One of the local leading insurance companies, Liberty Life Botswana, has joined hands with Alexander Forbes Financial Services Botswana to create a new product called Lerudi Funeral Scheme.
Lerudi is a Setswana word meaning ‘shoulder’ a term synonymous with support.
At the launch of Lerudi, the Managing Director of Alexander Forbes, Paul Masie, cited the motivation of creating the scheme as the organisation’s continued desire to help Batswana achieve financial freedom.
“We have realised a gap that existed between the monthly contributions as they are high while the payout is very low. Using the economies of scale to the customer’s advantage by creating an umbrella fund, Lerudi will be able to offer to the market, in this case, burial societies with higher funeral benefits and low contributions.
“Liberty is an underwriter of insurance and Forbes a brokerage administrator so it made good sense to collaborate and create a product that leverages on both of our strengths to provide a solution to all Batswana,” Masie asserted.
Masie further explained that the burial society members would be able to enjoy more benefits such as the “Beast Benefit” which is an additional payout of P5 000 to enable the family members to buy a cow for the funeral.
Premiums start as little as P13.00 per month and can go up to P50 000 in case of death and benefits offered also cover a member’s spouse and children at varying levels. Lerudi Funeral Scheme is only available to registered societies.
The traditional structure of a burial society does not take into consideration things such as mortality rate, gender split and associated statics when pricing, while Lerudi creates a more secure risk structure which will ensure that everyone receives their pay-out eventually, despite the number of claims.
Unregistered societies are therefore highly encouraged to do the necessary registration paper work in order to be eligible for the offering.