Kenindia Assurance Company Limited has introduced a funeral insurance product designed to alleviate financial strain on families following a death, joining other insurers in expanding coverage for end-of-life expenses.
The company's 'Nguzo ya Jamii' plan covers principal members up to age 60 with a maximum payout of Ksh500,000, extendable to spouses, children, and parents. Policy terms last 5 or 10 years, with premiums varying by age, coverage amount, and family size.
General Manager for Life Insurance, Mr P.V. Saseendran, emphasized the product's unique structure, stating it protects up to 12 family members under one policy. 'Loss of a family member causes major emotional and financial setbacks,' he said. 'Funeral cover secures family legacy rather than opposing cultural values.'
Other insurers offering similar products include Jubilee Insurance, Britam, and CIC, though industry penetration remains low. A 2019 study by the Association of Kenya Insurers found only 3% of Kenyans have funeral insurance, with most relying on informal networks or loans for expenses averaging Ksh50,000 to Ksh300,000.
The policy includes benefits such as free life cover for dependents, a 30% education grant, and tax relief up to Ksh60,000 annually. Claims are processed within 48 hours, with a 30% no-claim bonus at maturity. For Ksh1,000, policyholders receive Ksh100,000 in coverage, according to Saseendran.
Insurance penetration in Kenya stands at 2.60%, with life insurance premiums reaching Ksh83.65 billion in 2017, highlighting the sector's growth potential despite cultural and economic challenges.
