# Jubilee Life Insurance

An episode of [The Mwango Capital Podcast](https://invisiblenetwork.ai/podcast/1583367792), 24 Dec 2024, 1 h 07 min.

Audio: https://api.substack.com/feed/podcast/153517497/59184241b48559695b9b20ffa393ba9d.mp3

In this episode recorded on 03.12.2024, we are joined by Jubilee Insurance’s GM Corporate & Retail Pensions Catherine Kangata and Chief Distribution Officer Kanyingi Kagucia to learn more about life insurance. We cover the state of life insurance in Kenya, insurance penetration, choosing the right insurance plan, claim settlement, and accessibility of insurance products. Subscribe to get notified when we make a new post. Key Quotes “We need to do more public awareness and people need to appreciate that insurance is not only for the wealthy. There are solutions that are there for all of us depending on your needs.” Catherine Kangata “You want to look at life as three phases. You have an income accumulation, a wealth accumulation phase when you have the energy. When you're working, when you're setting up your businesses, you're bringing in the cash, so to speak, and you're building up your wealth. Then you have a phase that comes somewhere from the 40s into the 50s, you're looking at wealth consolidation. That's what we call the consolidation phase. So the accumulation phase, 20s into your 30s, consolidation phase, 40s into your 50s. And then once you get to retirement after 60, you go into what is called deaccumulation… What you do in your accumulation phase and your consolidation phase is critical in deciding what is going to happen in the deaccumulation phase.” Kanyingi Kagucia “ When we talk about endowment life policies, we are looking at the type of life insurance that combines savings and investment components. It looks at, should this event occur, then my loved ones would be compensated at a particular level. If the event does not take place, then there's a payment that comes back to me. So it combines those two, maturity or death. It's going to pay out one of the two. When you talk about term, the term life is a pure risk policy. And this is what it means, it covers only for the event of death. So if I take out a plan for 10 years, 20 years or 30 years of a term life policy, should that time elapse and death has not occurred, I don't get paid because what I was buying was protection against that event happening within that period. Whereas I could be paid back under endowment should I not pass on, in the term life then if the event does not occur, I don't get paid. The policy comes to an end. When we come to whole life, and this is an interesting one, this covers you for the duration of your life so long as premiums are paid. We have whole life policies in the industry and around the world where you can pay for a given period of time, 10 years, 15 years or so, and after that your cover still remains open and you're covered for it. Now the interesting thing with whole life is that the event must occur. So death must occur, and therefore the people who benefit from a whole life are those that we leave behind again.” Kanyingi Kagucia Show Notes 00:00:00 Introduction 00:02:15 Life Insurance in Kenya 00:06:34 Insurance Penetration and the Need for Life Insurance 00:23:04 Types Of Life Insurance Policies 00:34:30 Unique Kenyan Saving Habits 00:41:13 Claims Settlements 00:47:02 Affordability and Accessibility of Insurance Products 00:51:33 Insurance for Different Life Stages 00:56:01 Sum Assured and Investment Returns 00:59:40 Getting Started with Life Insurance Get full access to The Mwango Weekly at mwangocapital.substack.com/subscribe

## Transcript

[0:00] SPEAKER_01: Hello, my name is Eric Mokai.
[0:01] SPEAKER_01: I'm the founder of Mwango Capital, the host of The Spaces Today.
[0:05] SPEAKER_01: Welcome to Mwango Spaces Today.
[0:06] SPEAKER_01: It's another special tester.
[0:07] We're hosting Jubilee Life Insurance and we're going to be
[0:10] decoding life insurance
[0:12] SPEAKER_01: down from the basics to where you need to understand it a bit better.
[0:15] SPEAKER_01: Any curious questions that you've been having on life insurance,
[0:18] just go below a pinned tweet and do send in as many of your
[0:21] questions as possible.
[0:22] SPEAKER_01: Catherine,
[0:23] maybe you can introduce yourselves and tell us a bit about your
[0:25] journey so far and
[0:26] SPEAKER_01: what you do at Jubilee.
[0:28] SPEAKER_02: Thank you very much.
[0:30] SPEAKER_02: Happy to be in this space just to speak about insurance.
[0:34] SPEAKER_02: My name is Catherine Tangata.
[0:35] I work for Jubilee Life and I am the GM in Employees Benefits
[0:41] and also the Retirement Solutions.
[0:44] SPEAKER_02: So at Jubilee,
[0:46] I am in charge of relationships in the pension space and also
[0:50] group life and credit life.
[0:52] SPEAKER_02: I'm also in the business development.
[0:56] SPEAKER_02: I've been in insurance for the last 21 years.
[0:59] And yes,
[1:00] I joined the insurance having known that there's a space I can
[1:04] make an impact.
[1:05] SPEAKER_02: And this is what I've done for the last 21 years.
[1:08] SPEAKER_02: Thank you very much.
[1:10] SPEAKER_01: Thank you, Catherine.
[1:11] SPEAKER_01: I'll come back to you about your journey.
[1:13] SPEAKER_01: There are a lot of distractions on your long journey.
[1:15] Kanyingi,
[1:16] you can tell us a bit about yourself and what you do at Jubilee.
[1:19] SPEAKER_00: My name is Kanyingi Kagushi.
[1:20] SPEAKER_00: I'm the chief distribution officer in Winnie Life.
[1:23] SPEAKER_00: And I manage the individual life solutions that we provide.
[1:26] SPEAKER_00: I've been in the insurance for the last 15 years or so.
[1:30] SPEAKER_00: And what I do here is manage three particular channels.
[1:33] We have the agency channel where we have the financial advisors
[1:37] who would come to
[1:38] SPEAKER_00: you and discuss financial solutions with you in terms of insurance.
[1:41] SPEAKER_00: Then I also manage the bank assurance channel.
[1:44] And what makes the bank assurance channel different is that as
[1:47] opposed to your
[1:48] traditional financial advisor goes out into the market to look
[1:52] for people who need
[1:53] SPEAKER_00: the solutions that we have,
[1:54] SPEAKER_00: the bank would provide those solutions as an intermediary.
[1:58] SPEAKER_00: to the book that they hold.
[2:00] SPEAKER_00: So the clients that bank with them.
[2:02] And then the third channel that I manage is what we call
[2:04] alternative channels.
[2:06] So affinity groups,
[2:07] aggregators,
[2:08] and the digital channels that we use to give us auditions.
[2:11] SPEAKER_00: Very happy to be here for an engaging session.
[2:13] SPEAKER_00: Looking forward to our discussions.
[2:15] SPEAKER_01: Let's start with Catherine.
[2:16] Maybe you can tell us a bit about life insurance in Kenya and
[2:20] tell us about the
[2:20] need for it and at least how prevalent or lacking it is in the
[2:24] country from your
[2:25] SPEAKER_01: observation in the industry,
[2:26] having had a frontal seat in terms of observing how the
[2:29] industry has developed in
[2:30] SPEAKER_01: the last couple of years.
[2:32] SPEAKER_02: I would start by saying that having been the life insurance business,
[2:36] we have seen a lot of development in the industry and
[2:40] particularly on the solutions
[2:42] SPEAKER_02: that are being offered.
[2:44] Some of the solutions that are there in the industry are like
[2:47] the life solutions,
[2:49] life policies.
[2:50] SPEAKER_02: We have the term policies.
[2:52] SPEAKER_02: We have the endowment policies.
[2:55] SPEAKER_02: We have what we call also bullies.
[2:58] SPEAKER_02: And also when it comes to the retirement solutions, they are very many.
[3:04] SPEAKER_02: We have products or solutions that are being offered for the employer,
[3:09] any employer who would want to start a retirement scheme for
[3:13] their employees.
[3:15] SPEAKER_02: Employees actually,
[3:16] SPEAKER_02: when they are changing jobs,
[3:18] they would want to look for the benefits that are being offered
[3:22] by the employer.
[3:23] SPEAKER_02: So they are employers.
[3:25] SPEAKER_02: schemes that are there in the country and we manage such schemes.
[3:31] And we also have solutions that are tailor-made for individuals
[3:35] for retirement savings.
[3:37] So what we hear in the industry or what you have heard is like
[3:41] personal pension plans.
[3:43] SPEAKER_02: You have heard about individual
[3:45] Retirement plans,
[3:47] those are solutions that are helping people to save for retirement.
[3:53] We also have in the industry what we call post-retirement
[3:57] product after you have
[3:58] SPEAKER_02: accumulated your money during your working years.
[4:02] And those solutions that would be available after you retire
[4:07] would be what we call annuity.
[4:10] SPEAKER_02: And in simpler terms,
[4:11] considered to be a pension where you get income at retirement
[4:16] and that would be a
[4:18] SPEAKER_02: regular income.
[4:19] SPEAKER_02: So at retirement, then you would be having such solutions.
[4:22] SPEAKER_02: So there are solutions that are in the industry.
[4:26] And we have seen even development for even very interesting
[4:31] product like income drawdown,
[4:33] SPEAKER_02: which is a very recent post-retirement product.
[4:37] SPEAKER_02: Income drawdown, instead of having a long-term product,
[4:41] SPEAKER_02: product community for those of us who would want a short-term product.
[4:46] In most cases,
[4:46] people would think,
[4:48] oh,
[4:48] I can't keep my money for long with an insurance company.
[4:51] So you have income drawdown that you would be able to have your
[4:56] money paid to you for 10 years.
[4:59] SPEAKER_02: So you draw up to 12% of the
[5:03] SPEAKER_02: amount that is in your account every year.
[5:06] SPEAKER_02: And so that product runs for 10 years.
[5:09] So there has been several development in the industry in terms
[5:13] of the products that
[5:14] SPEAKER_02: are being offered.
[5:15] SPEAKER_02: If you go to the live audiences,
[5:17] SPEAKER_02: you will find that people now are looking for even short term products.
[5:22] SPEAKER_02: policies,
[5:22] thinking about five years as opposed to 20-year term policies
[5:27] or long-term policies,
[5:28] which people would consider to be quite long in terms of the
[5:32] period that they have
[5:33] SPEAKER_02: to save their money.
[5:35] So there are products that are tailor-made to suit the need of
[5:39] our customers.
[5:40] So if you would want to save for even five years,
[5:43] there are products that are there.
[5:45] SPEAKER_02: to suit such needs.
[5:47] The insurance companies have really worked hard to make sure
[5:50] that there are
[5:51] SPEAKER_02: solutions that are there for every person who would want to save for even
[5:57] SPEAKER_02: retirement or even a life policy,
[6:00] SPEAKER_02: which would
[6:01] SPEAKER_02: Actually be geared towards a certain goal.
[6:03] Like for instance,
[6:04] you would be saving for,
[6:06] let's say you want to build a house.
[6:08] SPEAKER_02: Then you have the end goal being saving some money.
[6:12] SPEAKER_02: And maybe after five years,
[6:14] you get the total amount that has been accumulated and you will
[6:18] get to purchase the
[6:19] SPEAKER_02: house or your dream house.
[6:21] So the products are there and now we have seen a lot of
[6:24] development and we continue
[6:26] developing solutions that addresses the need of the general
[6:31] public or our clients.
[6:33] SPEAKER_02: Thank you.
[6:34] SPEAKER_01: The supply seems to be there in terms of the products,
[6:36] SPEAKER_01: but then the object penetration,
[6:38] SPEAKER_01: at least in Kenya,
[6:39] SPEAKER_01: remains below 3%.
[6:40] SPEAKER_01: What's some of the influencing factors in this regard?
[6:44] SPEAKER_02: What we have been discussing about insurance,
[6:47] SPEAKER_02: what we say penetration,
[6:48] or I would look at it like the coverage or how many people have insurance.
[6:54] SPEAKER_02: The reason why you would be having such low penetration is because one,
[6:59] SPEAKER_02: remember like now in Kenya,
[7:02] SPEAKER_02: we started insurance not very many years back in the 80s.
