At Pioneer, we believe that everybody is looking to provide the best for their families, food, transport, shelter and other luxuries. We must also ensure that family social oc­casions, like birthdays, marriage, graduation, and important anniversaries, are celebrated with dignity. Our children must get the best start in life that we can easily afford. We also need the capital that will enable us venture out into our own business on the path to financial freedom.

Pioneer Mavuno plan is specifically designed to meet all these needs. It grows your money over a period of time so that you are assured a partial or lump sum payment. In addition, it provides the security that, should your death or permanent disability rob your family of its bread winner, these financial goals can still be achieved. Assuming you aged 30 years, you wanted to purchase a house, Car, and have a decent wedding in years to come and require KShs. 2,000,000 to meet this financial responsi­bility. Taking into account inflation and other rising costs over this time, you could use Pioneer Mavuno plan as per the illustration below

Product Summary

  • The term of the policy range from a minimum of 7 years to 17 years.
  • Benefits and bonuses payable depend on the Sum assured and are payable on the death of the main policy holder within the premium paying term of the policy and provides partial maturity benefits after the premium payment term.
  • Premiums will be payable for a minimum of 5 years up to a maximum of 15 years

Benefits of Mavuno Policy

Death of Policyholder during premium payment period – On death of the main policyholder during the premium payment period, the Mavuno Policy will pay the full sum assured inclusive of reversionary bonuses.

Death of Policyholder during benefit payment period – On death of the main policy-holder after commencement of benefit payment, the Mavuno Policy will continue to pay the maturity benefits in full.

Permanent Total Disability (PTD) of policyholder – On permanent and total dis­ability of the policyholder, due to an accident or illness, future premiums will be waived and future benefits will be paid to the policyholder in full.

Maturity Benefits On maturity of the policy the sum assured will be paid in three equal and annual installments which will begin at the end of the premium payment period. The remaining installments will be paid at the end of the subsequent two years. These benefits will be inclusive of reversionary bonuses

Years to maturity Percentage Factor on Sum Assured Payable
Partial – 2 33.33%
Partial – 1 33.33%
Final Maturity – 0 33.33%
Total Benefit 100%

The Maturity benefits are paid inclusive of the accrued reversionary bonuses. The Life assured has the option to take a Lumpsum benefit after the premium paying term.

Optional riders Critical Illness Benefit – A lump-sum benefit of the full sum as­sured will be provided on diagnosis of a critical illness to the main policyholder. Personal Accident – On personal accident the full sum assured will be payable.

Permanent Total Disability (PTD) – On PTD a lump-sum beneit of the full sum assured will be paid to the policyholder within 36 months. The proposed PTD rider rates have been attached as an appendix to this report

Other features

Surrender Benefits – A policyholder may surrender their policy at any time from the third year but before the commencement of the benefit payments Reversionary bonuses-Simple reversionary bonuses will be declared on the product as advised at the end of each actuarial valuation of the life fund. A policy must have been in force for at least one year in order to accrue the bonuses Convenient premium payment Options; The policy holder does not pay premium in the last years of policy. The premium paying period may vary from 5years to I5years – The longer the period the higher the return Tax benefits- The policy holder is entitled to Tax exemption on the premium paid.

Glossary Policy holder:- Person whose Life is covered Sum Assured:- Total amount Payable by the Insurance Company the Policy holder on the Maturity date or in case of untimely death. Bonus:- Addition to the Sum Assured, declared annually by the insurance company as the excess of the actual return over the expected return. Criti­cal illness- A life threatening condition that has been listed in the policy document as covered