Mutual and Federal Launches New Product

April 25 - Mutual and Federal, one of South Africa's leading short term insurance companies, hopes to increase the number of low-income households that has some type of assets protection, through its new product, Insurance 4 All.

"Less than 2 percent of people in LSM 1-5 have short term insurance," said the company's General Manager, Kgomotso Lekola. "Insurance 4 All hopes to address this imbalance."

The product, aimed at the low income market, essentially provides policy holders with cover for belongings and homes, at prices beginning at just R21 a month. Consumers can select to insure up to six rooms in a brick and mortar house, or as an indication to the power of choice that the Insurance 4 All brand offers, can alternatively stipulate the amount of household content.

The product also offers free bereavement cover, R50,000 liability cover and a claims excess of only R100.

"As a company with a long history in this country, we believe that we have an important role to play in helping all South Africans protect the assets they have worked hard to accumulate," says Federal and Mutual's Managing Director, Keith Kennedy. "We have been particularly encouraged by the large uptake of bereavement and banking products, and we are confident that there is a huge opportunity to deliver real value in this market."

Perhaps more importantly, Mutual and Federal follows a community-based business model, with much of the funds ploughed back into society. Local community members are trained to carry out a number of roles in the business, including acting as sales agents and claims assessors and manning call centers.