Absa Bank Uganda and Prudential Uganda have today announced the introduction of an affordable life insurance policy, expanding the bank’s bancassurance offer. All the top fees and financial baggage (funeral costs and any other paybacks) faced during the loss of the family member, that is; spouse, four legal children and parents, will be sorted by the policy.
Named the Absa Family Protection Plan, the policy will provide life insurance cover at premiums in three attractive packages of Shs5,000, Shs10,000 and Shs20,000 premiums which entitle the policy holder to funeral expenses, among other benefits to help families navigate the unexpected hardships that arise during times of losses and grief.
Funeral costs in Uganda are often high ranging from Shs500,000 to Shs15 million as a result of cultural and societal obligations including holding vigils, housing and feeding of relatives, caring for and transporting the body of the deceased.
Michael Segwaya, Absa Bank Uganda’s Executive Director and Chief Financial Officer said that there is a very low uptake of insurance in Uganda, which statistics are even lower than when considering life insurance.
“By partnering with Prudential, we are expanding our bancassurance offer toward ensuring that more Ugandans are insured as part of the drive to deepen financial inclusion in the country,” Segwaya said.
Musa Jallow, Absa’s Retail Banking Director added that this is affordably priced and offers more benefits than what is available on market’ which is going to be a key element to encourage more Ugandans to invest in life insurance.
“As a bank we will continue to play our part like we are doing today to in line with our purpose to bring possibilities to life and help customers to get things done,” Musa revealed.
Mr. Tetteh Ayitevie, CEO Prudential Uganda said that there is still work to be done when it comes to showing more members of the public the tangible benefits of life insurance and debunking the myths associated with the industry in general.
“However, we are energized because we are taking great strides towards improving the benefits and pricing of these products, with the Absa Family Protection Plan as an example of many more to come,” he applauded.
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