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Home Pensions

Life Cover Embedded in Retirement Benefits Schemes in Kenya

Faith Ndunda by Faith Ndunda
December 4, 2025
in Pensions
Reading Time: 2 mins read

Retirement benefits schemes in Kenya are designed to secure the financial future of workers, but many now go a step further by embedding life cover to protect members against unforeseen risks. Life cover is essentially an insurance component within a retirement scheme that cushions members and their families from financial shocks caused by death, disability, or critical illness. It ensures that contributions are not just about long-term retirement savings but also about immediate protection against life’s uncertainties.

One of the most important aspects of life cover is the range of benefits it provides. The last expense benefit is tailored to ease the financial burden of funeral costs, allowing families to give their loved ones a dignified send-off without strain. In Kenya, where cultural expectations around funerals are significant, this benefit provides timely relief. Permanent and total disability cover steps in when a member becomes incapacitated and unable to work. It provides financial compensation that helps the individual manage medical bills, rehabilitation, or lifestyle adjustments, ensuring dignity and independence even in difficult circumstances.

The death benefit is another critical component. When a member passes away, their dependents receive financial support to replace lost income. This payout can cover school fees, household expenses, or even seed capital for dependents to sustain themselves, ensuring that the breadwinner’s contributions continue to protect their family. Critical illness cover, on the other hand, provides a lump sum when a member is diagnosed with severe conditions such as cancer, stroke, or heart disease. Treatment for such illnesses is often expensive, and this benefit helps reduce the financial shock, allowing the member to focus on recovery rather than costs.

Embedding life cover into retirement benefits schemes is vital because it transforms them from being purely savings vehicles into comprehensive protection tools. Members gain confidence knowing that their welfare and that of their families is safeguarded both in the present and the future. This dual function enhances scheme attractiveness, boosts uptake, and strengthens trust in Kenya’s pension sector, which is regulated by the Retirement Benefits Authority to protect member interests.

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The Cytonn Umbrella Retirement Benefits Scheme (CURBS) exemplifies this integrated approach. Beyond offering flexible contributions and professional fund management, CURBS comes with a group life cover for its members. Employees therefore enjoy both retirement savings and immediate risk protection under one umbrella. For employers, it is a powerful incentive tool that demonstrates care for staff welfare, while for employees, it provides peace of mind knowing their families are secure today and their retirement is protected tomorrow. CURBS stands out as a modern, member-centric solution that builds retirement wealth while safeguarding against life’s uncertainties, making it a truly beneficial scheme for Kenya’s workforce.

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