Old Mutual Uganda has enhanced its unit trust offering by embedding life insurance benefits into the investment product, a move aimed at strengthening financial protection for investors while encouraging long-term savings.
The new feature integrates life cover benefits into the unit trust at no additional cost to individual investors, enabling customers to access financial protection while continuing to grow their investments.
According to Zac Kisesi, Managing Director of Old Mutual Investment Group Uganda, the innovation responds to the changing expectations of modern investors who are increasingly seeking more value from financial service providers.
“The client of today is not the client of yesterday. They are informed, forward-looking, and they ask what more they can get beyond returns,” Kisesi said.
He noted that the firm observed a pattern where many clients were withdrawing funds prematurely to deal with emergencies such as funeral expenses, disability, critical illness, or urgent family obligations.
To address this challenge, the investment manager partnered with its sister company, Old Mutual Life Assurance Uganda Limited, to embed structured life benefits into the unit trust product.
The benefits include a Life Care Benefit, which provides financial assistance in the event of the account holder’s death, a Lifetime Benefit to support customers facing disability or critical illness, and a School Fees Benefit designed to help support the education of dependents.
Kisesi said the additional protection transforms the unit trust from a standalone investment product into a broader financial solution.
“By reducing the need for premature withdrawals during crises, customers can remain invested and stay on course toward their long-term financial goals,” he said.
The cover will be available to customers who maintain or grow their investment balances, with the level of protection increasing alongside the amount invested. Clients will be able to view their benefits through the company’s online client portal.
The initiative initially applies to individual Uganda shilling unit trust clients, whose eligibility will be determined based on their average balances over the previous three months.
Patrick Kimathi, Managing Director of Old Mutual Life Assurance Uganda, said the integration of life cover into an investment product addresses a long-standing challenge in the insurance sector.
“Life insurance is a product that is often pushed rather than requested. Rarely do people walk into an office asking to buy a life insurance policy, yet it remains critical for individuals, families, and communities,” Kimathi said.
He noted that risk awareness increased globally during the COVID-19 pandemic, when many people began to appreciate the importance of financial protection.
Kimathi added that embedding insurance benefits into a product customers are already using makes access to protection easier, as investors can view and manage their cover through the same platform used for their investments.
Regulators welcomed the development, describing it as a positive example of innovation within Uganda’s financial services sector.
Bernard Obel of the Insurance Regulatory Authority said initiatives that combine investment and insurance demonstrate how financial services can better respond to the evolving needs of consumers.
“Insurance exists to turn uncertainty into resilience and risk into protection,” Obel said, noting that innovation should ultimately improve the quality of protection available to consumers.
He added that Uganda’s evolving risk landscape and global economic uncertainties make financial protection increasingly important for households and businesses.
Meanwhile, Denis Kizito of the Capital Markets Authority Uganda said the initiative reflects the continued development of Uganda’s capital markets and the growing role of collective investment schemes in expanding investment access.
“Unit trusts allow ordinary Ugandans to participate in professionally managed investment portfolios and share in the long-term growth of the economy,” Kizito said.
He noted that the addition of life protection helps address the reality that investors often face unexpected financial shocks that can interrupt their investment journey.
By combining investment growth with financial protection, he said, the product supports a broader vision of building a resilient and inclusive financial market that promotes long-term savings while safeguarding investors’ interests.
Regulators also emphasised the importance of investor education to ensure that customers fully understand new financial products and the benefits they offer.
The new offering, developed through collaboration between the investment manager, its insurance affiliate, and sector regulators, is expected to strengthen financial resilience among investors while supporting Uganda’s broader objective of mobilising local savings for economic growth.
