UNDERSTANDING LIFE ASSURANCE BENEFICIARIES

Selecting the appropriate life assurance beneficiaries is a crucial but frequently disregarded stage that involves more than just listing a few close relatives. It is about leaving a legacy, safeguarding your family's financial security, and avoiding pointless disputes and hold-ups in the event of your demise.
Below is key information that each policyholder should know when choosing a beneficiary.

What is a life assurance beneficiary?

This is a person or organization nominated by the policyholder to receive the policy's death benefit following the policyholder's demise. They may consist of friends, family, trusts, or charitable organizations and they guarantee that the proceeds are disbursed according to the policyholders’ wishes.

Types of beneficiaries

Beneficiaries are categorized into two; primary beneficiaries are the first in line to get the benefit and you can choose one or more and specify their shares. In the absence of primary beneficiaries, you can name contingent beneficiaries who will claim the benefits. While primary beneficiaries are fixed and cannot be changed without the policyholder's approval, secondary beneficiaries are flexible and can be changed at any moment. A trust or legal guardian is required to oversee the funds for minor beneficiaries until they are of legal age.

Choosing a beneficiary

Selecting a beneficiary involves considering relationships. Many policyholders select their close family members like spouses and children; however, you can also list acquaintances or business associates. For your chosen beneficiaries to have enough support, you should consider their financial needs. This is especially important if the beneficiaries are children who might need a guardian or a trust to handle the money. A trust or a guardian for minor beneficiaries is also crucial because insurance companies often do not pay benefits directly to minors.

Common mistakes to avoid

It is crucial to avoid common mistakes such as not updating your beneficiaries regularly which can be outdated due to major life changes such as marriage or the birth of a child. You should also avoid using vague terms and use exact names and percentages to prevent confusion. It is also important to consider tax implications which can result in unexpected liabilities, account for minors by setting up a trust or appointing a guardian and understand regulations on pensions. Additionally, inform the beneficiaries about their designation to avoid delays and appoint contingent beneficiaries to ensure that the benefits are claimed in the absence of a primary beneficiary. Addressing these issues ensures that your life insurance policy aligns with your intentions and provides financial security as planned.

How to update your beneficiary designation

Most of the time, updating your beneficiaries is simple. Contact your insurance provider to obtain the necessary documentation. Fill out the form and return it as directed. Ensure your beneficiary designations accurately represent your current desires by reviewing your insurance regularly, especially following major life events.

Designating life assurance beneficiaries is a crucial step in ensuring your loved ones are financially protected after your passing. By understanding the different types of beneficiaries, considering the financial needs of your loved ones, and regularly updating your designations, you can provide clarity and security for those you care about most.

WHAT YOU SHOULD CONSIDER BEFORE WITHDRAWING FROM YOUR RETIREMENT

Financial restraints might have you thinking about tapping into your pension savings. It might seem like a straightforward decision; however, it can significantly impact your long-term financial goals and retirement plan. Here are essential factors you need to consider before deciding to withdraw your retirement savings.

Impact on your retirement future

Withdrawing funds from your retirement savings can deeply affect your retirement security in several ways. First, a reduced pension balance translates to lower future income, which might compromise your ability to maintain your desired lifestyle in retirement. This reduction can also heighten the risk of outliving your savings, particularly as life expectancies increase and retirement periods extend. Additionally, you lose out on the opportunity for that money to continue growing through investments and risk missing out on future market gains if you withdraw during a downturn. Finally, an early withdrawal might require you to reassess and adjust your retirement plans, such as postponing your retirement date or finding alternative sources of income to bridge the gap.

Evaluate the penalties and fees

It is essential to evaluate any penalties and fees that might apply as these can significantly impact the amount you receive. Many pension plans impose early withdrawal penalties, which could be a fixed fee or a percentage of the withdrawn amount. Additionally, administrative fees for processing the withdrawal and surrender charges, especially if your pension includes investment products like annuities, can further reduce the value of your funds.

Tax implications

Understanding the tax implications of pension withdrawals is crucial as they can significantly impact the amount you receive. Pension withdrawals are typically subject to income tax, which can increase your overall tax liability and potentially push you into a higher tax bracket. If you withdraw funds before reaching a specific age (often 50 years on early retirement) you might face additional early withdrawal penalties. Large withdrawals can also affect your future tax situation by increasing your taxable income for the year. To minimize tax burdens, consider tax-efficient withdrawal strategies and consult with a tax advisor to optimize your overall tax planning.

Retirement Plan’s Rule

Understanding your retirement plan’s rules is crucial before making a withdrawal. Each plan has specific conditions regarding withdrawals, including eligibility criteria, the minimum and maximum amounts you can access. For example, for a Provident Plan, one is able to access full accrued benefits at retirement and this will attract more taxation when accessing funds before age 65 years. For Pension Plan, one is allowed to access 1/3 of the accrued benefits and this may reduce the level of taxation and the full balance of 2/3 can be used to purchase annuity. Where one purchases annuity, the first Kshs. 25, 000 received per month is tax free and the rest is taxed as per the applicable rates. The taxation under annuity is only up to 65 years of age thereafter taxation stops.

Retirement Age

Often, the regulation stipulates 3 retirement ages, say, early retirement (50 years of age), normal retirement (60 years of age) and late retirement (above 65 years). Any person who accesses his benefits before 65 years of age will have to pay tax on the accrued benefits. One can maximize on the retirement benefits by allowing the funds to grow until he attains 65 years of age where the regulation allows one not pay any tax as they are termed as senior citizens. Though one has to assess his financial needs prior to deferring retirement benefits.

