While not very popular, insurance companies in Kenya allow people to borrow against their life insurance policies. This type of loan, known as a policy loan, can provide a source of funds for various purposes, such as financing a business, paying for education, or covering unexpected expenses. However, it’s crucial to understand the terms and conditions associated with these loans, as they can impact your policy’s cash value and death benefit.
Here are the 5 best insurance companies in Kenya for loans, discussing their requirements, interest rates, and overall reputation in the market. Whether you’re considering this option or want to be informed, this guide will provide valuable insights into the world of policy loans in Kenya.
Table of Contents
Best insurance companies in Kenya for loans today
- Jubilee Insurance Kenya
- Britam Insurance Kenya
- CIC Insurance Kenya
- Liberty Insurance Kenya
- Equity Group Insurance Kenya
Related Read: 14 Best Saccos in Kenya for Loans
1. Jubilee Insurance Kenya
Jubilee Insurance Kenya is undoubtedly one of the best and most well-known service provider companies in the Kenyan market, providing loan-related solutions alongside other insurance products. According to Afrikta, Jubilee Insurance is ranked as the best insurance company in Kenya in 2024. This suggests that its financial strength is robust, its liquidity position is exceptional, and its risk-management strategies are sound. One of Jubilee Insurance’s key products is the Credit Life Plan, which is meant to assure financial stability for the borrowers and their families during sudden death, temporary or permanent disablement or loss of the customer’s employment by the customer.
The plan has this risk mitigation effect in providing for the retirement of outstanding loans, putting the borrower’s possessions and income streams beyond the harm of loss. Jubilee Insurance is known for its ability to give clients the loan they need from their policies. Professional clients are provided with loans to meet the costs of their policies.
Besides the Credit-Life Plan, Jubilee Insurance has many other loan-related offers, for example, it envisages Group Mortgage Protection, which takes responsibility for repaying the mortgage loan if the insurance applicant becomes disabled or dies. The latter will also cover critical illness, total and permanent disability benefits, and death cases by integrating Credit Life Assurance.
However, Jubilee Insurance is also a flexible brand. It has several payment methods, like salary stop orders, M-PESA, ATM, or bank transfers all of which are convenient for the policyholders. The interest rate for Kenya’s Jubilee Insurance policy loans was 14.9% in the first half of 2023.
2. Britam Insurance Kenya
Britam Insurance Kenya is a significant player in the Kenyan insurance industry with diversified insurance solutions that include loan-related products. The insurance company offers a policy loan facility, which can borrow against the cash value of the customers’ insurance policies.
To be given a Britam policy loan customers should possess a policy in force for not less than 3 years. After qualifying, Britam awards a loan facility to the client with a guaranteed investment return of 5% for renewal. Customers can borrow the face amount of their policy, which helps flexibility with their money when other sources of liquidity are scarce.
Britam, Kenya, beyond that, has an Education Plan, known as the “Super E Education Plan,” which ensures that children get a combination of risk-free savings, investment, and protection benefits to secure their educational future. This plan allows parents to save and invest in their children’s education while safeguarding them from financial hazards.
Besides its loan and educational plan services, Britam users have the best support provided through the Help Center, where they can file their claims and locate hospitals, garages, and branches, thus creating the smoothest possible experience.
3. CIC Insurance Kenya
CIC Insurance Kenya is the leading cooperative insurer in Africa and operates in Kenya, Uganda, South Sudan, and Malawi. The organization is highly respected for its forward-thinking approach and quality service, which resulted in many national and international awards.
One of the most prominent offerings of CIC Insurance Kenya is the Loan Guard product, a distinctive solution aimed at the SACCOs (Savings and Credit Co-operative Societies). This product covers loan balances and shares in the event of a member’s death or total permanent disability without any medical requirements or exclusions for HIV/AIDS.
Some of the advantages of CIC Insurance Kenya’s new loan product, Loan Guard, include free last-expense cover, automatic cover for new loans granted during the insurance period, and guaranteed premiums for the whole year. Moreover, the product includes riders, such as the Critical Illness Rider and Retrenchment Rider, providing complete coverage to the borrowers.
