A way to safeguard the future of your family

People hold many different views about having a last will and testament. The reasons not to have a will usually range from being single, to not having any assets, and nobody to leave money to. The reality is, however, that dying intestate (without a will) could result in complications, says Standard Trust Limited, the wholly owned subsidiary of the Standard Bank Group Limited with over 130 years of experience in fiduciary services.

In essence, dying without a will means that whatever assets you may have accumulated may be inherited by individuals that you have not nominated. There is no clarity regarding who should get what. You are therefore leaving others to make decisions for you, as relate to your final wishes and even who your executor should be, says Kobus van Schalkwyk, Head of Corporate Development for Standard Trust Limited at Standard Bank Wealth.

“Dying without a will means that the Master of the High Court has the final say on the appointment of an executor to take control of the assets. This also means that people you may have wanted to benefit do not, and those you may not have wanted to benefit do.’ A will is therefore a tool to direct how and when assets are passed on to beneficiaries.

Some of the advantages of having a will in place include:

  • You can arrange just when children can be given control of assets. Usually, a testamentary Trust is created and managed by a professional to carry out these orders. It is important to give careful consideration as to the identity of the trustee responsible for administering the Trust.
  • You can lay down any conditions you choose for the distribution of your assets – as long as all the actions are legal.
  • A will can be drawn up at any time to cater for specific circumstances in your life. As your marital status or financial position changes, so should your will.
  • You can give directions of how liabilities are to be settled. For instance, it is common practice to order that the costs of a funeral be paid by the estate.
  • “The reality is that whatever your financial status, you will leave something behind. The need for a will becomes more pressing when you have assets and a family. A will should, if you have minor children, be used to nominate guardians for them. Failing to do so could mean that your children are brought up by a person you would have preferred not to care for them, as this vital decision also becomes a function of the master of the high court,” says Mr van Schalkwyk. Appointing guardians and leaving money in a Trust for benefit of your children ensures that the guardians have access to funds for their development and education.”

It is common to find templates of wills on the Internet and even in local stationery shops. However, even though everyone has a right to draw up their own will, you should consider the following potential consequences:

  • You could write instructions that are unclear and therefore cannot be carried out.
  • You could forget to insert vital clauses, such as revoking an earlier will.
  • You could omit to include vital information because you don’t have the benefit of an attorney, certified financial planner or fiduciary specialist trained in drawing up and administering asking questions and clarifying issues.
  • You could make the mistake of thinking that a software package or Internet document asks all the same questions of you that a professional would ask.
  • You could not have the correct number of witnesses or it could be incorrectly signed.
  • You may not have the expertise required to correctly set up Trusts and other mechanisms you may require.
  • “The best time to have a will drawn up is right now,” says Mr van Schalkwyk. “Taking time to meet with a professional and discuss your requirements will also mean that you understand exactly what taxes are triggered by death duties are, how they are administered and when they become payable.”

Your adviser should also be able to discuss capital gains tax (CGT) which is levied on an estate and indicate what the implications of this would be on the value of your estate. The higher the value of your estate, the more it becomes necessary for an adviser to assist with helping you plan how tax and CGT costs can be met without impacting negatively on the value of your estate. “

“The implications of pension fund pay outs and cash payable from life insurance policies should also form part of any consultation. Professional advice is useful in ensuring that the cost of taxes does not unnecessarily reduce the value of the estate to the detriment of your heirs. ”

“A professionally structured will, combined with proper personal financial and estate planning advice, are two tools that can help safeguard your assets and provide a legacy and an easier future for your family, ends Mr van Schalkwyk.

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About 10% of the South African population has wills

A good financial plan can guide you to financial independence and protect you and your family against an uncertain future. Such a financial plan encompasses all aspects of your financial wellbeing, including the drafting of your will, which will basically be the culmination of a lifetime of careful and strategic financial planning.

“Such a financial plan will ensure your financial independence and that your family will be supported, irrespective of what the future holds. I regard the will as one of the most important documents of the financial planning process,” says Gustav Neethling, director of The Financial Emporium.

“When formulating a financial plan for a client, we will discuss issues like whether that particular client has sufficient financial provisions in place – provisions that will enable the client to reach his or her financial goals. The next thing we will look at will be to draft or update the client’s will to ensure that the client’s family and dependants are properly being taken care of,” explains Neethling.

