Allan Gray has provided an excellent summary of the 2019 budget speech. We would like to share with you here: What were the key changes?
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By Edmond Lee, Insurance Advisor
On any given day, if you switch on the TV, or read a magazine, or just cruising around town, it is difficult not to notice the advertisements by insurance companies – and yes, there are many of them out there. Besides the different logos and colour schemes they use, it is often difficult to tell their differences, but as the saying goes, “never judge a book by its cover”, their differences lie at the core of their business model and operations. In recent years, insurance regulators have imposed more stringent measures to ensure that customers are treated fairly. This not only levelled the playing field but also prompted brokers and insurers to enhance their business model in order to stay relevant. This includes enhancing customer experience, promoting customer engagement, upgrading system capability, improving product features, providing valued-added offerings – just to name a few. These factors ultimately determine the success of an insurer in this day and age. A success story in the South Africa short-term insurance market is Discovery Insure, which has grown exponentially since its launch in 2011. The product itself has been distinctive right from the start, with safe-driving incentives as a core part of it. In addition, as the new kid on the block, they have the luxury of utilising newest process and system which promote better efficiency. As a case in point, a client of ours phoned our emergency line on a rainy Saturday after his car skid off the road between two busy highways. The client was clearly shocked and worried - we immediately called Discovery 911 and requested help. We sent them the client’s location via Whatsapp which already made life much easier for everyone. They then dispatched a tow truck who arrived on the scene in less than an hour. And there’s more – they also dispatched a taxi to pick up the client, and since the client has selected the optional car hire benefit, he was taken to the nearest car rental depot where he picked up a rental car, and off he went. In the case above, everything was seamless and it is a great example of how internal systems and processes can enhance customer experience. For us as intermediaries, it is also imperative to choose insurers who have the capability and credibility to truly meet clients’ needs and provide help when it is needed – this is ultimately what insurance is about. We believe that by providing the right advice and solution to clients, we can create win-win relationships which will ultimately benefit everyone. If you are looking for advice on your short-term insurance needs, you can contact us on the following channels: - WeChat: daberistic - Email: [email protected] - Phone: working hours 011 658 1333. After hours:076 200 5488 Medical aid is a necessary yet expensive purchase in South Africa. Due to the public healthcare system unable to cope with the public demand, people who can afford it or who work for larger employers will choose private healthcare. They buy medical scheme products to cover such healthcare expenses.
Since medical aid is expensive, it is important for a member to understand its benefits, in order to make the best use of it when needed. As each new year begins medical aid members start with a clean slate, with new benefits and replenished savings available. If you manage your medical expenses correctly you can avoid out-of-pocket expenses and limit the possibility of running out of benefits. 1. Read up on your medical aid plan Take the responsibility of understanding your medical aid plan. Visit the medical scheme's website, find your specific medical aid plan information and read through it. Check out the FAQs. If your medical scheme creates YouTube videos on your specific plan and benefits, watch these videos. The more you understand your medical aid plan, the better you are in a position of making use of benefits provided for by the plan. 2. Speak to your Healthcare Advisor Medical aid plans are complex. A medical aid plan has many details, terms and conditions. Many members will struggle to make sense of it. A Healthcare Advisor with suitable qualification, training and years of experience can simplify matters for you and answer your specific questions. 3. Find a GP on your medical aid's network Using network doctors is an invaluable tool to make your medical aid last longer as it means you won’t be charged more than a specific amount. 4. Always use partner networks Medical schemes negotiate preferential rates with providers who have partnered with them. This means if you use a network hospital, doctor or pharmacy you will not be charged more than the rate agreed with the scheme. This will also help you to avoid co-payments, deductibles and additional out-of-pocket expenses. 5. Ask your pharmacist Buy over-the-counter medicine to treat less serious ailments and consider using generic medicine which is cheaper but effective. Pharmacists are able to provide sound medical advice on problems such as rashes, colds or illnesses that are not severe, simply ask! 6. Going to hospital - get the facts Talk to your doctor or specialist before being admitted to hospital. Check what they are going to be charging and what your scheme will cover. If there is a large difference, don’t be afraid to approach your doctor to see if they are prepared to adjust their fee. Alternatively, you can also check if there are other healthcare providers who are on your scheme’s network that will charge you a better rate. 7. Remember to pre-authorise Pre-authorisation is required for all hospital admissions to ensure your stay will be covered. Always ask if there are any co-payments or sub-limits that will apply and what you can do to avoid these. For planned procedures, it’s also worth checking with your scheme if you will obtain better cover by using contracted providers or having the procedure performed in the doctor’s rooms or a day clinic. 