Sanlam Life, Minet Kenya partner to unveil innovative post-retirement insurance product

Sanlam Life in partnership with Minet Kenya have unveiled an innovative post-retirement insurance product which will allow clients to enjoy medical cover in their retirement.

Dubbed RetireMed, the product will provide medical insurance coverage for insurance consumers aged 55 years and above, allowing them to maximize their pension benefits.

Speaking during the launch, Sanlam Life Acting CEO Kevin Mworia said that the product development was informed by Kenya’s life expectancy rate which has been increasing consistently since 2015, as such, the number of retirees in the country is also on the rise.

 “The product will be reflected heavily on the Sanlam distribution avenues and delivery channels which will also be anchored on our innovative information technology solutions including biometric identification,” Said Mworia.

The product is set up within the Minet Umbrella Pension Scheme and is underwritten by Sanlam Life insurance. As such, it is fully regulated by the Retirement Benefits Authority, which guarantees that the contributions are eligible for applicable tax reliefs.

“Contributions into the RetireMed Fund will be invested separately from the assets of the Umbrella scheme. This investment strategy will be relatively lower risk, to ensure that the contributions are not exposed to a lot of volatility in the investment markets,” said Minet Kenya Managing Director Sammy Muthui.

On his part, Retirement Benefits Authority CEO, Nzomo Mutuku lauded the introduction of the product in the market as it addresses a clear gap from a retiree’s perspective, which is access to quality healthcare in the golden years.

 “Additionally, the flexibility of RetireMed to accommodate any individual including the informal workers is in line with the RBA Strategic Plan 2019-2024 with a focus on of bringing more individuals in the informal sector under a retirement benefits scheme. It also plays a key role at a macroeconomic level in securing national savings mobilized through the pensions sector,” Mutuku said.

 The RetireMed scheme administers both individuals and group schemes. The entry ages are between 18 years and 59 years. Members have various options to access their funds at retirement, including – accumulated funds at retirement to be used to purchase an annuity from an insurance company. The annuity proceeds are then used to make payments during the life of the member.

 Alternatively, the member’s accumulated funds would be transferred to a medical drawdown fund. Payments would then be made from this fund until it is exhausted or the member passes on.

Also, upon retirement, members can transfer up to 10 per cent of their accumulated pension benefits to the RetireMed, to enable them to purchase their preferred level of cover.