary. Some beneficiaries accept delays or partial payments without question, either because they do not know their rights or because they feel powerless against a large insurer. If your claim is being unfairly delayed or denied, escalate to NAICOM. You can also seek legal advice or contact the Insurance Ombudsman for mediation.

nairaCompare Insight

If you are a salaried professional or business owner who has taken out a life insurance policy to protect your family, the most valuable thing you can do right now, before a claim ever becomes necessary, is to ensure your beneficiaries know about the policy. Keep your policy documents in an accessible place, share the insurer's contact details with your spouse or next of kin, and verify that your beneficiary designations are current. A policy that nobody knows about is a policy that will never pay out. And while you are reviewing your financial protection, consider whether your family also has adequate health insurance coverage, because hospital bills during a family crisis can compound the financial strain of losing a provider.

For beneficiaries navigating the claims process, take heart: the regulatory environment in Nigeria is shifting in your favour. The NIIRA 2025 has given NAICOM stronger enforcement powers and introduced real financial penalties for insurers that delay claims. You are not without recourse. Document everything, submit your paperwork completely and promptly, and do not hesitate to escalate to NAICOM if you feel you are being treated unfairly. If the deceased also had an insurance-backed savings or endowment plan, check whether a separate maturity or surrender value claim needs to be filed, as these are processed independently of the death benefit. Your family's financial security is worth the effort.

Frequently Asked Questions

How long does it take to process a life insurance claim in Nigeria?

Under the NIIRA 2025, insurers are required to settle admitted claims within 60 days of notification. In practice, straightforward claims with complete documentation are often settled within four to eight weeks. Complex claims involving investigation may take longer, but insurers now face penalties including monthly compound interest for unjustified delays.

What documents do I need to file a life insurance death claim?

You will typically need the insurer's completed claim form, the death certificate (from the National Population Commission or a hospital), a medical certificate of cause of death, the original policy document, your proof of identity, your BVN, and a burial certificate. If death was accidental, a police report is also required.

Can I make a life insurance claim if the policy document is lost?

Yes. Contact the insurance company with whatever identifying information you have: the policyholder's name, date of birth, approximate date the policy was taken out, or any policy correspondence. Insurers maintain records and can verify the policy. You may be asked to provide a sworn affidavit declaring that the original document has been lost.

What happens if the insurer denies my claim?

First, request a written explanation detailing why the claim was denied. Review the reason against your policy terms. If you believe the denial is unjustified, you can appeal directly with the insurer, seek mediation through the Insurance Ombudsman, or file a formal complaint with NAICOM. Legal advice from an insurance law specialist is also an option for complex disputes. The process is similar to disputing a rejected health insurance claim. Our guide on why health insurance claims get rejected explains the escalation process in detail.

Do I pay tax on life insurance claim payouts in Nigeria?

Generally, death benefit proceeds paid to beneficiaries are not subject to income tax in Nigeria. However, maturity payouts from endowment policies that include investment gains may have tax implications depending on the prevailing tax laws. Consult a tax professional for advice specific to your situation.

What if the policyholder stopped paying premiums before they died?

If the policy lapsed due to non-payment of premiums, the insurer may not be obligated to pay the full death benefit. However, some policies have a grace period (typically 30 days) during which coverage continues. Whole life and endowment policies that have accumulated a cash value may still pay a reduced benefit. Check the policy terms carefully and discuss the situation with the insurer.

Can I claim from NAICOM if my insurer goes bankrupt?

The NIIRA 2025 established the Insurance Policyholders' Protection Fund specifically to protect policyholders if an insurer becomes insolvent. Contact NAICOM for guidance on how to access this fund if your insurer is unable to fulfil its obligations.

How do I file a complaint with NAICOM?

You can reach NAICOM through their official website (naicom.gov.ng), by visiting their office at Plot 1239, Ladoke Akintola Boulevard, Garki II, Abuja, or by contacting their Consumer Protection Department. Provide your policy details, a summary of your complaint, copies of your correspondence with the insurer, and any supporting documents.

Conclusion

Whether you are a policyholder ensuring your family is protected, or a beneficiary navigating the claims process, being informed is your greatest advantage. Compare plans Compare life and savings insurance plans on nairaCompare to find the right coverage for your needs or use our resources to understand your existing policy better before a claim ever becomes necessary.

Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Insurance terms and claims processes vary by provider. Verify all requirements with your insurance company before filing a claim. Information is accurate as at the date of publication; regulatory requirements may change. Terms and conditions apply.