Prudential Uganda has launched three financial protection and savings products aimed at helping Ugandan families plan for children's education, build long-term wealth and protect their financial plans against unexpected life events.
The products -- Pru Edusave Plus, Pru Wealth and Pru Legacy -- are designed around three areas of household financial planning: education, wealth creation and protection for dependants.
Speaking at the launch, Prudential Uganda Chief Executive Officer Tetteh Ayitevie said the products were developed from the company's experience serving customers in Uganda over the past decade.
"People work hard for their money, but by the time the salary ends in the account, it already has a destination. Behind those monetary decisions are always people and the goals that matter to them," Ayitevie said.
Keep up with the latest headlines on WhatsApp | LinkedIn
He said financial products should help households move beyond simply earning and spending money towards deliberately planning for major future obligations.
"For Ugandan families, some of the most important decisions are how we plan our children's education, how we build wealth, how we protect the families that we love and, most importantly, what we leave behind if anything happens to us," he said.
Ayitevie said Prudential's latest products were intended to combine long-term saving with protection against events that can disrupt household finances.
"Saving and investing help people prepare for the future they envision, but protection helps safeguard those plans when the unexpected happens. A strong financial plan must be able to address both challenges," he said.
Education planning
Officials said Pru Edusave Plus allows parents and guardians to save towards a child's education over a period of between five and 15 years.
According to Prudential Uganda, customers can contribute from shs150,000 a month, with quarterly, half-yearly and annual payment options also available.
Unlike conventional education savings arrangements that may provide a lump sum at the end of a term, the product allows benefits to be paid in instalments aligned with different stages of a child's education.
Prudential Uganda Chief Operations Officer Brenda Nagudi said the product was developed around the reality that education expenses arise at different stages of a child's development.
"In Uganda, the education journey is not one event. We have nursery, primary, secondary and university, and each stage comes with financial requirements. What we are doing with Pru Edusave Plus is allowing a parent or guardian to plan for those different milestones instead of waiting until the need arises," Nagudi said.
She said the product allows customers to set aside money in advance for expenses such as admission fees, tuition, school fees and other costs associated with education.
"You are putting money aside today so that when that particular education need comes, the money is available. The objective is to make the financial burden more predictable and give families a structured way of preparing for those expenses," she said.
The product also incorporates protection if the policyholder dies or becomes totally and permanently disabled.
Under the stated product terms, an immediate benefit equivalent to 20% of the sum assured, capped at shs10 million, is payable in the event of death or total and permanent disability. An annual income benefit equivalent to 20% of the sum assured, also capped at shs10 million, is then payable on each policy anniversary for the remainder of the policy term.
Prudential said future premiums are waived in the qualifying circumstances, with the policy remaining in force until maturity. The customer is then entitled to 100% of the sum assured plus accrued bonuses, subject to the policy terms.
Nagudi said the protection element was intended to ensure that a family's education plans do not automatically end when the person responsible for paying premiums can no longer do so.
"If something happens to the premium payer, we don't want the child's education plan to stop at that point. The product provides an immediate benefit, but Prudential also takes care of the future premiums under the applicable conditions and keeps the policy running to maturity," she said.
The product also has an optional inflation protection feature that allows customers to increase their sum assured and premium at policy anniversaries.
Building wealth over time
Pru Wealth is aimed at customers saving towards longer-term financial objectives, including business capital, home ownership, education and other major financial needs.
The product has a minimum term of eight years and a maximum term of 15 years, while the minimum premium is shs250,000, according to Prudential Uganda.
Customers can make monthly, quarterly, half-yearly or annual payments.
Nagudi said the product was designed to respond to the fact that households often have several competing financial ambitions.
"You could have a need to build capital for a business. You could want to build or buy a home. You could have an education goal or another major financial requirement. These are needs that can require significant amounts of money, and Pru Wealth gives customers a structured way of planning towards an agreed amount over a defined period," she said.
The company said the product provides a structured savings approach towards an agreed financial goal while incorporating protection for the policyholder's family.
Where the policyholder dies, the plan provides annual income support equivalent to 10% of the sum assured for the applicable period. It also provides an additional payment equivalent to 100% of the sum assured at maturity, subject to the policy terms.
The third product, Pru Legacy, is focused on financial protection and legacy planning.
Prudential Uganda Chief Commercial Officer Felicia Manuela Quarshie said the product addresses a financial risk that is sometimes overlooked -- the impact of serious illness on people who are still alive and have families depending on their income.
"We often talk about what happens to our families when we are gone. But there is another financial risk we need to talk about: what happens when you are still here, still have a family depending on you and still have financial commitments, but suddenly face a serious illness?" Quarshie said.
She said a serious illness can affect more than an individual's health.
"A serious illness does not only affect your health. It can affect your income, your savings and the financial plans you have spent years building. Treatment costs arise, income might be interrupted, savings may have to be used, but school fees, rent, mortgages and other household expenses do not disappear because somebody is unwell," she said.
Under the product, customers build towards an agreed financial goal while receiving protection against specified events during the policy term.
For natural death during the plan, Prudential says 100% of the guaranteed sum assured is paid to beneficiaries, alongside a 10% annual family income benefit.
The product also provides an accidental death benefit of 200% of the applicable cover, according to the company.
An optional critical illness benefit is designed to provide 50% of the customer's cover upfront when the applicable conditions are met. The company says the benefit is intended to provide financial support for expenses and income disruption associated with serious illness.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Quarshie said the critical illness benefit was intended to give customers access to financial support while they are still alive and dealing with the consequences of a serious diagnosis.
"That money becomes available at a time when the customer needs to focus on treatment and recovery, but also needs to keep the household financially stable. It gives the customer financial support when the illness itself may be creating pressure on income and savings," she said.
Pru Legacy also provides protection against permanent total disability under the applicable policy conditions, with future premiums covered and the plan continuing towards maturity.
The product is distributed exclusively through Prudential Uganda's bank partners and according Quarshie,the bank distribution model was intended to bring insurance discussions closer to other financial decisions made by customers.
"People already use their banking relationships to make important decisions around income, savings, investments, mortgages, businesses and assets. We believe protection belongs in that same conversation," she said.
Prudential Uganda said the new products form part of a broader review of its product offering, with further product iterations expected as the insurer applies lessons from its experience in the Ugandan market.
Ayitevie said Prudential had served more than 200,000 customers over the past decade and that the experience had informed the development of the new products.
"The products we are putting out there are born out of the lessons we have learned from serving Ugandan customers. We want to make sure that the financial instruments we provide are relevant to the needs people actually face," he said.
The company said its products are intended to complement, rather than replace, other forms of saving and investment and encouraged customers to consider their financial needs, affordability and policy terms before taking up cover.