Withdrawing money from your pension is a decision that requires careful consideration of several critical factors. For expert guidance, visit https://www.orientlife.co.ke/ to ensure that your pension withdrawal aligns with your long-term financial goals.

THE ROLE OF LIFE INSURANCE DURING TOUGH ECONOMIC TIMES

Tough economic times can affect your financial stability and security. This can create fear due to uncertainties about the future and deny you peace of mind. Life insurance offers you peace of mind during tough economic times in the following ways:

Additional income in retirement

Some life insurance policies have cash value accumulation. This means that they offer the potential to build accumulation value tax-deferred that can be accessed later through policy loans or withdrawals. This cash value is not locked away and policyholders can have access to it anytime. During tough economic times, policyholders can access any available cash value accumulation to supplement their retirement income.

Safety net

Life insurance offers protection to your loved ones during tough economic times in that in case of loss of an income, they are assured of a comfortable life. It assures them that they will still be able to live comfortably and afford basic expenses, which can be hard to cover during tough economic times. It also gives you peace of mind that the needs of your loved ones will be taken care of when you are not able to provide for them.

Long-term financial planning tool

Life insurance policies are set on the foundations of what the future may hold which makes them a good tool for long-term financial planning. This is because most policies are taken to cover long periods. It is therefore a great tool for wealth preservation and financial security for your loved ones. It can also be used as a tool to diversify your investment portfolio since it has some tax benefits, and the payouts remain constant even during tough economic times. Having life assurance therefore secures your future and the future of your loved ones by alleviating any future financial risk.

Debt repayment

A lot can happen during harsh economic times. For instance, you may lose your job, which may force you to borrow money to support yourself. These debts can accumulate over time and can be a cause of great strain on your loved ones in the event you are no longer there. Having a life insurance policy ensures that your debts are covered using the payout given to your beneficiaries. This removes the burden of debt repayment from your loved ones.

Life insurance assures you of financial protection, peace of mind, and financial security during challenging economic times. It is a great tool for navigating uncertain economic times and building resilience during difficult times.

WHY YOU SHOULD CONSIDER THE ORIENT INDIVIDUAL PENSION PLAN

An individual pension plan is a great way to secure your financial future during retirement. It allows you to plan for your future and that of your loved ones. It is tailored to a single individual who is looking for an added avenue to save towards their retirement. It is suitable for individuals working on a contractual basis, the self-employed, individuals with seasonal income, and employees without employer retirement schemes.

The following are reasons why you should have the Orient Individual Pension Plan;

Flexible retirement planning

The Orient Individual Pension Plan is designed to allow you flexibility in planning for your retirement. It allows you to choose your contribution rates, retirement age, and any other specific retirement strategies you may have. This plan allows you to align your plan with your needs and preferences as they change. It also gives you a choice to either invest in a guaranteed fund for lower risks or a segregated fund for higher growth.

Protection against unpredictable market

The growth scheme option under the Orient Idividual Pension Plan allows for your investment funds to be invested in high-growth assets which are expected to yield a much higher return in the long run. These funds are invested across different asset classes and investment vehicles which in turn helps mitigate the impact of an unpredictable market by spreading the risk across multiple investment assets and providing a stable and predictable stream of income.

Tax benefits

Policyholders under the Orient Individual Pension Plan get to enjoy tax deductions both on contributions to the scheme and on returns on the scheme investments. This enhances your retirement income because all incomes earned by retirement benefit schemes through investment of member's contributions are exempt from tax. This allows your savings to compound over time and give you the maximum returns on your retirement income.

Personalized retirement savings

The Orient Individual Pension Plan is tailored to meet your retirement needs and financial goals. It allows you to create a retirement plan that suits your specific circumstances and risk tolerance.

No additional costs

The Orient Individual Pension Plan has no hidden costs. Kenya Orient Life Assurance Limited is a registered and recognised by the Retirement Benefits Authority (RBA) which ensures that we operate within the regulations. Our costs and fees are competitive and transparent thus protecting you from any additional costs or hidden charges.

An individual pension plan is a valuable tool towards securing a financially stable retirement. Reach out to us and we will be happy to serve you.

SECURE YOUR TOMORROW: EXPLORING THE BENEFITS OF THE ENDOWMENT PLAN

An endowment plan is an individual plan that allows you to save towards an investment objective over a period of time and provide financial security to the policyholder. It is an effective tool that can be used to save towards buying a house, your children's education or even starting a business.

The following are the benefits of taking up the new endowment plan.

Guaranteed returns

The endowment plan has a savings component which means that you get returns on the investment . Upon maturity of the policy, the policyholder receives the initial amount assured plus all the returns. If the policyholder has a permanent disability after taking out the policy, there will be a waiver on future premiums and all benefits accumulated remain payable upon maturity period.

Life cover

The endowment plan is set up in a way that upon the untimely death of the policyholder, the beneficiaries receive a lump sum. This ensures that the beneficiaries of the policyholder are financially protected and can continue to live comfortably after your demise. It also offers the policyholder peace of mind knowing that your loved ones will be financially secure in the unfortunate event that you are no longer with them. It is therefore a good choice for anyone looking to safeguard the future of their family and loved ones.

