In laymen’s terms, the purpose of a medical aid is to ensure that you are able to pay for treatment received from either a GP or specialist, or while in hospital.
It is very important to “insure” your health. Accidents can happen and you and your family’s health is unpredictable. If you cannot afford comprehensive cover, at least a basic hospital plan is recommended at RCP Advisory services we can offer solutions from Hospital plans to the most comprehensive options across a range of different product Suppliers.
LA Health Medical Scheme has been operating in the Local Government industry for more than 40 years. The Scheme is accredited by the South African Local Government Bargaining Council to provide medical scheme cover to persons working for Local Government. Through its partnership with Discovery, LA Health offers its members access to a world class wellness and lifestyle programme. Members can now get healthier, get rewarded and enjoy the best medical cover available.
Discovery Vitality – South Africa’s leading wellness programme gives you and your family knowledge and motivation to make healthy living easier. Know your health, improve your health and enjoy the rewards.
Disability doesn’t just affect you – it can affect your entire family as well, both emotionally and financially. Our Capital Disability Benefit is designed to help relieve the burden of temporary or permanent disability on you and your family, offering you comprehensive disability cover with a lump-sum payment to ensure your continued financial security.
No-one knows what life has in store for them, and the sad fact is that severe illness could strike at any time. Being prepared is the only solution – prepared for the cost of being absent from work during recovery, being cared for at home while ill, potentially modifying your lifestyle and your home, and even perhaps taking early retirement due to ill health. Our Severe Illness Benefit is all the reassurance you need, should you become severely ill, paying out a lump sum and pays multiple claims for related and unrelated events regardless of the severity.
Your income is your lifeline – your way of providing for your family, and securing their future. But have you ever given any thought to what would happen if you were unable to earn an income, due to injury, illness or disability? The Income Continuation Benefit is your helping hand in times of need, protecting you against a shortfall in cash flow, providing you with a monthly income to cover your expenses, and guaranteeing you complete peace of mind.
Life insurance safeguards you against life’s uncertainties by providing a dependable source of financial protection for you and your family in the event of your death, or if you become ill or disabled and are unable to work. Whether you are young or old, insurance is a necessary component of a good financial plan and can provide reliable financial security when you, and those you care about, need it most.
One of the most impactful, valuable and worthwhile investments you can ever make is in your child’s education. Should you ever become severely ill or disabled, or die, the Global Education Protector can help continue your investment on your behalf, providing for your child’s education both locally and internationally, and helping to give them the very best start in life. Secure your child’s future with the Global Education Protector. A child’s education is more than a short-term expense. It is a long-term commitment that can stretch over twelve or even fifteen years, should they choose to study further after high school. Financing such an investment can be a daunting thought, particularly when taking into account the cost of just one year’s worth of education costs. Take a closer look at what you can expect to pay, and we’re sure you’ll agree that having a finance plan in place isn’t just a nice-to-have – it’s a necessity.
Short Term Insurance
Provides protection for your valuable possessions and assets. Our expert advice and affordable products are suitable for you when you experience an unexpected loss or damage to your belongings or property. We provide personal and business solutions to cover you against loss or damage to vehicles, contents and public liability.
When you’ve worked hard for everything you own, the last thing you want is to lose it all because of life’s unexpected events. No matter how careful you are, there will always be things in life that are beyond your control. Accidents and disasters can happen to anyone and if you aren’t properly prepared and insured, it could lead to a financial wreck.
Short term insurance is quite simply an agreement between a policy holder and an insurer. This agreement is binding for a limited amount of time or is flexible according to the individual’s circumstances. Basically, you are able to insure your car, your property and your household possessions. A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Instead of paying out of pocket for auto accidents, people pay annual premiums to an auto insurance company; the company then pays all or most of the costs associated with an auto accident or other vehicle damage.
We offer you comprehensive, flexible and affordable insurance options for your car and other vehicles. Depending on the Plan you choose, you’ll get valuable benefits like paying no excess if you have a vehicle insurance claim caused by theft, hijacking, fire, lightning, explosion, storm, water, hail, snow, flood, earthquake or malicious damage. We also make sure that if you need to claim, we handle it quickly, fairly and efficiently.
