PRODUCTS | ML Gouws | Certified Financial Planner | Natal

By: Life Insurance  11-11-2011
Keywords: Insurance, Life Insurance, Disability

We have contractual arrangements with all the Major Insurers. This enables us to draw comparative quotes and allow the client to choose the one best suited to him.

The following products are the most common.

Death

Term-life insurance is perhaps the most common form of life insurance purchased. It provides a lump-sum payment to the policy owner or nominated beneficiaries if the life insured dies while the policy is in forced. Disability and dread disease cover are often bundled with term life cover as optional extensions or “riders”

Disability

Disability insurance is usually sold as a ‘rider’ (additional benefit) in addition to a term insurance policy. This cover provides payment of the sum insured if the insured life becomes totally incapacitated through injury or illness and satisfies the policy’s definition of ‘disability’. Once payment is made, the policy usually ceases.

Dread disease

Dread disease insurance is designed to provide a cash lump-sum payment when the insured life suffers certain specified medical conditions for the first time (eg. serious heart attack, stroke, cancers, etc).

Impairment

Impairment is insurance cover that has been introduced to fill the void for which some of the other types of insurance cover fail to provide. Impairment is designed to cover the income that you are unable to generate as a result of physical impairment.

Retirement Annuity

Regular or lump-sum investments with the view to providing for retirement. Within limits contributions are deductible from taxable income. Has tax implications at retirement.

Investments

A wide range of options to cater for every need conceivable. The client’s needs will dicate the components of the plan, albeit the term, the tax-treatment, whether income is required.

Preservation Funds

A vehicle where pension or provident fund monies can be ‘parked’ without immediate tax-implications. The monies must emanate from a retrenchment, resignation or retirement.

Unit Trusts

Monies are placed with fund managers who invest in a wide range of instruments. The clients needs will dictate the fund. There is no term attached to the investment but it is recommended that a three-year term is envisaged.

Education Plans

Specifically designed endowment plan to cater for studies. A ‘waiver of premium” benefit assures that the payments are continued after the death or disability of the proposer.

Funeral Plans

Make funds available to finance a funeral within the close family as well as the extended family.

Employee Benefits

Covers the employee under an umbrella provident fund for death, disability, funerals and old age. Contributions can be borne by the employer or shared with the employee. Handled on a group basis.

Income Protection

Will pay the selected income if the client is unable to work. There are different waiting periods. The payment is made until the insured returns top work. The income is subject to income tax.


Keywords: Disability, Insurance, Insurers, Life Insurance

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11-11-2011

SERVICES | ML Gouws | Certified Financial Planner | Natal

Written reports which identify needs, proffer solutions and explain income tax, estate duty, and Capital Gains Tax implications, are submitted with each Financial Needs Analysis. It is imperative that the policies are structured properly The agreement should be current and not in contravention of agreements pertaining to the business or the principals.