Option to add riders

Riders are optional add-ons that help you customize your Endowment Plan. They add flexibility and benefits that your Endowment Plan does not have by itself. The Orient Endowment Plan has the option to cover funeral expenses in case of the demise of policyholder, cover a predetermined amount in case of terminal illnesses, and waiving of payable premiums for a period of six months during the period of retrenchment. This policy also qualifies for a policy loan after premiums have been paid for a period of three consecutive years.

Savings tool

An endowment plan is designed to give you long-term savings towards the achievement of longterm goals. It encourages you to save towards your future financial goals and objectives by paying fixed premiums over the term of your policy. The Orient Endowment Plan ranges from 10 to 20 years which gives you ample time to save towards the achievement of your goals.

The Orient Endowment Plan provides an array of benefits that a policyholder can harness to create long-term wealth accumulation and financial protection from unforeseen circumstances.

WHY YOU NEED THE KENYA ORIENT GROUP LAST EXPENSE PLAN

Planning for funerals can be quite tasking and strenuous for the family and are always very expensive as they require huge chunks of money. This period is made more difficult because plans are difficult to make when the family is grieving the loss of their loved one. The Kenya Orient Group Last Expense insurance plan is designed to meet the abrupt funeral costs in the event of the death of any family members in the cover.

This cover is designed to cushion against financial shocks resulting from social obligations when a member dies. It pays to the family of a deceased member a pre-determined sum assured ranging from KES. 50,000.00 to KES. 500,000 in the event of death.

Below are reasons why you should consider taking the plan.

Term life insurance policy

This is a life insurance policy that provides coverage for a certain amount of time. You choose the term when you take out the policy. Common terms are 10, 20 and 30 years. Once the term expires, you can either renew it for another term, convert the policy to permanent coverage, or allow the term insurance policy to terminate. Term insurance policies generally do not have any maturity value, and thus, offer lower rates of premium than permanent life insurance.

To ease funeral costs

The last expense insurance plan provides coverage for all the funeral expenses in the unfortunate event of death. Funerals are very expensive, especially in these hard economic times and it would be a big relief to your loved ones when they do not have to go through the hassle of stretching beyond their limits to see that you have a decent burial. Leaving some money for your loved ones to use for anything funeral-related would undoubtedly be a relief to them.

Provides peace of mind

In as much as death is a very sensitive topic, especially to your loved ones, it is a discussion that needs to be handled. Planning for a comfortable life for your loved ones when you are not there is the best gift you can leave them. With the last expense cover, you are assured of peace of mind you do not have to worry about how funds will be raised in case of the passing on of those that matter to you.

Gives you control of planning your own arrangements

Although not widely embraced, some people know exactly how they want their funeral to go. Decisions such as whether to be buried or cremated, where you would like to be buried, or have your ashes put. Taking this off your loved ones' hands will not only be helpful but allow you to rest in peace the way you prefer.

Take advantage of the Kenya Orient Last Expense cover and ease such a difficult period by having the financial aspect taken care of.

BENEFITS OF ORIENT 4 LIFE COVER

Anticipating large expenditures that are bound to re-occur and regularly saving in advance for them, is a hallmark of good financial planning. A well-structured long-term savings plan with a life cover will help you achieve this goal even when the unexpected happens in your life.

Orient 4 Life is your to-go life cover that is tailored to suit your long-term saving goals with varying policy terms of 12, 16, 20, or 24 years. It is a life and savings plan that provides finances for expected and pre-planned future expenses.

Below are the benefits you will enjoy with this cover:

Term life insurance policy

This is a life insurance policy that provides coverage for a certain amount of time. You choose the term when you take out the policy. Common terms are 10, 20 and 30 years. Once the term expires, you can either renew it for another term, convert the policy to permanent coverage, or allow the term insurance policy to terminate. Term insurance policies generally do not have any maturity value, and thus, offer lower rates of premium than permanent life insurance.

Guaranteed 4 Cash Payments

Orient 4 Life cover has been tailored to offer a total of four prescribed cash payouts to clients at regular intervals throughout the policy term. You are guaranteed payouts of 10 per cent, at a quarter of the policy term, 20 per cent at half of the policy term, 30 per cent at three-quarters of the policy term, and 100 per cent at the full term of the policy respectively.

Free Whole Life Cover Post-Maturity Payment

Upon maturity of your Orient 4 Life cover, you are guaranteed 100 per cent of your sum plus all accumulated benefits. You will be able to enjoy the total amount you will have saved up together with additional bonuses.

Financial Security

If you have a family, a business, or others who depend on you, the Orient 4 Life cover will provide you with a financial safety net. In the unfortunate event that you will not be there, your beneficiaries are guaranteed to receive a lump-sum payment in full.

Peace of Mind

Taking up Orient 4 Life cover will make you feel at ease knowing that you have taken the necessary financial steps that will make your life and that of your loved ones stable. This allows you to fully concentrate on your day-to-day life without having to worry about your financial ability in the coming days whether you will be there or not.

UNDERSTANDING LIFE INSURANCE

In today’s world, it is crucial to have financial security to live a stress-free life. Life insurance policies offer an opportunity for you to protect yourself and your loved ones from unforeseen circumstances in an affordable way.

Life insurance is a contract between an insurance policyholder and an insurance company (insurer), where the policyholder pays an amount of money to the insurer, and in exchange, the insurer promises to pay a sum of money upon the demise of an insured person or after a set period. Depending on the terms of the contract, there are other events in life that may trigger payment from the life insurance cover including critical illness, temporary or permanent disability.

