Life cover, income protection, etc.

[Hamster]

It's a new year and time for change (mainly because I cannot get hold of my FA).

I'm no fan of Liberty so this is my chance to move my stuff away. The SO also needs to set up her stuff so I'm currently looking for a new FA. Do any of you have any experience with these guys (http://www.genesisadvisory.co.za/) or can recommend somebody in JHB?

My thinking is that since my medical aid is already with Discovery that I should move my other life insurance stuff there. There's also Santam, Old Mutual and the rest of them but I'm kinda over it having my stuff so spread out over all these companies, although I'm open for suggestions.

Also, if any of you have pointers, tips or a basic summary of what one really needs that would be appreciated. A lot of these products look like they overlap.

 

[Drifter]

PM me your details. Dont go the Discovery route though. I will get someone to reach out to you.

 

[Hamster]

Dont go the Discovery route though.

Why?

 

[Drifter]

Why?

I will let the FA explain.

 

[Hamster]

I will let the FA explain.

PM sent.

Seems like this topic (on all three forums I posted it on) results in PMs and views. No insights on the products themselves

 

[Drifter]

PM sent.

Seems like this topic (on all three forums I posted it on) results in PMs and views. No insights on the products themselves

I am not a FA, so cant give you all the insights into the various products. Rather let the pro's do that.

 

[saturnz]

PM sent.

Seems like this topic (on all three forums I posted it on) results in PMs and views. No insights on the products themselves

have you got a bond? I would throw all the premiums I would pay into these things straight into that

 

[Hamster]

have you got a bond? I would throw all the premiums I would pay into these things straight into that

No. The property thread is that way --> https://mybroadband.co.za/vb/showth...hy-property-is-better-than-shares-quot-thread

 

[Hamster]

I am not a FA, so cant give you all the insights into the various products. Rather let the pro's do that.

I agree. I meant across all three forums there is nobody that seems to know these products like they know unit trusts, ETFs etc. Probably because it is the less exciting part of financial planning.

 

[saturnz]

No. That property thread is that way --> https://mybroadband.co.za/vb/showth...hy-property-is-better-than-shares-quot-thread

its not about property, its about managing finances, which you clearly seem to have no idea how to do

all the best with your financial advisor, I'm not sure if you know this, economic agents act in a selfish manner, including your financial advisor

 

[Drifter]

I agree. I meant across all three forums there is nobody that seems to know these products like they know unit trusts, ETFs etc. Probably because it is the less exciting part of financial planning.

Also a hell of a lot more variables. When talking about unit trusts , ETFs etc, things like normal underwriting with regards to income, health, education etc dont come onto the equation.

 

[Hamster]

.

 

[xrapidx]

have you got a bond? I would throw all the premiums I would pay into these things straight into that

You do not do something like that until you are in a position where your finances allow you the ability to recover from an unforeseen event, such as a disability, or dread disease. The cover is also not just for you, but for your family you leave behind.

 

[Drifter]

This ^^^^

 

[Greg C]

I agree. I meant across all three forums there is nobody that seems to know these products like they know unit trusts, ETFs etc. Probably because it is the less exciting part of financial planning.

But Ham what do you want to know about the 3. The reason from a front end perspective why its a little quiet is that whilst we can discuss the products, a large amount of the details relates more specifically to the client AFTER a needs analysis has been done

So as a tip/advice

Life policy, the gimicks of a premium back after paying a certain period is overrated. Why because it could be used to raise the level of life insured.
review your position annually. Life insurance essentially needs to take into account and continuous be updated atleast yearly relating to - beneficiaries and their needs, your current lifestyle, estate tax requirements and planning through who the beneficiaries are and what their needs may be, something may have changed etc
- Income protectors or atleast the good ones tend to be add ons to the life policy, but can also be seperate
- Understand that income protectors come as 2, either a capital payment or income payment to supplement daily needs. It is also different to a dread disease and illness cover
- if you have medical aid, as advice, ALWAYS get a gap cover. This is very similar to the cover you get when buying a new car. It protects you in the even of charges and or fees that are not covered fully in your medical aid. Gap covers are actually extremely effective and quite cheap - ie no more pesky 60K anaesthetist bill with the cover.
-Its irritating it honestly is. But a funeral policy for 100 bucks a month beats the hell out of putting 60 k together for a funeral. And it covers numerous lives
-If you are 30-35 years of age OR earning above the effective tax bracket and have spare cash look at endowment plans. Great tax efficiency

