Photo: Gwamaka Charles., Wikimedia Commons, CC BY-SA 4.0Life insurance in Tanzania: how it works and your right to cancel
The main types of life policy
| Type | What it does | Good for |
|---|---|---|
| Term life | Pays a lump sum if you die during the term; nothing if you survive | Protecting a family or a loan at the lowest cost |
| Whole life | Pays whenever you die, as long as premiums are paid | Funeral costs, inheritance |
| Endowment / savings | Pays at the end of the term, or earlier on death | Saving for school fees or a project |
| Credit life | Repays a loan if the borrower dies | Often required by banks and SACCOs |
| Group life | Cover arranged by an employer for staff | Employees — check what yours includes |
Your right to cancel a new policy (section 119)
Section 119 of the Insurance Act, Cap. 394 lets you cancel a life policy within three months of signing the proposal form, or within one month of receiving the policy, whichever ends later. You return the policy with a written statement that you do not want it, and the insurer must refund any premium paid straight away.
The insurer must include a summary of this right when it sends you the policy (section 119(4)).
Who sells life insurance
Life insurers on TIRA's register at the time of our review include Alliance Life Assurance, Bumaco Life, Metro Tanzania Life Assurance, MUA Life, Sanlam Allianz Life, SUMAJKT Life and The Jubilee Life Corporation of Tanzania. See the full list.
What would you like to do now?
Frequently asked questions
Can I cancel a life insurance policy in Tanzania and get my money back?
Yes, within three months of signing the proposal form or one month of receiving the policy, whichever is later (Insurance Act, Cap. 394, section 119). The insurer must refund the premium.
Is life insurance compulsory in Tanzania?
No. But a lender may require credit life cover on a loan.