There are two basic types of life insurance:

Term life insurance policy

This is a life insurance policy that provides coverage for a certain amount of time. You choose the term when you take out the policy. Common terms are 10, 20 and 30 years. Once the term expires, you can either renew it for another term, convert the policy to permanent coverage, or allow the term insurance policy to terminate. Term insurance policies generally do not have any maturity value, and thus, offer lower rates of premium than permanent life insurance.

Permanent life insurance policy

It provides coverage that never expires. It lasts for the lifetime of the insured unless the policyholder stops paying the premium or surrenders the policy. It is an ideal choice for those who require extensive life coverage and want their family to be financially protected at all times.

The main differences between a term life insurance policy and a permanent insurance policy are the duration of the policy, the accumulation of cash value, and the cost.

Benefits of life insurance:

Financial security

Life is full of unforeseen circumstances such as death. In such a scenario, the family may face financial burden if the departed was the breadwinner. Life insurance policy steps up as a safety blanket during such eventuality therefore ensuring that the family is protected.

Long term savings

Life insurance offers long-term investment opportunities. It helps the insured make systematic savings that can be used for several financial goals such as building a new home, saving for your children’s education, and much more.

Tax benefits

In the unfortunate event of the insured’s demise, their beneficiaries will receive a lump sum death benefit i.e. a payout to the beneficiary of a life insurance policy. Life insurance payouts are not considered income for tax purposes therefore beneficiaries do not have to report the money when they file their tax returns.

A life insurance policy helps to safeguard your financial future as well as that of your family. There are different types of life insurance policies to suit the individual needs or requirements of the policy buyer. A key point to note is that your age and health condition affect the cost of your life insurance premium.

KENYA ORIENT LIFE ASSURANCE RECEIVES REGULATOR NOD TO HANDLE NSSF CONTRIBUTIONS

Kenya Orient Life Assurance Limited has received approval by the Retirement Benefits Authority (RBA) to manage NSSF tier II contributions through the Kenya Orient Individual Pension Plan and Umbrella Pension Scheme.

This nod comes following the amendment of the NSSF Act No. 45 of 2013 where Tier I contributions from both the employee and the employer capped at KES. 720 go to NSSF while the rest of the contributions above KES. 720 up to a maximum of KES. 1,440 categorised as Tier II are now being managed by authorized private schemes.

“This milestone marks a significant step towards our continued commitment to providing comprehensive retirement solutions with great returns to our clients,” said Kenya Orient Life Assurance Limited Principal Officer Jackson Muli

In 2022, Kenya Orient Life Assurance was rated as the best pension scheme following a declared interest rate of 11 per cent and a three-year average interest rate of 10.33 per cent.

“We are happy to be joining other industry players in helping eligible employers with the opt-out process for tier II contributions. This regulatory approval further solidifies our position as a reliable pension provider,” he said.

Qualifying private pension schemes are issued with a reference scheme certificate by the RBA, which proves the scheme’s compliance with RBA regulations.

Factors to consider years before you retire

Retirement is a long process that is always planned years in advance. It requires forward thinking and making shrewd decisions that will eventually influence how you will retire. It is also important to remember that it is never too early to think about retirement and the earlier you plan, the better it is for your retirement future.

Below are some of the factors you should consider years before you retire;

Retirement needs

Retirement is very expensive. This is because you do not have an active source of income. When thinking about retirement, it is important to foresee what your needs will be in your retirement. The place where you will retire, your beneficiaries, your health and your expenses are all important as you plan for your retirement.

Employer’s retirement plan

It is crucial that you find out if your employer has an employees’ pension plan and if it covers you. You should also find out how it works and if you can complement it. It is also important to check if changing jobs will affect your pension and in which way.

If your employer does not offer a pension plan, you can take out an individual pension plan which will allow you to invest towards your retirement income by making regular payments during your working life. This will be a safety net for you in your future retirement.

Income

Your income will dictate what you will put towards your retirement. If you have a regular income, it is easy to come up with a retirement plan that allows for automated deductions from your account on a monthly basis. For seasonal or irregular income, you can choose a plan that is specific to your needs and at affordable rates. Your income not only allows you to save but also invest for your future financial security.

Investments

Investments, either long-term or short-term, play a vital role in your retirement. Investments are mainly acquired as a means of future financial planning. They act as cushioning to when income reduces or when it is not regular as is the case during retirement. Making smart investments can protect you financially during your retirement.

Retirement is tailored towards sustaining your post-retirement years. Thinking about it in advance and planning will go a long way into creating for you a safety net that will ensure that your standards of living remain the same as during your working life.

KENYA ORIENT LIFE ASSURANCE EMERGES AS WINNERS DURING THE 2022 AKI AWARDS

The Kenya Orient Life Assurance emerged as the first runners-up for the Group Life Best Loss Ratio award at the ever-vibrant Association of Kenya Insurers (AKI) Awards, for achieving a minimum loss ratio of 16.28 per cent in 2022.

The AKI Awards is an annual event that brings together the insurance industry to recognize top-performing insurance sales agents and companies. The Loss Ratio award categorised under the Life Insurance category acknowledges the proportion of earned premiums that is lost by an insurer as a result of compensated claims.

While receiving the award, the Principal Officer of Kenya Orient Life Assurance Jackson Muli, recognised that the success of the company was due to the enthusiasm of the staff behind the brand, who have consistently shown their dedication to providing their consumers with unwavering service.

