• Mr Price Money has partnered with local startup Root for its new insurance product.
• Life Matters is underwritten by GuardRisk.
• Cover ranges from R100 000 to R200 000 and can be activated immediately.

Mr Price Money has announced a new life insurance policy product called Life Matters. The new offering is being made available to Mr Price’s existing credit card customers, with Cape Town-based startup Root assisting with the infrastructure for Life Matters.

The company explains that Life Matters is underwritten by GuardRisk, which is already part of a host of services that Root supports.

As for the life insurance product itself, Mr Price Money notes that it requires no medical examination and customers apply simply by answering a limited number of questions.

It goes on to explain that, depending on their needs, they will be offered between R100 000 and R200 000 worth of cover. Added to this, cover is activated immediately, according to Mr Price Money, with other options noted as taking anywhere from 45 to 60 days.

“This product is a prime example of how household names with a strong brand identity and existing customer base can extend the services they offer to their customers by adding a suitable insurance product,” highlights Louw Hopley, CEO of Root, in a press release sent to Hypertext.

“The product has been designed with Mr Price’s existing customers in mind and fulfils a very real need in the market. This means it can better serve its customers, while at the same time driving greater revenue and operational efficiency through its existing financial services products,” the CEO adds.

According to Hopley, microinsurance as it is termed, is growing globally, especially in countries like South Africa where there is a large unbanked population. These types of solutions are also designed to help people who do not meet the traditional requirements of life cover or fail the application process owing to any number of personal issues.

Whether more of these types of solutions are in the offing from Mr Price remains to be seen, but it is clear that the company is indeed expanding outside of its retail background.