MTN Uganda has teamed up with insurance firms AON and Jubilee to roll out MTN LifeCare, a low-cost life insurance policy, as low as UGX7,500 ($2.9) per year.

Interested customers can purchase the policy through the MTN mobile money service, which offers minimum Shs1m ($392) in compensation upon death of the insured person.

MTN chief marketing officer Ernst Fonternel was quoted by the Observer as saying, "MTN Uganda continues to lead in innovation by becoming the first company to offer affordable life insurance services paid through mobile money in partnership with AON Uganda and Jubilee Insurance."

As per the policy, customers can select the optimum cover from a bunch of three insurance cover options, each with a different pay-out upon death of the insured customer–Silver, Gold and Platinum.

Fonternel told the news portal that a customer can only subscribe to one insurance cover per year and, must be a registered MTN customer. However, there will also be arrangements for non-MTN customers to register for the policy.

"Life is unpredictable but with MTN LifeCare, MTN customers can count on their mobile money accounts to secure the future of their families in a simple, yet cost effective and reliable way. It’s a great addition to the innovative mobile money services already offered by MTN," Fonternel added.

Welcoming the partnership with MTN, AON director in charge of large clients Jeremy Kirkland said that the premium would be paid as a one-off lump sum and the cover expires after 12 months upon which the customer can choose to renew it.