Old Mutual Uganda has become the first financial services provider in East Africa to embed life insurance and education cover within its unit trust products.
The firm announced the move on Thursday at an event in Kampala, confirming that investors will now receive protection against death, disability, and school fee costs at no extra charge.
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The initiative is a joint venture between Old Mutual Investment Group and Old Mutual Life Assurance Uganda. It aims to address a long-standing issue in the Ugandan market: investors liquidating their savings prematurely to cover family emergencies.
Bridging the gap
Zacchaeus Kisesi, managing director of Old Mutual Investment Group, told reporters that the enhancement would help clients maintain their long-term wealth goals while securing their families’ futures.
“We understand that many customers sometimes withdraw their investments prematurely to meet unexpected life events,” Kisesi said. “This is about strengthening financial resilience without disrupting long-term investment goals.”
The new benefits, accessible via an online portal, include:
Life Care Benefit:Â Financial support for families in the event of an investor’s death.
Lifetime Benefit: Cover for permanent disability or critical illness.
Safe Scholar Benefit: Funding for school fees and materials for beneficiaries.
Regulatory backing
The move has received strong support from Uganda’s financial regulators, who see it as a step toward deeper financial inclusion.
Denis Kizito, from the Capital Markets Authority, said the product reflects the “continued evolution of Uganda’s capital needs.” He noted that while unit trusts are a popular gateway for retail investors, “financial shocks” often undermine their success.
Bernard Obel, of the Insurance Regulatory Authority, added that in an era of global economic uncertainty, insurance is “no longer a luxury” but a pillar of economic stability.
Eligibility
The cover is available to both new and existing customers holding Uganda shilling unit trusts. Eligibility is determined by an investor’s historical balance over a three-month period, with the level of protection increasing as the investment grows.
Industry experts say the move by Old Mutual, a dominant player in the Ugandan market, is likely to set a new benchmark for “integrated financial services” across the region.
