Get your risk insurance reviewed / upgraded before the Festive Season

Looking back over 30 years of insurance broking
October 10, 2018
Discovery health – Benefit update and new plans for 2019
October 10, 2018

It’s official, time definitely flies! We seem to run on “auto-pilot” due to the ever-increasing pace of everyday life. Because of this, we’re often left with little time to review our risk insurance portfolios on a regular basis.

However, every year we’re all faced with a life changing event of some shape or form. Even if it’s simply our birthday – often we prefer to refer to a birthday as a “non-event”, yet is has an impact on our financial planning as we’re a year older!

2018 has seen some significant changes which have long-term effects on our financial planning.

VAT has changed our lives, and we’re forced to dig a little deeper into our pockets. Not only has this increased the cost of our day-to-day living, but it has also increased the cost of dying.

The recent increase in VAT will result in additional costs to winding up an estate in the event of death, with executors’ fees and trustees’ fees increasing due to VAT rising to 15% from 14%.

Has your financial plan been modified accordingly? If not, you will be leaving less as a legacy. Also, immediate liquidity is a major constraint to executors and trustees being able to fulfil their mandate.

A timely review of your estate planning will give you an opportunity to confirm:

  • Beneficiary/s are correct
  • Estate liquidity is adequate
  • Personal contact details are correct and up-to-date
  • Levels of cover are in line with your requirements
  • You have the latest benefit enhancements
  • Any areas of over insurance are adjusted to avoid over payment
  • Revisit and revise your will

Please email me on greg@fpm.co.za to schedule a review so we can ensure that all these areas are properly evaluated and that you’re getting the best value for your monthly contributions.

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted. (E&OE)