“We could not have managed to take this award home if it were not for the great team at Kenya Orient Life Assurance who continue to prove their passion and commitment to providing our customers with top-tier services and solutions. We are deliberate in ensuring that we achieve our vision of providing unique and superior life insurance solutions in the continent,” said Muli.

Last year during the AKI Awards, Kenya Orient Life Assurance Limited also won the 2021 ‘Pension Marketing Campaign of the Year’ award. The award was given to acknowledge a successful social media marketing effort on the individual pension plan that was intended to increase demand for personal pension products.

We would like to thank all our customers for the continued support and for trusting us through this journey as your preferred life assurance provider. We are because you are and our success is yours.

FACTORS TO CONSIDER WHEN PLANNING FOR RETIREMENT

Retirement is a long-term plan for everyone. Having a good retirement plan will help you continue earning an income even after retiring which will ensure that you live comfortably in your later years. A good retirement plan will also guide your savings and investment strategy during your working years. Kenya Orient Life Assurance offers a variety of plans that will help you in planning for your retirement but you first need to consider several factors that will shape your choice. Below are some of the key factors to consider when planning for your retirement:

Time

It is always good to know when you want to retire. Some professions have strict age restrictions on when one should retire. If you are self-employed, you can as well decide on the age that you wish to go on retirement. At Kenya Orient Life Assurance, we have an array of plans that cater to this factor. One of them is an Individual Pension Plan that is suitable for all ages. Depending on how old you are and the ideal age you wish to retire, you can choose and customize the best plan for you in order to achieve your retirement goals

Income

When planning for your retirement it is always good to look at your income and the kind of flexibility it can afford you. The Individual Pension Plan is tailored towards your income and it considers individuals who have seasonal income, contract employees as well as self-employed individuals. This plan offers you a flexible opportunity to save for long-term retirement income. In addition, this plan allows you to enjoy tax benefits on both the contributions and the returns on the scheme.

Expenses

Your expenses have a direct impact on how much you can allocate towards your retirement fund. Having a detailed account of your expenses will help you understand how you use your money, what you use your money on and if there is a way you can make an adjustment to save more. It is therefore advisable to start tracking your expenses and find out if you can allocate more towards your retirement.

Place of employment

Some companies organise retirement plans for their employees to help them prepare well for life upon retirement. This is given mainly as part of compensation package to employees. If your company does this, then you can be assured of financial security when the time comes for retirement. However, if your employer does not have an existing scheme already established or you would want to set up your own individual plan then the Individual Pension Plan is the way to go.

Alternatively, The Umbrella Pension Plan by Kenya Orient Life Assurance can be used by employers who wish to outsource the management of their pension funds or individuals who would like to take off the burden of having to set up and manage a pension scheme by pooling their resources together. With no hidden costs and registered with the Retirement Benefits Authority (RBA) and the Kenya Revenue Authority (KRA), the employers and employees can both benefit from all the incentives that come with this scheme.

Preparing for retirement does not have to be a hassle. Given the factors mentioned above, talk to Kenya Orient Life Assurance to secure your future. For more information on the array of products you can enjoy visit: https://orientlife.co.ke/Products

WHY YOU NEED A PERSONAL RETIREMENT PLAN NOW MORE THAN EVER

The process of planning for your retirement starts very early in life before your actual retirement takes place. It is advisable to consider investing for retirement as soon as you start earning an income because the sooner you start, the more you will have accumulated upon retirement. Proper planning will enable you to continue enjoying an income and a financially stable life years after retirement. It is therefore your responsibility to establish the best personal retirement plan that suits your needs.

Having a personal retirement plan is important because it provides you with a guide on how well to prepare for your retirement.

Here are some of the reasons why personal retirement plans are becoming a need:

Increase in informal jobs

According to the 2019 Economic Survey Report by the Kenya National Bureau of Statistics (KNBS), the informal sector accounts for about 83.6 per cent of the human capital in Kenya. The increase in informal jobs continues to be the main contributing factor to the low uptake of personal retirement plans, denying many a decent retirement while pushing the poverty index higher.

Most of the workers in the informal sector have for a long time not been taking retirement investment a priority. Recently, there has been an improvement in the pension sector, with providers, such as Kenya Orient Life Assurance coming up with products that are tailored to meet the needs of both individuals in the formal and informal sectors.

Rise of lifestyle diseases

There has been an increase in the rate of lifestyle diseases such as diabetes, cancer and high blood pressure among others. After retirement, there is a high likelihood of these diseases increasing with about 60 per cent of medical expenses being incurred. With the lack of a cure for such illnesses, they can only be managed and medication tends to be very expensive.

Pension schemes now have set up medical funds for members or employees to save for postretirement healthcare insurance to cater to medical expenses that are highly likely to occur.

This is why investing for your retirement with a personal retirement plan is important as it will help in taking care of your health expenses and you will not need to seek help from friends and family.

With a personal retirement plan, you are at peace knowing your medical bills are well taken care of when you retire.

Risk of bankruptcy

The number of people in debt currently is very high. It is important that you plan accordingly for your retirement with the little finances you have right now. This will make it easy to manage your lifestyle with your income while at the same time, taking care of your future upon retirement. You do not want your family to deal with financial liabilities when you are no longer working and have no source of income.

Rise in inflation

Inflation has soared in recent months, with consumer prices spiking. The slightest increase in inflation can significantly erode purchasing power in the long run and retirees experience inflation at higher rates than other consumers since they spend more of their money on services and products heavily impacted by inflation, such as healthcare, housing and food. If you start planning for your retirement now, you are guaranteed that your future is secured no matter how consumer prices spike.

