Photo: Gwamaka Charles., Wikimedia Commons, CC BY-SA 4.0Life insurance in Ethiopia
Life insurance in Ethiopia: a small market, what to know
Short answerChecked 23 September 2026
Life insurance is a small part of Ethiopia's market: life and takaful premiums were ETB 3.1 billion in 2024/25, 7.5% of the total, and the NBE names low life penetration as a key concern. Most insurers write both life and general business. We found no statutory cooling-off period, so ask the insurer, in writing, whether you can cancel a new policy.
The main types of life policy
| Type | What it does |
|---|---|
| Term life | Pays a lump sum if you die during the term |
| Endowment / savings | Pays at the end of the term, or earlier on death |
| Credit life | Repays a loan if the borrower dies — often required by banks |
| Group life | Cover arranged by an employer |
| Family takaful | Sharia-compliant life cover, through takaful windows |
Who sells it
According to the NBE's Financial Stability Report, 14 of the 18 insurers write both long-term (life) and general business. The full list is on our insurers page.
What would you like to do now?
Frequently asked questions
Is there a cooling-off period for life insurance in Ethiopia?
We did not find one in Ethiopian law or in the NBE's consumer protection directive. Ask the insurer before you sign.