Absa Bank Uganda and Prudential Uganda have today launched the Absa Family Protection Plan, a life insurance policy, designed to help families plan for the financial needs faced during the loss of a loved one who is either a member or immediate member of a family.
The policy caters to funeral expenses and other paybacks to help families navigate the unexpected hardships that arise during times of loss and grief. The cover is available to customers in three attractive packages of UGX 5,000, UGX, 10,000 and UGX 20,000 per month.
Speaking to the media, Michael Segwaya, Absa Bank Uganda’s Executive Director and Chief Financial Officer, said, “There is a very low uptake of insurance in Uganda, which statistics are even lower when considering life insurance. By partnering with Prudential, we are expanding our Bancassurance offer towards ensuring that more Ugandans are insured as part of the drive to deepen financial inclusion in the country.”
“As a bank, we will continue to play our part like we are doing today in line with our purpose to bring possibilities to life and help our customers get things done,” he added.
According to the 2020 Insurance Regulatory Authority’s Annual Insurance Market Report, the sector’s penetration was at 0.77%, generating Gross Written Premiums (GWPs) worth slightly over UGX 1 trillion. Life insurance made up only 30.4% of the entire insurance sector, generating GWPs worth UGX 324.35 billion.
With an estimated 14 million bank accounts in Uganda, there are more people that have bank accounts than have insurance policies, which is why Bancassurance has become another way for insurers to penetrate the market.
In his Remarks, the CEO Prudential Uganda, Mr. Tetteh Ayitevie said, “Our purpose at Prudential is to help people make the most out of life. We may not be able to take away the emotional pain that comes with the loss of a loved one, but we can relieve the families of the financial strain and give them peace of mind that they can be able to give them a decent send off. That is what insurance is about, managing risks and life’s uncertainties. We are therefore happy to further deepen partnership with Absa Bank to provide this Family Protection Plan and urge all Absa Bank’s customers to cover their families.”
With the Family Protection Plan, Absa Bank’s customers can choose how much cover they would like for them and their families, this determines how much they pay on a monthly. They also decide their payment frequency; either monthly or annually. If the customer needs to claim the money in the unfortunate event of the loss of their loved one, it (sum assured) is paid to their Absa accounts within 48 working hours from receipt of the claim requirements. In the event of loss of the account holder (principal member), it is paid to the next of kin.
Musa Jallow, Absa’s Retail Banking Director added, “This product is affordably priced and offers more benefits than what is available on the market, which is going to be a key element of what it is going to take to encourage more Ugandans to invest in life insurance. And as a bank, we will continue to play our part like we are doing today in line with our purpose to bring possibilities to life and help our customers get things done.”
The Family Protection Plan has been designed with the customer in mind, offering a premium cash back if there’s no claim. Depending on the package of choice, customers can get a funeral expenses one off payment of up to 10,000,000 UGX in the event of natural death or a payment of 20,000,000 UGX in the event of accidental death.
Sheila Sabune, Prudential Uganda’s Chief Commercial Officer also highlighted that the bank has other life insurance solutions in partnership with Prudential, including education plans like the PRUEdusave, for parents that would like to plan for their children’s education and PRUDollar which provides both savings and protection benefits to Absa customers that earn their incomes in foreign currency.