StanChart, Sanlam launch funeral insurance cover - VIDEO

Standard Chartered Bank (Kenya) #ticker:SCBK and insurer Sanlam have introduced a new funeral cover that will give policyholders an option of cashing in part of the premiums paid.

The cover, titled Farewell Insurance Plan, will see policyholders reimbursed six months’ worth of premiums after making payments for four years.

The plan, which is being offered through StanChart’s mobile app, is in various packages depending on the number of persons covered.

It covers a maximum of six people who are related by blood. The monthly premiums range from Sh1,749 to Sh4,600 and the value of sum assured starts from Sh250,000 to Sh2 million. A previous study by the Association of Kenya Insurers (AKI) found that for an average middle class household, a typical funeral budget costs between Sh50,000 and Sh300,000. This can rise to range between Sh400,000 and Sh2.5 million in cases where the person died of an illness and left a hospital bill.

The plan has no age limit for parents as long as they were added to the policy before attaining age 85. In addition, families will receive an income benefit of up to Sh55,000 for 12 months.

For the main life assured, the spouse and children beneficiaries will receive 200 percent of the sum assured on deaths caused by accidents while benefits applicable to parents and extended family is 100 percent.

Mr Tumbo 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.