Outside of the above, a needs analysis should be done and your needs taken into account.
In summary focus on
1) Funeral plan
2) Life policy
3) income protector and the bolt on, onto the life policy
4) ensure you update all your beneficiaries and the life cover
5) get gap cover on your medical aid seperately so to avoid those painful cash flow issues for unseen medical events

Hope this helped a little

 

[Greg C]

But Ham what do you want to know about the 3. The reason from a front end perspective why its a little quiet is that whilst we can discuss the products, a large amount of the details relates more specifically to the client AFTER a needs analysis has been done

So as a tip/advice

Life policy, the gimicks of a premium back after paying a certain period is overrated. Why because it could be used to raise the level of life insured.
review your position annually. Life insurance essentially needs to take into account and continuous be updated atleast yearly relating to - beneficiaries and their needs, your current lifestyle, estate tax requirements and planning through who the beneficiaries are and what their needs may be, something may have changed etc
- Income protectors or atleast the good ones tend to be add ons to the life policy, but can also be seperate
- Understand that income protectors come as 2, either a capital payment or income payment to supplement daily needs. It is also different to a dread disease and illness cover
- if you have medical aid, as advice, ALWAYS get a gap cover. This is very similar to the cover you get when buying a new car. It protects you in the even of charges and or fees that are not covered fully in your medical aid. Gap covers are actually extremely effective and quite cheap - ie no more pesky 60K anaesthetist bill with the cover.
-Its irritating it honestly is. But a funeral policy for 100 bucks a month beats the hell out of putting 60 k together for a funeral. And it covers numerous lives
-If you are 30-35 years of age OR earning above the effective tax bracket and have spare cash look at endowment plans. Great tax efficiency

Outside of the above, a needs analysis should be done and your needs taken into account.
In summary focus on
1) Funeral plan
2) Life policy
3) income protector and the bolt on, onto the life policy
4) ensure you update all your beneficiaries and the life cover
5) get gap cover on your medical aid seperately so to avoid those painful cash flow issues for unseen medical events

Hope this helped a little

O and and in terms of industry best

Income protectors -I would go with PPS or Santam (PPS if you are a professional) ie engineer, doctors etc
Life insurance - say what you will about the gimmicks but Liberty are in fact excellent, this is their original bread and butter, Sanlam are also quite good
DO NOT TOUCH CLIENTELE LIFE
Funeral policy: strangely absa or the banks funeral policies are actually very good weirdly.

 

[Hamster]

But Ham what do you want to know about the 3. The reason from a front end perspective why its a little quiet is that whilst we can discuss the products, a large amount of the details relates more specifically to the client AFTER a needs analysis has been done

So as a tip/advice

Life policy, the gimicks of a premium back after paying a certain period is overrated. Why because it could be used to raise the level of life insured.
review your position annually. Life insurance essentially needs to take into account and continuous be updated atleast yearly relating to - beneficiaries and their needs, your current lifestyle, estate tax requirements and planning through who the beneficiaries are and what their needs may be, something may have changed etc
- Income protectors or atleast the good ones tend to be add ons to the life policy, but can also be seperate
- Understand that income protectors come as 2, either a capital payment or income payment to supplement daily needs. It is also different to a dread disease and illness cover
- if you have medical aid, as advice, ALWAYS get a gap cover. This is very similar to the cover you get when buying a new car. It protects you in the even of charges and or fees that are not covered fully in your medical aid. Gap covers are actually extremely effective and quite cheap - ie no more pesky 60K anaesthetist bill with the cover.
-Its irritating it honestly is. But a funeral policy for 100 bucks a month beats the hell out of putting 60 k together for a funeral. And it covers numerous lives
-If you are 30-35 years of age OR earning above the effective tax bracket and have spare cash look at endowment plans. Great tax efficiency

Outside of the above, a needs analysis should be done and your needs taken into account.
In summary focus on
1) Funeral plan
2) Life policy
3) income protector and the bolt on, onto the life policy
4) ensure you update all your beneficiaries and the life cover
5) get gap cover on your medical aid seperately so to avoid those painful cash flow issues for unseen medical events

Hope this helped a little

That's kinda what I was after.

So medical aid and gap cover is sorted.
Income protector I have one that'll pay a salary and not a lump sum.
Life cover needs to be reviewed to cover my debt (I bought a car so need to make sure again).

