The difference between Life Insurance and Funeral Insurance
By
Joshua Mhlanga
Life insurance
This is a contract offered to an individual seeking to cover themselves or their loved ones against the financial consequences that ensue in the event of the death of the insured individual. The insurer makes a commitment to pay out a lump sum amount as a benefit known as the sum assured to a policyholder’s chosen beneficiaries. Although usually offered to a single life, some may be priced such that the policyholder’s spouse is also covered under the same policy, which is called a “joint” whole life contract.
Funeral Insurance
This contract is taken up solely for the purpose of reducing the financial strains that come with processes involved in making sure that a loved one is given a decent burial. The selected beneficiaries of the covered live(s) are entitled to lump sum pay outs and/or services upon death.
What makes them look Similar?
Benefits payable – Both contracts pay out a lump sum amount upon death of the covered life. The contracts may also be priced in such a way that the policyholder participates in the product’s profit contribution to the insurance company. The profit will be mentioned in the terms and condition as it may be investment, underwriting or a combination of the two.
Zimnat Life Assurance recently launched two products in March 2021, “LifeCare Plan” and “Security Plan”. These products offer policyholders an opportunity to participate in sharing profits realised from the sale of the policies. These contracts are designed in such a way that the insurer promises to give “rewards” if the pool of funds in which premiums are invested in performs, these rewards may be in the form of a lump sum pay-out, premium waiver or an escalation on the sum assured depending on the design of the product.
Eligibility – Almost all insurance contracts can be offered to anyone between 18 and 65 years.
Premium frequency - The insurance benefit is offered in exchange for a premium , the rate at which premiums are paid may also vary from monthly, quarterly and bi-annually.
Premium payment period - Depending on the contract, the contributions towards cover may be paid for a set period, this type of contract is called Whole life with Limited Premium Paying Term, while some may require one to pay in perpetuity until death.
So how are they different?
Usage of pay out – Life insurance cover proceeds may be used to meet inheritance tax liability when winding up the estate of the deceased or to pay off any loans or mortgages that the insured had. It may also be used to purchase an annuity that will be used to pay schools fees amongst other uses.
For a funeral contract, a lump sum is usually paid immediately (within 24 hours of notification) on death to cover all the necessary funeral logistics. So in essence the life insurance contract is taken by the insured so that (s)he safeguards the well-being of those that (s)he leaves behind, while the funeral contract is taken by the insured to make sure that those left behind do not have to worry about financing a proper send off for their loved one.
Magnitude of Sum Assured – a life insurance contract has a significantly higher sum assured value while a funeral insurance contract usually has a lower sum assured. This is mainly so because of the differences in purpose of the covers discussed above.
Underwriting – due to the differences in the sum assured each insurance type is subject to different levels of underwriting conditions. Since the life insurance contact offers a high sum assured the lives to be covered may be subject to medical inspection. Whereas the most common underwriting factor considered for a funeral insurance contract is age.
Benefit Options - Not only does the funeral insurance contract offer monetary benefits, the cover may also render services which include provision of body removal, funeral rites, transport and catering needed on the day of the funeral. In addition, the contract may further give a tombstone and unveiling service benefits. Zimnat offers such services through FSG Zimbabwe.
Lives covered per policy - With a funeral insurance contact one may also choose to cover more lives apart from theirs, these are called co-lives, the addition of these lives has a bearing on the premiums
In conclusion, when the purpose of something is unknown, abuse, overuse or no use at all is inevitable. My hope is next time you want to choose insurance for yourself and/or family, you will be well equipped by the information that has been availed, so that you make the best decision.
Zimnat General Insurance Partners MultiChoice Zimbabwe
Zimnat General Insurance has introduced another first, a new and exciting decoder insurance cover product.
The short term insurance service provider has partnered with entertainment service provider Skynet Pvt t/a MultiChoice Zimbabwe to come up with a decoder insurance cover that will make life better for customers and expand the company’s product offering to MultiChoice subscribers across Zimbabwe. The offer covers decoders against theft or damage that may arise from electrical or mechanical faults.
