NAIROBI, Kenya, Nov 1 – Liaison Group has launched an insurance scheme that allows clients to get medical cover in their retirement.
Dubbed the Suluhu Umbrella Scheme, the scheme is the first in the Kenyan market that allows members to port their medical cover through their pension and income drawdown in one platform.
Under the scheme, a member can contribute both for retirement and a medical plan, and on attaining the retirement age, the funds for retirement will be utilized to secure a retirement benefit while the medical fund caters for their medical cover fully on retirement.
Group Managing Director Tom Mulwa says the scheme comes against a backdrop of increased national healthcare burden, especially for retirees and the old, largely driven by the rise of lifestyle diseases in Kenya.
“Suluhu Umbrella Scheme ensures that one is not just guaranteed a stable income in retirement, but also has a reliable medical cover. Most importantly, we have put in place a highly competent panel of service providers to ensure a high quality of service. The fact that the service providers are not related is also critical for good governance,” Mulwa said.
Studies indicate that 60 per cent of an individual’s medical costs are incurred in retirement age. Unfortunately, due to their high risk, older people have had to pay high premiums to get medical insurance with some insurance providers not offering medical cover to people aged above 60.
A trend analysis report shows that health expenditure in Kenya had grown to Sh73.2 billion by 2016 while the percentage of admissions for people over 65 years stood at 34 per cent in 2013, compared to 25 per cent a decade ago.