Company launches insurance policy that ‘never lapses’

Prudential Life Assurance Ltd on Tuesday announced the launch of their new policy Pru-Dahari Dumu, the first insurance product in Kenya with a “Never Lapse Guarantee”.

The feature guarantees that policy holders will keep their product, and its benefits, irrespective of unforeseen circumstances that could lead them to miss some premium payments on their insurance policies. Missed payments could lead to lapsing of their policies and eventual loss of their savings and protection benefits.

According to the Association of Kenya Insurers (AKI), 1-in-3 policies lapse within the first year and by the end of the third year, 6-in-10 policies will have lapsed.

Pru Dahari-Dumu combines the benefits of savings and life assurance over 5-10 years, helping policy holders achieve their financial goals whilst protecting against the risk of accident, illness or loss of life.

“We understand that when times get tough and your finances are strained, maintaining fixed monthly premiums sometimes isn’t possible. That’s why we are introducing the “Never Lapse Guarantee,” said Andrew Greenwood, Chief Executive Officer of Prudential Kenya.

The “Never Lapse” feature means that policies beyond the first six months will never lapse or become inactive. When it comes to paying benefits to the customer or their family, either at maturity or at the claims stage, the payout will be pro-rated based on the overall contribution.

“Customers won’t lose their savings if they fall behind with their payments and can resume paying whenever they’re back on their feet, with the option of catching-up on missed premiums to get the maximum benefit from their policy,” added the CEO.

Speaking during the launch, AKI Executive Director Tom Gichuhi said, “the perception that the general public has on insurance is that it is complex, expensive and rigid. This product responds to these concerns by being simple to understand, affordable and flexible especially on payments.”