Funeral plan I need to get.

Dread disease cover though, where does that fit in considering I already have medical aid and gap cover?

 

[Greg C]

That's kinda what I was after.

So medical aid and gap cover is sorted.
Income protector I have one that'll pay a salary and not a lump sum.
Life cover needs to be reviewed to cover my debt (I bought a car so need to make sure again).

Funeral plan I need to get.

Dread disease cover though, where does that fit in considering I already have medical aid and gap cover?

Fits in quite perfectly

This will feel a little long winded but may be clearer

Medical aid and gap cover will cover the immediate issue with your health
Example. hamster has caught rabies (I had to sorry), and is having a mild heart attack, and is taken to the hospital. The medical aid will ensure you are looked after from a hospital perspective but will pay for instance 120% of the doctors fees. But you want the very best doctor looking after your hearrt( but hes abit expensive). The gap cover will cover the shortfall between the doctors fees and what the medical aid will pay up to (ie doctor charges R1000 per hour, but medical aid pays for only R500 for specialists) .

You are abit better and you come home, but you are still sick. Rabies is chronic. Its a chrnoci condition that prevent you from working at your full potential, it is also not helping you find a job. That is where the DREAD disease kicks in. It covers your expenses and gives you income to supplement you depending on the severity of the disease and how it disables you.

But that sort of sounds like an income protector?
NO, lets be clear, an income protector is a bolt on kicking in when AN EVENT occurs and protects your income up to a point. The dread diseases generally focusses on the types of illneses that it will protect, the income protector works hand in hand with the dread disease

The dread disease and illness covers assist with those 6 months that you may be out dealing with cancer, etc

 

[KleinBoontjie]

O and and in terms of industry best

Income protectors -I would go with PPS or Santam (PPS if you are a professional) ie engineer, doctors etc
Life insurance - say what you will about the gimmicks but Liberty are in fact excellent, this is their original bread and butter, Sanlam are also quite good
DO NOT TOUCH CLIENTELE LIFE
Funeral policy: strangely absa or the banks funeral policies are actually very good weirdly.

Who do you work for? My experience with Sanlam and their life insurance wasn't that great.
I was always wondering, maybe you know the difference. Why is it that Sanlam will ask R1500 per month for a set amount of life insurance and some banks will ask you like a R1000 cheaper for the same amount insured.

 

[Greg C]

Who do you work for? My experience with Sanlam and their life insurance wasn't that great.
I was always wondering, maybe you know the difference. Why is it that Sanlam will ask R1500 per month for a set amount of life insurance and some banks will ask you like a R1000 cheaper for the same amount insured.

Ah you little GEM. Im in Corporate and Investment banking with a certified Professional planning designation, as well as other stuff. Lets just say I love Finance and worked around. Dont ask why CIB and Rbill deal, and then financial planning. Anyway I digress

Remember one thing. The service in terms of policies is almost irrelevant when it comes to LIFE INSURANCE. why do I say that, well if its poor whilst youre alive its frustrating sure, ie changing beneficiaries finding statements etc, BUT when you die
1) you wont be around to deal with the bad service
2) its irrelevant, as no matter the case, the deceased estates executor MUST wind your estate up, this means a policy that you kept on record will be contacted through to the applicable administrators (NOT THE IDIOT CALL CENTRE) and will be managed depending on the listed beneficiaries on the policy.
The executor (I hope you have a will) will ensure that the administrators begin the process, the policy is notified to be paid, and the beneficiaries notified.

I mentioned Sanlam and liberty as best, because for the addons, you get and the less bull**** they throw at you from a "policy perspective " is good. The service I is irrelevant or atleast is the least important as the policy needs to be all encompassing and protect accordingly

Your question is a difficult one regarding cheaper/more expensive
There are generally quite a few factors to that
1) The underwriter is depserate or more hungry to write business and is willing to take cheaper premiums for the same type of risk business (ie your life)
2) The extra's some policies do not cover certain life events eg, you may have a chronic condition to depression, thus if you take your life one policy may pay and another may not, check the fine print of whats been covered
3) Life values could be limited - also in fine prints of bad assurance policies
4) Most life assurance policies work on a death table - ie likelihood of how long you will live, the prices set are the fees, commissions and or exceptions that can and do affect the premium
5) insurance love an all encompassing client, if you do your insurance needs all in one place the upfront commissions are higher, lower premiums

Hope this sorta helps?