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The short answer
If people in Nigeria depend on money you earn in the US, term life insurance is usually the simplest way to replace that support if you die. Size it by adding up what each dependant needs for the years they need it, rather than using a single multiple of salary, and name each beneficiary with a share, keeping their details current.
Why this question is different for diaspora households
Most life insurance guides assume your dependants live with you. Many Nigerians in the US support two households: a spouse and children in Houston or Maryland, and parents, siblings or a child's school fees in Nigeria. If your income stops, both lose it. Life insurance cannot replace you, but it can replace the money, for long enough for the people who rely on you to adjust.
Term or permanent cover
The National Association of Insurance Commissioners (NAIC) describes two broad types:
| Term life | Permanent life (whole, universal, variable universal) | |
|---|---|---|
| How long it lasts | A set period | Your whole life |
| Premiums early on | Generally lower; the most protection per premium dollar | Higher |
| Cash value | None | Some policies build cash savings |
| Renewal | Premiums may rise; some policies stop renewing at a certain age | Not applicable |
Support for family usually has an end date: until your youngest finishes school, until your mortgage is paid, or across your parents' remaining years. That fits term cover, bought for the length of the longest need. Permanent policies have uses, such as estate planning, but they cost more for the same death benefit.
Sizing cover when dependants are in two countries
The NAIC mentions that some experts use five to eight times income as a rough starting point, but it recommends working through your actual obligations: the income your family relies on, how children would get by, who else depends on you, debts and final expenses, education costs and inflation. For a split household, do that list twice.
Worked example
Example only; the figures are not quotes. Ifeanyi, 38, lives in Dallas with his wife and two children, and sends $500 a month to his mother in Owerri and $3,000 a year towards a niece's school fees.
| Need | Calculation | Amount |
|---|---|---|
| US household income replacement | $45,000 a year for 15 years | $675,000 |
| Mortgage balance | Pay off in full | $210,000 |
| Mother's support | $500 x 12 x 10 years | $60,000 |
| Niece's school fees | $3,000 x 6 years | $18,000 |
| Final expenses, including repatriation | Estimate | $20,000 |
| Total need | $983,000 | |
| Less existing cover through work | −$150,000 | |
| Cover to buy | $833,000 |
He might round to $850,000 on a 20-year term. The point is the method: each line has a person, an amount and a number of years. His naira commitments are converted at today's rate, so revisit the sum every few years, because the dollar cost of support in naira moves with the exchange rate.
Naming beneficiaries who live in Nigeria
A policy pays the people you name. The NAIC notes beneficiaries can be individuals or an organisation, that you can name several and should give each a percentage, and that insurers often will not pay directly to minors, so a trust or estate may be needed for a child. For relatives in Nigeria, the practical work is in the details:
- Use full legal names exactly as they appear on passports or national ID, plus dates of birth.
- Record a current address and phone number; tell the beneficiary the policy exists and where the documents are.
- Name a contingent beneficiary in case the first one dies before you.
- For children, ask the insurer or a lawyer about a trust or a custodian rather than naming the child alone.
- Update the form after marriage, divorce, a birth or a death; a later will may not change who the policy pays.
How a US insurer pays a claimant abroad, and what documents it asks for, varies; our guide on whether US life insurance pays out to family in Nigeria covers the claims side, and naming a beneficiary on a US account covers bank and retirement accounts.
Your other accounts have beneficiary forms too
Life insurance is rarely the only asset that pays out at death. A 401(k) or IRA passes to the beneficiary you designate under the plan's procedures, and the IRS notes that some plans require specific beneficiaries, such as a spouse or child. A beneficiary who inherits a retirement account usually has to include taxable distributions in income, and most non-spouse beneficiaries must empty the account within ten years. Line up all your forms at once so the same people receive what you intend, in the shares you intend.
It also helps to write a one-page note for the person who will deal with your affairs: each policy and account, the provider, the policy number and who is named. Keep it with your will and tell someone in Nigeria and someone in the US where it is.
What to check before you sign
- The insurer and agent are licensed in your state; your state insurance department publishes the list.
- Your visa or residence status meets the insurer's rules; see life insurance for visa holders.
- You answer every question about health, travel and residence accurately; a wrong answer can put a claim at risk.
- Whether employer cover ends when you leave the job.
- That beneficiaries and percentages add to 100%.
Where Pryme fits
Pryme does not sell insurance. For the support itself, the Personal Assistant can track what you send each month and remind you before a school-fees date, and Send moves money to family with the rate and fee shown before you approve.
Questions people ask
Can my mother in Nigeria be the beneficiary of my US life insurance?
Insurers generally let you name any individual. Use her full legal name, date of birth and contact details, and check the insurer's process for paying claimants abroad.
How much life insurance do I need if I support family in Nigeria?
Add each dependant's yearly need multiplied by the years they need it, plus debts and final expenses, then subtract existing cover. Multiples of income are only a rough start.
Is term or whole life better for supporting family back home?
Support usually has an end date, which suits term cover. Permanent policies cost more for the same death benefit.
Can I name my child in Nigeria as a beneficiary?
You can, but insurers often will not pay minors directly, so ask about a trust or custodian arrangement.
Sources
- NAIC, Life insurance consumer guide (viewed Oct 2026) · accessed Oct 2026
- IRS, Retirement topics: Beneficiary (updated 1 Aug 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.