“Well-known financial guru, Suze Orman, once said, ‘A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life’. This is where financial planning, including will, comes in. A reputable financial planner is trained to look at each client individually and to then give advice that will improve the person’s financial wellbeing and to advise on the best options once this person dies – like what happens to your investments? One needs to look at these aspects, especially if there are dependants involved,” stresses Neethling.

A financial services professional will also be able to advise you on more complicated will issues, like if you have foreign assets, complicated divorce agreements, elaborate businesses, and more, with the help of either his in-house lawyer or a lawyer that he has contracted. “But the benefit of using a financial services professional is the fact that they have insight into your financial history and long-term planning,” adds Neethling, “as neither of the two can be viewed in isolation”.

“It is a well-known fact that only about 10% of the South African population has wills and one of the reasons is that people believe that ‘you don’t know what you don’t know’. This is not a way to handle your finances or your future. It does not matter how bad the situation is, you will have to confront the facts, do careful planning, regroup, execute and then make provision for what should happen one day when you are no longer here.

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Man, get your stuff together

Nowadays, single parent families have become increasingly common due to a number of factors. High divorce rates, the passing of a spouse or even single parent adoptions are just some of them. Despite statistics indicating that most households in South Africa are run by single mothers, the ‘case of the single father’ does in fact, exist.

As a parent, there is no denying that you want the best for your children, and in most cases to give them access to things and experiences that you didn’t have while growing up. However, as a single father, you might find that some of these goals can be extremely challenging, given that you are a single income earner.

With this in mind here are some important financial considerations to make as a single dad:

Knowledge is Power

You may have heard the phrase ‘knowledge is power’ and when it comes to managing your finances, no truer words have been spoken. As you look for ways around your finances as a single parent, to avoid feeling the financial pinch, a great starting point is educating yourself around your finances. In doing so, you will have a better understanding of how to navigate around your current financial situation and quickly learn how to make your money work for you, which is crucial given that you may have limited means.

Take small steps now for the future

All throughout history, some of the wisest of men have highlighted the importance of taking small steps towards achieving a greater end goal. This is also relevant when it comes to parenting. As a parent, your children’s long term future is probably already playing back and forth in your mind. You may even have long term goals for them already, be it to see them attend medical school one day or even getting them their first car straight after high school. The reality is however, that these dreams come at a cost. Choose to take those all-important ‘small steps’ financially now, such as saving and budgeting to make provision for your children’s big moments in the future.

Where there’s a Will there’s a way

No, really – having a Will in place will have a positive impact on your children’s future, even in your absence. This is even more important as a single parent as your children rely solely on you for their upbringing. So, put a plan in motion to secure their financial future and educate yourself around the importance of having a Will in place.

By choosing to not have a Will in place, you are denying your children one of the greatest gifts that you can give them when you are not around anymore. In addition to this, you will also risk leaving the decision on how your assets are divided up, to the courts, which will not guarantee that your assets will be spilt as you wished.

Man, get your stuff together

One of the greatest gifts as a parent is that you get to witness first-hand, how your children grow as they enter the different stages of life, which brings about different milestones and experiences. If anything, these experiences should make you consider financial products that will make provision for these moments. In light of this, it is important that you invest in long term insurance products that play a vital role in managing your children’s financial situation, and will also help you protect your family in the event of unforeseen circumstances such as; illness, injury, disability and an unexpected passing. It’s advisable however, not to look at these products in isolation, but that you take up a combination of these products to ensure that your children have adequate financial protection – no matter what the circumstances.

With that said, there is no set formula to raising children – especially when being a single dad – some days are a breeze and the next not so much. However, one thing is constant – you want the very best in life for your children. So, take steps today to move your financial planning to the next level and provide for life’s unexpected moments. Your children will thank you for this later.

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The 1Life Life Changer Award

The DStv Mzansi Viewer’s Choice Awards were launched last week and with it, headline sponsor – 1Life, launched a socially influential award category; The 1Life Life Changer Award! This award is in a class of its own – aimed at encouraging all South Africa’s doting celebrity fans to not only vote for the who’s who, but to vote for someone in their community who is socially influential and really changing lives through their commitment to those less fortunate.

“We are very proud to be the headline sponsor for the DStv Mzansi Viewer’s Choice Awards, where developing and recognising local talent – whether in business, on the sports field, or in the performing arts – is not only empowering and uplifting, but certainly, life changing,” says Laurence Hillman, MD at 1Life.

“This sponsorship really holds true to our mantra of Changing Lives, and I believe that the addition of the 1Life Life Changer Award generates an even stronger alignment to this concept, as it provides an excellent opportunity for South African’s to be the voice of the people, to nominate someone who they believe is truly socially influential in the community – someone who is significantly changing lives,” continues Hillman.

