- May 19, 2019
- Posted by: Uganda Insurers Association
- Category: Featured, News
What life insurance is
Life insurance is a contract between an insurance policy holder and an insurance company, where the company promises to pay a specified beneficiary an agreed sum of money known as the sum assured upon the occurrence of an insured event (e.g. death) in exchange for premium paid by the policy holder.
What the types of life insurance products are
Life products are classified based on the risk exposures to include death, disability, critical illness, savings and retirement.
Pure risk policies cover the risk of death and include term assurance and whole life policies.
Under Term assurance, the policy is taken for a specified period of time and therefore the insurer will payout the sum insured provided the event occurs within the agreed term of the policy. No benefit is paid if the policy holder is still alive at the end of the policy.
Whole Life policies cover the entire life time of the policy holder and pay whenever death occurs.
Savings and risk policies have both risk and investment elements and are known as endowment
assurance policies. These policies provide for payment at the death of the policyholder or at maturity (end of the policy term). The sum assured is paid in addition to the accrued bonuses.
Retirement benefit plans allow you to pay regular contributions until the usual retirement age (usually60 years) after which the insurer makes periodic payments, known as a pension or annuity, until you die or for a fixed period.
What the benefits of life insurance are
- Provides financial support in the event of death of the breadwinner.
- Acts as a long term investment and savings plan where you can meet your goals e.g. children’s education.
- Peace of mind that your beneficiaries are looked after you are unable to provide for them.
- It can be put towards unpaid debts, such as a mortgage, that fall to loved ones when you have passed on.
What you also need to know
- Insurance may be purchased directly from Insurance Company or through an Insurance Broker and/or Insurance Agent.
- Following the establishment of the Insurance Act 2017, all insuring clients, both corporate and individuals are required to pay directly their premiums (insurance fees) in full/upfront on or before the effective date of their respective policies to the Insurance Company.
Where can you purchase Life insurance?
- CIC Life Africa Assurance Ltd
- ICEA Life Assurance
- Jubilee Life
- Liberty Life Assurance
- Metropolitan Life
- NIC Life
- Prudential Uganda
- Sanlam Life
- UAP Old Mutual Life
Do you have any other questions about Insurance?
Send your questions to Insurance Regulatory Authority of Uganda (firstname.lastname@example.org) or call 0800 124 124 or to the Uganda Insurers Association (email@example.com) or call 0800 10 50 50.