Bank clients turning to insurance products

Most bank customers are increasingly preferring insurance-linked investments more than bank savings as the products offer more stable returns in the long term.

In an interview with Infotrak, Liberty Life managing director Abel Munda says typical life insurance products, being longterm in nature, afford the customer a more stable return as one can ride out the short-term fluctuations in the capital markets.

“Insurance companies offer both investment and life cover. This means that the customer benefits from risk protection as well,” Mr Munda says.

“Savings can be very difficult when one has an easy access to their money. This is when a long-term insurance product comes in handy as it allows for a disciplined savings over a period of time, the policy term,” he adds.