First Mutual Life/POSB Bancassurance
POSB and First Mutual Life Assurance recently signed a bancassurance agreement which will see the latter underwriting the POSB Funeral cash plan and the POSB Pensioner Guarantor Plan products. This partnership is a first for First Mutual Life’s Individual Life & Funeral Business Division and it marks a dawn of a new era in bancassurance arrangement.
POSB’s clientele represents FML’s target micro markets which includes the low income earners, people in rural and outlying areas, and rural areas. The bank’s branch network is also ideal as the bank is represented in most parts of the country including the outlying areas where FML does not have office presence and this will help in the distribution of the Funeral Cash Plan.
THE POSB FUNERAL CASH PLAN
- The POSB Funeral Cash Plan (FCP) is a funeral assurance product that pays cash benefit at the time of bereavement. The cash benefit is meant to cover funeral expenses.
- POSB clients and their chosen dependents are assured of a decent and befitting send off when the inevitable occurs.
- There is no limit to the number of dependents that can be added to the policy.
- Cash funeral benefit from a premium as low as $0.80 per month.
- The flexibility and convenience to choose where to get funeral services.
- A wide branch network to ensure that claims are processed in a timely manner.
Ability to pay service providers where necessary and remit all residual amounts to the bereaved family (should a client request)
Benefits to POSB
- Increase in customer loyalty through a one stop shop.
- Growth in POSB’ individual customer book as this innovative funeral solution is expected to attract new and dormant clients.
- Additional revenue in the form of commission payable to POSB.
- POSB will be able to leverage on the existing customer base for additional income without risk on capital.
Benefits to Account Holders
- POSB account holders will be able to enjoy the services of a one stop shop.
- Better suited products – by getting insurance products from their bank of choice, POSB clients will experience products that are suited to their needs as compared to generally designed products.
- Easy premium payment- POSB clients will have a hassle free premium payment facility through POSB.
Benefits to First Mutual Life
- The bancassurance arrangement will allow FML to tap into an organized large customer base which will inevitably lead to increased premiums and profitability
- Increase in brand awareness thereby increasing usage and preference
- Bancassurance also offers FML an opportunity to reduce reliance on traditional agents. The involvement of POSB will open up further opportunities for FML to other shared services for the benefits of clients.
- There is scope for FML and POSB to jointly develop new products that are suitable for the POSB client profile
The table below indicates the plans available to members.
|Plan Name||COVER||Monthly premiums|
|Micro Plan||USD 500.00||USD 0.80||USD 0.40|
|Median||USD 1,000.00||USD 1.60||USD 0.80|
|Basic||USD 1,500.00||USD 2.40||USD 1.20|
POSB PENSIONERS’ GUARANTOR PLAN
The POSB Pensioners’ Guarantor Plan seeks to safeguard the pensioners’ wealth at the time of death. The policy ensures that the pensioners’ estate is not further depleted because of financial obligations like outstanding loan with a bank, meeting funeral costs and any other financial needs.
This product is linked to the loan that POSB would have advanced to the client and the sum assured is at the same level with the loan amount.
- The sum assured will be used to clear the outstanding loan first and any surplus will be paid to the beneficiaries.
- This product is for pensioners only and is similar to the POSB Funeral Cash Plan
Below is a table indicating the available plans:
|Plan Name||Cover||Monthly premiums per person|
|Micro Plan||USD 500.00||USD 0.80|
|Median||USD 1,000.00||USD 1.60|
|Basic*||USD 1,500.00||USD 2.40|
|Premier*||USD 2,500.00||USD 4.00|
|Executive*||USD 3,000.00||USD 4.80|
This partnership is set to open other opportunities and revenue streams for the department and the company as a whole and as we continue to grow it we look forward to enhanced revenue growth.