Interview guide on funeral insurance

1. What is funeral insurance all about?

Funeral insurance is a contract whereby the insurer guarantees to cover the funeral costs
of the insured. Moreover, the policy may also cover related expenses, such as costs of the
wake, burial fees, cremation costs, and grave-digging charges.
A typical funeral insurance requires a policyholder to make monthly premium payments
until they reach a certain age. Premiums may be fixed or could increase every year,
depending on the conditions of the insurance policy. Often, the result is that the insured
pays more than what a persons funeral would have cost.
Because of this, a similar type of product emerged. Known as pre-paid funerals or preneed funeral insurance, this allows a person to pay for the cost of the funeral today and
make small contributions each month until the value is completely paid.
2. What prompted you to start funeral insurance?
Uganda, like any other African community attach a great value to the dead. However, a
great percentage find it hard to offer a decent burial to their departed loved ones.
Therefore funeral insurance came in as a way to ensure their funeral is arranged and paid
for in advance, so the burden isn't left to their families or beneficiaries. It can also be used
by parents to guarantee funeral funding for their children
The loss of a loved one is a difficult and emotional time for family members left behind.
The high costs of arranging a funeral can add financial stress, which is why this Funeral
Plan provides you and your family with peace of mind and financial freedom during these
difficult times.
3. Explain more about the benefits of funeral insurance?
There are a few certain things in life and one of those is death. Reason dictates that to prepare for
it is a prudent thing to do, since it cannot be foreseen nor prevented. Getting funeral insurance is
one way of having that peace of mind, even in death.
Other benefits of being insured are listed below:
Financial security: Funeral insurance does not involve protection against an assumed risk;
rather its purchase is tantamount to paying in advance a service to be rendered in a future time.
This is a great way to wrap up your finances at the end of your life. This is to ensure that your
dependents will somehow be financially stable to the extent of shouldering the funeral costs.
Surely, no one wants to be a burden to their beloved, and this is the least you could leave them
with if you were to have peace of mind.
It is also noteworthy to consider the increasing cost of funerals. The average cost of running a

funeral is more or less six thousand dollars. This huge amount is a big chunk in the budget if
released in lump sum. Funeral insurance allows the cost to be divided and paid in the span of up
to 10 years, making it easier to pay.
Assistance: In this moment of loss, emotions can easily get out of hand. This is why people
going throtgh the loss are badly in need of assistance especially in dealing with the funeral
affairs. There are many aspects in a funeral, and some of them are not realized until the actual
death. This may take the relatives by surprise and no one but experts in the field can handle the
case
well
enough.
Funeral insurance covers services like burial expenses, funeral fees, probate, legal fees, casket
and
tombstones.
Reduced effort: As already pointed out, funeral insurance provides assistance in the
administration of funeral. In effect, it will save the relatives a huge amount of time and effort in
organizing the burial. This is helpful to the people coping with the loss, given that the situation is
already burdensome without the hassle of preparing for a funeral. This will ease up a stressful
atmosphere and will make dealing with the situation easier.
Control and organization: One of the reasons why the insured purchased funeral insurance is to
exercise control over his own funeral. Through funeral insurance, an individual is able to make
known his wishes or preferences with regard to his funeral, perhaps a church in mind or a
favorite theme. People have different preferences, and funeral insurance guarantees just thatwish fulfillment.
However, the emotionally challenged relatives may find it hard to carry out such wishes because
of the emotional trauma of the loss. In this case, a good preparation ought to suffice.
If these are the benefits that you want to enjoy, funeral insurance would be a good investment to
consider. This may be a good option, especially if you have many relatives and dependents.
4. What are some of the features/packages of the insurance?
There are two cover options, a Basic and a Comprehensive option so you can choose the one
most suitable to your needs and financial circumstance. Each option covers a policyholder, one
spouse and a maximum of six children with a choice to add parents and parents in law as well as
extended family members. All valid claims are paid within 48 hours after all the required claim
documents have been submitted. (For detailed explanations, please see the attached brochure)
5. Which is your target group?

As a policyholder you must be older than 18 years and not older than age 65 years. Your
dependants age must be as per below table at the application stage:
Dependant

Age
Not older than 65 years

Children

Not older than 17 years

Parents and Parents in Law

Not older than 75 years

Extended Family

Not older than 65 years

Spouse
You do not have to name the children upfront. All your children will have cover but only the first
six claims will be paid.
There are fve packages that you can choose from;
Bronze,
Silver,
Gold,
Platinum and
Muslim.
The Muslim, Gold and Platinum options include Hospital Bills and Mabugo benefts. These
benefts assist with the memorial service, general funeral expenses and payment of the
hospital bills in the event that the insured person was hospitalised at the time of
passing away.
The Solace Farewell Plan may be taken by an individual or a family (1 spouse and up to 6
children) depending on your needs. Funeral services are provided by Uganda Funeral
Services
(UFS) parlour
6. Who are you partnering with in this?
Liberty Insurance has partnered with Uganda Funeral Services (UFS) parlor
7. Ugandans have not fully embraced insurance and have a negative attitude towards
it. What are you doing to ensure that all Ugandans begin to appreciate insurance?
It is true that Not many Ugandans take insurance cover as a priority, with policy holders
mostly doing it out of statutory obligation or as a job-related benefit.
We have therefore decided to make the packages affordable. And honestly we have tried; for
as low as Shs 1,500 a day, one can get annual cover with limits of up to Shs 30m. After

dealing with the issue of cost, we must sensitise the masses on the benefits of being covered.
People must know where they are putting their money. But when they learn that it is no
longer a luxury to be covered, we shall begin to see the numbers increase.
It is about priorities and [lack of] trust. We are seeing uptake of insurance as being an
advantage to a job. It is more of a benefit to staff. The number of people who walk in
individually to buy cover is still low.
We have moved from having specific packages and now adopted a more styled way of doing
things. We now customise our packages to suit the needs of our clients.
For 30 years, we have employed the best Ugandans to offer care to Ugandans. We have also
increased our footprint and advocated change and reforms in the sector, thereby aiding the
growth of the private sector by fostering healthy competition.
People do not treat it [insurance] as a priority, but if the government aids the public to
appreciate medical insurance, then the people will start treating it as a priority.
8. There is a belief that insurance is for the rich and working Ugandans. How will this
insurance benefit the ordinary Ugandan in the informal sector?
We have endeavored to raise the fact that death is natural and for everyone, whether poor or not.
With health insurance, its all about appreciation. Do you appreciate that health insurance is the
best way of cutting down your cost, saving for unforeseen circumstances or even reducing on the
burden of worrying about what to do when there is a medical emergency? Well, here lies the
answer.
The hurdles have been the ability to combat the minds of the masses on the above mentioned
points. If Ugandans can realise the importance of health insurance the way we view it, then the
major hurdle may just have been skipped.
9. What are your plans for upcountry?
We are aware that a lot of development programs take place in rural areas. For example,
Agriculture is the largest provider of raw materials for the industrial sector and contributes more
than 27 per cent of the GDP with its base in rural areas. We are therefore planning to introduce
Agricultural Insurance Scheme to cushion famers against unforeseen dangers
10. What are the anticipated challenges?
The insurance industry plays a very critical role in the economy of Uganda by militating
against the risks associated with every aspect of life from personal health to business.
However, the total asset base of the Insurance industry in Uganda only accounts for less than

1% of the gross domestic product compared to 3.2% in Kenya and 12% in South Africa.
Considering a population estimate of 34 million, the insurance premium per capita is US$ 3
compared to over US$ 1000 for South Africa and US$ 30 for Kenya.