Letshego has partnered Liberty Life Insurance to launch a low premium funeral insurance policy in the market. Dubbed Fariji Jamii Funeral Policy, it will cover funeral expenses in a bid to cushion policyholders from heavy financial burdens associated with farewells. The policy covers a maximum of 10 family members; one main member and their spouse; maximum of 4 children, 2 parents and 2 parents in law.
Speaking during the launch, Letshego Chief Executives Adam Kaisane expressed optimism that the product will be taken up. “We believe that personal insurance adds value to all our customers. As a company, we strive to improve lives through provision of simple and affordable solutions, and this product is an example of our commitment and promise”
The annual premiums range from KSh 350 to KSh 5,500 and the value of sum assured starts from KSh 50,000 to KSh 200,000. Under the cover, the parents and parents-in-law must be aged 75, the main member and spouse aged 64 and the children aged 18 years old.
However, despite low insurance penetration in the country, Liberty Life Managing Director, Abel Munda says the product is revolutionary and will be boosted by the partnership. He adds that changing lifefestyle makes its important to plan ahead for funerals.
“Insured persons with a regular income are not only affected by the realities of our socio-economic context, to provide for the financial stability and social security of their immediate families when they are gone, but also have to take care of their parents, even in death, for final rites,”
An earlier study commissioned by Association of Kenya Insurers (AKI) across counties suggested that Kenyan families should take up funeral insurance covers due to over commercialization of last rites in Kenya. The study revealed that less than 3 percent of Kenyans have funeral covers, with the rest exposed to funeral expenses costs between Sh50,000 and Sh300,000 and between Sh400,000 and Sh2.5 million in hospital bills in cases of deaths from illnesses.
The solution is Letshego’s introductory insurance solution for Kenyan customers and the first in a series of insurance solutions, the company is looking to bring to its Kenyan customers, complementing the inclusive lender’s existing borrowing solutions.