[7:07] And considering that this is still a young industry compared to
[7:13] South Africa,
[7:14] she
[7:14] If you look at the statistics of penetration of insurers in
[7:19] South Africa,
[7:20] it is close to 15%.
[7:21] SPEAKER_02: I'm basically telling you that in South Africa,
[7:26] the insurers started many years back and many people or the
[7:30] coverage or the many
[7:32] SPEAKER_02: people who signed up the life policies or any type of insurers,
[7:36] SPEAKER_02: they are many compared to Kenya.
[7:37] So I would look at it in terms of the time difference and also
[7:41] their purchasing power.
[7:43] SPEAKER_02: in the public awareness.
[7:45] We need to do more of public awareness and people need to
[7:50] appreciate that insurance
[7:51] SPEAKER_02: is not only for the wealthy.
[7:54] There are solutions that are there for all of us,
[7:57] depending on your needs.
[7:59] So there is a lot of work that we need to do as the other
[8:03] writers or the insurance
[8:05] industry so that we can educate the general public or people
[8:10] about the insurance so
[8:11] SPEAKER_02: that they can see the solutions that are being offered.
[8:14] SPEAKER_02: They are there to solve the needs that are there.
[8:17] SPEAKER_02: So I would just look at it from three years ago on awareness.
[8:21] SPEAKER_02: And I would say the time difference that our industry is not quite old.
[8:25] SPEAKER_02: We are still developing and the solutions are being offered.
[8:29] And looking at also now the solutions that are being offered on
[8:33] the digital platform,
[8:34] I believe that the penetration will also improve as we go into
[8:39] the future.
[8:41] SPEAKER_01: I like the optimistic angle.
[8:42] SPEAKER_01: Kanyingin, why do people need life insurance?
[8:44] SPEAKER_01: There is a common saying in Kenya that if you're in the middle class,
[8:47] you're almost one disaster removed from falling back to the
[8:51] lower class in terms of
[8:52] SPEAKER_01: income and all that.
[8:54] So why should people perhaps prepare for such unforeseen
[8:57] circumstances and events
[8:59] SPEAKER_01: by getting life insurance?
[9:00] SPEAKER_00: I'm glad you used the word unforeseen and by definition,
[9:04] We talk about insurance being a financial safety net that
[9:07] protects one from
[9:09] SPEAKER_00: unexpected losses and risks,
[9:11] SPEAKER_00: unforeseen losses and risks.
[9:13] So when we ask ourselves,
[9:14] why do people require to get insurance for themselves?
[9:18] SPEAKER_00: I'd like to tell a story around how it is that we would consider this.
[9:23] And the way to look at insurance and the needs that you have is
[9:26] to plot it against
[9:28] SPEAKER_00: the timeline of your life.
[9:30] SPEAKER_00: As opposed to looking at insurance and insurance conditions on their own,
[9:35] it would be to look at what need is the insurance plan or
[9:38] insurance solutions
[9:40] SPEAKER_00: supposed to satisfy or to meet.
[9:42] And we have a concept to use when we're talking about national management.
[9:46] And the things that we want to do with money and our
[9:48] aspirations for life.
[9:49] And you will hear us using that word aspiration and goals
[9:53] throughout this session today.
[9:56] SPEAKER_00: You want to look at the nighttime of a person,
[9:58] SPEAKER_00: say from when it starts from zero all the way to their 80s and 90s.
[10:02] And we have a concept that we talk about a lot that's called
[10:05] the 28,000 days concept.
[10:08] SPEAKER_00: The average number of days a person lives, 28,000.
[10:11] SPEAKER_00: When you divide that up, it comes to roughly around 76.71 years.
[10:16] SPEAKER_00: And we like to plot it as a continuum.
[10:18] SPEAKER_00: What are we doing with our lives?
[10:19] SPEAKER_00: Zero to 20.
[10:21] SPEAKER_00: What are we doing 20 to 40, 50 to 60, 60 to 80 and above?
[10:27] And why this is critical is we have different aspirations and
[10:30] different goals at
[10:30] SPEAKER_00: every stage of this continuum of life.
[10:33] SPEAKER_00: Depending on what our goals and aspirations are,
[10:36] SPEAKER_00: Then we line them up with solutions that would cover them.
[10:40] SPEAKER_00: So let me give you an example.
[10:41] If you're looking at someone between zero and 20,
[10:44] their study,
[10:45] of course,
[10:45] they have no income.
[10:46] SPEAKER_00: That obligation of taking care of them is mostly on their parents.
[10:51] The person who's having a thought about what it is they need to
[10:53] be covered,
[10:54] SPEAKER_00: their insurance would be mostly their parent.
[10:57] SPEAKER_00: But then come to 20 to 40, what are we doing when we are that age?
[11:01] We are going into our first jobs and getting our first cars,
[11:04] maybe our first house.
[11:06] SPEAKER_00: We are going into starting to build career.
[11:10] There are solutions that we would require to cover us for that
[11:14] period of time.
[11:14] SPEAKER_00: And I'll speak to them.
[11:15] SPEAKER_00: What happens from 40 to 60?
[11:17] SPEAKER_00: For example, you're going into your second job, second car, second house.
[11:20] SPEAKER_00: Kids are going into school and finishing school.
[11:23] SPEAKER_00: And then what happens afterwards?
[11:25] SPEAKER_00: After you go to 60 and above, retirement comes in.
[11:29] SPEAKER_00: Now, to tie this up, you want to look at it as three phases.
[11:33] SPEAKER_00: You have an income accumulation,
[11:36] SPEAKER_00: a wealth accumulation phase when you have the energy,
[11:40] SPEAKER_00: when you're working,
[11:41] SPEAKER_00: when you're setting up your businesses,
[11:43] SPEAKER_00: you're bringing in the cash,
[11:45] SPEAKER_00: so to speak,
[11:46] SPEAKER_00: and you're building up your wealth.
[11:47] SPEAKER_00: Then you have a phase that comes somewhere from the 40s into the 50s,
[11:51] SPEAKER_00: You're looking at wealth consolidation.
[11:53] SPEAKER_00: That's what we call the consolidation phase.
[11:55] SPEAKER_00: So the accumulation phase, 20s into your 30s.
[11:58] SPEAKER_00: Consolidation phase, 40s into your 50s.
[12:03] And then once you get to retirement after six,
[12:05] you go into what is called deaccumulation.
[12:09] So you put aside money,
[12:11] you invested,
[12:12] you are putting your resources together.
[12:14] You get to a point where you are accelerating that in your 40s
[12:18] and 50s and solidifying it.
[12:20] SPEAKER_00: But then you come to a time when you stop working,
[12:22] SPEAKER_00: when your energies are low,
[12:24] when you're now going into what is called your sunset years and
[12:26] you start to de-accumulating.
[12:28] What you do in your accumulation phase and your consolidation
[12:33] phase is critical in
[12:35] SPEAKER_00: deciding what is going to happen in the de-accumulation phase.
[12:38] SPEAKER_00: So when you're accumulating money,
[12:40] You want to look at insurance solutions that will help protect
[12:44] the income that you're making.
[12:46] SPEAKER_00: So we use insurance, income protection.
[12:48] SPEAKER_00: You want to look at wealth preservation.
[12:51] It comes with taxing it so that then you're not paying out
[12:55] taxes on the policy that
[12:56] SPEAKER_00: you're buying.
[12:57] SPEAKER_00: You want to go into how can you grow your money?
[13:01] SPEAKER_00: and the investment components into the solution that we give.
[13:03] SPEAKER_00: And after you go into that de-accumulation stage,
[13:06] you want to start thinking about retirement and how you want to
[13:10] spend your son 30 years,
[13:11] what Catherine was talking about in terms of the solutions that
[13:14] we provide,
[13:14] SPEAKER_00: and also how you want to plan your estate.
[13:18] SPEAKER_00: So remember, we started by saying,
[13:20] SPEAKER_00: You're covering yourself against unforeseen circumstances.
[13:25] SPEAKER_00: None of us is guaranteed of our lives.
[13:27] SPEAKER_00: None of us.
[13:28] SPEAKER_00: We have good intentions.
[13:30] SPEAKER_00: We have good aspirations.
[13:31] SPEAKER_00: God gives us the ability to make well.
[13:34] We go out there and put our skills to work and start producing
[13:38] and accumulating wealth.
[13:40] SPEAKER_00: What happens is that these are things that are within our control.
[13:43] SPEAKER_00: I can work.
[13:44] SPEAKER_00: I can put my money where I want to put it.
[13:46] SPEAKER_00: I can see it grow.
[13:48] SPEAKER_00: But then life can throw a cowboy at us.
[13:50] SPEAKER_00: We could have accidents.
[13:52] SPEAKER_00: We could have the unfortunate event of no sort of life.
[13:55] Does it mean that our dreams and aspirations are then stopped
[13:59] when we don't have
[14:00] SPEAKER_00: that ability to make them go on by investing more?
[14:04] SPEAKER_00: Does it mean that these dreams are expired when we expire?
[14:07] SPEAKER_00: So that is where the insurance solutions come in.
[14:10] SPEAKER_00: So in summary, you want to look at life as a continent.
[14:14] SPEAKER_00: Various stages of life come with various milestones.
[14:18] Those milestones will come with unique needs in that period of
[14:23] life because we want
[14:24] SPEAKER_00: to protect what we want to achieve.
[14:26] SPEAKER_00: At those various stages of life,
[14:27] then we take insurance plans that match what our need is at
[14:32] that particular point.
[14:34] SPEAKER_00: Whether we are accumulating,
[14:35] SPEAKER_00: whether we are consolidating,
[14:36] SPEAKER_00: or whether we are de-accumulating,
[14:39] insurance solutions are a partner that can work with you
[14:42] throughout that journey.
[14:43] SPEAKER_01: Just to double click on that,
[14:45] SPEAKER_01: I think one of the questions you raised,
[14:46] SPEAKER_01: of course,
[14:47] SPEAKER_01: is that the younger people don't get to think about the long term.
[14:50] SPEAKER_01: So life insurance,
[14:51] was the people to think a bit long term about how life is going
[14:55] to be in 20,
[14:56] SPEAKER_01: 30 years from now?
[14:57] Do you think that's one of the key reasons why people avoid
[15:00] life insurance and how
[15:01] SPEAKER_01: can you then tell them,
[15:02] SPEAKER_01: oh,
[15:03] SPEAKER_01: actually thinking about it is not fastening it?
[15:05] SPEAKER_01: Because I think a lot of people need to think about something,
[15:08] SPEAKER_01: but when it happens,
[15:09] SPEAKER_01: it's going to happen a bit faster.
[15:11] SPEAKER_01: How do you address that?
[15:12] That's an interesting question you ask and it calls for a lot
[15:15] of introspection for
[15:16] SPEAKER_00: one of us who are at least calling the people that interact.
[15:18] SPEAKER_00: Life is going to happen, like will happen.
[15:20] In terms of time and seasons,
[15:22] they will come and go and these things are outside of our control.
[15:26] SPEAKER_00: We don't own our lives.
[15:28] SPEAKER_00: Now,
[15:28] SPEAKER_00: since we know that we are alive now,
[15:31] we have the ability to make well and we can do the things that
[15:33] we want to.
[15:34] And since we also know that we don't have sight or visibility
[15:39] of when our lives
[15:40] SPEAKER_00: will end,
[15:41] SPEAKER_00: we can only be prudent enough to say,
[15:43] SPEAKER_00: what can I do to influence the unforeseen using what is within my hands?
[15:49] SPEAKER_00: So speaking about young people,
[15:50] and maybe I should throw this back to you just as a question to
[15:53] engage here.
[15:54] SPEAKER_00: When you say young, what age group are you looking at?
[15:56] SPEAKER_01: I'm sorry, about 22, maybe 35 there.
