Funeral insurance takes ground as firms look to boost penetration

Thursday December 18 2014



Uganda’s insurance companies are developing new products in order to boost penetration currently at slightly 0.6 per cent. The latest product is a Funeral Insurance Policy spearheaded by A-Plus Group, in partnership with Niko Insurance Company. The product requires policy holders to pay an annual premium ranging from Shs270, 000 and Shs500, 000 per year depending on the policy plan and age of the insured.

In return, the insured person gets a compensation ranging from Shs1 million and Shs10 million to meet funeral expenses in case of death.

The A-Plus group head business development Mr Michael Zaake, says for years the company has been providing funeral services, mobilising funds to foot the funeral expenses, has been hard for deceased’s relatives and this innovation seeks to offer solutions.

“This is the only insurance policy in which clients inject money with absolute surety that the risk for which they remit premium to the insurer must happen, despite the fact that the policy holder may be oblivious of the time death may occur,” he said while talking to journalists last week.

The insurance cover is unique in a manner that, unlike insurance companies offering life insurance cover with an age limit of not older than 65 years and excludes people with certain chronic ailments, A-Plus Care covers people aged from 0 to 90 years.


The Insurance Regulatory Authority chief executive officer, Mr Kadunabbi Lubega, when contacted said A-Plus is not an insurance company but does it in partnership with Niko Insurance. “They can provide insurance since they have partnership with Niko,” Mr Kadunabbi said when contacted yesterday.

About the product

The compensation package and premium also depends on what services the clients wants to be done at the funeral. The range of services include; body embalmment, caskets, transport to the ancestral home, catering (food and drinks), grave digging and finishing, requiem mass organisation, provision of vigil grounds, international body repatriation, Cold-room body storage, among others.

“This policy can be taken out by an individual or can be paid on behalf of another individual, for example one can buy the policy for a friend, wife and other relatives of their choice. When the policy holder dies, we are just a call away,” A-Plus’ Michael Zaake said.