Military Insurance Scheme in Nigerian Armed Forces was established as endowment fund based on the conventional insurance principles. Insurance can

 simply be defined as management of pooled resources (funds) of individual or group of (their risks) so as to be able to safeguard themsleves against damage or loss or possible misfortune in the future. Therefore insurance scheme of any nature can be described as a social services device of reducing cost of (expected future) loss to individual or group arising as the result of financial trasnactions. The above principle formed the fundamental objective of any insurance scheme, military insurance schemes not exclusive.

 Insurance companies performed important role in promoting rapid economic growth and development of any nation. These roles include promotion of capital

 accummulation (through huge savings of the insured). In modern economies capital accummulation is one of the major ingredients of rapid industrialisation and

 modernisation of a nation. Insurance also encourage effective utilisation of society's scarce resources. This can be achieved through promotion of loss prevention like installation of special preventive devices in insured areas (against risks like fire,

 theft, accidents, etc.).

 Insurance industry as a whole provide active role in the financial market. This is through active participation in financial intermediation process (in stock and

 money markets), provision of social security schemes (to the old and unemploy citizens); provision of employment opportunities and conservation of scarce foreign exchange to nation's economy. The above mentioned roles are basic components

 for any rapid development of a nation. Military Insurance Scheme as endownment fund insurance can be regarded as a basic welfare scheme. Endownment fund policy in insurance is the type of policy which provides for payment of total sum insured at the end of the agreed period of time (after retirement as in the case of military personnel); or earlier termination of insured life (as in the case of death in active service).

 The main differences between the whole life insurance and endownment fund Insurance Policy is that, endownment holders benefits are paid even if the policy

 hold is alive till the end of the term of the policy. But whole life policy is the type of policy which continues for "life" time of the policy holder; unless special

 arrangements are made for payment to cease at a given age The holder of Whole Life Policy will continue to pay premiums until the end of his life. That means the

 sum assured (plus profit, interest and bonuses) is payable on the death of the holder only. Based on the above explanations the merits of classifying military insurance scheme as endownment fund cannot be underestimated. This is because this scheme provide a mutual insurance cover for all active military personnel. Due to the harzadous nature of military profession this type of welfare scheme is highly needed so as to maintain high morale. The scheme provide a consolatory financial conpensation to relive or later for maintainance or rehabilitate the families of military personnel in the event of death or disability or discharge from active service.

 Another major objectives of military Insurance Schemes in the Nigerian Armed Forces is to serve as "a motivational factor." It was aimed at hoosting the morale of

 troops, encourage or increase troops loyalty and patriotism to the nation; so that the Nigerian Armed Forces can maintain their high level of combat readiness against any foreign or internal security threat. Military Insurance Scheme as a welfare policy was aimed at using the

 financial benefits (payment) towards changing the attitude of Nigerian Military Personnel's mind (perception) to a better desired conditions, for higher efficiency

 and productivity in the services of our beloved fatherland - Nigeria.

 Nigerian Military Insurance Schemes include the Nigerian Army Welfare Insurance Scheme (NAWIS), for the Army personnel. Nigerian Air Force Welfare

 Insurance Scheme (NAFWIS) for Airforce personnel and Nigerian Navy Welfare Insurance Scheme (NAVWIS) for Naval personnel. The central subject matter of this project Nigerian Army Welfare Insurance Scheme (NAWIS).

 Nigerian Army Welfare Insurance Scheme (NAWIS), was established on the 4th of January 1988 by the then Chief of Army Staff Lt Gen Sani Abacha, the

 present Head of State and Commander-in-Chief of the Nigerian Armed Forces.

 During its 8 years period of development NAWIS has been able to achieved a number of goals. These include payments, of beneficiaries in case of death or

 disability or normal retirement from active service.

 These payments increase the standard of living of families of all the beneficiaries in no small measure. This also boost the morale of the young soldiers in active service so as to put their best for the Army, because the Army cares for them. Premium system of NAWIS also encourage soldiers to developed savings habits and this premium charges by NAWIS is relatively small compared to the conventional life insurance companies. Increase in the general welfare and

 morale of military personnel is another major achievement of this scheme.