In times of trauma or grief, you and your loved ones should not have to deal with the stress of having a life policy payment rejected or delayed.
In times of trauma or grief, you and your loved ones should not have to deal with the stress of being denied disability benefits or having a life policy payment rejected or delayed. “Ensuring that you are paid when you call on life or disability cover requires a little more than just paying a monthly premium” advises Selwyn Kahlberg, Managing Director, Alexander Forbes Life Limited. For cover to remain valid, policyholders need to comply with all requirements in the policy. While this should not be a difficult task, Kahlberg urges consumers to be aware of the following pitfalls when taking out or maintaining a life and disability policy: 1. Failing to disclosure all relevant information on your application Deliberately withholding or giving misleading information to your insurer is a direct violation of your policy agreement. This can result in all claims being rejected. Policy holders should fully disclose any previous medical conditions when applying for life and disability cover. If, for example, you have suffered a heart attack and it re-occurs, your insurer may refuse to settle your claim if you did not inform them of the first attack. 2. Taking out insufficient cover Life cover is meant to provide financial security for your family when you die. Similarly, disability cover needs to ensure that you and your dependents are able to maintain your lifestyle should you not be able to perform your current job. As such, “it is important to draw up a budget reflecting your family’s daily needs and expenses when deciding on the level of cover required” advises Kahlberg. It is also important to continue to revisit your insurance requirements as circumstances change. At the very least you should take account of inflation to ensure that your benefits do not lose their purchasing power over time. 3. Not informing your insurer that you have changed jobs Changed employment terms can affect the cost and level of your cover. For example, if you were an office clerk and get a new job as a fire fighter, your risk level would increase substantially and your insurer would need to review your policy. 4. Failing to inform loved ones of your cover or whereabouts of documentation If you do not inform your loved ones about your life or disability cover, there is a possibility that they may never claim when the need arises. As such, it is “advisable to keep the policy in a safe place, telling loved ones where the policy is and who they should call in the event that it is needed” advises Kahlberg. 5. Failing to inform insurers of a claim within the required time Almost all policies require that claims are notified to the insurer within a specified time where after the claim can be declined. This is one of the most common reasons for claims not being paid. Dependants may forfeit their benefits if they delay telling the insurer about a claim or do not supply the required documents to the insurer within the times specified. 6. Not keeping the nominated beneficiaries up to date Always ensure that you let the insurer know about changes to the nominated beneficiaries on all your policies. Once a claim arises, the insurer will always pay according to what you last instructed them. For example, if you have had another child and want a specific amount set aside for it you will need to change the beneficiary forms held by the insurer. 7. Not providing full information when making a claim Always insure that the insurer is given as much accurate information and documentation as possible. This is especially the case on disability claims. Incomplete or conflicting information will cause delays in getting a claim paid. For example, “if you forget to provide your insurer with your dependents’ ID numbers, or supply incorrect or different numbers” warns Kahlberg. 8. Not disclosing that you have taken on additional risk, like smoking or engaging in dangerous activities Insurers charge higher premiums for individuals that smoke or are at higher risk of getting ill or dying.“If you sign on as a non-smoker and then start smoking and develop lung cancer, your insurer is within their rights to reduce your benefits or maybe even repudiate your claim” warns Kahlberg. Similarly, if you are disabled in a once-off parachute jump you will not qualify for disability cover if you have not listed this as one of your pastimes which the insurer has accept 9. Not familiarising yourself with the circumstances under which your policy will not pay There are times when a policy will not pay out even if you have made full disclosure to the insurer. “These circumstances should be clearly set out in your policy under the exclusions heading and you should take the time to understand these exclusions before signing up” recommends Kahlberg. Typical exclusions relate to alcohol consumption, drug usage, suicide and violation of the laws of the land. 10. Allowing your insurer to repudiate your claim without good reason Consumers should not sit back and allow insurers to repudiate claims except for valid and legal reasons. If you believe you have a strong case, yet your insurer refuses to settle, Kahlberg recommends that consumers take the matter to the insurance ombudsman. The ombudsman acts as a mediator to settle disputes between insurers and their clients and is an inexpensive alternative to litigation. Getting all this right is important as the onus falls on the insured to make sure that they understand all terms and conditions that they have been told about by the insurer when taking out a life and disability cover. The first step is to read all the documentation they receive from the insurer. “If you are unsure of any clause during the application process or anything in the policy wording once you receive the policy document you should ask your insurer to explain” concludes Kahlberg. Written by: Selwyn Kahlburg Source: Health24
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Most businesses ask themselves if they should have social media liability and the answer is most probably a yes. Fact is, most small and medium size businesses are using social media in one form or another to promote and advertise themselves. This, of course, brings great reward to those who embrace the digital age.
