Standard Lesotho Bank, the largest commercial bank in Lesotho by assets and market share has introduced a new insurance product that is intended to provide an affordable funeral cover for its customers. The new insurance cover, called Matšeliso Funeral Plan is a family funeral insurance cover that has being tailored to fit the lifestyle and cultural considerations of Basotho in the event of death. This insurance has been underwritten by Alliance Insurance Company.
With the introduction of Matšeliso Funeral Plan, Standard Lesotho Bank has introduced bancassuance, which is a platform where banks expand their service offering to service customers with insurance products. It is an arrangement that provides customers with the convenience of a one-stop-shop facility, where financial services and products for saving, investments, lending and insurance are all under one roof. The bank is also leveraging on the branch network that is distributed throughout all the districts of Lesotho to make Matšeliso Funeral Plan accessible to Basotho throughout the country.
With premiums from as little as M68.00, customers get a numbers of benefits including a cash payout of fifty thousand Maloti, a grocery benefit of up to three thousand five hundred Maloti as well as airtime up to M500.00 Maloti. With this plan, principal members are also able to cover their parents up to the age of 84, which implies that the challenge of providing a cover for elderly parents has been resolved.
Matšeliso Funeral Plan also provides cover for extended family at an additional fee for up to two members, which demonstrates that the product has been developed with Basotho in mind. “In many ways, we feel that this product really addresses most issues from a truly Basotho point of view, also taking cognizance of the economic hardships and challenges that face our people. It is cheap, it accommodates your entire family including extended family and it is also convenient throughout branch network.” Says Mr. Mpho Vumbukani, the Chief executive of Standard Lesotho Bank. Mr. Vumbukani also thanked the Governor of the Central Bank of Lesotho and her team for their cooperation and commitment that ultimately paved way the bank to be granted the bankassurance license.
The product speaks to wider national priorities relating to financial inclusion, where Government, through the Central Bank and the Ministry of Finance continue to challenge all financial services providers to make financial products like Matseliso Funeral Plan available to Basotho at affordable fees.
With Matšeliso Funeral Plan, the bank has pushed the boundaries to assist the Government to give Basotho an insurance policy that appeals to all segments of the market, especially the low income earners, of whom 75% of them to not have access to formal financial services and the skills and knowledge needed to help them to make informed financial decisions.