Commenting on the launch of the product the Zimnat General Insurance CEO Stanley Mazorodze said, “We are excited to offer another product which is a first of its kind to our clients in Zimbabwe. Over the past 10 months most of us have spent more time indoors entertaining ourselves and staying up to date with global news via our television sets, in a new world where staying at home is the best solution to protect your loved ones. This product will ensure that our customers remain entertained and informed of what is going on around them without being disturbed by things like fire induced damage to their decoders .
This innovative offering will cover physical loss or damage that may arise because of:
- Mechanical or electrical faults that occur after the warranty period,
- Damage resulting from attempted theft, fire, lightning, flood, or explosion or
- Total loss resulting from theft, fire, lightning, flood, or explosion.
To sign up for the Decoder Insurance product clients may visit Multichoice branches nationwide or they May just simply send “Hi” to 08080063 and we will call back.
This offering is very affordable and will see Zimnat and DStv clients accessing decoder insurance for as little as USD1/ month, with premiums payable monthly, quarterly or annually. Some of the available packages include;
| Decoder | Sum Insured | Annual Premium | Monthly Premium |
| Explora | USD 140.00 | USD 18.00 | USD 1.50 |
| HD PVR 2 Tuner | USD 55.00 | USD 12.00 | USD 1.00 |
| Single view decoder (DSD1110, DSD1131, DSD1132) | USD 55.00 | USD 12.00 | USD 1.00 |
The introduction of the new decoder insurance cover comes after the Zimnat group recently launched a number of novel products that aimed to make life better for all its customers which include a WhatsApp based motor insurance renewal platform as well as the LifeCare and Security plans which were all first of their kinds in the Zimbabwean market.
Zimnat launches WhatsApp based Motor Insurance Renewal
Zimnat General Insurance has introduced a WhatsApp based Motor insurance, ZBC radio and ZINARA licence renewal, a service that it’s motor insurance customers can use to renew motor insurance and vehicle licenses.
Just like “messaging” on WhatsApp, current Zimnat and new customers can now renew their motor vehicle insurance, ZBC radio and ZINARA licence on WhatsApp from wherever and whenever in a few easy steps.
The process is easy, one simply needs to initiate a conversation with the number “0786206209” by sending their vehicle registration number to the WhatsApp number e.g. AZZ1234 and they will get an instant response of what to do next. Payment is then made via Ecocash, Icecash or OneMoney wallet instantly. The process can be done in less than 2 minutes.
We also have our toll-free customer contact number 08080063/64 readily available to assist our clients navigate this new innovation.
Once a client has renewed their policy, they can then collect their license discs from any Zimnat office or select OK and Bon Marche stores nationwide at a time of their choice.
The innovation ties in with the change in trends where WhatsApp penetration has significantly grown in Zimbabwe, making it the most used applications in the country. The service therefore gives many customers an easy way to access their insurance.
Imagine renewing your motor vehicle and radio licence on WhatsApp instead of travelling to a brick and mortar office. How convenient!
Speaking on the launch of this exciting initiative Stanley Mazorodze the chief executive officer of Zimnat General Insurance said “As part of our thrust to always offer our clients superior client experience, we are pleased to be introducing a WhatsApp based licence renewal platform for our third party motor insurance clients.”
“Not only are we bringing convenience and ease of doing business with us, but we are truly making life better in these times of the pandemic.
One of the key insights we learnt from the COVID 19 pandemic was the shift from the brick and mortar to the digital and remote working culture.
This platform therefore could not have come at a better time as it allows our valued clients to renew their insurance from the safety of their homes, as they too fight to flatten the curve”, he added.
Acquisition of THI Insurance by Zimnat General Insurance
NOTICE IN TERMS OF SECTION 33 OF THE INSURANCE ACT (CHAPTER 24:07) - PROPOSED ACQUISITION OF THI INSURANCE (PRIVATE) LIMITED BY ZIMNAT LION INSURANCE COMPANY LIMITED
NOTICE is hereby given in terms of Section 33 of the Insurance Act [Chapter 24:07] that:
- Application for Approval of Amalgamation
The respective directors of THI Insurance (Private) Limited (“THI”) and Zimnat Lion Insurance Company Limited (“Zimnat Lion”) intend to make an application to the Minister of Finance for the approval of the following transaction:
The proposed acquisition of the whole of the business of THI by Zimnat Lion and the subsequent amalgamation of the business of THI under Zimnat Lion.