[15:58] SPEAKER_01: They weren't labeled as youth in Kenya.
[16:01] SPEAKER_00: Yeah.
[16:02] SPEAKER_00: So in terms of, and maybe it's an important point for us to note.
[16:05] SPEAKER_00: When we talk about long-term saving and long-term learning,
[16:09] SPEAKER_00: there is the component of compounding.
[16:11] SPEAKER_00: That is a very powerful concept.
[16:13] That year,
[16:14] I could come into the awareness,
[16:15] and Kathleen talked about awareness.
[16:18] SPEAKER_00: I could come into the awareness that I need to plan my finances.
[16:22] I need to look for an investment vehicle that will help me
[16:25] carry my aspirations forward.
[16:27] The time at which I start that conversation with myself and
[16:31] with the help with
[16:31] financial advisors and other financial players would help me in
[16:35] this journey.
[16:36] SPEAKER_00: The time at which I start has an impact.
[16:39] SPEAKER_00: on how much I'm able to achieve.
[16:41] One who starts saving in their 40s and their 50s would not be
[16:44] at the same level as
[16:46] SPEAKER_00: one who starts in their 20s and 30s,
[16:48] SPEAKER_00: like you put it,
[16:49] SPEAKER_00: the youth of this country.
[16:50] SPEAKER_00: For a smaller amount of money saved over a longer period of time,
[16:54] you end up with better results than trying to do what is called
[16:58] a cash course
[16:59] SPEAKER_00: towards the end.
[17:00] Trying to force things in your 40s and 50s to achieve the same
[17:03] quantum of goals
[17:05] SPEAKER_00: that you are looking for.
[17:06] And this is something that we are grateful that we are on a
[17:09] platform like this one.
[17:10] SPEAKER_00: This is something we must work on demystifying.
[17:13] SPEAKER_00: That it is not about whether insurance is for them.
[17:17] SPEAKER_00: It is that insurance will come to support them in their son 30 years.
[17:21] SPEAKER_00: But like they say, the best day to plant a tree was 20 years ago, right?
[17:26] SPEAKER_00: And the next best day to plant a tree is today.
[17:29] SPEAKER_00: So first of all,
[17:30] SPEAKER_00: addressing all of us,
[17:31] SPEAKER_00: it is never too late to start when you start,
[17:33] SPEAKER_00: but speaking to the youth and the younger years of our lives,
[17:37] SPEAKER_00: it is better to start earlier.
[17:39] You will save more over a longer period of time because of
[17:42] compounding and you are
[17:44] SPEAKER_00: able then to learn better for your latter years.
[17:47] Very powerful concept to say thank you right there in terms of
[17:49] compound interest.
[17:50] SPEAKER_01: Catherine, I see you have something you wanted to add.
[17:53] Yes,
[17:53] Kanyige has actually articulated some of the issues that the
[17:59] young people need to look at.
[18:02] One is that we need to also develop the sieving culture quite
[18:07] early in our life.
[18:09] And this to me would best be handled from around age 25 when we
[18:15] leave university onwards.
[18:18] SPEAKER_02: Why?
[18:18] SPEAKER_02: Because the minute you start sieving early,
[18:21] you will have enough time or the time that you'll have to save
[18:25] is long enough to
[18:27] SPEAKER_02: accumulate a lot of money that can take care of you at retirement.
[18:33] SPEAKER_02: Unfortunately,
[18:34] SPEAKER_02: majority of us,
[18:36] SPEAKER_02: those who are in the industry,
[18:37] SPEAKER_02: when we go to train people about retirement planning,
[18:41] SPEAKER_02: And in most cases,
[18:42] you will find that the employers have organized the training
[18:46] for people who are
[18:47] SPEAKER_02: above age 50 and probably they are retiring in 10 years time.
[18:52] SPEAKER_02: Those people usually tell us, I wish you had come a bit up.
[18:56] I wish you told me this information when I was 20 years or when
[19:00] I was 30 years.
[19:01] Basically telling you that this person is looking at the number
[19:05] of years left and
[19:07] He is saying,
[19:08] if I had more time to save,
[19:10] I would have done one,
[19:11] two,
[19:12] three.
[19:12] SPEAKER_02: So when you are 20 years,
[19:15] SPEAKER_02: 30 years,
[19:17] SPEAKER_02: is better time for you to start saving for whatever goal that you have.
[19:22] If it is retirement saving in the retirement arrangement that
[19:26] I've talked about before,
[19:28] SPEAKER_02: then if you start accumulating your money for,
[19:31] SPEAKER_02: let's say,
[19:32] SPEAKER_02: 30 years,
[19:33] SPEAKER_02: as Tanige has said,
[19:34] SPEAKER_02: the power of compounding interest
[19:37] you realize that it is possible you can get to age of
[19:41] retirement having accumulated
[19:44] SPEAKER_02: over 30 million.
[19:45] SPEAKER_02: And another thing I would also want to say is that unfortunately,
[19:49] SPEAKER_02: majority of us,
[19:50] SPEAKER_02: once we save the money and we change jobs,
[19:54] SPEAKER_02: especially for those of us who are in the pension industry,
[19:57] we find that people want to cash out the benefit or be paid a
[20:00] lump sum amount,
[20:01] which unfortunately is not the best way to handle your
[20:05] retirement savings.
[20:07] SPEAKER_02: Because every time you change a job,
[20:09] SPEAKER_02: in most cases,
[20:10] you are going to an employer who will pay you a little bit more
[20:14] than you are
[20:14] SPEAKER_02: earning in the previous employer's place.
[20:17] SPEAKER_02: So when you cash out that money,
[20:20] SPEAKER_02: you reduce the amount that you would have accumulated at retirement.
[20:25] So what we tell people,
[20:27] how we are educating members of the scheme is that
[20:30] SPEAKER_02: If you do not have an immediate pressing need,
[20:34] SPEAKER_02: which is not for consumable goods or even maybe a car,
[20:40] it is wise to save that percentage that you set aside with your
[20:45] employer for a
[20:46] SPEAKER_02: number of years and probably up to retirement.
[20:49] SPEAKER_02: So I would want to say the best time to save is when you are young,
[20:54] SPEAKER_02: from age 20s to maybe 50s or 60s.
[20:59] SPEAKER_02: That's my contribution to that.
[21:00] SPEAKER_01: Catherine, maybe a question to you before I switch to Kanyingia.
[21:03] Maybe you can address this and then address maybe a few of the
[21:06] other misconceptions
[21:07] SPEAKER_01: that you found out there in terms of life insurance generally.
[21:10] SPEAKER_01: But one key pushback you get from youth is,
[21:13] SPEAKER_01: hey,
[21:14] SPEAKER_01: we don't have enough money now to take care of our needs today.
[21:16] SPEAKER_01: Why should we be thinking about tomorrow?
[21:18] SPEAKER_01: How do you respond to that?
[21:20] So I would say that when you look at your pay slip in normal circumstances,
[21:27] SPEAKER_02: the money that you earn first,
[21:29] SPEAKER_02: you should think about the saving before even you start spending.
[21:34] SPEAKER_02: Why do I say that?
[21:35] SPEAKER_02: There is no one time that money will be a lot.
[21:38] SPEAKER_02: Even at my position today, I still feel that I need more money.
[21:42] So I would encourage the youth to set aside a certain amount to
[21:47] be saving every
[21:48] month and to develop that culture of saving because there's no
[21:53] one time that you
[21:54] SPEAKER_02: will think you have too much that you can now say,
[21:57] SPEAKER_02: this is now the time to save.
[21:59] SPEAKER_02: It is a culture that somebody develops over a long period of time.
[22:04] SPEAKER_02: And now with the compounding of interest,
[22:06] SPEAKER_02: you realize these are all amounts that I'm saving,
[22:09] SPEAKER_02: a thousand,
[22:10] SPEAKER_02: two thousand,
[22:11] SPEAKER_02: three thousand.
[22:11] SPEAKER_02: It's helping me to meet my goals.
[22:14] SPEAKER_02: And so I would say there's no little money.
[22:17] In fact,
[22:18] even for the pension arrangement,
[22:20] individual retirement schemes,
[22:22] we are allowing money.
[22:24] members of the scheme to contribute as low as 200 shillings on
[22:29] what they can afford.
[22:30] SPEAKER_02: We are quite flexible.
[22:31] We are allowing people to save because we know we are not able
[22:35] to equally.
[22:36] And therefore,
[22:36] I would say all of us,
[22:38] we need to appreciate that saving is not for the wealthy.
[22:41] SPEAKER_02: It's not for the rich people.
[22:43] SPEAKER_02: It's for all of us.
[22:44] And so let's set aside some little amount every month and plan,
[22:49] budget your money well.
[22:50] SPEAKER_02: You always find that
[22:52] SPEAKER_02: If you budget your money well,
[22:53] SPEAKER_02: you can set aside a certain amount which you can save every month.
[22:58] SPEAKER_01: Thank you, Cathy.
[22:59] I'll come back to you for more misconceptions slightly later
[23:01] because you've been
[23:02] SPEAKER_01: doing a lot of these trainings yourself.
[23:04] SPEAKER_01: So,
[23:04] SPEAKER_01: Kanying,
[23:05] you can give us a brief description of what life insurance is
[23:09] and just define a few
[23:10] SPEAKER_01: terms for us,
[23:11] SPEAKER_01: term life,
[23:12] SPEAKER_01: whole life,
[23:12] SPEAKER_01: endowment policies,
[23:14] SPEAKER_01: so that when you're speaking about life insurance,
[23:16] people can have a bit of perspective on the key terms that are
[23:19] involved in this space.
[23:20] SPEAKER_01: Just break it down for us.
[23:22] SPEAKER_00: We'll break it down very quickly.
[23:24] SPEAKER_00: And as we go into looking at what some of these terms are,
[23:27] SPEAKER_00: I just thought to come back to this issue of risk and how we manage risk.
[23:32] So when we talk about unforeseen circumstances and we're
[23:34] talking about which
[23:36] SPEAKER_00: methods we use to manage this risk,
[23:39] and normally we would talk about generally four risk management techniques.
[23:43] So let's talk about taking a life insurance or not and thinking
[23:46] about the risk of
[23:47] SPEAKER_00: loss of income.
[23:49] or loss of the ability to achieve the dreams that we wanted by
[23:53] the unfortunate
[23:54] SPEAKER_00: event of death,
[23:55] SPEAKER_00: you can choose to avoid the risk completely.
[23:58] Maybe not think about it or not involve ourselves in activities
[24:02] that might lead to that.
[24:03] SPEAKER_00: So our risk avoidance, you can control the risk.
[24:07] There could be measures taken in our own lives or otherwise
[24:10] that could help control risk.
[24:11] SPEAKER_00: You can accept the risk and say,
[24:13] I'm going to deal with it as it comes and I'll pay out what
[24:15] needs to be paid based
[24:17] SPEAKER_00: on what it is that I'm looking at as the risk.
[24:19] SPEAKER_00: Or you can do what it is that we're discussing, which is risk transfer.
[24:23] SPEAKER_00: Where I say,
[24:23] SPEAKER_00: for a certain consideration,
[24:25] SPEAKER_00: and now we are going into the terms of insurance,
[24:27] SPEAKER_00: for a payment risk,
[24:29] that we call a consideration in contracts for a certain amount
[24:32] of payment that is regular,
[24:34] I can get into a contract with an insurance company so that in
[24:38] the event that what
[24:39] SPEAKER_00: we are covering ourselves against takes place,
[24:42] SPEAKER_00: should that risk materialize,
[24:44] SPEAKER_00: should that event happen,
[24:46] SPEAKER_00: then I will be compensated,
[24:48] SPEAKER_00: I will be paid back on their agreed amounts,
[24:50] SPEAKER_00: what we call a payout.
