Insurance helping associations reduce members’ burial expenses

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Chuks Udo Okonta

Insurance solutions are increasingly helping associations across Nigeria to reduce the heavy financial burden of burial expenses on their members, as rising funeral costs continue to put pressure on households and organised groups.

Checks show that many professional bodies, cooperative societies, religious organisations and community-based associations now rely on group life insurance arrangements to provide structured and predictable support for members in times of bereavement, instead of resorting to ad-hoc levies and emergency fund-raising.

Traditionally, associations raised money after the death of a member through compulsory contributions, a system that often caused delays, financial strain and dissatisfaction among members. However, with group life and funeral expense insurance, members pay small and regular premiums, ensuring that funds are readily available when death occurs.

Industry data indicate that insurance companies have paid substantial claims under group life policies over the past five years, reflecting the growing role of insurance in easing burial-related expenses. Between 2020 and 2024, insurers are estimated to have paid over ₦180 billion in group life claims nationwide. This includes about ₦30 billion in 2020, ₦32 billion in 2021, ₦35 billion in 2022, ₦38 billion in 2023 and over ₦45 billion in 2024, driven by increased uptake of group policies by associations and employers.

These payouts have helped families and associations cover key burial costs such as mortuary services, transportation, caskets and funeral ceremonies, reducing the need for last-minute borrowing or prolonged fund-raising.

Insurance operators explain that group life policies are generally affordable because risks are pooled, making it easier for associations to secure meaningful benefits for their members at relatively low cost. The certainty of payout also allows associations to plan their welfare programmes more effectively.

Beyond financial relief, insurance-backed burial schemes promote dignity and timeliness in burial arrangements. Families are able to proceed with burial plans without undue delay, while associations meet their welfare obligations promptly and transparently.

Some associations have extended coverage to spouses and immediate family members, further strengthening solidarity and member loyalty. Insurers, on their part, provide claims support and documentation guidance to ensure quick settlement during periods of grief.

Experts say the steady growth in group life claims payments over the last five years underscores increasing awareness of insurance as a risk management tool. They add that as inflation continues to push up burial costs, insurance will remain critical in helping associations shield their members from sudden financial shocks.

As insurance penetration improves, stakeholders believe more associations will adopt group life and burial expense insurance, deepening financial preparedness, collective responsibility and peace of mind among members.