Kenya insurance companies target policy holders with sendoff packages

Kenyans are slowly warming up relatively new insurance schemes that allow policy holders to save for decent burials while still alive with insurance companies reporting that though traditional abhorred, the practice of preparing for one’s or a loved one’s sendoff is picking up in the country.

And as the cost of funding funerals and ensuring the departed gets a decent sendoff becomes increasingly hard due to tough economic times, insurance companies are rolling out schemes that ensure that with little and affordable annual investments, funerals don’t have to be a dreaded experience.
Pan African Life insurance in partnership with Umash Funeral Home pioneered a one of a kind scheme that became popular with many Kenyans while inspiring similar products.

The Pan African Life insurance product comes in two packages. The Umash Silver pre-plan which offers a funeral package worth $1000 for $20 annual premium or for their spouse. The Umash Gold pre-plan on the other hand covers for an assured sum of $2000 for $36 per year.

UAP insurance equally eases the burden of its members during funerals by providing between $250 and $5000 for between $10 and $30 of premium yearly catering for the policy holders and their dependents.
Incidentally, the business of insurance is said to have begun with what were then called "burial clubs" to cover the funeral expenses of their deceased members, while monetarily compensating kith and kin of their survivors.

Industry players have welcomed the scheme terming it timely and convenient for the holders who will now get time to mourn their departed. Musa Kigwe a financial analyst with Finance First East Africa says the burden of funeral committees and extra debts which even lead to more emotional stress for the family of the departed cannot compare with paying premiums now. Says he,” You can imagine all the things that are required for a good send off, a hearse, flowers, mortuary fee, and many other funeral expenses, if you do the math even if the insurance company is not paying for everything you will realize that in the long run you save more than if you hadn’t acquired the cover. And this things no matter how much people want to bury their faces on the sand and pretend still happen and the better equipped you are, the easier it will give you time to mourn in peace.”

His sentiments are echoed by Eunice Atieno a policy holder who got her cover recently after what she described was a tumultuous burial of her mother and sister which left her with nothing and nearly brought the whole funeral ceremony to a halt. Atieno comes from Western Kenya where elaborate funeral ceremony takes place. There is usually a week long ceremony that requires supply of food and other services to the mourners. Add that to the slaughtering of the bulls during the actual day of sendoff plus the funeral expenses including the mortuary fee, hiring of the hearse and paying for the other services and understand why Atieno opted for the cover. “When my mum and sister died and I was the one overseeing that everything went on smoothly, I knew I would die next. I felt the pressure was too much and the money wasn’t forthcoming, yet I wanted them to have a decent send off. It was hectic, and by the time it all ended, I ended up with so much debt. I knew I needed to prepare myself and my family in advance in case anything ever happened again,” she explained. And although the premium may not be able to cover all the expenses involved, it at least ensures that huge portion of the funeral expense is footed.

In Tanzania, the National Microfinance Bank (NMB) partners with African Life Insurance in a scheme that sees the bank giving out money to cover for funeral expenses in case one of its live customers die. The joint funeral expenses cover, known as ‘NMB Faraja’, is provided free to all active holders of the NMB Personal Accounts.

www.panafricalife.co.ke

www.uap-group.com