In addition, it is good to note that the government has extended tax incentives for contributions to a registered pension scheme by exempting contributions up to a limit of Sh. 20,000 per month or 30 per cent of salary. It is therefore critical to save towards retirement despite the inflation rates given such tax exemptions.

Old age poverty

Imagine having to retire with no investment and having to rely on family and friends for your dayto-day upkeep. A survey conducted by the Central Bank of Kenya (CBK) in 2022 showed that about 89.4 per cent of Kenyan adults lack a pension scheme, setting the stage for a rise in old-age poverty and forced work. Having a personal retirement plan therefore will enable you to not only understand how to manage your finances but also secure your future and be free from old age poverty.

At Kenya Orient Life Assurance, we understand the importance of a well-planned retirement and thus, our Orient Personal retirement plan is tailored to meet all your needs. Reach out to us today and we will guide you on how best to take advantage of this product.

Factors to consider when taking an Umbrella Pension Plan

Small to medium size enterprises (SMEs) and employers who wish to outsource the management of pension funds can now enjoy the advantages of a fully registered pension scheme thanks to the Umbrella Pension Scheme by Kenya Orient Life Assurance. This pension plan collectively puts together the retirement investment funds of various employers in an adjustable method in a bid to help employees achieve a decent and secure retirement. Pooling of resources reduces the average cost of running the fund, a hassle-free experience since Kenya Orient Life takes the regulatory and governance pressure and allows employers to focus on their core businesses and complements the returns and benefits due to the scale of the investment fund.

Below are key factors to bear in mind when taking up an Umbrella Pension Scheme:

Regulation

Before you entrust an insurance provider with the retirement savings of your employees, take a step further and find out whether they are answerable to a regulatory authority. This means that they are bound to comply with their role of trusteeship and legal action can be taken upon them in case of any issues. A reliable Umbrella Pension Scheme provider whose proceeds are overseen by the relevant authorities will ensure that you receive superior customer service. Orient Umbrella Pension Plan is duly registered by the Kenya Revenue Authority (KRA) and the Retirement Benefits Authority (RBA) as a retirement fund provider.

Flexibility

Different companies operate differently and thus, contribution channels towards an umbrella scheme will vary from one employer to another. In this case, choose a provider who provides the flexibility that suits the needs of your employees. Depending on how your organization is structured, make sure that this product is tailored to meet the needs of your employees in the long run. With this in mind, you will need to find an umbrella pension plan that will be flexible enough to accommodate future adjustments that might take place in your organization. The Orient Umbrella Pension Plan is flexible enough that it allows employers to specify the retirement age for employees and any other special rules that can be included

Fees and Charges

There are various fees and charges incurred as you take up an Umbrella Pension Plan including; administration fees, audit fees and a retirement benefit levy. As you consider taking up an Umbrella Pension Plan, ensure there are no extra charges and that the fees included are pocket friendly and do not eat up a large portion of your contributions. At Kenya Orient Life Insurance, we believe in transparency and thus have ensured that there are no hidden charges when signing up for our umbrella scheme. Our fees are also competitive and friendly to our customers.

Ease of Access to investments

Imagine saving up for retirement for many years only to be faced with a lot of back and forth upon the maturity of your retirement funds. Be keen when selecting a retirement investment company for your employees so that they can easily access their funds. Through the Orient Umbrella Pension Plan, employees can access their funds upon achieving the stipulated retirement age. As a pension scheme

Return on investments

You want to enjoy the best returns on investments upon maturity of your investments and saving for retirement through an Umbrella Pension Scheme should not be any different. Choose a provider with the most competitive returns, that also aligns with your goals. Due to the high-yielding investments, Orient Umbrella Pension Plan offers an attractive minimum guaranteed interest rate of 4 per cent per annum. In addition, there is a bonus declared at the end of every year. Sign up your employees to the Orient Umbrella Pension Plan today and let us do the investment work for you. You can rest assured that your future is secure with us.

KENYA ORIENT LIFE AT THE FOREFRONT OF SUPPORTING CHILDREN WITH HEART DEFECTS

According to research, Congenital Heart Defects (CHD) are the most common form of birth defects in children and occur in one per cent of all live births worldwide, affecting over 40 million people. In Kenya, the Ministry of Health estimates that more than 200,000 children under the age of 18 suffer from heart disease. This not only complicates the lives of young children but also risks the future of the younger generation.

In our continuous effort to serve our community, led by our General Manager Jackson Muli, we had the pleasure of supporting the Rotary District 9212’s free paediatric heart project which seeks to provide free surgery to 200 children with heart defects every year. The project aims to cater for tests and free heart surgery in collaboration with leading heart specialist from Rotary Club of Mumbai West Coast (RCMWC) in India. Kenya Orient Life Assurance sponsored the project to the tune of KES. 100,000 which was presented to the Rotary District 9212 Governor Alex Nyaga.

“As Kenya Orient Life Assurance, we continue to affirm our commitment to making everyone’s life, our priority. Through this support to the Rotary District 9212, we are confident that this is part of our service to the community we operate in and we will be making dreams of these needy children come true,” said Kenya Orient Life Assurance GM Jackson Muli.

The main objective of Rotary is service in the community, in the workplace throughout the world, which is achieved through seven areas of focus. As such, Rotary District 9212 is passionate and dedicated to tiny hearts through the Free Paediatric Heart Surgery Program which falls under the Disease Prevention and Treatment area of focus.