The 1Life Life Changer Award will allow viewers to nominate everyday people from their communities, anywhere in South Africa. Nominees will then be short listed where a panel of judges, including representatives from DSTV, Mzansi Magic and 1Life, will decide on the most deserving nominees.

The winner will be selected based on their social impact in the community, their continued motivation for the sustainable management of their projects and the positive/long lasting effect of these projects on the communities in which they operate. The winners, as well as their nominator, will win a cash prize of R50 000 each.

“There is no doubt that people working in their communities are short-funded, struggling to keep up with day to day demands and merely need a helping hand to continue to do the great work they are doing. This award empowers consumers to be part of the change, to choose these winners for themselves and to identify someone who not only needs the funding but deserves the recognition for their commitment to changing the lives of those around them,” says Hillman.

“We look forward to the upcoming weeks of ongoing nominations and encourage all South African’s to get involved by voting, not only for the nominees but very importantly, to give back by nominating those people in their communities that are truly change agents!” concludes Hillman.

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Depicting the journey of life and the importance of protecting those you love

1Life, a leading direct life insurer, is proud to present its Loerie nominated brand advert, 1Hello.

The advert is focused on reminding everyday South Africans that when you start to appreciate the aspects that add value to your life – the people, the sounds, the memories, and the smells – you will want to protect them and keep them close to your heart.

In an emotive 90 second story, the brand brings to life one man’s journey of life’s great relationships, treasured moments, hardships and achievements – all of which he will one day need to say goodbye to. It is a relatable tribute to what we have, and what we will someday leave behind.

“Over the past year, the 1Life brand journey has truly evolved – we have moved away from the traditional risk profiling adverts and really aligned to our vision of changing lives. It is with this in mind, we worked closely with our advertising agency – House of Brave – and focused on bringing continued authentic storytelling to the fore, directed by the key message that sometimes it’s the simplest things in life that have the biggest impact on you,” says Katharine Liese, General Manager Marketing at 1Life.

“The journey of life is pivotal to our brand – we honour life and we make provision for the future of our clients’ loved ones, which is a cornerstone to this advert. It is about giving people the power to say ‘hello’ to a bright future for their loved ones when, one day, they will need to say goodbye. It reflects on all the reasons they would want to protect their loved ones and gives the viewer an opportunity to connect with the life we depict – an average man, cherishing his experiences and reflecting on how he will give his loved ones the opportunity to live a full life in the future,” continues Liese.

“To truly demonstrate the breadth and depth of life’s journeys, the advert needed to cover contrasting and varying landscapes and therefore, we selected Port Elizabeth for 90% of this shoot. Offering the opportunity to cut between open farm lands, ocean drives, urban and suburban areas – this region offered real diversity from a commercial perspective. As a largely underutilised area in South Africa for television adverts, this region provided the brand an opportunity to really bring the varying scope and mystical quality, of the journey of life to fruition,” says Vanessa Pearson, Executive Creative Director at House of Brave.

The advert and campaign was developed and executed by House of Brave’s creative team, headed up by Executive Creative Director, Vanessa Pearson and directed by Jono Hall from Darling Films. As a result of strong creative direction and execution, this commercial was a finalist in the 2017 Annual Loeries Awards, in the Television and Cinema Commercials – up to 90s – and the Television Craft Writing categories.

The 1Life advert is a moment of truth, encouraging consumers to take a moment to think about the things that really matter in life, and how best to protect them. From a commercial perspective, it aims to elevate the brand as the experts when it comes to advice, financial planning and life for all the future holds.

“At 1Life, we are committed to a key premise – Changing Lives. We believe that this campaign is another way we are really able to do this, encouraging consumers to think about the future and giving them the opportunity to make that one call, that one simple ‘hello’ which can help them take care, today, of what the future holds for both themselves and their families. We hope that the emotive nature of this campaign will drive real understanding to consumers and we look forward to witnessing what we believe will be a very strong, successful brand campaign,” concludes Liese.

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How to get your funeral claims paid out

In times of grief, when you are suffering emotionally and physically, you shouldn’t be dealing with the disappointment of an insurer rejecting or delaying to payout your claim.

Lee Bromfield, CEO of FNB Life, says during this time, beneficiaries need access to cash within 24 hours from the time of death to make the necessary arrangements to give their loved ones a dignified funeral. A quick payout from your insurer is, therefore, an absolute necessity.