What this age unfortunately also brings with it, is a new type of risk of which most of us are not quite familiar with yet. We are hearing about it on the news and reading it on, yes you guessed it, social media itself. How many of us has first-hand experience of this relatively new type of risk to businesses and business owners? My guess would be not many of us. Businesses and business owners will know very well that if a new type of risk raises its head and pose a threat, the best way to go about it is to take a pro-active type of approach, rather than a reactive approach. Let’s start by looking at the different types of risks associated with having a presence on social networks:
Discovery Business Insurance is launching 1st of June 2018 and they will be offering Social Media Cover as an extension under their Public Liability policy. This extension will offer cover for any liability as a result of social media interactions and it will also include:
If you would like to get a quote for Social Liability quote, please contact Jan in our Short-Term department, email [email protected] , tel (011)658-1333 Source: Jan Prinsloo (Daberistic Short-Term Broker) As an employer, you're faced with many challenges. Perhaps the biggest is keeping your employees inspired and motivated every day. Employee wellbeing is key to running of any sustainable business, and when maintained, can help to significantly reduce staff turnover, minimise absenteeism and increase productivity.
This could be a costly exercise, but with Discovery Life as your partner, both your employees and your bottom line can benefit. The Discovery Corporate Integrator, is a powerful employee wellness incentive structure designed to improve the health and wellbeing of your employees, while boosting the health and productivity of your business at the same time. What is the Discovery Corporate Integrator? For years Discovery has partnered with employers to meet various needs of their employees. From the healthcare benefits of Discovery Health Medical Scheme, to the protection benefits of Discovery Life and finally to the wellness rewards of Vitality. Now the Discovery Corporate Integrator is taking our employee wellness offering one step further - linking the individual benefits offered through Discovery Health, Discovery Life and Vitality to provide employees with significant financial rewards for being healthy. How does the Discovery Corporate Integrator work? The Discovery Corporate Integrator rewards employees for living healthy lifestyles and achieving healthy outcomes with up to 40% of their Discovery Life Group Risk premiums back. The Discovery Corporate Integrator is more than simply another benefit scheme – it is a unique incentive structure that recognises the importance of an employee's wellness, and encourages ongoing healthy choices with tangible financial rewards in the form of PayBacks:
Offering unique value to small and medium-sized enterprises, the Discovery Corporate Integrator is available to employers with between 20 and 500 employees. To qualify, employees must:
To get sign up your organisation Discovery Corporate Integrator contact, please contact Ray or Kevin in our Employee Benefits department email [email protected] , tel (011)658-1333 Source: Discovery ![]() By Kevin Yeh, CFP® Now more than ever, corporate and retail clients, young and old, need good financial advice. Getting good advice on health insurance is very important, to ensure you get the coverage that meets with your health needs. There are three parts to consider: The Core (Medical Aid), the Supplement (Gap Cover), and the Alternative (Health Insurance). The Core: When you consider private healthcare financing, medical aid is the Core. In South Africa, medical schemes are regulated by the Medical Schemes Act, so all medical aid plans offered by medical schemes must provide the Prescribed Minimum Benefits (PMBs) as stipulated by the Act. PMB covers many critical medical conditions, conditions that either require hospitalisation or ongoing treatment (chronic health conditions such as diabetes). As medical aid is required by law to provide such comprehensive range of benefits, it is expensive. It is therefore important to understand and compare various medical aid plans, to get the best benefits from a reputable medical aid given your budget. Some medical aid plans are hospital plans that also provide chronic illness benefits, while other medical aid plans cover hospital stays, chronic conditions as well as day-to-day expenses such as GP visits. Medical aid plans range from R800 to R8,000 per member per month. Students can qualify for very affordable medical aid plans designed for students, at about R350 per month. Unlike other financial products, medical