“Children in Sub-Saharan Africa face many kinds of heart defects and the cost of getting treatment for congenital heart defects is very expensive and out of reach for many children. With sponsors such as Kenya Orient Life Assurance, we are looking forward to achieving our objective of supporting 250 needy children this year,” said Rotary District 9212 Governor Alex Nyaga.

Rotary District 9212 comprises of Rotary Clubs from Kenya, Ethiopia, Eritrea and South Sudan. In conjunction with local health specialists and facilities, Rotary District 9212 has set up massive heart surgery clinics locally and is hosting heart specialists from India to offer the free heart surgery together with local specialists in partner facilities. These heart specialists are undertaking simple to the most complex surgeries, for free, for needy children.

BENEFITS OF CHOOSING THE ORIENT SMART EDUCATOR PLAN

When a child attains school-going age, a new budget line in the name of school fees is created for the parents. It is a 15-year journey of expenses all the way from kindergarten to university and one that can be strenuous for the parents if they aren’t well prepared.

At Kenya Orient Life Assurance, we offer you the Orient Smart Educator Plan, an education savings plan that caters for the financial needs of your child or children through school to help them focus on their studies without interruptions.

Would you like to ease the burden of school fees? Here are benefits of choosing the Orient Smart Educator Plan for your child or children.

1. It’s tailored to all curriculums

With the different education systems, namely 8-4-4, The International General Certificate of Secondary Education (IGCSE), or the recently introduced Competency Based Curriculum (CBC), the Orient Smart Educator Plan is tailored to suit your preferred curriculum that your child is enrolled to.

2. Fulfills your child’s career goals

School fees may be a financial hindrance for the child in achieving their career goals, but with Orient Smart Educator Plan, you don’t need to worry about funding your child’s course fees because the accumulated profits at maturity will be sufficient to cater for higher learning fees.

3. Has a child’s cover in the event of unforeseen conditions

One great gain of the Orient Smart Educator Plan is the financial protection in the event the parent or guardian dies or suffers a permanent disability, the policy has a waiver of all future premiums while future benefits are payable when due. The amount paid is sufficient to cater for the child’s fees in the case of a parents’ or guardians absence. A sum of Ksh50, 000 is also paid to cater for funeral expenses.

 Accidental death

The policy also offers personal accident insurance benefits that cater for accidental deaths, with 100% additional sum assured. In such instances, future premiums are waived, and future benefits are payable when due.

 Accident hospitalization

The accident hospitalization cover benefits the child and parent or guardian in the event of severe accidental injuries up to a maximum of 40% of Sum Assured, subject to a limit of Ksh200, 000 per life during the policy term. To acquire this benefit, one must have been hospitalized for a minimum of 3 nights.

4. Annual cash benefits

Once you have signed up for the Orient Smart Educator Plan, you have the benefit of having the annual cash benefits that will cater for any immediate but relatively smaller financial needs of the child.

5. Child’s birthday annual cash benefit

At Kenya Orient Life Assurance, we value your child’s milestone. Every year, there is an annual cash benefit of 5% of the annual premium paid back on the first day of the child’s birthday calendar month.

6. Easy access to your benefits

Our team is available to attend to you when you are ready to access your benefits. It is important to note that once you have paid all premiums due and provided the relevant documents, the process is seamless to assist you get your benefits, which are paid out in six installments and an addition of accumulated profits at maturity.

For death claim, we will require you to provide documents as proof that you are the beneficiary in the policy, and that the event making you claim actually occurred, for example proof of police abstract in case the policyholder died as a result of an accident.

Give your child the much needed advantage of quality education. The choices we make today have multiple effects in the future of a child. For more information please contact us, we will guide you step by step on how to sign up for the Orient Smart Educator Plan today.

Factors to consider before taking up an education policy

In today’s unprecedented times, most families have had financial constraints due to an imbalance in the job market. The changes in the school-terms calendar by the Government due to the COVID-19 pandemic has also contributed to financial constraints for parents and guardians, who have had to pay school fees consistently as the transition between terms has been relatively short with no usual breaks. Most parents and guardians have had to secure expensive loans to cover school fees, leading them further into debts, even as school fees structures continue to increase.

To avert such strenuous occurrences in the future, it is paramount to have a long-term commitment towards a savings plan for your child’s education. Through consideration of an Education Insurance Policy that is hassle-free, parents and guardians will be at peace knowing that their children’s education is covered throughout their schooling even in the unfortunate event of a parent's demise.

While it is not a short-term expense, savings for a long-term plan requires a total commitment that stretches over a period of time. Whether it is a monthly, quarterly, semi-annual or annual basis, one can decide which flexible plan works best in payments of the exceptional premiums to improve their savings culture.

Children are the future, creating that future for them through legacy, hope and joy is what counts. As they begin their first steps of growth towards their future, it is the parents' or guardians’ role to equally reflect the steps taken to plan for their education for the future. As soon as the child is born, one can begin the savings plan for a child’s education immediately.

However, it is never too late if your child is already of school-going age. The insurance service provider will advise on the best savings plan for secondary or tertiary education. There are certain factors to consider as a policyholder before settling for an Education Insurance Policy.

1. Affordable premiums

Before you begin to purchase a policy, request your insurance agent on the recommended policy that covers your needs and goals, based on your financial capacity. Some policies have access to funds whenever you need them before the maturity date, while others have a provision of a goal, for instance, a savings plan that matures once your child has reached 18 years of age.