[24:51] SPEAKER_00: Allow me to talk about,
[24:52] SPEAKER_00: when we talk about individual life plan,
[24:55] SPEAKER_00: and you mentioned endowment and term life and whole life,
[24:57] SPEAKER_00: maybe a bit of definition.
[24:59] SPEAKER_00: When we talk about endowment life policies,
[25:02] we are looking at the type of life insurance that combines
[25:05] savings and investment components.
[25:07] SPEAKER_00: So yes,
[25:08] SPEAKER_00: it looks at,
[25:09] SPEAKER_00: should this event occur,
[25:11] SPEAKER_00: then my loved ones will be compensated at a particular level.
[25:16] If the event does not take place,
[25:18] then there's a payment that comes back to me.
[25:20] SPEAKER_00: So it combines those two, maturity or death.
[25:24] SPEAKER_00: It's going to pay out one of the two.
[25:26] SPEAKER_00: So that was endowment, life insurance, that combines those two.
[25:30] SPEAKER_00: When you talk about term, the term life is a pure risk policy.
[25:35] SPEAKER_00: And this is what it means.
[25:36] SPEAKER_00: It cover only for the event of death.
[25:38] SPEAKER_00: So if I take out a plan for 10 years, 20 years or 30 years,
[25:43] SPEAKER_00: of a term life policy,
[25:45] SPEAKER_00: should that time elapse and death has not occurred,
[25:49] I don't get paid because what I was buying was protection
[25:53] against that event
[25:53] SPEAKER_00: happening within that period.
[25:55] SPEAKER_00: Whereas I could be paid back under endowment,
[25:59] SPEAKER_00: should I not pass on under term life,
[26:01] SPEAKER_00: then if the event does not occur,
[26:03] SPEAKER_00: I don't get paid,
[26:05] SPEAKER_00: that policy comes to an end.
[26:07] SPEAKER_00: Now,
[26:07] SPEAKER_00: when we come to whole life,
[26:09] SPEAKER_00: and this is an interesting one,
[26:10] this covers you for the duration of your life so long as
[26:14] premiums are paid.
[26:15] We have whole life policies in the industry and around the
[26:18] world where you can pay
[26:19] SPEAKER_00: for a given period of time,
[26:21] SPEAKER_00: 10 years,
[26:22] SPEAKER_00: 15 years or so.
[26:23] SPEAKER_00: And after that, your cover still remains open and you're covered for it.
[26:27] SPEAKER_00: Now, the interesting thing with whole life is that the event must occur.
[26:31] SPEAKER_00: So death must occur.
[26:33] And therefore,
[26:34] the people who benefit from our whole life are those that we
[26:37] leave behind.
[26:39] SPEAKER_00: Again,
[26:39] SPEAKER_00: an endowment life,
[26:40] either the event of cars and my family is paid or the period
[26:44] that I'd covered
[26:44] SPEAKER_00: myself past this and I get paid back an amount in the year.
[26:47] SPEAKER_00: And the timeline, the event must occur.
[26:50] SPEAKER_00: If it doesn't occur,
[26:51] then that contract is done and you have to buy another one to
[26:54] cover yourself or
[26:55] SPEAKER_00: another term.
[26:56] SPEAKER_00: For whole life,
[26:57] SPEAKER_00: it covers it for your whole life and the event must occur so that your
[27:01] SPEAKER_00: beneficiaries can benefit from it.
[27:03] SPEAKER_00: So we use terms like payout.
[27:05] We use premium is the amount that you pay over a period of time
[27:09] and frequency to
[27:10] SPEAKER_00: make sure that the cover is running.
[27:12] SPEAKER_00: The payout is what comes to you.
[27:14] SPEAKER_00: The person who's making the payment is called a policyholder.
[27:18] And the underwriter is the insurance company that also signs
[27:21] the contract and says,
[27:22] SPEAKER_00: for this consideration of money,
[27:24] SPEAKER_00: we are promising that we are going to give you this buck.
[27:28] SPEAKER_00: In essence,
[27:28] those would be the main term that we would use on the side of
[27:32] education life policies.
[27:33] SPEAKER_01: All right.
[27:33] Before I come to you from the pension side,
[27:35] I just want to double click again on Kanyingi.
[27:38] SPEAKER_01: When someone is starting out their financial planning journey,
[27:41] SPEAKER_01: how do they decide which one of term,
[27:44] SPEAKER_01: whole life or endowment to lean on?
[27:47] And what are some of the factors that someone should consider
[27:50] in terms of choosing
[27:51] SPEAKER_01: one of these three as an option?
[27:53] SPEAKER_00: So beginning with where we started off with, you want to look at
[27:56] a life insurance solution of meeting a need within your
[28:00] aspirations and goals.
[28:01] SPEAKER_00: So how would you decide what to take?
[28:03] It depends on where you are in your life and it depends on what
[28:06] your goal is and it
[28:07] depends on how much money you are willing to put aside to meet
[28:11] that goal or aspiration.
[28:13] So when you're talking about setting a goal that you want to
[28:15] work with for a
[28:16] SPEAKER_00: particular fixed amount of money,
[28:18] SPEAKER_00: an endowment at land becomes one that you can look at.
[28:21] SPEAKER_00: Why?
[28:21] SPEAKER_00: Because it has a payout should the event not occur.
[28:24] SPEAKER_00: So for individuals who are looking for a combination of insurance,
[28:27] SPEAKER_00: protection,
[28:28] SPEAKER_00: and a disciplined way of saving for future goals,
[28:31] SPEAKER_00: the endowment becomes a solution that would meet that day.
[28:35] SPEAKER_00: When you talk about looking for pure protection against an event,
[28:39] SPEAKER_00: because you have loved ones who depend on you,
[28:41] say for people who aren't looking for another way of protecting
[28:44] their family when
[28:44] SPEAKER_00: we talked about income protection,
[28:47] SPEAKER_00: then the timeline becomes a solution that you can look at.
[28:50] SPEAKER_00: And of course,
[28:51] SPEAKER_00: As you think about the sunset years and bequeathing your family,
[28:56] SPEAKER_00: whole life becomes something that you can consider.
[28:58] You can leave quite a substantial amount of money for your
[29:01] loved ones should you
[29:03] SPEAKER_00: pass on using a whole life plan.
[29:05] And so what we have to consider,
[29:08] and this is where our financial advice has really come in,
[29:11] SPEAKER_00: as people that we can engage.
[29:12] SPEAKER_00: There is what we call needs assessment.
[29:14] SPEAKER_00: Gone are the days when we would come to you and say,
[29:17] SPEAKER_00: look,
[29:17] SPEAKER_00: we have this sort of product,
[29:18] SPEAKER_00: pick one that fits you,
[29:19] SPEAKER_00: or I'm selling this here ticket.
[29:22] SPEAKER_00: It's more about having a conversation.
[29:24] SPEAKER_00: Where are you at?
[29:25] SPEAKER_00: When do you want to retire?
[29:27] SPEAKER_00: What are your aspirations in life?
[29:29] SPEAKER_00: What is it you want to do in your sunset years?
[29:31] SPEAKER_00: What are the things that are of interest to you?
[29:34] SPEAKER_00: Do you have any business in your life?
[29:36] SPEAKER_00: And how are you covering your interest in those businesses?
[29:39] SPEAKER_00: When you look at birth and school and work and retirement,
[29:43] SPEAKER_00: how do these things play in how you're planning yourself?
[29:46] Like I said,
[29:46] when we started,
[29:47] you want to,
[29:48] not your life,
[29:49] look at where am I at right now?
[29:51] How much money do I have that I can set aside and squeeze
[29:55] myself and set aside so
[29:56] that I can protect or cover this activation or goal that I'm
[30:00] working after?
[30:01] And how much money I can pay will then decide what quantities
[30:05] of money I'm looking
[30:06] SPEAKER_00: at as fair,
[30:07] SPEAKER_00: depending on the goals.
[30:08] SPEAKER_00: So is it a car?
[30:09] SPEAKER_00: Is it a house?
[30:09] SPEAKER_00: Is it an indication for my child?
[30:11] SPEAKER_00: Is it retirement?
[30:13] SPEAKER_00: If I want to retire at a particular level of monthly earnings in a month,
[30:18] SPEAKER_00: what sort of money should I set aside?
[30:19] SPEAKER_00: And Catherine would give us a very good side of this.
[30:22] If I want to retire at a certain level,
[30:24] so I get to 60,
[30:25] I'm expecting,
[30:27] based on my name,
[30:28] I could require X amount of money or Y amount of money to take
[30:33] care of myself.
[30:34] SPEAKER_00: What does that amount of money look like now?
[30:37] SPEAKER_00: I'm looking at a certain amount in 10, 20, 30 years.
[30:41] What is it I need to save now as I plan for that time in the
[30:45] future when maybe I
[30:46] SPEAKER_00: might not be able to have an incapacity?
[30:49] SPEAKER_00: So again, it's based on the continuum of life.
[30:53] SPEAKER_00: What phase am I in?
[30:54] SPEAKER_00: What are my goals?
[30:56] After I identify my goals and where I'm at,
[30:58] how much money can I set aside?
[31:00] SPEAKER_00: Based on that,
[31:01] then I can line it up with a solution that meets me at that
[31:05] point of my journey of life.
[31:07] What I hear you say is the need for sitting down with a
[31:10] financial advisor.
[31:11] My interaction with many Kenyans mostly seems to be we avoid
[31:15] financial advice
[31:16] SPEAKER_01: because it's not like a doctor.
[31:17] SPEAKER_01: You have to be sick to go.
[31:19] We're not naturally inclined to think what is going to happen 20,
[31:23] 30 years from now.
[31:24] And naturally,
[31:24] I think the society in Kenya is mostly geared in such a way
[31:28] that
[31:29] SPEAKER_01: The assumption is your kids will grow up and take care of you in old age,
[31:32] SPEAKER_01: but no one sits back and I want to take care of myself in old age.
[31:36] SPEAKER_01: And if that were to happen, then I need to save this much.
[31:39] SPEAKER_01: Do you think that there's a real need for most Kenyans,
[31:42] SPEAKER_01: especially those who are listening to our book,
[31:44] to have to keep down the financial advisor to be able to plan
[31:47] out their lives so
[31:48] SPEAKER_01: that they can be able to save towards that?
[31:50] SPEAKER_00: critical.
[31:51] SPEAKER_00: And it goes back to something that you mentioned when we started.
[31:53] SPEAKER_00: Talking about awareness,
[31:54] SPEAKER_00: and now we just lean in our culture and our socialization,
[31:58] coming up through school and in our families and in the
[32:01] communities that we live in.
[32:02] We do not have enough of financial engagements and discussions
[32:07] as we ought to.
[32:08] SPEAKER_00: So we reflect a note on the West.
[32:11] SPEAKER_00: And how is it the penetration there is higher?
[32:13] SPEAKER_00: And how is it that they appreciate insurance more than we do?
[32:16] SPEAKER_00: It has a lot to do with growing up, what we learned in school.
[32:20] SPEAKER_00: How are we socialized?
[32:21] SPEAKER_00: Is insurance part of our community and national public?
[32:25] SPEAKER_00: In those advanced societies, saving is a culture.
[32:28] SPEAKER_00: Insurance is a culture.
[32:30] SPEAKER_00: They've accepted that risk is something you must manage.
[32:32] SPEAKER_00: Maybe not as much for us.
[32:35] SPEAKER_00: For us is that direction.
[32:37] SPEAKER_00: We have work that we must do to increase awareness.
[32:40] But specific to your question about sitting down with a
[32:43] financial advisor,
[32:44] SPEAKER_00: I would say critical.
[32:45] You need to sit down with somebody who understands how
[32:48] insurance management works
[32:50] SPEAKER_00: and go through what we call a needs analysis.
[32:53] SPEAKER_00: What is it that you want to do?
