Jubilee Life, a leading insurance provider in Uganda, today announced the launch of its innovative Jubilee Smart Save Plan. This new plan aims to empower Ugandans to prioritize long-term financial security by offering a flexible and secure savings solution.
Raising awareness and educating the public about available savings options is crucial for fostering a savings culture in the country, according to Kumar Sumit Gaurav, the Chief Executive Officer of Jubilee Life. Gaurav made these remarks during the launch of the company’s Smart Save Plan, a savings product with numerous built-in benefits, in Kampala on June 26.
Gaurav emphasized that while the reasons for saving for the future are well documented and demonstrated by various cautionary tales, there is still a need to address them regularly.
Reports from March 2024 by the Bank of Uganda and the Uganda Retirement Benefits Regulatory Authority (URBRA) indicate that only about 3-5% of Uganda’s approximately 18 million workers save monthly, compared to saving rates of 23% in Kenya, 18% in Rwanda, and 13% in Tanzania.
Addressing Uganda’s low savings culture requires robust educational campaigns and innovative solutions from financial sector players.
How does the company’s new savings plan support the savings culture in the country?
“Our new Jubilee Smart Save Plan is designed to empower our customers to meet crucial financial needs while offering a competitive return on investment. Whether it’s funding education, securing business capital, or purchasing a home, this solution will ensure that customers’ savings work as hard for them as they do,” Gaurav said.
Besides instilling a consistent saving discipline, customers also need guidance to navigate available solutions and opportunities in the market. “We acknowledge the need to offer personalized financial advice as we accompany our customers on their journey towards achieving their goals. We are committed to empowering our customers in this regard. We are confident that a joint effort alongside other sector players will transform the savings culture in the country.”
Sharon Tumushabe, a renowned financial literacy analyst, noted that financial planning is relevant to people across different demographics, regardless of where they are in life.
“Financial planning is not just about securing immediate needs; it is about building a foundation for long-term stability and growth. If you have people who depend on you, their well-being and future security are paramount. By starting a structured savings plan, you ensure that, no matter what happens, they will have financial support,” Tumushabe said, adding, “In financial planning, time is one of the most valuable assets. The earlier you start, the more you benefit from compound interest, and the larger your fund grows.”
In contrast to taking a loan to cover future expenses, Jubilee SMART SAVE enables people to build a fund, have a protection cover, and offers various flexible safeguards in case of the policy owner’s death. Dorcus Kuhimbisa, the Jubilee Life Insurance Chief Operations Officer, said, “SMART save only becomes smart when you start to work smartly. When you think about this product, give us your money so we can help you secure your future.”
Kuhimbisa added that the uptake of insurance in Uganda requires support from political players and the government in general.
“As private sector players, where we are breaking ground, it allows our clients to undertake insurance products,” she said.