![]() What is an Act of God? An act which is beyond human control e.g. storm, earthquake etc What do Insurance Policies mean when the say only Accidental Loss is covered? Only events which are sudden and unforeseeable are covered as they then accidental in nature. Inevitable events, like Wear & Tear, are thus not insurable as it is inevitable that property will depreciate over time. What is Underinsurance (Average)? If you underinsure your assets in terms of the basis of valuation stipulated in your Insurance Contract (e.g. Full New Replacement Value VAT inclusive) then insurers will deduct the percentage of underinsurance off your claim. For example, if you insure 75% of the Full Value at Risk, insurers will deduct 25% off your claim for Underinsurance. What is Indemnity? The act of placing you, the Insured, in the same financial position you enjoyed before the loss. Factors like Underinsurance, inadequate Sums Insured and Excesses can deprive you of receiving a full Indemnity. Who is the Insured? The natural person or legal entity named as the Policyholder/Insured in the Policy Contract who is entitled to compensation, providing they have an Insurable Interest in the insured property. What does the insurance term Proximate Cause mean? The direct, dominant cause of a loss not the remote cause. The insurer is only liable if the Proximate Cause, of the loss claimed for, was an Insured Peril. What is a Claims Made Liability policy? A Liability Policy that only covers claims reported during the currency of the Insurance Policy which occur on or after the Retroactive Date stated in the Policy. When must I notify the insurer of a claim or a potential claim? The short answer is as soon as possible. Some insurance contracts stipulate a time period e.g. within 24 hours in the case of high valued motor cars. Non-compliance with the Insurance Policy condition relating to Claim Notification may well mean your claim will be rejected by your Insurer. If you any queries regarding your Short-term policy or claim, please contact Jan in our Short-Term Department email [email protected], tel (011)658 -1333 Source: Chadwicks
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![]() There are different types of assurance products that cover you if you become disabled. You need to know the differences in order to make an informed choice and buy the best cover suited to your circumstances. Hollard Life’s head of product and technical business, Ryan Chegwidden, says: “There’s no question that it makes sense to take cover against the risk of being unable to provide financially for ourselves and our families. But, thanks to insurance jargon, there’s confusion about the benefits between disability policies and impairment policies.” Chegwidden says insurers define a “disability” as an injury or illness that results in you being unable to earn an income from doing your job. An “impairment” is an injury or illness that results in a physical or functional disorder – your job is irrelevant. “Both can be equally serious and life-changing, and the effects may be either temporary or permanent, but the difference lies in the extent to which they compromise your ability to perform your workplace responsibilities. “Say a computer programmer loses his sight because of an accident or illness. His condition will prevent him from doing his job, and he will be unable to earn an income as a computer programmer, so that would meet the criteria for a ‘disability’. The loss of sight would also meet the criteria for an ‘impairment’. “However, if the same programmer loses the use of his leg because of, say, a car accident, although the injury is profound, he would still be able to do his job, because no physical agility is required to sit in front of a computer. So, in that case, while the programmer would be ‘impaired’ by his injury, his capacity to continue to earn an income from his existing job means that this would not be classified as a ‘disability’.” On the other hand, he says, if the programmer suffered from a mental condition, it is possible that this would not meet the criteria for an “impairment”, but it could be considered a “disability”. You may want a comprehensive product that covers both disability and impairment, Chegwidden says. However, you may not be able to afford the premiums. Furthermore, a pre-existing health condition or a dangerous occupation may disqualify you from disability cover. This is where impairment cover – which is not based on occupation and a pre-existing health condition may be an acceptable risk – may be sufficient. “Based on these two core offerings, there are income protection products for every circumstance,” Chegwidden says. “It’s a question of finding the one that meets your unique requirements.” Request for a quote for your disability or impairment cover, please contact Kevin or Thato in our Life Department, [email protected] email tel (011)658-1333 Source: Personal Finance ![]() What are prescribed minimum benefits? (PMBs) Prescribed Minimum Benefits (PMBs) are a set of pre-defined conditions that all medical schemes in South Africa have to cover, by law. They form part of the Medical Schemes Act, with the aim being to ensure that the wellbeing and health of South African medical aid members is safeguarded and that healthcare is