UAP Old Mutual has signed an agreement with Malipo Circles, a financial management app, to launch a digital last expense cover for informal groups popularly known as Chamas. The cover comes with benefits of between Ksh. 50,000 to Ksh. 500,000 per member, for as low as Ksh. 2,625 and a maximum of Ksh. 26,250 in annual premiums.
Malipo Circles will also allow Chamas to streamline collections, disbursements, loan applications, record keeping and reports management.
To access the last respect benefits through Malipo, Chama members have to pay their premiums individually for the group cover to be activated. Claims must also be channelled through a designated group administrator.
Speaking at the partnership agreement signing, Group Managing Director UAP Old Mutual Life business, Jerim Otieno said, “Chamas are akin to a second family to members. Upon the demise of a member, the groups resort to drawing a portion of their accumulated savings to give the departed member a dignified send-off and support the bereaved family. But through this last expense cover, now available on the Malipo Circles platform, they can access a funeral benefit of up to Ksh. 500,000 per member without delay.”
According to Malipo Circles CEO Erick Oyugi, the platform not only empowers informal savings and rotational groups like chamas to prosper but also extract maximum value from monies saved and contributed by members. He cites the UAP Old Mutual last expense cover as one such product that Chamas can tap to optimize their members’ savings and benefits.
With UAP Old Mutual underwriting the funeral cover, Malipo’s role is to automate the processes thus reducing paperwork and administrative burdens for Chamas.