When someone you love dies, you need someone compassionate to take as much as possible off your plate so that you and your family can grieve. The last thing you’ll want is to deal with another shock – the ridiculous costs of a funeral. Everyone is different, and so are our needs when we die. Funeral cover ensures that your family has one less thing to worry about should a death occur.
Solutions to protect what you’ve worked so hard to build.
Running a business is fraught with risk. In a moment, an unexpected death or case of disability can destroy the business you’ve worked so hard to build. Banks may call in loans, surviving business owners and the deceased’s heirs may become embroiled in bitter ownership battles. Client’s may lose confidence and flee to competitors and your family and heirs may not receive what is due to them.
How do you retain important employees, or protect your income and meet your monthly overhead expenses if you are unable to work? How will you finance future growth and expansion?
We offer a complete range of business solutions designed to address these scenarios.
A buy and sell arrangement will ensure that on the death of a business owner, the business can continue to operate with as little disruption as possible for the surviving business owners, as well as ensuring that the estate of the deceased business owner receives fair value for his/her business interest, as well as settlement of his credit loan account.
A key person is someone who is fundamental to the running of the business, who through their knowledge, skill or expertise, contributes to the profitability of the business. Steps need to be taken to ensure that if this person should die or become disabled, the business’s profitability will not be impacted on, or that the impact will at least be minimised. Key person insurance assists it in achieving this.
Protect your family and your business from debt and business loans. When you start a new business, you often have to take out a loan to cover all the start-up expenses. Debt can also be a good way to fund new developments. Because you are responsible for repaying this loan, your business and family may be at risk if something happens to you before the loan is paid back. Contingent liability ensures the loan amount is paid in full, protecting your family and business from the pressure of having to repay this.
An amount of earned income that is payable at a later date. Most deferred-compensation plans allow the wage earner to defer tax now so that the funds can be withdrawn and taxed at some point in the future.
The most common form of deferred compensation is a retirement plan. Deferring income allows the earner to use the income later in life when they have a lower tax rate.
The Retirement Plan is a long-term investment structure for building up retirement savings, either on a recurring basis or by making a lump-sum investment. A retirement annuity offers significant tax advantages to people who are committed to investing their money until they are at least 55 years old.
In the simplest sense, retirement planning is the planning one does to be prepared for life after paid work ends, not just financially but in all aspects of life. The non-financial aspects include such lifestyle choices as how to spend time in retirement, where to live, when to completely quit working, etc. A holistic approach to retirement planning considers all of these areas.
Just because you have retired does not mean you should stop your financial planning. In fact, having a proper financial plan is more important than ever as you must ensure that your money lasts as long as you do and, most likely beyond. Your retirement capital must last for the rest of your life so careful and continuous planning is vital to ensure you do not outlive it.
When you invest your money through a retirement annuity, you can expose it to growth assets like shares. These assets are essential to produce inflation-beating investment returns.
By giving your money time to grow you benefit from the power of compound growth.
A retirement annuity also enjoys significant tax concessions from government, helping you to get more from your investment.
The Flexible Annuity is a product that provides for an income after you have retired which is linked to investment portfolio performance. The income is paid as a percentage of the policy’s investment value each year with the income amount deducted from the policy’s investment value. The product allows you to choose the income amount you require for each year but with the intention of the product to provide an income for life.
One has often heard the phrase “The decisions you make today, may affect you for the rest of your life”. When it comes to Estate Planning however, the decisions you make today don’t affect you directly but they may certainly affect your family or loved ones for the rest of their lives. Unfortunately, this is a frightening reality for some people out there and it could be for you too if you have not created sufficient liquidity in your estate.
A will is a legal document that explains what you want to do with your money and possessions (known as assets) when you die. It ensures that your estate (property) will be managed according to your wishes. So no matter how young you are or feel, a will is important!
A comprehensive liquidity analysis will give you an indication of whether you have sufficient liquidity in your estate to provide for the above expenses. The risk of not having sufficient liquidity in your estate is that your heirs may face the threat of having to realise assets, such as property or motor vehicles in order to pay for the above expenses. This could be disastrous for your family who may well need to live in the house.
