Absa, Prudential partner to unveil “affordable” family life insurance policy

Absa Bank Uganda and Prudential Uganda h launched the Absa Family Protection Plan, a life insurance policy, designed to help families plan for the financial needs faced during the loss of  loved ones who are either members 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 shs5,000, shs 10,000 and shs 20,000 per month.

“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,” said Michael Segwaya, the Absa Bank Uganda’s Executive Director and Chief Financial Officer

“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 worth slightly over shs 1 trillion.

Life insurance made up only 30.4% of the entire insurance sector, generating gross written premiums of shs 324.35 billion.

With an estimated 14 million bank accounts in Uganda, there are more people that have bank accounts than have insurance policies and this has seen bancassurance become another for insurers to penetrate the market.

Speaking on Wednesday, the CEO Prudential Uganda, Tetteh Ayitevie said the deal will help many people access insurance services.

“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,”Ayitevie said.

With this insurance policy, Absa Bank’s customers can choose how much cover they would like for them and their families and 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.

“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. 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,” said Musa Jallow, Absa’s Retail Banking Director

According to officials from both companies, 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 shs10 million in the event of natural death or a payment of  shs20 million  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.