- Salient Features of the Transaction
Subject to all Conditions Precedent being fulfilled, Zimnat Lion shall acquire the entire issued share capital of THI. Upon consummation of the transaction, THI shall become a wholly owned subsidiary of Zimnat Lion.
- Representations and Inspection of Documents
Any person who wishes to make representations relating to the application must lodge them, in writing, with the Commissioner of the Insurance and Pensions Commission, 160 Rhodesville Avenue, Greendale, Harare and may copy the representations to the undersigned within 21 days of the date of publication of this notice.
The relevant Share Purchase Agreement shall lie open for inspection during the notice period at the offices of the undersigned parties.
| BeraMasamba
Legal Advisors to Zimnat Lion 15th Floor, Joina City Corner Jason Moyo Avenue/Julius Nyerere Way Harare
|
|
| The Directors
THI Insurance (Private) Limited Endeavour Crescent Mount Pleasant Office Park Harare
|
The Directors Zimnat Lion Insurance Company Limited Zimnat House Corner 3rd Street & Nelson Mandela Avenue Harare
|
IMPACT OF COVID-19 AND THE ECONOMIC LANDSCAPE POST COVID-19 - A ZIMBABWEAN CONTEXT
By Takudzwa Sherekete
- Research Manager takudzwas@zam.co.zw
COVID – 19 AND ITS IMPACT ON THE GLOBAL ECONOMY
The Covid-19 virus has resulted in one of the deepest recessions globally. Most countries are expected to face economic recessions.
The worst affected sectors include tourism industry, transportation and construction and real estate.
On the other hand, the pandemic bodes well for the healthcare industry and the telecommunication and media industries.
The chart below shows an overview of the potential impact of the Covid-19 pandemic by economic sector.
The global economy was at its lowest during the March 2020 and has since started to recover as most countries have commenced the process of relaxing lockdown conditions.
However, the risk of a second wave of infections still poses a significant risk on the global economy. The extent of the recession is dependent on a few pre-Covid-19 economic conditions.
Namely, countries with higher pre-crisis vulnerabilities and trade and financial linkages with the global economy are more impacted by the crisis.
According to the IMF World Economic Outlook (WEO) as at June, the global economy is estimated to contract by circa 4.9%, despite the extraordinary efforts of governments to counter the downturn with fiscal and monetary policy support.
Fiscal and monetary policy support is according to the IMF estimated to have reached US$9 trillion as at May 2020. The breakdown looks like this:
- direct budget support is currently estimated at US$4.4 trillion globally, and additional public-sector loans and equity injections, guarantees, and other quasifiscal operations (such as non-commercial activity of public corporations) amount to another US$4.6 trillion.
The World Bank’s Outlook Report as at June also highlighted that the pandemic may have a long-term impact on the Emerging Market economies as many had already been forecasted to experience a slowdown in economic growth during 2020.
In order to soften the social and economic impact on the informal sector, policy makers are expected to provide timely and appropriate solutions.
This brief paper seeks to summarize the salient issues impacting the global economy and provide an outlook on the Zimbabwean economy post-Covid 19.
READ MORE BY CLICKING THIS LINK >>> https://tinyurl.com/y5794y3j
Zimnat launches digital magazine
Zimnat has launched a digital financial services magazine, dubbed “Zimnat Insider”, in its continuous quest to make life better and respond to the environment. This launch of the digital magazine comes at an opportune time where we are faced with a pandemic which calls for social distancing and minimising contact.
The Zimnat Insider Magazine is a digital financial services magazine designed to provide educative and entertaining information to our customers and stakeholders at large. The magazine will feature topics ranging from socio-economic issues, insurance, wealth management and entertainment. The magazine will be available from the Zimnat website and the group’s social media pages. Copies will also be sent directly to Zimnat clients.
