Old Mutual Uganda has launched an enhanced unit trust product that integrates life and education insurance benefits, marking a first for the East African region. The initiative, announced Thursday at the Protea Hotel by Marriott Kampala Skyz, allows investors to access protective cover at no additional cost.

The new framework, developed through a partnership between Old Mutual Investment Group and Old Mutual Life Assurance Uganda, aims to curb premature fund withdrawals. Company data indicates that clients frequently liquidate investments to manage emergencies such as funeral expenses, disability or school fees.

Zacchaeus Kisesi, managing director of Old Mutual Investment Group, said the enhancement transforms the unit trust from a standalone investment vehicle into a holistic financial solution.

“With this enhancement, we are ensuring that our clients can continue growing their wealth while also securing meaningful protection for themselves and their families,” Kisesi said. “This is about strengthening financial resilience without disrupting long-term investment goals.”

The integrated benefits include:

• Life Care Benefit: Provides financial assistance to the beneficiaries upon the death of the account holder.
• Lifetime Benefit: Offers support in cases of permanent disability or critical illness.
• Safe Scholar Benefit: Ensures financial support for school fees and scholastic materials for dependents if the investor passes away.

Eligibility is tied to investor behavior; the cover is available to those who maintain or grow their fund balances over a three-month period. Patrick Kimathi, managing director of Old Mutual Life Assurance Uganda, noted that while life insurance is a product often pushed rather than requested, embedding it within a familiar investment platform adds seamless value.

Regulators from both the capital markets and insurance sectors praised the collaboration. Denis Kizito, director of market supervision at the Capital Markets Authority, said the product aligns with the national goal of using financial markets to drive socio-economic transformation.

“Unexpected life events or financial shocks can sometimes force investors to liquidate their investments prematurely, which may undermine the long-term benefits of investing,” Kizito said. “This solution acknowledges the realities investors face.”

Bernard Obel, director of supervision at the Insurance Regulatory Authority, said the move demonstrates the future of financial services by centering on real customer needs. He emphasized that in an interconnected global economy, such protections are a pillar of economic resilience rather than a luxury.

Existing and new individual Uganda shilling unit trust clients can now track their eligibility and benefit levels through the company’s online client portal.