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Generational Wealth Building

Last Expense Policy – Loved ones should leave only memories, not a financial burden

By September 19, 2023No Comments

“As certain as death and taxes”

This common idiom whose origin is, well, not too certain (some attribute it to Benjamin Franklin while others to Daniel Defoe) sums up the inevitability of the final bow.

There is something else about death other than the certainty of its occurrence; it’s unpredictability. Life is like a mist. It can vanish in the blink of an eye.

Morbid as this may sound, talk about it we must. Lest this fright that prevents us all from confronting an event that leaves many a person in emotional turmoil and financial holes! Death talk is detestable. But facing the truth will break a cycle that will save the generations to come.

Having agreed on the certainty and unpredictability of death, let’s get on to the real business of this article. So what?

You must have been added to a burial WhatsApp group, right? You must have because apparently, only 3% of Kenya’s population have a last expense policy. Some raise the funds fast. Some struggle. Will you or your family be cushioned financially to take care of expenses in the unfortunate event of death? Will there be money to help take care of the burial arrangements and medical bills if any?

Research shows that a basic burial in Kenya will cost between Ksh 200,000 to over Ksh 1 Million on average. Most of the expenses that gobble up these funds include a casket, a hearse, a burial permit, transport, grooming, food and entertainment. A last expense policy can help us to ensure that loved ones have some money to sustain them while they grieve. If everyone signed up for this ‘life saving’ tool we will focus more on healing emotionally, because the financial burden will be off our shoulders.

Let us explore a few key aspects of a Last Expense cover together;

1. What is a Last Expense Policy?

This is a life insurance policy that pays out an agreed amount in the unfortunate event of the death of the insured person(s) to help cater for funeral expenses. It is also called a Funeral Expenses cover or a Last Respect Policy.

2. What is the policy term?

It is renewed every year.

3. What happens in case there is no claim throughout the policy term?

Like most insurance policies, the premiums are non-refundable. They are however very low and in some cases, insurers have adjusted the polices to ensure you can enjoy something out of it while alive; for example, if you are a 30 year old and take up a Geminia Life Twinsave Investment & Last Expense policy, you pay Kes 659 annually for a cover of Kes 200,000. What’s more, any extra amount goes into an investment fund that gives you very attractive returns!

4. Who can take up a last expense cover?

Any individual, groups such as Chamaas or corporates.

The principal member ( person taking up the policy), the age limit is between 18 years and 75 years. While dependents are covered from 1 year to 80yrs. Dependents are usually the spouse, children, parents and parent-in-laws. Different insurers have different limits to the number of children it can cover.

5 .How long does it take to settle a claim?

This will depend on the service provider. Companies like Geminia Life insurance pays claims within 48 hours upon receipt of the required documents i.e the burial permit and ID/Passport or surrender of ID form for individuals. If it is a Group life last expense, which basically covers employees or members of the chama. A death certificate will be required. If it is not natural death, a police abstract will be required. If you are employed, make sure to understand what your employer is catering for

6. Does it have medical underwriting?

First, medical underwriting is the process of figuring out your health status by an insurance company. This product does not need medical underwriting.

Setting up a last expense policy is a selfless gift to you or your loved ones..

Consider setting up one for yourself or as a group today.

Please call 0709 551 150 or WhatsApp 0700 053 128 to take up cover or get FREE consultation.