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ZSIC introduces investment plan for average Zambians

ZSIC introduces investment plan for average Zambians
By Fridah Zinyama
Saturday June 28, 2008 [04:00]

ZAMBIA State Insurance Corporation (ZSIC) has introduced a Classic Investment Plan for the average Zambian who does not have access to other financial markets. The Classic Investment Plan is a five-year endowment policy, where the policyholder will have to pay premiums at monthly, quarterly, half-yearly or yearly installments.
The premiums paid are split into an investment component and a risk (protection) component.

Responding to a press query, ZSIC unit linked funds manager Tontela Siwale said the company had introduced the Classic Investment Plan for the ordinary Zambians due to the growth of the financial markets and heightened investment awareness in the country.

"We have recently seen the oversubscription of LuSE IPOs Lusaka Stock Exchange Initial Price Offers, the launching of a number of unit trusts and even the development of interesting mortgage products," he observed.

"All of these investment opportunities are very attractive and lucrative but seem to only offer their benefits to the more affluent segment of our society."

Siwale said it was on this basis that ZSIC's Life Assurance, which is one of the oldest and most misunderstood investment vehicles, has offered these benefits to a wider segment of the Zambian society.

"Life Assurance has developed into an important investment product which also offers financial protection," he said. "ZSIC has the most developed distribution channels and can thus offer these opportunities to a larger segment of our society."

Siwale explained that Life Assurance contracts were split into two broad categories - those that have only a protection element and those that have a protection and an investment element.

"The Classic Investment Plan offered by ZSIC, thus falls into the second category," explained Siwale. "This product is a unit linked endowment policy, which means that the value of the policy is linked to the performance of units in the ZSIC Life funds."

Labels: ZSIC

posted by MrK @ 4:23 AM