SACCOs and funeral insurance: Providing dignity and support in times of loss
In Kenya, Savings and Credit Cooperative Societies (SACCOs) have become more than just financial institutions. They now offer a wide range of services that support their members beyond traditional banking and loans. Among these is funeral insurance, a crucial service that provides members and their families with peace of mind during times of loss.
The Role of SACCOs in Offering Funeral Insurance
Funeral insurance, also known as last expense cover, is a form of policy that helps cover the costs associated with a member’s death or the death of their immediate family members. Many SACCOs in Kenya have embraced this offering as part of their member welfare programs. Recognizing the emotional and financial strain that comes with bereavement, SACCOs aim to ensure that members are not burdened with funeral expenses when tragedy strikes.
By partnering with insurance providers, SACCOs are able to negotiate affordable group rates and extend funeral coverage to members at a low cost. This makes it accessible even to low-income earners. Some SACCOs include funeral insurance as a mandatory part of membership benefits, while others offer it as an optional add-on that members can subscribe to.
What Funeral Insurance Typically Covers
The coverage offered by SACCO-based funeral insurance varies depending on the scheme and the insurer, but generally includes a lump sum payout upon the death of the insured member or their nominated beneficiaries. This payout helps to cover costs such as mortuary fees, transport of the body, burial expenses, and other related funeral services.
In many cases, the insurance also extends to the member’s spouse and children, and sometimes even to parents or in-laws, depending on the package selected. SACCOs play an important role in facilitating claims by providing guidance on documentation, ensuring that members receive their benefits quickly and efficiently.
One of the main advantages of accessing funeral insurance through a SACCO is the affordability. Since the insurance is offered under a group scheme, premiums are often much lower than those charged for individual policies. This allows SACCO members to enjoy funeral coverage without straining their monthly budgets.
Another benefit is the simplicity of the process. SACCOs typically deduct the premiums directly from members’ savings or loan repayments, making it seamless and hassle-free. In addition, SACCOs often assist members in submitting claims, helping to reduce delays and stress during the mourning period.
Beyond financial support, funeral insurance through SACCOs fosters a sense of solidarity among members. It reinforces the cooperative principle of mutual aid, where members look out for one another in times of need.
Author: Andrew Walyaula
Andrew Walyaula is a seasoned multimedia journalist. satrendmagazine@gmail.com
