Kenyans urged to take up funeral cover for loved ones

Kenindia Assurance Company Limited has urged the public to embrace funeral covers to save them from financial setbacks that come with the loss of a loved one.

Kenindia Assurance Company Limited, General Manager Life Insurance Mr. P.V. Saseendran said that many families are left stranded especially when their loved ones passes on leaving the family in financial distress, something that can be averted by taking up a funeral cover.

Mr. Saseendran was speaking during the launch of Kenindia’s last expense cover “Nguzo ya Jamii” which caters for principal members up to the age of 60 years with a maximum cover of Kshs 500,000.

Nguzo ya Jamii cover can be extended to a spouse between aged 18-60 years, six children aged 1 month – 21 years, two parents and two parents-in-law up to the age of 80 years. The policy term can be either 5 or 10 years.

“Our funeral expense cover is unique because it covers up to 12 family members under one.   Loss of a family member causes a major emotional and financial setback in the family, because for such unplanned occurrences only a few of us have set aside funds to take care of the financial loss.  Just as we celebrate life, let us also celebrate our immediate dear ones through a dignified send off,” said Mr. Saseendran.

Kenindia’s funeral cover premiums vary depending on the sum assured, age and number of members’ chosen. These premiums can be paid regularly; monthly, quarterly, half yearly and yearly, depending on the opted mode.

The benefits of the product include free life cover for the spouse and children on the death of the principal member during the policy term, as well as a 30% education grant paid to the family apart from payment of the sum assured. The benefits of the product include no-claim bonus of 30% of total premiums paid at maturity, tax relief up to KES. 60,000 p.a. Kenindia assures that the claim will be paid within 48 hours on receipt of all the mandatory documents. 

According to a study commissioned by the Association of Kenya Insurers, only three percent of Kenyans have taken out funeral covers to cushion themselves from the financial burden that comes with the loss of a loved one.

The study showed that most Kenyans relied on friends, families, existing welfare groups, bank loans and shylocks to cover for the funeral costs. On an average, funeral expenses cost families and friends between Kshs 50,000 to Kshs 300,000. If the deceased was hospitalized the last expenses ranged between Kshs 400,000 to Kshs 2,500,000.

“Kenindia’s funeral cover is one of the most affordable considering that for Kshs 1000 one can access insurance worth Kshs 100,000 and above. Getting a funeral cover is not going against one’s culture but more of securing one’s family legacy once you are gone,” said Mr. Saseendran.

Insurance penetration in Kenya remains at 2.60% in Kenya with life insurance gross premium of Kshs 83.65 billion as of 2017.