[32:54] SPEAKER_00: Because again,
[32:55] part of what has contributed to this misconception that makes
[32:59] people avoid us who
[33:00] SPEAKER_00: provide these solutions like they play is because maybe in the past,
[33:04] there has been an approach that has been a one size fits all
[33:07] kind of approach.
[33:08] SPEAKER_00: It's a straight jacket.
[33:10] SPEAKER_00: This solution treats everything.
[33:11] SPEAKER_00: It's like giving panadone every ailment.
[33:14] SPEAKER_00: You say your head is aching, panadone.
[33:16] SPEAKER_00: And my stomach is aching, panadone.
[33:18] SPEAKER_00: I don't feel well, it's going to be panadone.
[33:21] SPEAKER_00: That's how maybe it has been in the past.
[33:23] What you're saying now is you need to provide the time to sit
[33:26] down with a financial
[33:27] SPEAKER_00: advisor who will help you walk through what your goals are,
[33:31] SPEAKER_00: what your aspirations are,
[33:33] SPEAKER_00: what your leads are.
[33:34] SPEAKER_00: And note that I start from the lead point.
[33:37] SPEAKER_00: Note what conditions are available in the market.
[33:40] SPEAKER_00: It is what Kanyugi needs now.
[33:43] SPEAKER_00: Where is Kanyugi at in the stages of his life?
[33:45] SPEAKER_00: What are Kanyugi's aspirations?
[33:48] SPEAKER_00: What does he want to do?
[33:49] SPEAKER_00: What can he consider based on the amount of money he has?
[33:53] That would help him achieve those aspirations,
[33:56] whether or not he's on planet Earth.
[33:59] SPEAKER_00: Based on that discussion,
[34:01] SPEAKER_00: then you suckle back and say,
[34:03] SPEAKER_00: okay,
[34:03] then what is it that we have available that would help me get
[34:07] to where I want to go?
[34:08] SPEAKER_00: Financial advisors are critical to this conversation.
[34:12] SPEAKER_00: And so I would encourage all of us who are on this call,
[34:14] SPEAKER_00: when that financial advisor calls you up and says,
[34:16] SPEAKER_00: could we have a discussion?
[34:18] But also have your space and say,
[34:20] what we need to do is have a need analysis discussion first.
[34:24] And then I can identify how these solutions fit into what my
[34:29] life needs are.
[34:30] Patrick,
[34:31] maybe tell us a bit,
[34:32] what's the intersection between life insurance and pensions?
[34:35] SPEAKER_01: What are your observations around this space with Kenyan habits?
[34:39] What are the unique Kenyan habits that you observed,
[34:41] which you would like to address?
[34:43] SPEAKER_02: One of the unique habits of Kenyans is that,
[34:47] SPEAKER_02: unfortunately,
[34:48] SPEAKER_02: our saving culture is not very good.
[34:51] And so you find in life policies and also in the pension
[34:56] solutions that we have,
[34:57] SPEAKER_02: we don't have very many people who start individual retirement schemes.
[35:03] SPEAKER_02: Actually,
[35:03] SPEAKER_02: from where we sit in terms of individual retirement scheme,
[35:08] we've seen that majority of the people who are saving their
[35:14] money are people who
[35:15] SPEAKER_02: were in the schemes,
[35:17] but they left and maybe joined another employer or
[35:22] self-employment and there's
[35:23] SPEAKER_02: money that they couldn't access.
[35:25] SPEAKER_02: So the money they transferred to the individual retirement scheme,
[35:29] that is the amount that will continue earning interest until
[35:33] the time they will be
[35:35] SPEAKER_02: paid that money at retirement.
[35:37] SPEAKER_02: However, there are few other people who are saving for their retirement.
[35:42] We wouldn't want to say it's everybody who only transfers to
[35:45] access that money when
[35:47] SPEAKER_02: they are allowed by the laws to access the amount.
[35:50] SPEAKER_02: There are still people who are saving for their retirement.
[35:54] SPEAKER_02: And at individual capacity, it is possible to save.
[35:58] SPEAKER_02: And even for the NSSF,
[36:00] we have seen that the NSF is also talking to the public that it
[36:06] is good to save for retirement.
[36:09] SPEAKER_02: If you come to the pension space,
[36:12] what we are saying is that many employers have
[36:16] employer-sponsored schemes.
[36:18] SPEAKER_02: And those employer-sponsored schemes are voluntary.
[36:21] SPEAKER_02: You may find that an employer does not have a scheme,
[36:25] SPEAKER_02: but the employees themselves,
[36:26] SPEAKER_02: they would want to save for retirement.
[36:29] SPEAKER_02: In such cases,
[36:30] we have solution for them because what we would be saying is
[36:35] this employer would be
[36:36] facilitating the deduction because they are also the tax
[36:40] incentives that are given
[36:41] SPEAKER_02: by the regulator.
[36:43] SPEAKER_02: And these incentives are right.
[36:45] SPEAKER_02: If you're contributing to a retirement scheme,
[36:48] SPEAKER_02: there is a tax deductible amount up to $20,000,
[36:50] basically telling you that any contribution to a retirement
[36:54] scheme up to $20,000,
[36:57] SPEAKER_02: that money is not taxed at all.
[37:00] SPEAKER_02: So that money,
[37:00] SPEAKER_02: when it comes to university and also the interest that is added,
[37:04] SPEAKER_02: is also not taxed.
[37:05] SPEAKER_02: Now, also when you go to the individual life, there is similarity.
[37:09] There is also the tax incentive given for people saving for
[37:13] their life policies up
[37:15] SPEAKER_02: to $60,000 every year.
[37:17] SPEAKER_02: So basically that is $5,000 every month.
[37:20] And the government is giving those incentives to the members of
[37:25] the public to help
[37:26] SPEAKER_02: them save money.
[37:28] SPEAKER_02: whether in the retirement scheme or in the life policies.
[37:31] SPEAKER_02: But unfortunately,
[37:32] SPEAKER_02: as I mentioned earlier,
[37:34] either the public awareness or we have not educated many people
[37:39] about these
[37:40] SPEAKER_02: incentives and we need to do that.
[37:42] SPEAKER_02: And we have tried with the regulator IRA and RBA.
[37:47] I'm sure you have heard of the open days where we invite
[37:51] members of the public
[37:53] come and get information about the retirement schemes and also
[37:57] the life policies.
[37:59] SPEAKER_02: So I would say that there is a lot of education that needs to be done.
[38:03] SPEAKER_02: Tax incentives are there.
[38:05] We have seen also people getting a lot of information from the
[38:09] financial advisors who,
[38:12] SPEAKER_02: as Kanige has said,
[38:13] SPEAKER_02: they actually would want to discuss with us our needs.
[38:17] SPEAKER_02: They would also want to appreciate
[38:19] SPEAKER_02: Where are we in our life journey?
[38:20] SPEAKER_02: So that we can guide you on the solutions that are there.
[38:24] So that helps us to develop what I've been saying,
[38:27] the saving culture at early stages.
[38:30] SPEAKER_02: So that aspiration that Kanyige has talked about, we are able to
[38:34] SPEAKER_02: to meet that goal.
[38:36] SPEAKER_02: And at retirement, we all want to live a comfortable life.
[38:39] SPEAKER_02: And in the unfortunate event of death,
[38:43] then our family members will have some money that will take
[38:48] care of our children,
[38:50] SPEAKER_02: education,
[38:51] SPEAKER_02: and they can also take care of other needs in the family.
[38:55] SPEAKER_02: So I would say that the life policies and retirement solutions,
[39:00] SPEAKER_02: they give you the protection,
[39:02] SPEAKER_02: they give you the savings.
[39:04] SPEAKER_02: And of course, this money is invested.
[39:07] SPEAKER_02: So if you give us the money, whether in pension,
[39:10] SPEAKER_02: or in the life policies,
[39:12] SPEAKER_02: Kanige has talked about the endowment plans,
[39:14] you would expect that money is being invested prudently so that
[39:18] by the time we are
[39:20] SPEAKER_02: paying you,
[39:20] SPEAKER_02: if it's a life policy,
[39:21] SPEAKER_02: the sum are sure,
[39:23] you will actually see that the amount that you have accumulated
[39:27] for that long
[39:27] SPEAKER_02: period of time
[39:29] SPEAKER_02: It was the investment.
[39:30] SPEAKER_02: And the same applies to pension.
[39:32] The money that you give us at the accumulation state when you
[39:35] are working,
[39:36] SPEAKER_02: that money we invested very well prudently.
[39:39] According to regulations that are there,
[39:41] we do not put this money in pyramid schemes.
[39:44] SPEAKER_02: We have investment guidelines that we adhere to.
[39:47] And so by the time we are giving you your statement to show how
[39:51] much you have accumulated,
[39:53] SPEAKER_02: the interest that you have had or the money,
[39:56] you'll find that it's decent interest and you've accumulated a
[39:59] lot of money.
[40:00] And if you look at the insurance companies,
[40:04] they even guarantee a rate of return.
[40:07] In the worst case scenario,
[40:08] like we saw that the interest rates were quite high.
[40:12] SPEAKER_02: We also saw the equity, the stock performing poorly.
[40:16] SPEAKER_02: And some of the situations that were there in the country,
[40:20] SPEAKER_02: they could even make somebody earn an interest,
[40:24] SPEAKER_02: which is quite low.
[40:25] SPEAKER_02: Or even have a situation where if you had invested in equity,
[40:30] SPEAKER_02: you find that your money has been eroded.
[40:32] SPEAKER_02: But when you come to the insurance industry,
[40:35] SPEAKER_02: we guarantee a rate of return,
[40:37] SPEAKER_02: even for the retirement scheme funds that we are investing.
[40:41] SPEAKER_02: So you'll find that at no one time your money is static.
[40:47] SPEAKER_02: You'll find it's growing and we...
[40:49] SPEAKER_02: also guarantee the capital, which we say is the contribution.
[40:53] So basically to tell you that anybody who is investing their
[40:56] money in the insurance companies,
[40:58] insurance companies are investing the money prudently to make
[41:02] sure that the
[41:03] SPEAKER_02: policyholders or the members of the scheme get value for their money.
[41:07] SPEAKER_01: We have a few more minutes to go.
[41:09] SPEAKER_01: Lots of questions coming in.
[41:10] SPEAKER_01: I want to ask one to Kanyinge.
[41:13] SPEAKER_01: I think it's a common issue that people have in terms of settlements.
[41:17] SPEAKER_01: I see a couple of questions even on someone asking,
[41:19] SPEAKER_01: are life insurance claims successfully settled in Kenya?
[41:22] SPEAKER_01: So someone is very eager to know their thoughts here.
[41:25] SPEAKER_01: Can you speak to that?
[41:27] Because it's a real worry among many Kenyans that insurance
[41:29] companies are hesitant
[41:30] SPEAKER_01: to pay up on claims.
[41:32] SPEAKER_01: Could you address a specific concern from people looking to invest?
[41:36] SPEAKER_00: Happy to.
[41:37] SPEAKER_00: I think a good point for us to start as when we're looking at that,
[41:40] SPEAKER_00: when we're considering the question from the audience,
[41:42] SPEAKER_00: is to think about basics of the insurance policy.
[41:46] SPEAKER_00: So at the end of the day,
[41:48] SPEAKER_00: We need to keep in mind that this is a contract.
[41:51] SPEAKER_00: There are terms and conditions based on both real contract,
[41:54] SPEAKER_00: the policyholder and the insurance company.
[41:57] A key and material basis of one insurance plan is what is
[42:01] called most good faith.
[42:03] That we get into a contract with the policyholder to play a
[42:06] certain amount of
[42:07] SPEAKER_00: information as being true.
[42:09] SPEAKER_00: And the underwriter taking that information as stated.
[42:13] SPEAKER_00: by the policyholder.
