The best investment you can make is the one that will be the most prosperous when you need it most. In that light, life cover is an essential component of a well-rounded investment strategy. If you have family members dependent on your income life insurance is a must. In the event of your passing, it will replace your income. This is especially important if you have young children or a partner who is dependent on your income to maintain their standard of living.

Your Financial Planner will design your life cover to suit your needs, including a lump sum pay out, income for your dependents, payment of funeral expenses and estate taxes, and charitable contributions. If you pass away, we help your family to continue living their best life.

Your greatest asset is your ability to earn an income. It is important to prepare for the unexpected. if you were to become injured or disabled, either temporarily or permanently and cannot work anymore, disability cover provides you with the peace of mind that your family’s expenses, as well as your own, will be covered so that you can maintain your standard of living and pay for additional costs such as medical expenses or rehabilitation.

If you become disabled and can’t work, we help you keep going.

Your greatest asset is your ability to earn an income. Income Protection is designed to pay you a dependable monthly income if you become disabled or ill and can’t work, so that you and your family can keep on living Your income enables you to maintain your lifestyle – from everyday expenses that cover the home you live in to providing for your family with food, healthcare and education. Income protection ensures that you can maintain your lifestyle without affecting your future financial plans. Your retirement planning and emergency funds remain untouched. Income protection replaces a portion of your income and pays out until you can start working again.

If you were to become disabled and can’t work, ensure that you have a reliable monthly income.

As with other forms of risk cover, severe illness cover provides for your wellbeing when you need it most. You will receive a cash lump sum if you are diagnosed with one of the specified medical conditions or injuries listed in the policy. More people are diagnosed with Cancer and other serious conditions than ever before. Severe Illness Cover helps cover potential expenses like employing a caregiver to assist you when needed, the cost of treatment not covered by medical aid and gap cover and adjustments to your lifestyle. Severe Illness Cover ensures that you maintain your independence.

If you get cancer or another serious condition, we help you conquer it with a tax-free pay out.

Saving for education is one of the most worthwhile things you can do for your child, but it can be challenging if you don’t know where or how to start. Paying for a child’s education is one of the most significant investments you can make. It provides a measure of freedom to choose from a wider range of opportunities and gives the young person a boost early in life. Your Private Wealth Manager will structure an investment that makes best use of the long term, while ensuring that there is some measure of protection against market downturns.

The most important asset in any business is its people. The ongoing profitability and sustainability and, as a result, the capital value of the business, are largely reliant on the input of the key employees in the business. The loss of a key person constitutes a risk for the business. A key person is someone whose absence through death or disability will have a material effect on the future of the business. Some individuals play a critical role in the success of a business, and in many cases the business will not be able to exist without this person.

Most businesses have key personnel. If the key person is lost to the business as a result of death or disability, then the business could suffer a direct loss because of decreased sales and/or the high cost of replacing a skilled employee, as well as the opportunity cost in the loss of profits/sales while a new replacement is being trained. Key person cover is a form of insurance cover that pays out when the person passes away or becomes disabled. With the funds, the company can provide adequate critical skills training to ensure the continuance of the business.

           The Solution:

Key person insurance is a simple, cost-effective solution that provides financial security and certainty for a business in the event of the death or disability of a key person. The business can take out a policy on the life of a key person to cover the business against the expensive replacement costs, or to provide cover against a potential loss. The business has the option to insure itself against this risk in a tax-effective manner.

Through a buy and sell agreement, business partners take out life cover on each other to ensure the company can continue to operate if one of the partners should die. the affected owner’s estate can be left severely exposed, but the remaining owners could also face potential problems. It gives the remaining partners the means to survive the loss and rebuild.

The potential challenges created for the deceased owner’s estate:

• The remaining owners might not have the resources to purchase the shares from the estate;

• The spouse may not want to participate in the business which means that he/she is left at the mercy of the existing owners;

• The deceased owner may have had unique skills that he/she brought to the business, meaning that the risk in the business increases if those skills are no longer available to the business;

The potential challenges created for the remaining owners:

• The executor of the estate of the deceased owner might interfere in a business about which he/she knows nothing;

• He/she might want to sell the owner’s interest to the highest bidder, opening up the business to unknown external investors; and

• The existing owners may not have the funding to repurchase the deceased owner’s interest at that stage.

The purpose of a buy-and-sell agreement is to provide the surviving co-owners with cash to purchase the interest of a deceased co-owner:

According to the agreement, each co-owner takes out life cover on the other co-owners’ lives. The life cover pays out on the death of a co-owner, which funds the purchase of his/her interest by the surviving co-owner(s).

• Disability cover can also be included to fund the buyout of a disabled owner’s share of the business.

The alternative to insurance through a buy-and-sell arrangement is to borrow, from a commercial bank, the money needed to buy the deceased owner’s share. However, even if the business is successful in obtaining such a loan, the terms and repayment period could possibly make it unaffordable from a cash-flow point of view. In most cases, insurance would therefore be the more affordable solution.

Banks and other financiers usually require the owner of a business to sign surety on behalf of the business to secure a loan. This means that you, the business owner, or your estate will be personally responsible for repaying this debt if you should become disabled or die before the loan is fully paid back. In order to repay the business’ debt, you or the executor of your estate may have to use capital that was intended to take care of your family, leaving them unprotected.

    The Solution:

Contingent liability is an insurance product that settles all of the company’s outstanding debt if the business owner passes away or becomes disabled. For business owners, this ensures that company liabilities do not affect their personal estates. The estate of the business owner is protected against the creditors of a business for which the business owner had signed surety, in the event of the business owners’ death or disability.

The business takes out life and/or disability cover on the life of the business owner. The pay out from the life insurance policy is then used to repay the loan from the bank or financer on the death or disability of the business owner. This prevents creditors from demanding payment of the loan by the deceased estate or the disabled business owner, which means you, your business and family, will be protected.