HARARE, NMB Bank’s Bancassurance unit launched in 2013, has according to Chief Executive Officer Ben Washaya seen strong growth over the years also buoyed by a suite of life assurance products introduced in 2017.
The bank launched a Bancassurance unit in 2013, predominantly selling short term insurance products underwritten by Old Mutual Insurance Company.
According to Washaya, this was in line with the bank’s vision of becoming a one stop financial services provider.
Included under the short-term insurance portfolio is household plan which covers buildings and any improvements against fire, lightning, explosion, storm and theft damages, just to highlight a few, the motor plan, all risks insurance as well as liabilities cover.
“ The unit has seen strong growth since inception, and in 2017 we added to this portfolio a suite of life assurance products,” he said in an interview.
Washaya said included in the life assurance policies is the NMB Life Plan which pays out a lump sum upon the death of a policyholder, the Diamond Retirement Plan, which allows individuals to save towards their retirement and finally, the NMB Funeral Plan, which offers a cash playout towards funeral arrangements in the event of the death of the policy holder.
The NMB Funeral Plan, in addition to covering the policyholder, can include anyone with whom the policy holder has a direct relationship with premiums being paid monthly for 10 years, after which cover continues without further payments.
On the other hand the NMB Life Plan comes with two options with the first being straight life assurance, where the sum assured is paid out when the policyholder dies.
The other is a cash back option, which entitles the policyholder to receive back a payment of 50 percent of the premiums paid every five years, with the sum assured still fully payable on his or her death.
The plan provides cover of up to $75 000, depending on the premium option chosen while the cover for death arising from natural causes commences six months after the policy has been taken out but at that stage is limited to a maximum of $20 000. Beyond 12 months, the full sum assured is payable in the event of death.
Meanwhile, the Diamond Retirement Plan is a savings plan that provides a lump sum payment and a monthly pension on retirement.
The lump sum is one third of the value of the accumulated capital. The remaining capital is used to purchase a pension annuity which enables the person to receive a monthly pension.
Under this plan, there is an option to forego the lump sum so that the whole amount can be used for an annuity in order to receive a higher monthly pension.
The minimum age for the Diamond Retirement Plan is 16. The maximum is 65. The regular minimum monthly contribution is a minimum of $50. – Insurance 24