Commenting on the launch of the magazine, Zimnat Group CEO Mustafa Sachak said, “as Zimnat our purpose is to make life better in all our endeavours and this new magazine will help bridge the information gap with regards to financial advice to help people realise their full potential. The idea of publishing a magazine came up after we realised that as financial service providers in the country, we could do more to promote financial literacy and given the current lockdown regulations in place most people have ample time on their hands to read.
We acknowledge that the news cycles have been dominated by Covid-19 and this can be a bit overwhelming and disconcerting to some, so we hope that this new publication will help all our stakeholders keep their minds preoccupied and active. To ensure we cater for the psychosocial well-being of the family in these trying times, the magazines also have brain teasers that allow readers to participate as families. We hope this will also give families the opportunity to also use their digital devices in a manner that promotes social cohesion,” said Mr Sachak.
The launch of the digital magazine comes after the organisation was featured in the Fintech Magazine of April 2020 for its trailblazing efforts in digital transformation in the Zimbabwean insurance sector.
The group has seen various innovations that seek to make life better for Zimbabweans being launched this year with the most recent one being the launch of the inflation adjusted Gadziriro funeral cash plan.
Zimnat is a diversified financial services group made up of Zimnat General Insurance, Zimnat Asset Management, Zimnat Microfinance and Zimnat Life Assurance. The group is associated with Sanlam the largest non-banking financial services group on the continent.
Read our latest issue below. Enjoy🕺🏾
[responsive-flipbook id="zimnat_insider_3"]
Zimnat continues to make life better for the elderly
Zimnat, has lived to Its promise to continuously support the elderly by providing free motor insurance cover for some of Melfort Old People’s Home vehicles for the year 2020, a continuation from 2019.
Located along Mutare Road, in Harare, Melfort Old People’s Home, which is registered with Help Age, accommodates up to 60 elderly residents, most of whom have been referred to it by the social welfare department.
The home received a donation of vehicles beginning of 2019 and immediately approached the Zimnat Group for assistance with motor insurance.
With the knowledge that the elderly, the community’s senior citizens need as much help as they can get, Zimnat decided to provide free insurance cover for the home’s vehicles.
The first-year term of insurance recently expired and Zimnat proactively renewed the insurance for another year.
Upon visiting the home initially, it was discovered that much more needed to be done to help the institution make life better for its residents.
This resulted in the launch of a charity drive dubbed the Heart to Hand Campaign which resulted in a significant donation of goods which included:
- A 4-plate gas stove, bed linen, grocery items, clothes, cleaning detergents and agricultural inputs that would help the institution become self-sufficient.
The Group Chief Executive Officer, Mustafa Sachak, then committed to continuously see to it that support is rendered to Melfort Old People’s Home.
Zimnat has not disappointed, they have proactively renewed the insurance, free of charge for another year.
“We endeavour to continue making life better for the Melfort community, despite these challenging times, and hope our efforts will go a long way” said Tatenda Marongwe Zimnat Group Marketing Executive
“The Zimnat and Masawara family have shown us kindness and love over the past years and we are so grateful that they always help us in whatever way they can” said Pastor Francis the home’s superintendent.
Zimnat is a diversified financial group that offers products across the financial and insurance spectrum. It has four business units namely Zimnat General Insurance, Zimnat Life Assurance, Zimnat Financial Services and Zimnat Asset Management.
-End
The Awakening of a sleeping giant: Zimnat’s journey of brand transformation.
By Gamuchirai Sibanda
The story of an exceptional brand reinvigoration process is not complete without a tale of how Zimnat dared to do it and succeeded. This is a remarkable story of how an organisation that had been perceived as a preserve for the elderly and wealthy managed to turn around its perception in the market into a more adept, and youthful brand that has the ability to offer a holistic financial services package for the millennial and Gen Z customer as well.