schemes are not-for-profit entities that are regulated to ensure they fulfil a social solidarity role, i.e. everyone benefits from the dependence individuals have on each other. If you join a medical aid for the first time in your life, has a break in your medical aid membership or move from one medical aid provider to another, the medical scheme can impose a three-month general waiting period. This protects other members of the medical scheme by ensuring that individuals aren’t able to make large claims shortly after joining and then cancelling their membership. During the general waiting period a beneficiary is not entitled to any benefits, in some instances not even Prescribed Minimum Benefits (PMBs) during this period. If a beneficiary submits claims during a general waiting period, they will not be paid. If you have known medical conditions (including pregnancy) when joining a medical aid, the medical scheme will impose a condition-specific waiting period. A condition-specific waiting period can last up to 12 months. During this time a beneficiary is not entitled to any benefits for a particular condition for which medical advice, diagnosis, care or treatment was recommended or received. If you join a medical aid after the age of 35; the medical scheme can impose a late-joiner penalty (LJP) if you have never been a medical aid member, or if you cannot prove medical scheme membership for a specified period of time since April 2001. This is to ensure fairness (whereby members who have been part of a scheme for years are not subsidising newer members who have not contributed to the scheme). In addition, it also ensures that medical schemes cannot deny anyone who wishes to join. The late-joiner penalty (LJP) depends on your age as well as the number of years you have been a member of a medical scheme. If you are over 35 and haven’t been on a medical aid, you may be charged a surcharge between 5% and 75% of the standard contribution. For people over 60 years old, this LJP can be as high as 75%. If you can afford medical aid, it is in your best interest to join one as early as you can, even if it is the most basic medical aid plan, so that you can avoid late-joiner penalty in the future. Always keep proof of your medical aid membership when you leave a medical aid provider. In South Africa it is illegal to have more than one medical aid plans. The Supplement: All medical aid plans have a long list of terms and conditions, none of them will pay all the bills in all of the circumstances. In fact, many members will find out after a hospital stay that they still need to pay out of their pocket thousands of rands to specialists or even the hospital. Gap cover products on the market cover many of these shortfalls. They are a cost effective way to supplement your medical aid plan. Gap cover can cost you between R100 to R400 per month. People above age 55 pay more for gap cover. The Alternative: If you cannot afford a medical aid plan, consider health insurance. Health insurance is not a medical aid. It is a short-term insurance product. While it covers certain medical events, it does not cover PMBs as stipulated by the Medical Schemes Act, thus less comprehensive in benefits. It also has an annual benefit limit of R200,000 to R1,000,000, capping the amount paid to a policyholder. This is unlike medical aid, which can pay claims into millions of rands. A health insurance plan can cost you between R160 to R1,300 per month for individuals, and between R500 to R2,000 per month for a family of five. What questions to ask about a healthcare product Medical aid, gap cover and health insurance products are by their very nature complex, have a long list of benefits, terms and conditions. You should ask the following questions to a provider or a financial advisor about a healthcare product, to understand it and decide whether to buy it:
National Treasury announced an increase in Value Added Tax (VAT) from 14% to 15% effective 1 April 2018. Your short-term insurance premium is subject to VAT and will be adjusted. The new premium will be communicated to before your April debit order collection and below is some of FAQ:
General
Premium collection
Policy Amendments
For any queries regarding changes to your insurance, please contact Jan or Po-Lin in our Short Term department [email protected] tel no: (011) 658 – 1333 Source: Momentum Daberistic hosted a Vitality Wellness day at the office where clients were able to do their Fitness,Health and Nutrition checks in order to earn their Vitality points. Our Daberistic staff were able to assist clients with completing their online assessments,complete forms as well as link their movie cards, food cards in between the checks. We look forward to the next one.
