Financial Product Quick Reference
ssurance PackagesFeatures of the package include: Unique competitive premium rates, special conversion options, reduced minimum contract premiums.
Life Insurance policy to cover a new mortgage bond on a house. You may get an illness or disability that leaves you unable to work for a period of time, even though it’s not permanent. Unfortunately you still need to take care of your monthly bond and other expenses.
Becoming disabled, Impairment benefits, Dreaded disease, Partnership insurance, Key Man Insurance, Contingent Liability, Business Security Plan, Buy and Sell Agreement, Provident Fund / Pension Fund / Corporate Retirement Annuity.
Cover against critical illness as well as occupational disability and functional impairment all within a single benefit.
Cover against occupational disability and impairment as a single benefit.
Commercial Short-Term Insurance
Fire: including lightning, thunder and explosion. Buildings: As a tenant, you might be responsible for the landlord’s fixtures and fittings. Contents: Furniture and other movable possessions inside the building/office. Business Interruption: Covers the loss of gross profit due to reduction in turnover after an event, e.g. fire. The interruption must be caused by an incident which leads to a valid claim under Stock, Buildings, Contents, Electronic equipment. Theft: Loss or damage to contents as a result of theft accompanied by forcible & violent entry or exit. Money: Covers cash, cheques, postal and money orders, postage & revenue stamps etc. Fidelity (Employee dishonesty): Covers losses following acts of fraud or theft by employees. All risks: Valuable and vulnerable items removed from premises during the course of business. Public Liability: Covers damages that you are liable to pay following an incident that occurred in the course of/or in connection with the business. Motor: Business or private use. Electronic Equipment: Covers your computers, licensed software and other electronic equipment – these are the most commonly used sections.
Disabled and / or Loss of Income
This is based on whether or not a person can follow an occupation for profit or remuneration after they have suffered an injury or an illness. It provides you with a monthly income when you are ill or injured and are unable to work,
temporarily or permanently.
Dreaded Disease (Trauma / Critical Illness)
Medical conditions that will generally have a large impact on future quality of life. It often requires expensive medical treatment, long recuperation and rehabilitation periods and may even result in a changed lifestyle. (Trauma insurance. Illness insurance).
To ensure that you have made adequate financial provision to meet your financial needs as well as those of your family and dependents in the event of your death. This event has huge financial implications for those financially dependent on you and the financial implications may be devastating if adequate financial provision has not been made.
It is all very well to try to ensure that your life policies bypass your estate, but you still need enough liquidity in your estate to pay estate duty, executor’s fees, as well 
as the liabilities and expenses the estate incurs, such as attorney’s costs in transferring property. If you do not have enough liquidity, either your beneficiaries will have to contribute cash to the estate in order to keep the assets intact, or the executor will have to sell some possessions or investments to realise some cash. Sales of assets are not ideal, because they may attract capital gains tax (CGT) and assets may be sold in a weak market.
The payout will bypass the estate if a beneficiary is named. But note it can land up in your estate if you nominate a beneficiary and you subsequently cede the policy (for example, to a bank to cover your mortgage bond) and the cession has the effect of nullifying the beneficiary nomination. In this case, if there is any balance after the debt is settled, the money would be paid into the estate. A method to provide liquidity in an estate, is a life assurance policy with no beneficiaries, so that the policy goes into your estate and the proceeds can be used to pay expenses and liabilities.
Education Risk - Comprehensive provision for education should a parent/s die or become disabled.
An insurance package that recognises the unique needs of women, such as breast cancer, child care and pregnancy, amongst others.
Provision for a dignified burial for the insured and dependents.
Future cover benefits allow you the option to purchase further life, disability or impairment cover, without proof of health or insurability, except for a negative HIV test result, to be exercised at a future date when you need the additional benefits.
This benefit provides for the costs associated with living with a severe impairment permanently. Cover is provided for the whole of life, which means that you have cover when you need it most in your later years. The monthly benefit amount is paid for the whole of life thereby potentially preventing the need to dip into your retirement funds.As the claim events are not linked to your ability to perform your occupational duties, the Functional Protector provides a monthly benefit, which is not income dependent.
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oint Life Pension
Suitable for married people {partners}. Pension to partner on death of annuitant.
Joint or Single - Lump Sum Payout
Capital Protector for those who want to leave money to beneficiaries at death of last survivor. Original retirement purchase sum pays out.
Single Life Pension - Suitable for single people. No income to partner on death of annuitant. Capital Protector for those who want to leave money to dependants at death of annuitant.
A percentage of the death benefit is paid immediately to a nominated beneficiary. To cover immediate expenses.
Saving and Investment are not the same – although they both have a role to play in your financial planning. While they both involve setting aside some of your income for the future, saving usually refers to putting money away for the short term, for example in a bank savings account, where it is easily accessible in case of emergencies. Investing, on the other hand, means taking a longer-term approach. Your investment plan must be based on a period of ten years or more.
