What is whole life insurance?
Whole life insurance covers you for the rest of your life, so it pays out whenever you die, as long as premiums are kept up. Term life covers a set number of years and costs far less for the same sum. In Kenya, Britam, ICEA LION, Old Mutual, Prudential, Pioneer and others sell whole life plans, often with premiums paid over 10 to 20 years.
Whole life and term life at a glance
| Term life | Whole life | |
|---|---|---|
| How long it lasts | A set term, often 5 to 30 years | For life |
| Does it pay out? | Only if you die within the term | Always, whenever you die |
| Cash value | None (unless return of premium) | Some plans build one after a few years |
| Premium for the same cover | Lowest | About 5 to 10 times term |
| Best for | Income, loans and school fees in the years they matter | Estate planning, lifelong dependants, final expenses |
| Kenyan examples | Britam Tegemeo, Prudential PRUTerm, Old Mutual Term | Britam Whole Life, ICEA LION Whole of Life, Pioneer Imara |
- Term life
- A set term, often 5 to 30 years
- Whole life
- For life
- Term life
- Only if you die within the term
- Whole life
- Always, whenever you die
- Term life
- None (unless return of premium)
- Whole life
- Some plans build one after a few years
- Term life
- Lowest
- Whole life
- About 5 to 10 times term
- Term life
- Income, loans and school fees in the years they matter
- Whole life
- Estate planning, lifelong dependants, final expenses
- Term life
- Britam Tegemeo, Prudential PRUTerm, Old Mutual Term
- Whole life
- Britam Whole Life, ICEA LION Whole of Life, Pioneer Imara
Whole life plans in Kenya
Britam launched its Whole Life Insurance Plan on 21 April 2026: lifelong cover with a death benefit that grows 3% a year, premiums over 10, 15 or 20 years, for entry ages 18 to 65.
ICEA LION's Whole of Life plan pays a lump sum on death and includes critical illness and disability cover; premiums run for 10, 15 or 20 years, and no medical exam is needed up to KES 5 million.
Source: ICEA LION Life: Whole of Life
Pioneer's Imara whole life plan covers to age 100 (entry 18 to 65, from KES 2 million); Imara Plus pays 5% of the sum assured a year from age 60 to 79 and the full sum at 80.
Prudential's PRULife pays the sum assured plus yearly bonuses on death and can be taken as joint life, paying on the first death.
Source: Prudential Life Kenya: PRULife
Old Mutual's Whole Life plan accepts ages 18 to 65, from KES 1 million, with premiums payable to age 80.
Source: Old Mutual Kenya: Whole Life
Worked example: what the premium buys
Worked example
- Term: Britam Tegemeo, published starting price
- KES 3,000 a month for KES 3 million over 5 years
- Whole life: Britam, man aged 28 (reported quote)
- KES 5,520 a month for 15 years
- Whole life cover bought
- About KES 7.1 million for life, growing 3% a year
- Total whole life premiums
- KES 993,600 over 15 years
Illustrative only: the two figures are for different ages and terms, so they are not like for like. We quote both for your own age and health.
When whole life makes sense
- You want to leave a set sum to your family whenever you die
- Someone will depend on you for life, such as a child with a disability
- You want the payout to fund estate costs or equalise an inheritance
- You have already bought enough term cover for the years your income matters
When term makes more sense
- Your family needs a large sum while children are young or a loan is running
- Your budget is limited: term buys several times more cover for the same premium
- You prefer to save and invest separately, through a pension, SACCO or money market fund
Savings policies: what happens if you stop paying
Stopping a savings-type life policy in its first three years can mean losing what you have paid; surrender values usually build up only after about three years of premiums.
Source: Nation.Africa: 'Taking life insurance in Kenya? Here's a manual'; GA Insurance
Britam allows 30 days' grace for a missed premium; if it stays unpaid the policy lapses and no benefit is payable.
Before you buy a plan with a savings element, check the surrender value table and be sure you can keep paying for the full premium term.
Frequently asked questions
What is whole life insurance?
Whole life insurance covers you for the rest of your life, so it always pays out, as long as premiums are kept up. Many Kenyan plans collect premiums for a set period (10 to 20 years) or to a set age and then keep you covered for life.
What does life insurance not cover?
Each policy lists its own exclusions. The usual ones on Kenyan plans are:
- Suicide in the first two years (some plans list it with no time limit)
- Death from a health condition you did not disclose when you applied
- Death while committing a crime, or from deliberate drug or alcohol abuse
- War, terrorism or riot when you take an active part
- Hazardous sports and private flying, unless the insurer agreed to cover them
- Natural-cause death during a waiting period, where the plan has one
- Any death after the policy has lapsed for unpaid premiums
Read the exclusions page of your policy, and tell us about any risky job or hobby before you apply.
How much more does whole life cost than term?
For the same sum assured, Kenyan planning estimates put whole life at about 5 to 10 times the premium of term cover, because whole life is certain to pay out and often builds a cash value.
Does whole life build up money I can take out?
Some plans build a cash or surrender value, usually only after about three years of premiums, and some add bonuses. Taking the surrender value ends or reduces your cover. Pure protection plans have no cash value.
Is whole life good for estate planning?
It can be. A whole life payout is certain, Kenya has no estate duty, and with a nomination (or a trust option such as Britam Trust) the money reaches your family without waiting for succession.
What is the difference between whole life and an endowment?
An endowment pays a lump sum at the end of a fixed term, or earlier on death; it is mainly a savings plan, often used for school fees. Whole life pays only on death but covers you for life.
What happens if I miss a premium?
Most insurers give a grace period, often 30 days. If the premium is still unpaid the policy lapses and nothing is paid on a claim. Savings-type policies with a cash value may keep going for a while through an automatic premium loan; ask us before you stop paying.
Not sure which one fits?
Tell us your age and what the cover is for. We quote both term and whole life so you can compare the real figures.
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Sources (13)
- Britam Life: Tegemeo Protection Plan brochure (July 2026)
- Britam newsroom: Whole Life Insurance Plan launch
- ICEA LION Life: Whole of Life
- Pioneer Insurance: Imara Whole Life
- Prudential Life Kenya: PRULife
- Old Mutual Kenya: Whole Life
- Kenyans.co.ke (15 May 2026), reporting a Britam quotation
- Estate Duty Abolition Act 1982
- Britam Life: Whole Life; ICEA LION Life: Level Term
- Nation.Africa: 'Taking life insurance in Kenya? Here's a manual'; GA Insurance
- Britam Life: Tegemeo Protection Plan
- Old Mutual Kenya: Term Life Cover
- Prudential Life Kenya: PRUTerm
Facts and published prices checked 28 Oct 2026; last reviewed October 2026 by Naveah Capital. Prices shown are insurers' published starting prices and planning estimates in Kenya shillings; they are not a quote. Naveah Capital Insurance Agency is an IRA-licensed insurance agency in Nairobi; this page is general information, and your policy wording decides your cover.
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