Make realistic goal plans while saving for an education policy. Based on your current lifestyle and income ensures you save without constraints. Avoid committing to a higher savings amount which might end up having a policy terminated hence one may lose their money in the case of financial difficulties.

2. Benefits

There are policies with an option that waives the payment of premiums in the event a parent or guardian dies, is critically ill or suffers from permanent disability and is unable to pay for the education policy. This provision takes care of your child’s education expenses should anything unfortunate happen to you. Choose a premium that aligns with the type of benefits you need.

Before you settle for the type of policy suitable for your needs, it is important to understand the basics of the policy and its main features as advised by your trusted insurance agent who will take you through step by step in a bid to make the right decisions

3. Investment Plans

Most insurance education plans have an option where your savings are invested in a fixed income fund with a bonus option that helps you meet your financial needs in the event that one gets into a financial-instability situation. The bonus feature also pays your premiums until the maturity of the policy if one dies or suffers a permanent disability. One could also have an option of investing in the capital markets and having an annual rate of return on investment.

4. Monitoring of funds

With the help of your insurance agent, it is important to keep an eye on the funds to ensure you reach your goals. Once you purchase your preferred policy, monitor the initial projections and the actual returns and the investment-linked policies which might change due to changes in money markets.

Basically, an education insurance policy is a type of life insurance product where the parent or guardian is the policyholder whereby his or her child’s life is assured as the beneficiary.

Kenya Orient Life Assurance brings you ‘Orient Educator’ and ‘Orient Smart Educator’, Education savings plans tailored to meet your child or children’s education fees particularly designed to fit both the old and the new school curriculum systems. The savings plans not only cater for education fees but is also hassle-free and offer annual cash benefits from inception to cater for any urgent but relatively smaller financial needs.

Early planning with Orient Educator Plans is the bridge to a hassle-free, affordable and quality education for your child’s future.

FACTORS TO CONSIDER WHEN CHOOSING A LIFE INSURANCE PROVIDER

One of the most important things we do during our lives is to care for, protect, and support those we love. In the unfortunate case that you are no more, make sure that you provide a safety net for those who depend on you. When choosing a life insurance provider, some of the factors to consider include:

Product offerings

As you are shopping for different life insurance companies, be sure to check each company's product offerings. Make sure they offer a comprehensive selection of life insurance policies. There are so many life insurance providers in the market but think twice before working with one that claims to specialize in every type of insurance under the sun. It is advisable to settle on a company that specializes solely in life insurance products. That way you can be sure to work with a seasoned life insurance professional who can help you customize your policy to suit your needs. Choosing an insurer that offers a broad spectrum of life insurance policies also provides you with the advantage of easily exploring other products in case your needs change in the future.

Premium rates

Some insurers may charge you more or even deny coverage based on your health, age among other factors. This is because guidelines for setting premium rates vary by insurer. Shopping and comparing premium rates from several life insurance providers in the market can help you find coverage at the best possible price. Thankfully, many insurers like Kenya Orient Life Assurance make the process easy by providing free quotes online. Additionally, an independent insurance agent working with numerous insurance companies can also help you find the best coverage options and prices.

Reputation

Life insurance companies with a good Claim Settlement Ratio (CSR) for consecutive years are generally considered reliable. The CSR is the percentage of claims that the company has settled in a financial year compared to the number of claims placed. You can visit the Insurance Regulatory Authority’s website to view the updated CSR of different life insurance providers in the Kenyan market. It is also advisable to read customer reviews and understand whether your life insurer's claim service is fast and hassle-free.

When searching for a life insurance provider, settle for a company that provides you with complete information about their product and services, one with a well-known and positive corporate image and one that has proven they can handle and rectify customers’ complaints.

BEYOND SAVINGS: HOW LIFE INSURANCE CAN SECURE YOUR CHILD’S FUTURE

As a parent you always aspire to meet every need of your children by creating the best opportunities for them to thrive and grow. You also think about safeguarding their future by ensuring their financial security so that they can achieve their dreams.

One of the most important things that parents can do to protect their children's futures is to buy life insurance. The following are ways in which life insurance secures the future of your child.

Financial security

Life insurance is a safe haven against future unpredictable situations. It secures the financial security of your children in the event that you are not available to cater for the needs of your children. The payout from the life insurance ensures that your children’s daily expenses are covered without delay.

Income replacement

Life insurance ensures that your children have continuity and are able to maintain their lifestyle. The benefits from your life insurance policy are tax-free and will allow your children to leave comfortably in the event that you are not there to provide for them. This ensures continuity and stability in your children’s life. It also ensures that they have sufficient finances to protect them from financial difficulties while you are away.

Peace of mind

A parent always wants the best for their children and for them to be well taken care of no matter what happens. Having a life insurance policy reassures you that your children will be supported financially. It relieves you of the burden of stress and anxiety caused by the uncertainty about their future if you are no longer there.

Future protection of your children

When you acquire a life insurance policy you secure the future of your child. This is because the payout benefits of a life insurance can be used to cater for school fees, payout mortgages, debt repayment or any outstanding medical bills you may have left behind.

Estate planning

Having a life insurance policy ensures that your child immediately receives the payout if you are no longer there. It allows for a smooth transfer of assets and ensures that your children receive their inheritance without any delays that may normally come from any legal proceedings or conflict due to succession.

Life insurance provides you with financial safety for your children, peace of mind and secure your children’s future. It allows you to plan ahead so that your children have resources they need for a secure life.