This week, black female-owned South African microinsurance company, EnviAfrica Life, launched its first two products: life and funeral cover products aimed at the lower-middle income market.
EnviAfrica founder and executive director Lebohang Mehalane told Sunday World that she was looking at launching credit life, disability and retrenchment benefits products too.
She said her company had yet to sell its life and funeral cover products to schemes or individuals, but she expected to start making sales from the start of May. Mehalane said the Financial Sector Conduct Authority approved the life and funeral cover products in October 2022.
She said the product launch was key to the transformation of the financial services industry and increasing financial inclusion through the design and development of insurance products that are relevant, accessible and affordable.
Mehalane started EnviAfrica in November 2020, and it has eight staff members. She said the company was hiring more staff.
“Customers can choose from various coverage options, with plans tailored to their specific needs and budgets,” EnviAfrica said in a statement.
“We recognise that many people in South Africa struggle to afford traditional life and funeral insurance.
That’s why we’ve developed these new products to provide affordable options for those who may not otherwise have access to insurance,” Mehalane added.
“The life cover product has been developed for low-middle income customers who need an estate planning tool or some form of wealth creation for their loved ones but cannot afford what is available in the traditional insurance market.
“This cover is tailor-made for them to ensure that the life assured’s goals for their loved ones are realised even beyond their death.
“With cover amount starting from R50 000 to R100 000 per life insured and limited medical underwriting, the product is affordable and accessible,” EnviAfrica said.
The funeral cover product provides a cash payout for funeral expenses, including burial or cremation costs.
Also, it has additional benefits that cover the expenses of a tombstone, groceries and a cow benefit.
“We want to ensure that our customers are protected when they need it most, with a product design philosophy that considers the cultural sensitivities of our target market,” Mehalane said.
The new products are available to South African citizens aged between 18 and 64 years for the life cover product and from 18 to 84 years for the funeral product.
The products can be purchased online or through EnviAfrica’s website, brokers and accredited funeral parlours.
The products are also available to non-South African citizens residing and working in South Africa, subject to specific terms and conditions.
Policy holders can choose the level of coverage that suits their needs, with monthly premiums starting as low as R71 (life cover) and R16 (funeral), depending on the benefits chosen and the cover amounts.
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