Last Expense Cover vs Life Insurance in Kenya: What’s the Difference?

In Kenya, families often rely heavily on a single breadwinner. When that person passes away, the emotional loss is heartbreaking — but the financial strain can be just as devastating. That’s where insurance comes in.

Two common solutions are Last Expense Cover and Life Insurance. While the terms are often used interchangeably, they are actually very different — both in purpose and in how they protect families.

If you’ve ever wondered “Do I need last expense cover or life insurance?” this guide breaks it all down, Step by Step.

What is Last Expense Cover in Kenya?

Last Expense Cover is a type of insurance specifically designed to cover funeral and burial costs when someone passes away.

In Kenya, funerals can cost anywhere from KES 100,000 to KES 1 million depending on family traditions, transport, and community contributions. Without a plan, families often face debt or must rely on fundraising “harambees.” Learn more about understanding funeral costs in Kenya.

How it works:

• ✅ The insurer pays a lump sum (last expense benefit) immediately after death.
• ✅ Beneficiaries can use the funds for burial, transport, coffin, hospital bills, or related costs.
• ✅ Payouts are usually fast (within a few days), since the aim is to ease immediate financial burden.

What is Life Insurance in Kenya?

Life Insurance is broader. It provides a financial safety net for dependents by paying out a larger lump sum when the insured person passes away.

Instead of just covering funeral costs, life insurance is designed to help families:

• Replace lost income
• Pay school fees
• Cover rent or mortgage
• Continue running businesses

How it works:

• ✅ The payout (sum assured) is usually much higher than last expense — often KES 1 million to 20 million+.
• ✅ It’s typically calculated as a multiple of annual salary or chosen based on family needs.
• ✅ The money is not tied to funeral costs — the family can use it however they need.

Key Differences Between Last Expense Cover and Life Insurance

Here’s a clear side-by-side comparison:

Feature	Last Expense Cover	Life Insurance
Purpose	Covers funeral & burial expenses	Provides long-term financial support for family
Payout Amount	Usually KES 100,000 – 500,000 (sometimes up to 1M)	Usually KES 1M – 20M+ depending on plan
Payout Speed	Fast (within days)	May take longer (weeks to months, depending on claim process)
Cost of Premiums	Very affordable (as low as KES 300/month)	Higher premiums (based on cover amount, age, and health)
Flexibility of Funds	Mainly used for funeral-related expenses	Can be used for anything: school fees, debt, housing, business
Target Audience	Families who want funeral costs sorted	Breadwinners who want dependents financially secure long-term

Which One Do Kenyan Families Need More?

The truth is: both play important roles.

• Last Expense Cover ensures families don’t face the embarrassment and financial stress of not being able to afford a decent send-off. Discover more about group last expense cover options.
• Life Insurance ensures dependents don’t struggle with school fees, bills, or poverty after losing a breadwinner.

Common Mistakes Kenyans Make

Many people in Kenya make these mistakes:

• ❌ Believing Last Expense is the same as Life Insurance
• ❌ Choosing only the cheapest option without considering family needs
• ❌ Not reviewing their cover regularly as their income and dependents grow
• ❌ Relying on “harambees” instead of planning ahead

Avoid these mistakes by working with a trusted insurance intermediary who can guide you.

How Much Do They Cost in Kenya?

• Last Expense Cover: From as low as KES 500 per month for a KES 100,000 benefit. Check out our most affordable funeral expense coverage.
• Life Insurance: Varies widely — a young parent may pay KES 2,000–5,000 per month for several million shillings of coverage

At Step by Step Insurance, we help families compare different insurers (APA, Jubilee, Britam, GA, ICEA Lion, Old Mutual, etc.) and choose plans that fit both budget and family needs.

Related Resources

Resource	Description
Group Last Expense Cover Guide	Comprehensive guide to securing dignified farewell coverage for your loved ones
Affordable Funeral Coverage	Discover group last expense cover starting from just KES 500 per year
Understanding Funeral Costs	Why group funeral expense cover is a smart move for Kenyan families
Kenya’s Funeral Industry Analysis	Cultural traditions fueling economic transformations and insurance opportunities

Final Verdict: Which Should You Choose?

If you can only start with one, begin with Last Expense Cover — it’s affordable and solves the most urgent financial stress.

But if you’re the main breadwinner, Life Insurance is essential to protect your family’s future.

The best approach? Combine both. Last Expense takes care of immediate funeral costs, while Life Insurance secures your children’s education, housing, and long-term financial well-being.

Next Step: Protect Your Family Today

At Step by Step Insurance, we simplify insurance for Kenyan families. Whether you need Last Expense Cover, Life Insurance, or both, we’ll help you compare and choose the right plan.