In addition, CIC Insurance Kenya offers financing loans in partnership with AMREF Health Africa Kenya building, which covers motor private, motor commercial and other non-motor types of insurance. This type of loan is intended to extend insurance services to a larger group of people and businesses.
The policy loan option of CIC allows policyholders to draw up to 85% of their surrender value after 3 years of investment.
4. Liberty Insurance Kenya
Liberty Insurance Kenya has over the years built a follower-ship as a leading life insurance solution provider, including adaptability to the changing needs of individuals and businesses. They enable the protection of assets against an uncertain future. The company allows policyholders to give life insurance policies as security to make loans from financial institutions like banks and others.
In case of the death of an insured person, the Liberty Insurance Kenya company will settle the loan balance with the preeminent of the life insurance policy fund. The loan amount is less than 85% of the policy’s face value, not beyond the 25% partial withdrawal.
Liberty Insurance Kenya has Grouple Credit Life insurance, which guarantees employees financially secure families in case of death, illness, disability, or job loss. The fund partners with micro-finance organizations, banks and other financial businesses and assists employees in paying off their debts giving them their families peace of mind.
Moreover, Liberty Insurance Kenya offers Trade Credit Insurance whereby companies are not susceptible to financial losses that may be caused by debts not being paid on time, resulting to smooth trading and the companies growing.
5. Equity Group Insurance Kenya
Equity Group Insurance Kenya is a subsidiary of the mother company Equity Group Holdings, providing its clients with various insurance products. The company offers a motor insurance policy that covers tour vehicles, chauffeur-driven vehicles, and commercial vehicles and provides non-motor insurance for fire and perks types and all-risk insurance.
One of the products offered by Equity Group Insurance Kenya which deserves recognition is the Insurance Premium Financing product that helps the insurance premiums to be paid through a loan. This product enables lenders to easily avail loans between KSh 1,000 and KSh 500,000 with a maturity period of not exceeding 10 months.
In addition, Equity Group Insurance Kenya provides a Group Credit Life policy, which gives the beneficiaries the dead loan amount when the borrower dies or becomes disabled permanently. The above is an avenue that financial institutions can tap into to cushion a borrower’s family against loan repayment financial burden in years of misfortunes.
This policy of enabling insurers a way out through financial and efficiency decisions allows them to manage their financial matters effectively.
Use our Free Tools to Make Sound Financial Decisions
Take ownership of your finances today, and better plan for your future with our free financial tools. With our Life Insurance Calculator, you can conveniently determine how much coverage is the best protection for your loved ones’ finances in the future. By putting such data as annual income, savings, and investment assets, you can determine the life insurance with features specifically for your needs.
With Mortgage Calculator, figuring out your mortgage payments becomes easy. It will show you the principles, interest, property taxes, and insurance rates. This device is designed to help you consider several situations, like different amounts of loans and their respective interests, to make the right choices when planning your home financing. Make use of those user-friendly calculators to help you plan for the retirement years.
Try the Life Insurance Calculator and the Mortgage Calculator for better overall financial growth, leading to stability and tranquillity. Plus, they are free!
Final Word
The insurance market in Kenya is vast, and there is diverse and rich provision of policies that individuals and businesses need to handle financial issues. Jubilee Insurance Kenya, a well-known company, has a Credit Life Plan, a policy loan facility, and an Education Plan, among the many options these companies provide to earn financial security.
CIC Insurance Kenya has conspicuous Loan Guard products and insurance financing loans to illustrate the customer-centric service provision it stands out for. Liberty Insurance Kenya’s approach of utilizing life policies as collaterals for loans and offering Group Credit Life Insurance underpins fortitude towards real estate preservation and enterprise expansion. Equity Group Insurance Kenya’s Premium Financing product and Group Life Credit make insurance accessible to various financial demands.
You can make well-informed decisions through free financial tools like the life insurance and mortgage calculators,and learn how much they can help you from future risks. This underlines the crucial nature of knowing the policy loans in Kenya’s insurance companies and thus enables one to make wise financial decisions.