Instead of being caught off guard when tragedy strikes, Bromfield advises consumers to familiarise themselves with the claims process, policy documents and their rights:

1.  Submitting the correct documentation on time – the common reason why many claims get delayed is because consumers often fail to submit the certified claim form, notice of death form, death certificate and a copy of the deceased’s ID document on time.

“Because we are able to obtain a verified death certificate through the National Population Register from the Department of Home Affairs, following the submission of a notice of death form from customers, we currently pay out 80% of claims within a day of receiving all documents,” says Bromfield.

“The sooner your insurer gets all the relevant documents, the quicker the payout time.”

2. Correct beneficiary details – this is equally important as submitting the right documents.

Without the correct beneficiary details, claims cannot be paid out to your loved ones in the event that they were not aware of the policy.

“Through the National Populations Registry, FNB Life continuously identifies claims that haven’t been submitted, and we are able to contact the beneficiaries and payout, if we have the correct contact details, says Bromfield.

3. Beware of unscrupulous insurers – always do your background check before taking up an insurance policy to ensure that the company is legitimate, and is underwritten by a registered long term insurance company.

This will help you avoid any surprises when you or your loved ones claim.

4. Know your rights – when an insurer rejects your claim, you have the right to object in writing. If the complaint is still unresolved and you are not satisfied with the outcome, you can approach the Long-term Insurance Ombudsman for assistance.

Make it a priority to read and understand the terms and conditions of your policy and establish if there are any violations and exclusions that may prevent your claims from being paid out.

“In general, funeral policies shouldn’t have many restrictions, apart from standard waiting periods and prohibition against illegal activities,” concludes Bromfield.

Disrupt and Grow – The 2017 Global KPMG Insurance CEO Survey

A new insurance story is unfolding in an industry which has a global premium income of 4.5 Trillion USD as CEO’s start to pick up the pace in the face of unprecedented changes. These changes are at a global level and the change actors will impact East Africa as a key emerging market which has ambitious plans to grow premium income, with a young and dynamic customer base and a rapidly expanding middle class.

Five key messages have emerged that require East Africa Insurance CEO’s to consider as they continue to build up the sector:

  1. Disruption is long term- CEOs need to transform their businesses to meet the changing needs of customers. In fact, 81% see disruption as an opportunity, not a threat.
  2. Customer are key- global and East African wide regulation is moving from a focus on solvency to market conduct and customer centricity. 73% of CEO’s can confidently articulate their customer value proposition. This is especially critical in East Africa which is moving towards multi-distribution channels.
  3. Risks are changing- The only certainty is change. New risks which concern CEO’s are managing operational risk, talent and cyber but top of mind is emerging technology. We expect to see more automation as disruptive technology and innovation creates digital labour and solutions like block-chain.
  4. The Future is everything- As change impacts, CEO’s realise they must make increasing bold decisions to stay in the game. Confidence is also increasing though as 58% believe they are effective at sensing market signals.
  5. Focus on results- CEO’s must manage tight budgets to optimise and more than ever, they need to be strategic- 59% say the primary objective of any investment is to transform their business and operating models.

To accelerate innovation and to thrive, it is clear CEO’s both globally and in East Africa must change the old ways of thinking and old models to create transformational eco-systems that deliver on their ambitions.

*KPMG surveyed over 100 Insurance CEO’s from across 10 markets.

Health cash plan can cover loss of income

People who are self-employed, temporary workers, artisans, vendors and tradesman who are not permanently employed can often find themselves facing huge medical bills and expenses in the unfortunate event that they are hospitalised for a couple of days.

Being hospitalised also means that individuals who rely on their skills to put food on the table will usually have no income during this difficult time.

“A health cash plan which can cover your entire family for non-medical expenses, as a result of hospitalisation is ideal in this situation, since you can qualify to get a cash pay-out for each day that you are in hospital,” says Lee Bromfield, CEO of FNB Life.

“You can find yourself with a huge gap in your income when hospitalised, leading to financial stress as you worry about money needed to pay for daily expenses and bills which won’t simply go away just because you are sick,” says Bromfield.

It is, therefore, essential to always plan ahead for emergencies as you will never know when you will get sick or injured, especially if your job requires you to be healthy and physically present all the time.

“Even if you do have medical aid, a health cash plan will still come in handy to provide you with some sorely needed cash to help with any additional expenses incurred while you are in hospital,” adds Bromfield.