It is not a disability or dreaded disease benefit. A traumatic event may rob you of sensory faculties, like the ability to speak, see or hear or you can suffer from an illness or injury, or the loss or the use of a limb or limbs. - whether you suffer a heart attack, fall victim to cancer, need an organ transplant, or lose your eyesight or hearing. You may not necessarily be medically unable to continue working, and therefore you may not be able to claim disability cover. It is exactly at times such as these that you will need extra cash.
Life Stages As your life changes, so do your needs. We help you identify your needs based on life's challenges and opportunities in the key stages of your life.
For those who want to structure their own destiny. Dangerous if you know nothing about investments. If you want to go this way, take one portion guaranteed income and the rest linked to the performance of investment vehicles
Due to improved medical technology, people enjoy better health care and therefore live longer, so their retirement fund needs to last longer. This makes it extremely important to regularly review your retirement plan to ensure that it remains on track. Many companies no longer subsidise medical scheme contributions for pensioners – health care costs can become unaffordable.
Provides a monthly income benefit payable to assist you with the financial burden in the event of you suffering an impairment in your later years or before. This is in the form of a monthly Income benefit payable from the age of 65 to assist in lessening the financial impact of impairment in old age. As the claim events are not linked to your ability to perform your occupational duties, the Long Term Protector Plus provides a monthly benefit, which is not income dependent and pays for as long as you remain incapacitated.
Pres
erves your pension or provident fund money together with your years of pensionable service, when you withdraw from an employer’s fund as a result of resignation from employment, retrenchment or dismissal from employment or the winding-up of such a fund. Preservation funds are approved pension or provident funds to which members of an existing employer’s pension or provident fund can transfer their accumulated benefits on termination of service.
Vehicle: Premiums calculated according to the profile of the regular driver. Buildings: Covers house and outbuildings, eg garage and domestic quarters & all permanent fixtures & improvements. All Risk: Covers personal possessions that you take out of your home which belong to you or your family. Contents: Insures all the personal possessions inside your house & outbuildings. Value of Contents must be estimated at present replacement value.
Retirement investment plans. Due to the effects of inflation, most of us will barely survive on our retirement money, unless we protect both our capital and returns. Ensure that you are one of the few South Africans that can retire being financially independent.
For example – saving for an overseas trip.(5 Jaar beleggings planne)
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ourism / Leisure / Entertainment. Insurance for small Guesthouses, Hotels, Caravan Park, Game Farm, Bowling Clubs, Rugby Clubs, Gyms, Health Centre, Restaurant, Social Clubs, Putt-Putt Courses and Golf Estates - no forcible entry required for theft. Insurance for Agriculture.
Terminally ill [Included in policy]
Upon a terminal illness diagnosis (likely to live for 12 months or less) because of an advanced or rapidly progressing incurable illness, you will be paid out 100% of the Death Benefit amount while you are still alive.
Assurance is all about premiums from top to bottom. Irrespective of the outcome of a needs analysis, what you are able to get out of a life assurance policy depends almost solely on your premium.
The trustees are responsible for administration. A trust can operate during the founder’s lifetime, in which case it is an inter vivos trust, or at the death of the founder – a testamentary trust.
Where an estate planner donates property to a trust during his lifetime (i.e. an inter vivos trust) he must ensure that he does not retain the right to revoke or vary any rights conferred by the donation. If he does, he will be “competent to dispose” of such property in terms of section 3(3)(d) of the Estate Duty Act and thus the value of such property will be dutiable in his estate upon his death. If this were to happen no pegging would be achieved.
Should you need to provide for simultaneous death: Testamentary trusts could provide a valuable vehicle to ensure your surviving minor children’s assets do not fall into the Guardians Fund by creating a special trust[testamentary] to provide for your minor children, until they turn 21.Testamentary Trust - very simply by including it as a clause in your will. The trust will therefore only come into existence when you pass away.
If your investment value was higher than your maturity value, the higher value will be paid. Cannot to be added to aggressive types of portfolios.
After the death of the first insured life the surviving spouse/partner need not pay any further premiums or if the life insured becomes capitally disabled, no further premiums are payable on the policy. Note: Must be included in a RA policy – RA becomes a disability pension as the insurance company will be paying the premiums up to retirement.
In terms of South African law, the property of a deceased person can be transferred to (devolve upon) beneficiaries, either in terms of intestate succession (where the deceased dies without leaving a valid will) or testate succession (where the deceased dies and leaves a valid will).
To avoid the onerous implications of intestate succession, and to ensure that the deceased’s estate is dealt with in accordance with his/her wishes, a will must be drawn up. A will is therefore of the utmost importance in any estate plan.