In 2015 Sanlam Emerging Markets acquired 40% stake in the Zimnat companies namely Life Assurance, General Insurance and Asset Management from Masawara Insurance in a move that saw the business embarking on a rebranding journey in 2017. The rebranding journey saw all the associated companies adopting the Zimnat brand name, colours, logo as well as a new and commonly shared purpose of making life better. The rebranding efforts to reiterate the new mission for the group have seen the organisation making headlines on a number of corporate social responsibility initiatives which include the Charity Marathon for Cebisani Ndlovu’s surgery, Chizungu Ablution block donation just to mention a few.
In addition to changing the look and feel as well as the purpose, the organisation also embarked on an intensive internal rebranding exercise. Realising the importance of an internal cultural shift in any rebranding exercise Zimnat has been engaging in a number of culture transformation initiatives which included the Pay it forward campaign which was aimed at reinforcing the new company purpose.
This rebranding journey is still an ongoing process which has already started to bear remarkable results as was witnessed at the 2019 Exceptional Marketing Awards for Excellence where Zimnat dominated the awards ceremony winning 8 awards out of the 15 categories it was nominated for. The recent successes can be attributed to the ongoing efforts by the organisation to promote and reinforce its commitment of making life better through some outstanding creative advertising which includes the famous award-winning car crash billboard. The 2019 success comes after the organisation also made a huge impression in 2018 as well managing to scoop 5 awards at the same event, this was a huge improvement for an organisation that did not receive an award of marketing excellence in the year 2017. A clear testament of the awakening of the great financial services giant that Zimnat is meant to be.
This remarkable turnaround success can be attributed to the outstanding commitment from the staff that were willing to embrace the new business ideals and were great ambassadors for the organisation.
Zimnat, a diversified financial services group made up of four business units, namely Zimnat General Insurance, Zimnat Life Assurance, Zimnat Financial Services and Zimnat Asset Management. It is associated with Sanlam, which is the largest non-banking financial services group on the continent
Call Zimnat today for a free quote on toll-free number 08080063/4/6.
Alternatively you can send an email at customercare@zimnat.co.zw or visit our social media, www.zimnat.co.zw or social media sites, which are https://www.facebook.com/Zimnat/, https://twitter.com/ZimnatOfficial and https://zw.linkedin.com/company/zimnat
- End
Employers can establish schemes to give employees peace of mind
In an economy facing a shrinking disposable income and personal life insurance is fast becoming an afterthought, the importance of employer assisted insurance schemes has never been more critical. Employer assisted schemes can help employees prepare for the different stages of their lives and that of their families. These schemes help ensure that in the event of their death, their dependants can continue living a normal and comfortable life.
Zimnat Life Assurance is offering employers several solutions to help them make their employees better by ensuring they live their best lives without worrying about tomorrow because Zimnat Life will take care of everything.
Group Life Assurance Schemes.
The Zimnat Life Group Life Assurance Plan is an insurance scheme an employer can take out to cover the lives of employees. The scheme ensures that a lump sum payment is made to the beneficiaries of an employee who passes on. It is worth to note that the benefit is only payable if the employee passes on whilst in the service of the employer. The employer is responsible for paying the premiums for this insurance cover.
The lump sum benefit due to the surviving dependants is paid as a multiple of the employee’s annual salary. In addition to the above stated benefits the employer has the option of adding more benefits to their employees’ covers such as cover for total and permanent disability. Furthermore, employers can add the group funeral insurance which can guarantee their employees get a decent funeral in the event of their untimely passing.
Pension Fund
A pension fund can be defined as a financial vehicle to which the employer and employees contribute for the ultimate financial benefit of the employee and his family at retirement, retrenchment, death, disablement or termination of employment. Many people are scared of retirement because they do not have a financial back-up plan. Pension funds can help you stay in control of your life, as if you never left employment. The Zimnat Employee benefits scheme also offer employers the opportunity to contribute to a pension fund for their employees guaranteeing them of a comfortable life after retirement.
Credit Life Protection
The Zimnat Life Credit Life Protection scheme ensures that Zimnat Life Assurance will meet the financial obligations due to the employees in the event of their death or permanent disability. Debt settlement is one of the most difficult adjustment for most dependants in the event of the breadwinners’ death or incapacitation, and the Zimnat credit life protection scheme was developed to ease such burdens.