He cautions, however, that a health cash plan policy should not be confused for a medical aid, but rather be used as complementary cover for bills that would normally not be catered for by your provider.

For example, since the health cash plan benefits may be used for anything you want, someone who has lost two days of work and income, can use the cash benefits to make up for the days lost.

“Furthermore, it is important to read and understand the terms and conditions when taking out this policy to know exactly what you are covered for. For instance, many insurers will not cover you if illness, injury or dependence syndrome occurs as a result of using substances such as drugs or alcohol,” explains Bromfield.

FNB now offers a health cash plan to all its customers, their spouses, up to eight children, four parents or parents-in-law and up to seven extended family members.

The FNB Health Cash Plan pays out your chosen daily cash benefit for non-medical expenses if you are hospitalised for more than 48 consecutive hours.

You’re never too young for life insurance

ou are never too young to get life insurance

24 July 2017 – If you are employed and have people who rely on you financially having life cover is essential regardless of your age.

Lee Bromfield, CEO of FNB Life says the most basic need for life insurance is to ensure that your loved ones are not impacted financially in the unfortunate event that you pass away.

“For families that are finding it hard to make ends meet, not having life cover can both be a missed opportunity and a costly mistake as a loss of income could have undesired consequences,” says Bromfield.

Young professionals often assume that life insurance is only necessary when having your first child or getting married, overlooking the fact that there may be other family members or dependants who rely on them directly or indirectly.

“Even if you don’t have people that depend on you yet, there could be those who are already looking up to you to assist financially. For example, siblings that you could assist with school requirements and funding for university,” says Bromfield.

He says a life insurance policy could further help realise aspirations that you would not be able to fulfil in the unfortunate event of death, such as building a family home or property portfolio in order to create wealth and leave a legacy.

“With a life policy you can ensure that your dreams still come true when you are no longer around to realise them personally,” he adds.

Your policy can also come in handy to reduce tax costs associated with winding up a deceased estate and ensure that your beneficiaries get the maximum of their inheritance.

Depending on your income and risk level, when getting a home loan, banks may also require you to take out a life policy which would be ceded against the loan. This ensures that your dependants don’t have to worry about lenders coming after the asset should something happen to you.

Moreover, life insurance is more affordable at a young age compared to when you are older. Therefore, getting life cover as early as possible will not only safeguard your dependants, but will help ensure that you get a good premium rate.

“If you neglect taking out life cover as soon as you start working you could be compromising the financial wellbeing of your loved ones,” concludes Bromfield.

Kaizer Chiefs Insurance

The third Kaizer Chiefs Insurance store opened its doors to customers in Durban on Friday, 7 July, giving supporters in KwaZulu-Natal access to Kaizer Chiefs insurance products and services as well as exclusive club merchandise.

The new store is situated at shop 141 at Umlazi’s Mega City on Griffiths Mxenge Highway and is the third of six insurance stores that will open in different provinces and cities before the end of the year. The project is a joint venture between Kaizer Chiefs and long-standing insurance partner and sponsor, Hollard.

The first two stores at Alexandra township’s Alex mall and Fatima Bhayet street in Rustenburg are up and running and have been offering customers insurance-related services and selling exclusively licensed Kaizer Chiefs merchandise at affordable prices as well as KC Mobile.

“KwaZulu-Natal is our second home and it makes a lot of sense for us to open the store in Durban to attend to our supporters’ insurance and merchandise needs,” says Kaizer Chiefs’ Marketing Director, Jessica Motaung.

“It is exciting that we have managed to open three stores in the last few weeks with very few glitches. We encourage all our supporters to visit the store at Mega City to see what we have to offer and learn about our insurance offering and get your SIM card.”

Apart from offering face-to-face insurance services, Kaizer Chiefs Insurance stores sell some of the exclusively licensed merchandise including t-shirts, hats, caps, scarfs, blankets and other products that can only be found at the Kaizer Chiefs stores. The store will sell KC Mobile starter packs, provide RICA facilities and sell airtime to patrons.

The stores are unique in that they carry a selection of limited stock and special offers that are unavailable anywhere else – It truly is a full Kaizer Chiefs Insurance store experience.

Motaung once again thanked Hollard for the partnership in this new venture that will help create jobs opportunities for locals, assist supporters with their insurance needs and help the two brands get closer to their supporters and customers.

The KC Insurance store in Umlazi will operate between 9:00 and 17:30 from Monday to Friday and 8:30 to 13:00 on Saturdays.