(L-R) Absa Uganda Retail Director Musa Jallow, Prudential Uganda CEO Tetteh Ayitevie, Absa Uganda ED & CFO Michael Segwaya, and Prudential Uganda CCO Sheila Sabune. (Absa Bank collaborates with Prudential to launch a low-cost life insurance policy for families)
Absa Bank Uganda and Prudential Uganda have today introduced the Absa Family Protection Plan, a life insurance policy designed to assist families in planning for the financial needs that arise as a result of the death of a loved one who is either a member or an immediate family member.
The coverage covers funeral expenditures as well as additional restitution to assist families in navigating the unanticipated burdens that happen during times of loss and grief. Customers can purchase the protection in three appealing monthly bundles of UGX 5,000, UGX 10,000, and UGX 20,000.
Speaking to the media, Michael Segwaya, Executive Director and Chief Financial Officer of Absa Bank Uganda, stated, “There is a very low penetration of insurance in Uganda, with statistics considerably lower when considering life insurance.” By working with Prudential, we are expanding our Bancassurance offering to ensure that more Ugandans are insured as part of the country’s aim to increase financial inclusion.”
“As a bank, we will continue to play our part in keeping with our objective of bringing possibilities to life and assisting our customers in getting things done,” he added.
According to the 2020 Insurance Regulatory Authority’s Annual Insurance Market Report, the industry had a 0.77 percent penetration, producing Gross Written Premiums (GWPs) valued slightly more than UGX 1 trillion. Life insurance accounted for only 30.4 percent of the total insurance sector, with GWPs totaling UGX 324.35 billion.
With an estimated 14 million bank accounts in Uganda, more people have bank accounts than insurance policies, which is why Bancassurance has become another avenue for insurers to enter the market.
Mr. Tetteh Ayitevie, CEO of Prudential Uganda, stated in his remarks, “Our mission at Prudential is to assist individuals make the most of life.” We can’t take away the emotional grief that comes with the loss of a loved one, but we can alleviate families of the financial burden and offer them peace of mind that they can give them a proper send-off. That is what insurance is all about: managing risks and the uncertainties of life. We are therefore delighted to strengthen our cooperation with Absa Bank to provide this Family Protection Plan, and we encourage all Absa Bank clients to insure their families.”
Absa Bank clients can choose how much cover they want for themselves and their families with the Family Protection Plan, which affects how much they pay monthly. They also choose whether to make payments monthly or annually. If a customer needs to claim the money due to the untimely death of a loved one, the money (amount insured) is paid to their Absa accounts within 48 working hours of receipt of the claim conditions. It is paid to the next of kin in the event of the death of the account holder (primary member).
Absa Retail Banking Director Musa Jallow stated, “This product is competitively priced and delivers more benefits than what is available on the market, which will be a crucial component of what it will take to entice more Ugandans to invest in life insurance.” And, as a bank, we will continue to play our part, as we do now, to bring potential to life and assist our customers in getting things done.”
The Family Protection Plan was created with the consumer in mind, and it includes a premium cash back guarantee if there is no claim. Customers can receive a one-time payment for funeral expenses 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, depending on the package chosen.
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Prudential Uganda’s Chief Commercial Officer, Sheila Sabune, also mentioned that the bank has other life insurance solutions in partnership with Prudential, such as education plans like the PRUEdusave, for parents who want to plan for their children’s education, and PRUDollar, which provides both savings and protection benefits to Absa customers who earn their income in foreign currency. (Absa Bank collaborates with Prudential to launch a low-cost life insurance policy for families – celebrity jazz ug)