The Khyber Pakhtunkhwa (KP) government, inspired by the success story of its universal health coverage initiative, is now rolling out a holistic life insurance scheme for its people to provide financial stability, particularly among those least equipped and most exposed.
This plan is designed to give struggling families a critical economic respite following the loss of an adult family member. Almost half the residents of the province are living below the poverty line, according to a press release issued on Monday. These families tend to further be affected in the event of an elder family member dying or losing a breadwinner, as they are left walking on financial tightropes that can take them ages—if ever—and enough luck before getting relief.Â
The program—a type of life insurance for devastated families bereaved by deadly violence—is on the way courtesy of the provincial government. As per the plan, PKR 500,000 will be handed out to families of deceased individuals aged sixty years or more, with up to PKR 1,000,000 for families losing a person who dies on duty under the age of 60. This financial assistance is meant to help with initial costs like burial expenses, and equally serve as a band-aid for families transitioning into the void left by the loss of their loved one.
This life insurance program is part of a larger social welfare plan to curb poverty and provide security for the people of KP. The program will be particularly beneficial for low-income families, who otherwise do not have the means to take out life insurance. The KP government is planning to set up a provincial insurance company to run this scheme smoothly.
The company would administer the program, process claims, and make sure funds are sent out promptly. This is also a sustainable approach, as it could lower administrative costs and improve transparency by having an in-house insurance body.Â
Read more: Punjab Govt Includes Liver And Children’s Heart Surgery To Sehat Insaf Card Services
Possible effects of this welfare initiative on the KP Population:
Immediate Financial Relief: This instant financial assistance will reduce the initial economic pressure on families, ensuring they have at least one concern (funeral expenses and any other immediate costs) taken care of.
Economic Stability: It will reduce the likelihood of families (specifically those at or below the poverty level) slipping into further economic hardship due to the loss of a financial provider.
Job Creation: With the creation of a provincial insurance company, the KP government would provide jobs to people, directly boosting local employment and offering career progression opportunities within the insurance sector and beyond.
Social Welfare Model: The government is setting a model for other provinces by demonstrating how social welfare and financial security initiatives can enact meaningful changes.
Financial Literacy: Finally, this initiative raises awareness of the need for life insurance and financial planning, aiming to build a financially literate society and instill a preparedness mindset, whether in prosperous times or times of hardship.
In summary, this trailblazing life insurance program highlights KP’s commitment to protecting its most vulnerable citizens and providing a crucial social safety net. The province seeks to support families who have endured hardship through work-related incidents or illness, assuring that even through loss, the resilience of families can be sustained.