Britam unveils unit-linked product

Listed Financial Services firm Britam has cast its net wider targeting more clients.

The insurer has come up with a new unit-linked investment product dubbed ‘Imarika’ which Britam says will be offering returns of between eight and 12 per cent annually. The minimum return being five per cent.

“Imarika allows investors to invest with as little as Sh1,000 with subsequent top ups of any amounts, depending on one’s saving ability. The investment also guarantees a free life insurance cover of Sh50,000, and the interest is not subjected to a withholding tax of 15 per cent,” said Britam Group Managing Director Benson Wairegi.

On top of that, the insurer explains that an investor will be allowed to apply for tax relief if the policy is 10 years or more.

Unlike traditional life covers where if a client stops making the agreed premiums over a period of time he risks losing the returns associated with the cover, Wairegi explained that under the new venture, a client can stop contributions and pick at a later date, without loss of the contributions.

Also, as the fund accumulates, the same client is allowed to make partial withdrawals of up to 30 per cent of the fund value after three years to cater for short term needs or goals.

In a move to bolster investor confidence in the product, Britam further said that the Imarika fund invests in interest-bearing securities and other short-term market instruments and ensures risks are managed, while preserving the initial capital.

“The product targets Kenyans who seek to invest in low-risk, but high-interest earning instruments at a time when investors are looking for alternative investment platforms outside the traditional insurance products,” said Britam Principal Executive Director, Business, Stephen Wandera.