Standard Chartered Bank has partnered with Sanlam Life Kenya to launch a mobile-based funeral insurance cover dubbed Farewell Insurance Plan.
The product, which will be offered on the bank’s app platform, covers a maximum of six people with a range of features including a Ksh.2 million sum assured value with a premium waiver benefit, a family income benefit up to a maximum of Sh55,000 for a period of 12 months and half of the annual premium paid back in cash every four years. The plan will also see policyholders reimbursed six months’ worth of premiums after making payments for four years.
“The delivery of the SC Mobile App Farewell App underscores our mutual commitment to expand the range of insurance products availed on the bancassurance distribution model,” Sanlam Kenya Group CEO Dr. Patrick Tumbo said in a statement.
He added that policy holders can make amendments to the policy, for example by adding and removing dependants. However, new members can be added onto the policy provided the current age of the principal life assured at the time of alteration is below 55 years old. In addition, if a policyholder fails to pay three consecutive premiums or an equivalent of six months’ non-consecutive premiums, the policy will lapse and the benefits will fall away.
A previous study by the Association of Kenya Insurers (AKI) found that for an average middle class household, a typical funeral budget costs between Ksh50,000 and Ksh300,000. This can rise to range between Ksh400,000 and Ksh2.5 million in cases where the person died of an illness and left a hospital bill.
The funeral product is the fourth proposition born out of the partnership between the two organizations driven by the need to offer a one-stop shop solution to the widening middle-class.