By Johannes Natangwe Paulus
Life insurance, or life cover, is widely promoted as a way to secure your loved ones’ future — a selfless act of planning for the unknown.
But in Namibia, many life covers only offer benefits after your death. And that’s where the problem begins.
Most Namibians are signed onto death-only policies — meaning no payout or refund unless and until the policyholder dies. These policies, sold by major insurers and banks, come with:
• Monthly premiums paid over decades,
• No refund or surrender value if you cancel,
• No living benefits or rewards for surviving the term.
While it’s noble to protect one’s family, many Namibians are now finding themselves stuck in these policies, realising the money they’ve paid in could have been invested in more flexible or living-benefit policies — had they known.
Common Features of These Policies
Most life covers offered locally share the following characteristics:
• Premiums are paid until a predetermined age or retirement date.
• Upon reaching that age, the policy becomes “closed” — no more premiums are deducted.
• However, there is no payout to the policyholder.
• The payout is deferred until death, even if many years later.
• If the policy is cancelled early, there is no refund or benefit for the policyholder.
These policies often market themselves as protecting your family from funeral costs, unpaid debts, or education expenses for children. But in cases where:
• The house and car are fully paid off,
• The children are independent,
• There is no surviving spouse or parent,
…one has to wonder: who exactly is the policy for, and why should someone continue contributing to it?
Financial Institutions Are Part of the Cycle
It is not just insurers involved — financial institutions also offer or bundle similar products under various labels, often linking them to home loans, vehicle financing, or personal loans. These covers are frequently mandatory, with little room for discussion or explanation.
Though technically designed to protect families, many of these policies primarily serve to secure the creditor’s interest — ensuring the institution is repaid in full should the borrower die. The family, meanwhile, may receive little to nothing beyond debt clearance.
Other Countries Offer Better Models
In many developed countries, policyholders can choose life covers that:
• Offer cashback or partial payouts after a certain number of years,
• Provide access to funds while still alive for emergencies,
• Include bonuses or savings elements.
Such flexible and consumer-friendly models are largely missing in Namibia’s mainstream market.
We Need Reform
Our call is simple:
• Transparency: Clients must know what they’re signing.
• Options: Give people policies that benefit them while alive.
• Refund Mechanisms: Long-time policyholders shouldn’t walk away with nothing.
Why Must We Die to Benefit?
To the thousands already committed to these policies — it’s not too late to ask questions. And to the providers: It’s time to rethink a system that serves only the dead and not the living who paid for it.
*Johannes Natangwe Paulus is a Namibian educator, researcher, and social commentator with a keen interest in policy analysis. He holds a B.Ed. and M.Ed. in Mathematics Education and regularly explores topics at the intersection of education, economics, and social development.
