Learn the basics of life insurance including term life, whole life, and family protection options. Secure your family's financial future today.
Life insurance provides financial security for your loved ones when you're no longer there to provide for them. It's one of the most important financial decisions you can make.
Life insurance isn't just about death benefits. Many policies offer living benefits, allowing you to access funds during critical illness or disability.
The earlier you start, the more affordable life insurance becomes. Don't wait until it's too late to protect your family's financial future.
Understanding the different types of life insurance helps you choose the right policy for your needs:
Provides coverage for a specific period (10, 20, or 30 years). Most affordable option with pure death benefit protection and no savings component.
Best for: Young families, mortgage protection, temporary needs, budget-conscious buyers
Permanent coverage that lasts your entire lifetime. Builds cash value over time that you can borrow against or withdraw. Higher premiums but guaranteed benefits.
Best for: Estate planning, lifelong dependents, wealth transfer, forced savings
Flexible permanent coverage with adjustable premiums and death benefits. Cash value grows based on market performance or guaranteed interest rates.
Best for: Those wanting flexibility, investment growth potential, changing financial needs
Combination of insurance and savings that pays out after a specific period or upon death, whichever comes first. Popular in Kenya for education planning.
Best for: Education savings, retirement planning, goal-based savings with protection
Determining the right coverage amount depends on several factors:
Multiply your annual income by 10-15 years. For example, if you earn KES 1,000,000/year, consider coverage of KES 10-15 million to replace your income for a decade or more.
Add up:
Calculate the present value of your future earnings until retirement. This accounts for your economic contribution to your family over your working years.
Note: Consider inflation, lifestyle expenses, and future financial goals when calculating your coverage needs. It's better to be over-insured than under-insured.
Insurers consider multiple factors when determining your premium:
If your family depends on your income, life insurance ensures they can maintain their standard of living if something happens to you.
The cost to replace childcare, cooking, cleaning, and other household duties is substantial. Life insurance covers these expenses.
Protect your business partners and ensure business continuity. Life insurance can fund buy-sell agreements and cover business debts.
Mortgages, car loans, and other debts don't disappear when you die. Life insurance prevents your family from inheriting your debts.
Cover future education costs, living expenses, and ensure your children's financial security until they're independent adults.
If you have financially dependent adult children, elderly parents, or a spouse who relies on your pension, life insurance remains important.
Follow these steps to secure the right life insurance policy:
Calculate how much coverage you need based on income, debts, future expenses, and your family's financial goals.
Different companies offer varying rates and benefits. Work with a broker to compare multiple options and find the best value.
Be prepared for medical exams, questionnaires, and health assessments. This determines your risk class and premium rates.
Carefully read all policy documents, understand exclusions, and ask questions before signing. Ensure all information is accurate.
Store your policy in a secure location and inform your beneficiaries where to find it. Consider registering with the Association of Kenya Insurers' policy locator service.
Get personalized insurance advice and find the perfect coverage for your needs.