more affordable. The existence of PMBs means that anyone who is part of a medical scheme, no matter what plan they’re on, can receive treatment for 270 hospital-based and 25 chronic conditions and that the cost of these will be covered in full. PMBs also cover any kind of emergency treatment and include certain out-of-hospital treatments. How does a doctor decide if my condition will be covered by a PMB? Your doctor will look purely at your symptoms to decide on this, making the decision diagnosis-based. They won’t look at how the condition was contracted in the first place, but rather the symptoms you are displaying at that current point in time. They will then decide where you should receive the treatment, either in the doctor’s rooms or in-hospital. What kind of conditions does it cover? You can read the full list of hospital-based conditions covered, which are grouped into 15 broad categories and include things like heart attacks, strokes and pneumonia. The 25 chronic diseases in the PMBs include conditions like epilepsy and bipolar mood disorder – read the full list. Where can I get help with a PMB related issue? The Council for Medical Schemes (CMS) was established to supervise medical schemes in South Africa and exists to protect your rights as a consumer to be treated fairly. If you need help with a PMB issue, contact them for guidance. Source: Fedhealth To see if your condition qualifies for PMB cover please contact Namhla in our Health Department email [email protected] , tel (011)658 -1333 Source: Fedhealth ![]() Discovery Purple Collection is an exclusive suite of products that has been designed to deliver the most comprehensive benefits and unsurpassed rewards. The Purple Life Plan: The Purple Life Plan from Discovery Life offers you the most comprehensive, efficient life cover; access to the best medical facilities in the world and funding for the cost of cancer exome sequencing in the event of a severe illness; flexible global protection; and the ability to increase your cover by up to 58% without additional underwriting. Purple Insure Plan: The Purple Plan from Discovery Insure offers you comprehensive vehicle and home insurance with enhanced limits, exclusive benefits – such as annual cellphone upgrades and automatic licence renewal – and a dedicated Discovery Insure Service Executive. The Vitality drive programme rewards you for driving well and gives you access to state-of-the-art safety features. Click here to read full brochure Request for a quote for a quote to upgrade to purple option, please , email [email protected] or tel (011)658-1333 Guiding Principle of Investing #8: Plan for taxes
Someone says there are two things certain in life: death and taxes. Any investor would do well by working with a trusted financial advisor or tax advisor, to plan his investments around his tax position, to maximise his after-tax returns. South African resident investors should take advantage of the following: 1. Use appropriate investment products to reduce or eliminate income tax and other forms of tax 2. Contributions to retirement funds are tax deductible up to 27.5% of taxable income, subject to an annual limit of R350,000. All the growth in retirement funds are tax free. 3. R23,800 interest exemption per year for individuals under 65 years of age; R34,500 for age 65 and above 4. 20% dividend withholding tax for individuals 5. Capital gains annual exclusion of R40,000 for individuals, and R300,000 in the year of death. 6. All growth in a Tax-free Savings Account, whether it's interest, dividends or capital gains, is tax free for life. This post concludes our 8 guiding principles of investing. To set up a meeting to discuss your Investment planning please contact Ray or Kevin, email:[email protected] tel no: (011 658-1333) Guiding Principle of Investing #7: Think long term
Let time and compound interest be your friend. When we talk long term, we are not talking about 1, 3, 5 years. We are talking about 10, 20, 40, 60 years. Think about this: If you invest R100,000 at 10% annual return for 5 years, your investment will grow to R161,051. If you invest the same for 20 years, your investment will grow to R672,750. If you invest the same for 40 years, your investment will grow to R4,525,926. To set up a meeting to discuss your Investment planning please contact Ray or Kevin, email:[email protected] tel no: (011 658-1333) Guiding Principle of Investing #6: Recognise and manage one's emotions
It is well studied and documented that investors are driven by their emotions, which lead to irrational decisions. It would serve any investor well by recognising his own and others' emotions, and learn to manage his emotions. Some of common emotions displayed by investors are: Fear and greed Hear mentality - want to do what others do The current craze about Bitcoin is a brilliant example of such human emotions. It may be more profitable for investors to do exactly the opposite of what others do. Warren Buffett says, "Be fearful when others are greedy and greedy when others are fearful." To set up a meeting to discuss your Investment planning please contact Ray or Kevin, email:[email protected] tel no: (011 658-1333) |
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January 2025
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