[42:14] SPEAKER_00: And based on what information is shared,
[42:16] SPEAKER_00: then a contract is crafted,
[42:18] SPEAKER_00: terms are agreed,
[42:19] SPEAKER_00: a consideration is given,
[42:20] SPEAKER_00: which is the payment,
[42:22] SPEAKER_00: and the policy comes into effect.
[42:24] SPEAKER_00: So in terms of whether insurance pays out, I can say 100% does.
[42:30] SPEAKER_00: There will be conditions on when insurance can be paid out.
[42:33] SPEAKER_00: Those conditions must be met,
[42:35] and this must have been discussed based on the documents that
[42:37] were shared at the
[42:39] SPEAKER_00: beginning of the contract.
[42:41] SPEAKER_00: And insurance works.
[42:42] SPEAKER_00: I think I saw a reference there asking after success stories.
[42:45] SPEAKER_00: So when you think about taking an insurance plan on your life,
[42:50] maybe because you are thinking about what happens to the
[42:53] education of your kids and
[42:55] compare this to savings that you're putting aside somewhere in
[42:58] your bank account.
[42:59] By the way,
[42:59] remember,
[43:00] we offer the life insurance solution as a part of your planning.
[43:05] SPEAKER_00: We don't come out and say,
[43:06] SPEAKER_00: that insurance is the silver bullet.
[43:09] SPEAKER_00: I'd say it's a very important part of your toolbox.
[43:13] Insurance must be there as part of the other things that you're
[43:16] doing in terms of
[43:17] SPEAKER_00: planning your investments.
[43:18] SPEAKER_00: So talking about education, kids, if I'm sitting in the bank,
[43:22] for example,
[43:23] I want my kids to go to a certain high school or to go to a
[43:25] certain university.
[43:27] SPEAKER_00: If I was doing that,
[43:28] the only growth I should expect from my savings is what the
[43:33] bank declares as
[43:34] SPEAKER_00: interest on the money I've finished then.
[43:36] SPEAKER_00: If something happens to me, that savings stops immediately.
[43:40] SPEAKER_00: I'm gone.
[43:41] SPEAKER_00: I'm not putting anything in the bank.
[43:43] But when we talk about insurance plan and the solutions that
[43:45] we're talking about here,
[43:47] SPEAKER_00: the fact is that there is that amount of money,
[43:50] the assured amount of money that was paid out in the event that
[43:54] I parcel and that
[43:55] SPEAKER_00: money can be used to protect my family.
[43:58] SPEAKER_00: Remember, we talked about income protection.
[44:00] SPEAKER_00: We talked about wealth preservation.
[44:02] SPEAKER_00: We talked about estate planning.
[44:04] SPEAKER_00: So do insurance policies get paid when they mature?
[44:07] SPEAKER_00: Yes, they do.
[44:08] SPEAKER_00: Are companies in this industry doing so?
[44:11] SPEAKER_00: Yes,
[44:11] SPEAKER_00: we do,
[44:12] SPEAKER_00: including at Juvedil Life Insurance,
[44:14] SPEAKER_00: because that's what we do,
[44:15] SPEAKER_00: providing insurance and investment solutions.
[44:18] SPEAKER_00: So I'd like to give the confidence on this call today.
[44:21] SPEAKER_00: That yes,
[44:21] SPEAKER_00: when you get into that agreement,
[44:23] there will be terms and conditions when those are met and if
[44:26] they are met based on
[44:28] SPEAKER_00: the frequency of payment.
[44:30] SPEAKER_00: Remember, it's a contract.
[44:31] SPEAKER_00: So the insurance company says we will do X if you do Y.
[44:35] SPEAKER_00: If the Y is done and you're making the payment,
[44:37] SPEAKER_00: there's no reason why.
[44:38] SPEAKER_00: You may be paid and paid.
[44:41] SPEAKER_01: I see Catherine has something to say.
[44:42] I just also wanted to inform the listeners that insurance
[44:48] companies also are
[44:50] SPEAKER_02: willing to listen to every policyholder.
[44:53] If you would want to talk to any insurance company directly,
[44:57] always call them.
[44:58] SPEAKER_02: I'm sure all the insurance company gives the contact.
[45:01] SPEAKER_02: Reach out to us.
[45:02] We should be able to assist you or support you on an inquiry
[45:06] that you have,
[45:07] SPEAKER_02: particularly on the contractual clauses.
[45:11] SPEAKER_02: And let me also urge us to read the contracts.
[45:16] SPEAKER_02: Many people say that our contracts are in small print.
[45:20] We've tried as much as possible,
[45:23] the whole industry,
[45:24] to also give fact sheets.
[45:26] SPEAKER_02: Get the vaccine, understand the product.
[45:29] SPEAKER_02: And in case you would want us to clarify further, always call us.
[45:34] SPEAKER_02: And as Kanige has said, insurance works, we pay the claims.
[45:38] SPEAKER_02: And I would also want to say we are also in an irregularity space.
[45:42] SPEAKER_02: IRA, Insurance Regulatory Authority, is also...
[45:46] ensuring that all the insurance company is adhering to what we
[45:50] are expected to do.
[45:51] SPEAKER_02: In fact,
[45:52] SPEAKER_02: in terms of treating our customers fairly,
[45:55] SPEAKER_02: all of us in the insurance industry,
[45:57] SPEAKER_02: we are ensuring that we are treating the customers fairly.
[46:00] SPEAKER_02: And also from the RBA side,
[46:03] you can always reach out to even RBA or IRA in case you have
[46:08] any complaints.
[46:08] SPEAKER_02: So
[46:09] SPEAKER_02: I would say that insurance work,
[46:10] SPEAKER_02: but should there be any clarification that is required,
[46:14] SPEAKER_02: feel free to reach out to any insurance company.
[46:17] SPEAKER_02: We are willing to listen to all of you.
[46:19] Catherine,
[46:20] maybe you can tell people what RBA and IRA are,
[46:23] just to make sure they understand.
[46:25] SPEAKER_02: For insurance company or the other writers in Kenya,
[46:29] SPEAKER_02: they are regulated by insurance regulatory authority,
[46:34] SPEAKER_02: that is IRA.
[46:35] SPEAKER_02: For pension business,
[46:37] SPEAKER_02: that is the savings into the retirement schemes,
[46:40] SPEAKER_02: we are regulated by retirement benefit authority,
[46:44] SPEAKER_02: that is RBA.
[46:45] SPEAKER_02: Those are regulators who are willing also to listen to you.
[46:48] I'm sure you have also seen the advertisement or announcement
[46:52] that they make
[46:53] SPEAKER_02: through the social media or even print media or even the television.
[46:58] SPEAKER_02: So those are the regulators for our industry.
[47:02] SPEAKER_01: And back to you,
[47:03] SPEAKER_01: Catherine,
[47:03] I think one question that I want you to address specifically is
[47:07] the issue of life
[47:07] SPEAKER_01: insurance seemingly being expensive to a lot of people.
[47:11] SPEAKER_01: For someone with different budgets here,
[47:13] do you have different solutions for this and how much does
[47:16] someone actually need to
[47:17] SPEAKER_01: get started?
[47:18] SPEAKER_01: And then finally,
[47:19] SPEAKER_01: from a friend of mine here,
[47:20] SPEAKER_01: she's asking for people with inconsistent income,
[47:23] SPEAKER_01: what's the solution that you provide for that?
[47:26] SPEAKER_02: Is insurance expensive?
[47:28] SPEAKER_02: I would say no.
[47:30] SPEAKER_02: Why?
[47:30] SPEAKER_02: It's a misconception that life insurance is for the wealthy people.
[47:34] And we find most people shying away from requesting the
[47:39] advisors to give them the
[47:40] SPEAKER_02: solutions that would take care of their needs.
[47:43] SPEAKER_02: First,
[47:43] SPEAKER_02: I would say that as Tanyinge has informed us,
[47:46] SPEAKER_02: we need to listen to the advisors because when you sit with an advisor,
[47:51] SPEAKER_02: they will listen to you.
[47:52] SPEAKER_02: They understand your need.
[47:53] SPEAKER_02: They understand at what stage are you in.
[47:56] SPEAKER_02: your life journey.
[47:57] SPEAKER_02: And that will also help them to understand how much can you afford.
[48:03] SPEAKER_02: So if you can afford for argument,
[48:06] SPEAKER_02: say,
[48:06] SPEAKER_02: let's say even 5,000,
[48:07] SPEAKER_02: 2,000,
[48:07] SPEAKER_02: there are solutions that are there in the market.
[48:12] And therefore,
[48:12] I would say insurance products are made to suit the need for
[48:19] our customer.
[48:20] SPEAKER_02: And everybody has the aspiration.
[48:23] SPEAKER_02: And for all of us,
[48:24] it is important that we get to engage the financial advisors to
[48:31] give us the
[48:32] SPEAKER_02: solution that suit our need.
[48:34] The other question that I would also want to address is that
[48:39] most of the people
[48:41] SPEAKER_02: would imagine that,
[48:43] SPEAKER_02: and maybe you had talked about it,
[48:45] or shy away from saving and imagine that our children will take
[48:50] care of us at old age.
[48:52] SPEAKER_02: Okay, it works.
[48:53] SPEAKER_02: It was an insurance for those years.
[48:55] SPEAKER_02: For our parents, they invested a lot on us.
[48:58] SPEAKER_02: But truth be told, we want to have financial security at old age.
[49:03] SPEAKER_02: We do not want to be poor at old age.
[49:06] SPEAKER_02: We want also to tell people that yes,
[49:09] insurance is here to give you financial security at old age so
[49:14] that you do not
[49:15] SPEAKER_02: depend on your children.
[49:18] SPEAKER_02: And as it is right now,
[49:20] SPEAKER_02: we have had,
[49:21] SPEAKER_02: it's not an issue that we are having in Kenya alone,
[49:23] SPEAKER_02: even in the US,
[49:24] SPEAKER_02: unemployment rate is also going up.
[49:27] SPEAKER_02: So you would be sure that even your children
[49:30] SPEAKER_02: are working hard to get their life comfortable.
[49:34] SPEAKER_02: So it is good for us to maybe what Jubilee says,
[49:39] we make sure that we have addressed our old age life today by
[49:44] saving towards
[49:46] SPEAKER_02: whatever we want,
[49:47] SPEAKER_02: whether it's a retirement plan or whatever goal we have in life.
[49:50] SPEAKER_01: Does Tanying have anything to add here?
[49:52] SPEAKER_00: I like what Katmina said, that we can have a sit-down.
[49:55] SPEAKER_00: And that's why we invite discussions with our financial advisors,
[49:58] SPEAKER_00: that a discussion is held so that it's not one size fits all,
[50:01] SPEAKER_00: depending on where someone is.
[50:03] SPEAKER_00: There's no amount that is too little.
[50:05] SPEAKER_00: For whatever amount you have,
[50:07] we have policies where you can start even as little as 2,000
[50:09] shillings a month.
[50:11] SPEAKER_00: And we've even crafted products.
[50:13] We have one that we just crafted there that is called Fidelit
[50:15] that allows for what
[50:16] is called landlamps that you save in the amounts in a monthly
[50:21] or 30 half annually
[50:22] SPEAKER_00: or single premium.
[50:23] SPEAKER_00: But as and when you get it, you can always continue totalling up.
[50:27] SPEAKER_00: I don't think we can quantify risk as either cheap or expensive.
[50:31] SPEAKER_00: The insurance is not expensive.
[50:32] You can be met where you are based on your needs and that can
[50:35] be discussed
[50:36] SPEAKER_00: depending on what it is your aspirations are.
[50:38] SPEAKER_00: Allow me to also chip in quickly and say as an industry,
[50:41] SPEAKER_00: we are very keen to go for appropriateness.
[50:45] And you mentioned you and the fact that other people are saying
[50:48] that these products
[50:49] SPEAKER_00: do not fit what it is we want to do.
