Millions in Zimbabwe opt for affordable funeral insurance instead of medical coverage

Harare, Zimbabwe - A recent survey has found that more people in Zimbabwe are investing in funeral insurance than health insurance. According to data from the National Statistics Agency, approximately 16 million people, or around 90% of the population, do not have health insurance.

In contrast, a significant number of individuals have opted for funeral insurance policies. A report by FinMark Trust found that 72% of insured Zimbabweans hold funeral insurance policies, while only 30% have health insurance.

One example of this trend is Ngoni Mutambararo’s uncle, Steward Ganda, who spent the last months of his life at home due to a severe ailment. Despite having no savings, Ganda’s family was able to cover his funeral expenses through a monthly payment to a funeral services company, Nyaradzo Group.

Experts attribute the popularity of funeral insurance to its affordability and cultural significance in Zimbabwean society. Funeral policies are often seen as a way to ensure dignity and respect for the deceased, particularly in a country where access to quality healthcare is limited.

The cost of health insurance varies widely, with some plans starting at around $10 per month. However, many households struggle to afford these premiums due to low incomes. In contrast, funeral insurance plans are generally more accessible and affordable, with options starting as low as $0.75.

Funeral services provider Doves Holdings Group notes that funerals are significant events that require substantial financial investment. The company’s public relations manager, Innocent Tshuma, stated that access to comprehensive medical aid remains limited due to affordability challenges and exclusions.

Source: Al Jazeera