The 2017-18 budget provided limited relief for fiscal drag and introduced a personal income tax of 45% for individuals earning R1.5m or more. The previous top bracket of 41% was set at an income of R701,301. Tax collections have fallen sharply in light of poor econo-mic growth and the Treasury has had its worst performance in collections since the 2009 recession. So the trend of increasing taxes seems likely to continue as the Treasury sets about on what it calls a "measured, prudent course of fiscal consolidation". In the light of this, it is now more important to plan your financial affairs effectively from a tax point of view. There are several structures you can employ legally, without much cost, that can be quite effective in reducing the amount of tax you pay on your investments. One such structure is an endowment, which has potential tax advantages for investors in higher tax brackets and can also be used for estate planning. There are typically two types of endowments: "traditional" and new-generation unit trust-based endowments. Traditional endowments tend to have an insurance element linked to the structure, usually in the form of life insurance. They are less flexible in that you don’t have control over the underlying investment and may be charged fees or penalties when changing the contribution amount or withdrawing early. New-generation endowments tend to be more flexible and give you choice over the underlying investment portfolio.
There are no asset class restrictions on endowments (unlike retirement funds investments). This means that you are free to invest in any allocation of equities, bonds, property and cash (including the offshore version of each). Endowments present valuable tax arbitrage opportunities. Tax on income is levied at a flat rate of 30% within the endowment. This is attractive when you compare it to the 45% applicable to investors in the highest tax bracket. Capital gains tax is levied within endowments and varies according to the legal nature of the owner. Within an endowment, investors in the top tax bracket will pay capital gains tax at an effective rate of 12% (40% inclusion rate multiplied by 30% tax within the endowment). In a unit trust, the same investor could pay an effective rate of 18% on capital gains (40% inclusion rate multiplied by 45% marginal tax rate). If you are an individual with a tax rate of less than 30%, investing in endowments for tax reasons alone, probably does not make sense. Endowments can also be a useful estate planning tool as they allow you to nominate beneficiaries The tax arbitrage opportunities within an endowment can be explained by comparing the after-tax return to that of a unit trust. Assume Steve is in the top tax bracket and under the age of 65. He has already used the interest exemptions (R23,800) and capital gains tax exemptions (R40,000). Steve has the choice to invest R1m in either a unit trust or an endowment with the same underlying investment portfolio. The investment is in a typical balanced fund with a blend of asset classes returning 10.8% over the period. At the end of the 10-year term the endowment will be worth R2,383,048 and the unit trust will be worth R2,788,673. However, in the unit trust, the tax on the interest (payable annually) and capital gains tax on withdrawal at the end of the term amount to R587,806 and reduces the proceeds to R2,200,867. The after-tax return of the endowment beats the after-tax return of the unit trust by 0.86% over the period. Steve would be better off opting for the endowment. Endowments can also be a useful estate planning tool as they allow you to nominate beneficiaries. That is, a nominated person can receive direct ownership of, or payment from, your endowment in the event of your death. This means that the beneficiary receives the value of the endowment without having to wait for the estate to be wound up first. What’s more, no executor fees (which can be as high as 3.99%) are charged on the value of endowments received by beneficiaries. There are some other subtle-ties to bear in mind. An endowment is a long-term investment vehicle by nature, with the minimum investment term being five years. It is possible to access some funds before the five-year period in the event of an emergency, but there are limits imposed as to how much you can withdraw. If you are unsure whether an endowment is appropriate for your circumstances contact our Financial advisor, please contact Kevin or Ray, email: [email protected] tel no: (011 658-1333) Source: Businesslive |
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January 2025
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