Botswana Life launches Lore Master Plan

BABOKI KAYAWE
Staff Writer | Wednesday November 2, 2011 00:00

 

Under the product, policyholders will be entitled to cash back the equivalent of six months' premiums every four years. Named Lore Master Plan, the product pays up to P50 000 for various expenses but not limited to funeral, education, hospital bills, mortgages and rental. It is tailor-made for all sectors of the population, from middle to high-income earners, entrepreneurs, newlyweds and breadwinners.

Explaining the product, Acting Chairperson of Botswana Life's Product Development Committee, Thomas Masifi, says the policy has four benefit options - with Option Four attracting the highest pay out of up to P50,000.  'With Option Four, policyholders receive P50,000 payout and their spouses get the same amount while beneficiaries get a monthly income of P4,000 for 12 months,' says Masifi.

The product provides P98 000 total payout, including covers for children aged 16 to 21 and less than 16 years at P20,000 and P15,000, respectively. Policyholders aged between 18 and 25 pay a monthly premium of P265 for the fourth option, those in the age bracket of 36-45 pay P335 while those aged between 51 and 55 pay P405.

Though the product is not only limited to funeral expenses, Masifi says it is inevitable to incur expenses to send off one's loved ones in a dignified manner and thereafter pay off emergency expenses created by the death of the breadwinner.

He explains that research conducted with funeral service providers in the country has revealed that low income earners need around P16,100 in funeral expenses, middle income earners use P35,480 while high income use up P73,750 in total funeral expenses.

Lone Master Plan is flexible and accommodates other expenses in order to promote savings and investment against spending on lavish funerals, he notes. 'Spouses and other beneficiaries have the freedom to use the money as they wish, not only to cover the funeral expenses,' Masifi says.   

The company says its latest offering will be reviewed to accommodate other aspects as the cost of living continues to rise. Botswana Life is the largest insurance company in the country with a market share of 85 percent and 300,000 active policies. It paid out P1.2 billion in claims and benefits last year.