Mortgage Protection
Settling of mortgages in the event of the death of the breadwinners is a common predicament that several families are going through. With the Zimnat Mortgage Protection scheme, employers are guaranteeing the settlement of outstanding mortgage balances of their employees in the event of their permanent incapacitation or untimely death. Zimnat life guarantees payment of the outstanding mortgage balance in the event of the death or total and permanent disablement of the borrower who was insured under the mortgage protection scheme. With this policy employers enable their employees’ surviving families to retain ownership of property in the event of the death of the employee without fear of such properties being repossessed.
Financial Planning
Pension Funds and Group Life Assurance schemes are very useful safety nets for the future, however despite their benefits they an employer’s attempt to providing the bare minimum cushioning. Sound individual financial planning cannot be an afterthought if one wants to guarantee a comfortable life for their dependants. Taking the time to speak to a Zimnat Financial advisor is the first step towards financial freedom and comfort that everyone needs.
Regular Reviews
To ensure the maximum benefit of these schemes, there is need for a constant review of your financial plan to match the economic environment. One must constantly review their plans to align with the changing needs of the future.
For more details contact us on e-mail customercare@zimnat.co.zw
Alternatively, you can call us on 024‑2707582/3/5/6.
https://www.facebook.com/Zimnat/
https://twitter.com/zimnatofficial
https://zw.linkedin.com/company/zimnat
You can also contact us on our toll free number (08080063/4/6) or visit our self-care portal (http://selfcare.zimnat.co.zw/)
Get the Zimnat Legal Insurance
Life is journey full of cycles of happiness as well as sorrow and Oscar Wilde once said “to expect the unexpected in life shows a thoroughly modern intellect,” you cannot plan or schedule most of the traumatic life events but all you can do is be prepared for whatever comes your way. In the course of your life you may find yourself in a situation that may warrant you to seek legal recourse from the courts of law. Most of these instances occur at a time when you are least prepared for the financial obligations that come with enforcing your rights including hiring your legal counsel. Given the big financial implications associated with seeking legal recourse, you may find yourself in an untenable financial position and it is this gap that Zimnat General Insurance seeks to cover with the Zimnat Legal Insurance. This new plan seeks to make your life better by providing you with affordable legal representation should the need arise.
The Zimnat legal insurance is a legal protection plan which allows you access to the law by providing legal advice and covering legal costs of a dispute ranging from civil, criminal and labour cases. The plan has several options from which you can choose the type of legal representation you may need from the following options:
*NB the cover includes but is not limited to the below options
Ultimate cover:
- Civil matters
- Criminal Matters
- Labour matters
Civil Cover:
- Accidental claims cases
- Contractual disputes
- Delictual disputes
Labour Cover:
- Workplace related disputes
- Disciplinary proceedings
- Discrimination at work
- Unfair dismissals
Once involved in a legal dispute or in a situation requiring legal representation you can simply call Zimnat for assistance. Zimnat will then advise you of the status of your claim within 48 hours, after which you are issued with an authorisation letter to give to a lawyer and access legal representation
To ensure your life is made better in situations where the insured individual is incapacitated or behind bars, a next of kin can lodge the claim on your behalf, verification and issuance of letter of authority are done within 8 hours
Payments for premiums can be made through various channels such as Payroll deduction, Ecocash, Bank stop order, Cash/swipe. Additionally, once you have signed up you receive a complimentary funeral cash pay-out for yourself and every family member you may choose to put on the plan.
Call us today for a quote on toll free number 08080063/4/6 or email customercare@zimnat.co.zw
Alternatively, you can visit our social media,
https://www.facebook.com/Zimnat/
https://twitter.com/zimnatofficial
https://zw.linkedin.com/company/zimnat
If you suspect a case of coronavirus COVID-19, please contact your nearest emergency rapid response team on the following toll-free numbers:
National Emergency Rapid Response Centre: 08002000
Wilkins Hospital (Harare): 08009000
Thorngroove Infectious Hospital (Bulawayo): 08009001
Mutare Infectious Diseases Hospital: 08009002
Gweru General Hospital: 08009003
Masvingo General Hospital: 08009004
- End