8. ICD-10 codes If you need to undergo an operation, ask your surgeon for the codes that will be charged. This will include the procedure codes and those for any other products that will be needed, this all helps with pre-authorisation and ensuring the costs will be covered. 9. Chronic health conditions Some schemes offer programmes to help you manage severe chronic conditions such as cancer, diabetes and HIV/AIDS. These programmes are usually covered from the risk portion of your medical contribution and are not funded from your savings account. They help you use your benefits to maximum advantage while ensuring you receive quality care by using specific providers. With thanks to: www.w24.co.za By Edmond Lee, Insurance Advisor
In South Africa, having a car is a necessity which at the same time brings the risk of a motor accident. And let’s face it – motor accident is the last thing on our mind, hence when we encounter it, we often do not know what to do. The purpose of this article is to share some info on the topic, so that you are better prepared in the event of a motor accident. First and foremost, it is imperative that you remain calm and put safety first. Many people often get out of the car immediately in order to check for damages (or in some cases, argue with the other party), without first checking surroundings. This is very dangerous, particularly on a highway or major roads, hence this must be remembered. If you feel unwell after the incident, limit your movement and wait for paramedics to arrive on the scene. Secondly, you should not admit any liability. This is an accident which no one wanted to happen, so leave the liability matter to the insurer who will represent you in the case. Furthermore, record as much evidence as possible. Fortunately, these days we all have a cell phone, so you can take pictures and record key information such as: - Date, time and location of the incident - Accident scene - Damages to cars and properties - Police name and case number - Other parties’ driver license, license disc and contact details - Name and contact details of witnesses, towing trucks and other relevant parties So when should you call the police? If there are no injuries or major blockage of the road, then you don’t have to call the police – you can register the case at the nearest police station within 24 hours. If there are injuries, then the cars can only be moved after police arrives on the scene and takes proper record. In terms of towing, if the car remains derivable, then no towing service is needed. However, if you are worried that driving it may cause further damage (or the car is not derivable at all), then we suggest that you contact your insurer to arrange towing and storage by their appointed service provider to avoid any potential issues. If needed, the police has the right to tow the car for further investigation. Last but not least, remember to inform your insurance advisor after the incident and provide true and accurate information, so that the claim can be processed without delay. If you have any short-term insurance needs, you can contact us on the following channels: - WeChat: daberistic - Email: [email protected] - Phone: Working hours 011 658 1333. After hours 076 200 5488 Allan Gray, a leading investment platform in South Africa, is leading the way in technological innovation by introducing digital transaction authorisation. For years, clients have been able to give instructions online. Instructions include additional contributions and fund switches. For clients that prefer to submit instructions via their financial advisors, from November 2018, we are able to generate instructions on Allan Gray Online and send to you via email to approve such transactions digitally. This means saving time, saving paper, saving money. There are four key benefits when you work with your Advisor this way digitally: Speak to your Financial Advisor if you would like to make use of such digital service.
Around this time of the year, we would like to remind you to consider topping up your retirement annuity fund, or contribute to a tax-free savings account. It's perfectly legal. Save money for yourself, instead of giving to the taxman. Such tax savings can amount to tens of thousands of Rands. Retirement Annuity According to the current legislation, you may contribute up to 27.5% of your taxable income to a retirement annuity fund and enjoy tax deductions. As 28 February is the end of the tax year, you must calculate and pay the additional amount to your retirement annuity prior to this date, in order to qualify for tax deductions and tax refunds. Below is an example of topping up your retirement annuity: Mr Mabasa has a monthly salary of R50,000. In December he received a bonus of R100,000. Every month he contributes R3,000 to a personal retirement annuity fund. His annual income is then R50,000*12 + R100,000 = R700,000. The maximum tax-deductible contribution to retirement annuity is R700,000 * 27.5% = R192,500. Over the year he has contributed the following to a retirement annuity fund: R3,000 * 12 = R36,000 The additional amount he may top up in his retirement annuity (RA) is R192,500 - R36,000 = R156,500 He can look to get a tax refund of R192,500 * 39% = R75,075. Attached is a document from Allan Gray summarising the differences between an RA and a tax-free investment. minimise-your-taxable-income_maximise-your-tax-savings---ra_tfi.pdf Speak to your Financial Advisor if you would like to exercise one of the two options, or email [email protected]. |
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January 2025
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