[50:51] We want to give you the confidence that we are very keen to
[50:54] make sure that we have
[50:55] SPEAKER_00: appropriate products that fit into the age group,
[50:58] SPEAKER_00: the demographic,
[51:00] SPEAKER_00: the need of everyone that we interrupted.
[51:02] SPEAKER_00: So yes,
[51:02] SPEAKER_00: financial advisor sits down with you,
[51:04] SPEAKER_00: takes you through what planning looks like,
[51:07] SPEAKER_00: personal financial planning.
[51:08] SPEAKER_00: And we are very good at that at Jubilee Insurance.
[51:11] And once you've got through the personal financial planning
[51:14] methods and modes,
[51:15] SPEAKER_00: then you can identify and say,
[51:17] SPEAKER_00: ah,
[51:17] I think I can set aside 2,000 shillings or 5,000 shillings or
[51:20] 10,000 shillings.
[51:21] SPEAKER_00: Then they've got what your ability is.
[51:23] SPEAKER_00: And as your ability increases,
[51:26] then you can consider more and more sort of issues that would
[51:29] help you cover you or
[51:30] SPEAKER_00: your growing aspirations and growing goals.
[51:33] SPEAKER_00: Thanks.
[51:33] SPEAKER_01: Someone is asking,
[51:34] SPEAKER_01: Catherine,
[51:35] SPEAKER_01: perhaps,
[51:35] SPEAKER_01: can you guide us on how we can go about insuring our parents?
[51:40] SPEAKER_01: So I think I nearly talked about the earlier the better,
[51:42] but sometimes maybe perhaps parents are realizing a bit later
[51:45] they do need that
[51:46] SPEAKER_01: life insurance bit.
[51:48] SPEAKER_01: Are the premiums higher or how should they go thinking about that?
[51:52] So I would say that insurance product in most cases will start
[51:58] as early as age 18
[52:01] SPEAKER_02: and they'll go up age 80.
[52:04] Kanyige has talked about Faida Elite,
[52:06] one of our products that we launched the other day.
[52:09] SPEAKER_02: So we've talked about a life journey.
[52:13] SPEAKER_02: I could be young.
[52:14] SPEAKER_02: I'm starting saving at this point in time.
[52:16] SPEAKER_02: There are those of us who are at vast image.
[52:18] SPEAKER_02: There are solutions for all of us.
[52:20] SPEAKER_02: So if you would want to save even for your parents, please talk to us.
[52:25] SPEAKER_02: There are products that are there.
[52:27] SPEAKER_02: We are talking about protection.
[52:28] SPEAKER_02: We are talking about disquieting even your family members an asset.
[52:34] And you consider insurance one of the best assets that you can
[52:38] with even your children.
[52:39] SPEAKER_02: So there are products that are there.
[52:41] SPEAKER_02: And also remember that even as we are speaking about insurance,
[52:46] we also have group life covers which our employees have for us
[52:52] as an employee's benefit.
[52:53] SPEAKER_02: And in most cases,
[52:55] we have extended some of the riders or some of those benefits
[53:00] that are very
[53:01] SPEAKER_02: attractive that we also even cover partnership.
[53:05] SPEAKER_02: So some of these products that are there in the market,
[53:08] SPEAKER_02: when you talk to us,
[53:09] SPEAKER_02: we should be able to guide you.
[53:11] SPEAKER_02: There are life policies that cover even people who are past age 60.
[53:15] Even after retirement,
[53:17] you would still have an investment cover or investment policy.
[53:22] If you want to have a last expense cover as a group,
[53:26] a registered group,
[53:27] talk to us.
[53:28] SPEAKER_02: We should be able to cover the members of the group.
[53:31] SPEAKER_02: We can extend it even to the parents-in-laws.
[53:34] SPEAKER_02: So we are considerate as insurance industry.
[53:37] SPEAKER_02: We know that we love even our parents and we have solutions for them.
[53:42] SPEAKER_01: Kanyingi,
[53:42] perhaps you can share some examples that you've come across of
[53:46] people who have
[53:46] successfully been handled in the life insurance business as
[53:49] they come to you for advice.
[53:51] SPEAKER_01: There are specific examples that you can share.
[53:54] You don't have to name names,
[53:55] but you can give us a few stories here and there.
[53:58] SPEAKER_01: Maybe Catherine, you too.
[54:00] SPEAKER_00: Yeah, I can share just a summary.
[54:02] Being in the life insurance space,
[54:04] death is something that we deal with on a daily basis.
[54:07] SPEAKER_00: Like we said when we started,
[54:09] SPEAKER_00: It's an inevitability.
[54:11] SPEAKER_00: All of us must face it.
[54:12] SPEAKER_00: But the challenge is we never know when.
[54:15] SPEAKER_00: And we know it's almost an oxymoron.
[54:17] SPEAKER_00: You're talking about planning and you're talking about uncertainty.
[54:21] SPEAKER_00: So planning has timeline, has definition of when things will be done.
[54:26] Death has an uncertainty to it because it can,
[54:29] if you like,
[54:30] talk this plan.
[54:31] SPEAKER_00: at any one moment.
[54:33] SPEAKER_00: As an insurance company,
[54:34] SPEAKER_00: we're doing payments all the time to families that have lost loved ones.
[54:38] So you have the plans for your family and you have children's
[54:40] school and then death strikes.
[54:43] SPEAKER_00: Those things that we deal with on a daily basis,
[54:45] we are able to pay out and cover those families for their
[54:48] education and whatever
[54:49] SPEAKER_00: else they need to keep continuity going on in the family.
[54:52] SPEAKER_00: We also are able to pay out, like we said, on goals that people have.
[54:56] SPEAKER_00: So people have been 75 years, 10 years and such.
[54:59] And you can go online and look at the testimonials that we have
[55:02] there of people we've paid out.
[55:04] SPEAKER_00: So that somebody comes back and says, I had this goal in my mind.
[55:07] SPEAKER_00: I wanted to buy a piece of land in the house.
[55:10] SPEAKER_00: I saved over time.
[55:11] SPEAKER_00: I was paid.
[55:12] SPEAKER_00: And therefore here.
[55:14] SPEAKER_00: I've been able to achieve my goal.
[55:15] So again,
[55:16] of course,
[55:16] we can't get into details,
[55:17] but this is something we do on a daily basis.
[55:19] Paying out when death comes and also being able to pay out and
[55:23] help people who have
[55:24] SPEAKER_00: achieved that time that they were chasing.
[55:26] SPEAKER_00: The company talked about some of the riders,
[55:29] SPEAKER_00: additional benefits that come with the plans,
[55:31] SPEAKER_00: even on the group side,
[55:32] SPEAKER_00: group life side of our business.
[55:34] SPEAKER_00: So when you have a permanent disability,
[55:37] SPEAKER_00: when you have issues to do with critical illness and so on,
[55:40] SPEAKER_00: we also make those payments out.
[55:42] SPEAKER_00: So it's not just about that.
[55:43] It's about how we also give you a good quality of life when you
[55:46] have an event that
[55:48] SPEAKER_00: is not dead,
[55:48] SPEAKER_00: but that can be communicated to your ability to live,
[55:52] SPEAKER_00: your ability to work,
[55:53] SPEAKER_00: and your ability to support your family.
[55:56] SPEAKER_00: We have also made those payments out.
[55:58] SPEAKER_00: And like I said, it's our bread and butter.
[55:59] SPEAKER_00: It's something we do on a daily basis.
[56:01] SPEAKER_01: Someone is asking how the sum assured is usually calculated.
[56:05] SPEAKER_01: And this person specifically has a curve of around 600,000.
[56:08] Given that bonuses are calculated and controlled by the
[56:10] insurance company,
[56:12] SPEAKER_01: how can we justify this type of investment if we see through the policy?
[56:16] SPEAKER_01: So the sum assures calculations around there.
[56:19] SPEAKER_01: Either Kanyingi or Catherine,
[56:21] SPEAKER_01: if you have a response to that specific question from the listener.
[56:24] SPEAKER_02: So let me bounce it to Kanyingi.
[56:26] SPEAKER_00: Yeah.
[56:26] So talking about how the sum assured is calculated and I'll
[56:30] come at it from two months.
[56:32] SPEAKER_00: So I know that.
[56:33] SPEAKER_00: How do you decide what sum assured you want to go for?
[56:36] SPEAKER_00: That can be based on an estimation of your financial needs.
[56:39] SPEAKER_00: So what is this that I want to be the payout in case of an event?
[56:44] SPEAKER_00: What is it I want to cover myself?
[56:46] SPEAKER_00: So in terms of is it a replacement for income?
[56:49] SPEAKER_00: Is it a debt repayment?
[56:51] Is it a future expense that I'm looking to incur that I want to
[56:54] cover for?
[56:55] Accounting also for inflation in terms of how that could erode
[57:00] to what it is I'm saving.
[57:01] SPEAKER_00: That then quantifies what you want to point out to and say,
[57:05] SPEAKER_00: I'd make to cover myself for this summer show.
[57:07] SPEAKER_00: That is the Kisselman event.
[57:08] SPEAKER_00: This is what would come out to me.
[57:10] SPEAKER_00: Reflecting on how insurance companies would approach that.
[57:13] SPEAKER_00: So, part thing.
[57:14] SPEAKER_00: When you talk about some assured,
[57:16] it would be an approximation of what is the likely outcome
[57:19] based on the performance
[57:21] SPEAKER_00: of the markets.
[57:22] So when we talk about how insurance companies calculate that,
[57:25] it's quite a complex discussion.
[57:28] SPEAKER_00: But referring to how that question has been played,
[57:30] SPEAKER_00: if you allow me,
[57:31] I sense that they are saying that they could end up coming out
[57:36] with less money than
[57:37] SPEAKER_00: what they picked in.
[57:39] So asking how the sum assured was calculated would be based on
[57:43] how did that policy
[57:44] SPEAKER_00: perform so that by the time they come for the payout,
[57:46] SPEAKER_00: they feel that their investment was worth it,
[57:49] SPEAKER_00: so to speak.
[57:49] And specifically that we as an industry are looking at ensuring
[57:54] that the products
[57:55] SPEAKER_00: we are putting out,
[57:55] SPEAKER_00: the solutions we are putting out,
[57:57] redesigned such that we don't have the kind of situation that
[58:01] this listener has so
[58:02] SPEAKER_00: that we can provide solutions that allow for humanity to grow
[58:07] and taking into account isolation or whatever other factors to
[58:11] the extent that when
[58:12] SPEAKER_00: that time comes and you are required to get your payout,
[58:15] SPEAKER_00: it is an investment you are happy to have gotten into.
[58:18] SPEAKER_00: So amounts that are much, much higher than what you put in.
[58:21] And I will refer again to what we mentioned earlier about how
[58:24] we designed this
[58:26] SPEAKER_00: product that we're calling FIDA Elite,
[58:27] ensuring that we are assigning a smaller amount to the risk
[58:32] covering the life for debt.
[58:33] but pumping in most of the premiums that are paid into
[58:36] investments in high yield India.
[58:39] SPEAKER_00: So that then when that then comes,
[58:40] SPEAKER_00: we are paying out in the range of 10,
[58:42] SPEAKER_00: 12,
[58:44] SPEAKER_00: 13,
[58:44] 14% of what it is that has been put in Parnam.
[58:47] SPEAKER_01: Just a quick question,
[58:48] SPEAKER_01: maybe as we close,
[58:49] SPEAKER_01: you can talk about life insurance as an option,
[58:52] SPEAKER_01: a retirement investment vehicle,
[58:54] SPEAKER_01: say in terms of long-term wealth creation.
[58:57] SPEAKER_01: Can you speak to that as you answered the previous question?
[59:00] SPEAKER_00: So as a long-term investment vehicle,
[59:02] SPEAKER_00: and in terms of the products that we have,
[59:04] SPEAKER_00: two terms there.