In terms of the Estate Duty Act, other liabilities that your estate could potentially be liable for at your death are the following:
Executor’s Fees – calculated at 3.99% (3.5% + VAT) of your gross estate.
Master’s Fees – approximately R 600.00.
Funeral expenses R 10 000.00 to R 25 000.00.
Cash bequests – Any specific cash bequests to heirs as stated in your Last Will and Testament.
Income Tax / Capital gains tax
Liabilities / Accrual claim if married out of community of property.
Capital Gains Tax – Upon death, a CGT event is triggered and therefore you may be liable for Capital Gains Tax on certain assets e.g. Property.
Liabilities – Any debt that is still owing to creditors (loans etc)
Accrual claim – An accrual claim may arise if one is married out of community of property (ANC).
Estate Duty is payable on the estate of every person who dies and whose net estate is in excess of R3, 5 million. When the surviving spouse who inherited an estate dies, the beneficiaries may then owe estate taxes if the estate exceeds the exclusion limit. Because the estate tax can be quite high, careful estate planning is advisable.
Have you planned for the devolving of your estate, or the future interests of your remaining loved ones? The importance of drafting a will cannot be stressed more. There are certain scenarios that need to be avoided to prevent complications when an estate is being devolved.
The following article provides tips and insights that apply to all persons in order to avoid future disputes.
- If a person dies without leaving a will or a document intended to be a will, he or is said to have died intestate. Their estate will devolved in terms of the Intestate Succession Act 81 of 1987.
- A person’s marital status will affect how the property will devolve. If one is married in community of property, their estate would be jointly shared by the surviving spouse.
- There have been many circumstances where persons have died intestate and family members could not be traced. In these instances, the estate falls to the State.
Wealth Creation Management
Investment is described in so ma many ways, but put simply its putting aside money/assets with the hope that they will generate income or appreciate in the future; its In a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. Investing is often advised as a profitable act in the long run.
In today’s challenging times, the provision of employee benefits has become increasingly important to staff. As a business owner, differentiated benefits and services can make your company more attractive to top talent.
Health insurance is the foundation of a comprehensive benefits package for employees. Health insurance is an insurance policy that will pay specified amounts of money to cover medical expenses or treatments. Employer-provided health insurance policies, also known as group health insurance policies, offer employees many different options for insurance coverage.
The two big differences between a pension and a provident fund relate to; the tax treatment of contributions and the annuitisation requirement at retirement.
Currently, only employers can claim a tax deduction for contributions made to Provident funds. Employee contributions in their own name (i.e. not by way of a salary sacrifice), can be added to the tax-free cash lump sum at retirement. With a pension fund, both the employer and the employee contributions can be deducted from tax up to certain limits. The provident fund arrangement is probably more suitable for lower income earners, who do not benefit from the tax deduction as their income is below the tax threshold. As an offset, a provident offers them more flexibility on retirement. Pension fund members must buy an annuity with at least two-thirds of their retirement benefit whereas provident fund members can take the full benefit in cash. Which is the preferred option depends on the employee’s individual circumstances, and what they intend to do at retirement with their savings. To the extent that most people should not be entrusted with a cash lump sum at retirement because if not managed correctly they will inevitably outlive the retirement savings. Thepension fund option is the more prudent one.
In terms of the proposed retirement reform, which may come into effect by 2015, the tax treatment and annuitisation requirements of provident funds will align with that of pension funds. Although vested rights will be protected, for younger savers, the question “pension or provident fund?” will then become irrelevant.
You can transfer your savings tax-free from a provident fund to a pension fund on changing jobs, but you cannot transfer from a pension to a provident fund.
Losing a loved one is never easy and can become even more difficult if those left behind experience financial strain as a result of this loss. Group Life Assurance Benefit usually pay a cash lump sum to a member’s loved ones if they pass away. Benefits are expressed as a multiple of a member’s salary (for salary-based plans) or as a rand amount (for rand-based plans). Benefits can also vary between different member categories.