ELAC Re-launches Two Flagship Products

The National Insurance Commission (NIC) is impressed with the rate at which the life insurance business is growing, but has challenged the assurance companies to look at new ways of expanding the coverage.

The Head of Supervision at the NIC, Mr Kofi Andoh, told the Daily Graphic in Accra that, there was a large informal sector that remained uncovered by life assurance products but the companies could reach them through innovative products.

Mr Andoh said that on the sidelines of a ceremony to re-launch two life assurance polices of Enterprise Life Assurance Ltd (ELAC).

The enhanced Funeral Finance Plan and Lifetime Needs Plan are among the flagship products of ELAC, which is in its 10th year of operation, having starting before the compulsory separation of life from general insurance businesses.

“The life insurance industry has witnessed a tremendous growth and vigorous development efforts on the part of the companies to satisfy customers’ growing demands. ELAC, an industry giant, has over the years made a name for itself as an innovator, meeting the needs of its customers with sheer passion and excellence,” the NIC head of supervision stated.

The Deputy General Manager, Sales and Marketing, Mrs Jacqueline Benyi, who explained the features of the products, said the Funeral Finance Plan is aimed at providing immediate cash pay out to the policyholder to cover funeral expenses of loved ones.

The plan covers the life assured and the spouse, the children and an option to include the extended family and apart from the life cover benefit, the enhanced plan has other benefits such as a cash back payable every five years if the policy holder does not make any claim within the five-year period of the policy.

Mrs Benyi explained that the plan also had a family support benefit payable after a death claim had been processed and would be paid in six monthly instalment.

“You can enjoy Memorial Cover Benefit payable a year after death cover benefit is paid,” she said, adding the FFP is an open-ended policy with six different plan types and the plan type and option chosen are used to determine the monthly premium and sum assured.

The Lifetime Needs Plan (LNP), on the other hand, has been designed to provide the member with the means of contributing to an investment fund which could meet the member’s life needs with a life cover benefit which becomes payable in the event of death of the assured.

The deputy general manager, Sales and Marketing, said the three-option mix of life cover and investment element policy comes with a 10-year maturity, but those terminating before the 10th year would be treated as surrenders, saying “the policy will automatically cease on the policyholder’s 70th birthday.”

The Deputy General Manager, Operations at ELAC, Mr FiiFi Simpson, told the Daily Graphic that the products were a reflection of clients’ views and the desire to meet their changing needs, adding that the lump-sum to be paid had now doubled should death occur through an accident.

“We have also looked at the cash back of 10 per cent of the value of total premium when there is no claim in five years and we believe that these features would go a long way to address the new concerns,” he said.

Mr Simpson said there was also a transitional arrangement in place to enable clients on the old plans to migrate onto the new ones.