[59:05] So the question that is normally put out to us is,
[59:07] how does this compare to the money market?
[59:09] SPEAKER_00: parts, how does this cock bear to be going and buying bones directly?
[59:12] The easiest answer to that condition is to say those other
[59:16] conditions are good.
[59:17] SPEAKER_00: They are part of you,
[59:18] SPEAKER_00: should be part of your basket,
[59:20] but you want to have a solution in there that also protects
[59:24] your life in the event
[59:25] SPEAKER_00: of the inevitability of death.
[59:27] SPEAKER_00: But talking about long-term in terms of investment,
[59:30] SPEAKER_00: when you look at the whole life policy that we discussed before,
[59:34] SPEAKER_00: If you're looking to be quick in the years to come,
[59:37] SPEAKER_00: you have the opportunity of leaving them a lump sum.
[59:40] If you're looking to grow your money based on the endowments
[59:43] that we have in the market,
[59:45] SPEAKER_00: beginning with the one we mentioned called FIDEND,
[59:47] SPEAKER_00: you can pick a longer time in terms of the term that you want to save.
[59:52] SPEAKER_00: So as opposed to five years, you're looking at 10, 15, 20.
[59:54] SPEAKER_00: It reduces the premiums that you're paying now,
[59:58] SPEAKER_00: but it also allows you to top up as you go along.
[1:00:01] SPEAKER_00: So you begin at where you are with your maids.
[1:00:04] You want to schedule a longer time of savings so that you have
[1:00:08] a better chance at
[1:00:09] SPEAKER_00: compounding your money and getting better returns.
[1:00:12] And then you can grow the amounts of premiums you pay using
[1:00:16] top-ups as you move along.
[1:00:17] SPEAKER_00: So life insurance can be that thing that you use for the short-term,
[1:00:21] SPEAKER_00: the mid-term,
[1:00:22] SPEAKER_00: and the long-term.
[1:00:23] And there will be a solution again in discussion with your
[1:00:25] financial advisor that
[1:00:27] SPEAKER_00: would help you at each of these stages and that you can carry across.
[1:00:31] So you can have multiple solutions that are serving different
[1:00:34] needs at the same time.
[1:00:36] SPEAKER_00: And therefore,
[1:00:37] SPEAKER_00: you can consider that as a way to invest for the short,
[1:00:40] SPEAKER_00: medium and also a long term.
[1:00:43] SPEAKER_01: Thank you.
[1:00:44] Catherine,
[1:00:44] as you give up your closing thoughts,
[1:00:46] where should someone get started today?
[1:00:49] SPEAKER_01: Where can they go and get started in life insurance?
[1:00:52] SPEAKER_02: All of us in our lives, we want peace of mind.
[1:00:55] SPEAKER_02: And that's why in Jubilee, we say we want our clients to live free.
[1:01:01] SPEAKER_02: And so where do you start?
[1:01:04] You start by inviting us,
[1:01:06] our financial advisor,
[1:01:07] to sit down with you to discuss your needs.
[1:01:11] SPEAKER_02: Why do we need to discuss with you?
[1:01:13] SPEAKER_02: Because all of us have a different aspiration.
[1:01:17] SPEAKER_02: Probably today I am thinking of purchasing a house.
[1:01:21] And so I need to accumulate some amount which I'll use to pay a
[1:01:25] certain deposit or
[1:01:26] SPEAKER_02: whatever I want to.
[1:01:28] SPEAKER_02: So mine is first is to...
[1:01:30] propose to all of us that we need to think about insurance as a
[1:01:35] saving investment
[1:01:37] SPEAKER_02: or an arrangement that will help you to save.
[1:01:39] SPEAKER_02: And where you need to start is taking the first step of calling us,
[1:01:44] SPEAKER_02: get to discuss with you the solutions that are there.
[1:01:47] SPEAKER_02: We will tailor make a solution that will suit you.
[1:01:51] SPEAKER_02: And also remember, retirement is very near.
[1:01:55] SPEAKER_02: And so we wouldn't want to ask our children to take care of us.
[1:01:59] We would want to organize our life and plan well so that we
[1:02:03] have that peace of mind
[1:02:05] SPEAKER_02: that we all hope to have at retirement or at any one point in time.
[1:02:09] SPEAKER_02: So that's my closing remark that we need peace of mind.
[1:02:13] And so if that is the case,
[1:02:15] let's start discussing some of these issues that we have discussed.
[1:02:20] SPEAKER_02: And let's not think that insurance is expensive.
[1:02:23] SPEAKER_02: It is not expensive.
[1:02:24] SPEAKER_02: What you have, you can have a solution that will suit you today.
[1:02:28] SPEAKER_02: And let's start saving money.
[1:02:30] SPEAKER_02: It's never too late.
[1:02:31] SPEAKER_02: And even if you're advanced in age, there is still a solution for you.
[1:02:34] SPEAKER_00: Thank you.
[1:02:35] SPEAKER_00: Kanyingis, closing thoughts.
[1:02:36] SPEAKER_00: Just quickly, closing thoughts.
[1:02:38] SPEAKER_00: Listen, people, this applies to all of us.
[1:02:41] Let us be deliberate about doing the things that are within our
[1:02:45] power to do.
[1:02:45] That which we can affect in our lives,
[1:02:48] let us apply our energies towards that.
[1:02:50] SPEAKER_00: But then let us also think about that which is outside of our control.
[1:02:54] SPEAKER_00: So we have aspirations,
[1:02:55] I invite all of us to even reflect after this call on the
[1:02:58] people that we love,
[1:03:00] SPEAKER_00: on the dreams that we have.
[1:03:01] on the places we want to go,
[1:03:03] on where we want our life to go in our 30 years.
[1:03:06] And then let's think about what it is we need to do now to be
[1:03:09] able to cover
[1:03:10] SPEAKER_00: ourselves both for now and for the future.
[1:03:12] SPEAKER_00: So invite us to have moments of introspection and then let's reach out,
[1:03:16] SPEAKER_00: as Kathleen has said,
[1:03:18] SPEAKER_00: and ask those who are experienced
[1:03:20] SPEAKER_00: and especially in this area,
[1:03:21] SPEAKER_00: the financial advisors of the industry,
[1:03:23] SPEAKER_00: to come in and say,
[1:03:25] SPEAKER_00: look,
[1:03:25] SPEAKER_00: can we have a conversation?
[1:03:26] SPEAKER_00: And can you walk me through this journey?
[1:03:28] SPEAKER_00: These are my aspirations.
[1:03:30] SPEAKER_00: How do your solutions line up in helping me with this?
[1:03:33] SPEAKER_00: And out of that, then solutions can be found.
[1:03:35] SPEAKER_00: And also to remember that you are evolving.
[1:03:38] SPEAKER_00: So your need now might not be the need two years from now,
[1:03:41] SPEAKER_00: five years from now,
[1:03:42] SPEAKER_00: 10 years from now.
[1:03:43] SPEAKER_00: And as you walk that journey,
[1:03:45] SPEAKER_00: and that's why we're calling it a journey,
[1:03:46] SPEAKER_00: you need somebody can walk that journey with you.
[1:03:49] SPEAKER_00: And therefore, we are available to do that even as to be in life.
[1:03:53] We are financial advisors who can come to you and have a
[1:03:56] discussion and then help
[1:03:57] SPEAKER_00: you figure out how these solutions fit into your life.
[1:03:59] SPEAKER_00: Thanks.
[1:04:00] SPEAKER_00: Thank you so much.
[1:04:02] SPEAKER_01: Catherine, any closing thoughts?
[1:04:04] SPEAKER_02: Thank you very much for having us.
[1:04:06] SPEAKER_02: I would want to invite the listeners to talk to us in Jubilee.
[1:04:11] SPEAKER_02: We are a stable company,
[1:04:12] SPEAKER_02: a company that has more solutions for the employers,
[1:04:15] SPEAKER_02: for individuals,
[1:04:17] and even for those of us who would want our financial advisors
[1:04:21] to help you.
[1:04:23] SPEAKER_02: navigate the decision-making process.
[1:04:26] SPEAKER_02: Reach out to us.
[1:04:27] SPEAKER_02: We are willing to support you.
[1:04:29] SPEAKER_02: And all of us,
[1:04:30] we should aim to have a peaceful life because we made the right
[1:04:35] choices at the
[1:04:36] SPEAKER_02: right time.
[1:04:37] SPEAKER_02: Thank you very much.
[1:04:38] SPEAKER_01: All right.
[1:04:39] SPEAKER_01: Thank you so much.
[1:04:40] SPEAKER_01: If you want to reach out for more contacts and details,
[1:04:43] SPEAKER_01: do check out the Jubilee Insurance Twitter page.
[1:04:45] SPEAKER_01: You can DM them.
[1:04:47] SPEAKER_01: I think the handle is Jubilee INSKE.
[1:04:51] SPEAKER_01: So Jubilee INSKE.
[1:04:53] SPEAKER_01: You can check out the page.
[1:04:55] SPEAKER_01: So you can be able to get more details.
[1:04:56] SPEAKER_01: Also made aware that if you want free financial advice,
[1:05:00] just SMS the word LIFE to 24464 and a financial advisor will
[1:05:05] reach out to you.
[1:05:06] SPEAKER_01: Once again,
[1:05:06] SPEAKER_01: 24464,
[1:05:07] SMS the word LIFE and then someone will reach out to you to be
[1:05:11] able to get more information.
[1:05:13] SPEAKER_01: Thank you, Kanyingi.
[1:05:13] Thank you,
[1:05:14] Captain,
[1:05:14] for joining us today on this special edition of Wango Spaces
[1:05:17] this Tuesday.
[1:05:18] SPEAKER_01: Our aim was to decode life insurance,
[1:05:20] SPEAKER_01: life insurance 101 introduction,
[1:05:22] just dealing with some of the issues and key terms that you can
[1:05:25] find in this space.
[1:05:27] SPEAKER_01: Our hope is that this will end
[1:05:28] SPEAKER_01: rich conversation,
[1:05:29] especially as you go home for Christmas and holidays and you
[1:05:31] meet your parents and
[1:05:32] family and be able to discuss with them a bit more about life
[1:05:35] insurance and to
[1:05:36] SPEAKER_01: think a bit more long term about the investments and all.
[1:05:38] SPEAKER_01: That's our hope.
[1:05:39] Thank you so much Jubilee Insurance for being the core team
[1:05:43] behind the spaces today.
[1:05:44] SPEAKER_01: We are going to have more spaces in the future with Jubilee Life.
[1:05:48] SPEAKER_01: If you have any questions that you want handled in future discussions,
[1:05:51] don't hesitate to DM us so that you'll be able to take up your
[1:05:54] questions and be
[1:05:55] SPEAKER_01: able to address them in future.
[1:05:56] SPEAKER_01: For now, I wish you a good night.
[1:05:58] Catherine and Kagingi,
[1:05:59] you can say goodbye and then we can close the spaces.
[1:06:03] Thank you very much for having us and thank you listeners for
[1:06:06] joining this space.
[1:06:08] We are glad that you have joined and we trust that you've
[1:06:11] learned something.
[1:06:12] SPEAKER_02: Please reach out to us.
[1:06:14] SPEAKER_02: We are willing to support you in your life journey,
[1:06:17] SPEAKER_02: in whatever area of your life,
[1:06:20] whether insurance or any education that you may want as an
[1:06:24] employer or even as an individual.
[1:06:26] SPEAKER_02: Have a good night.
[1:06:27] SPEAKER_02: Thank you and bye for now.
[1:06:31] SPEAKER_00: Yes.
[1:06:31] SPEAKER_00: So thank you very much for having us here.
[1:06:33] I'm looking forward for more conversations as we move along and
[1:06:36] let's have you
[1:06:37] SPEAKER_00: write in and let's reach out and see how we can assist you.
[1:06:40] SPEAKER_00: Thanks for the time.

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