Lump sum disability insurance is a type of cover that provides a once-off payment if you become permanently disabled due to an accident, injury, or illness. Here’s how it works in simpler terms: Types of lump sum disability benefits Accelerated benefits: If you claim this benefit, it will reduce the life insurance cover you have on your policy. These are usually less expensive. Non-accelerated benefits: Claiming this benefit does not affect your life insurance cover. These […]
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The importance of a Life File
What is a life file and why does everybody need one? Our world is fast changing especially because of the COVID-19 epidemic of the past number of years. We have become a lot more aware of our mortality – more so than most could have ever imagined before this pandemic. We face an uncertain future. Political upheaval and financial uncertainty are adding to our stress. At EFS we believe these factors present an even more compelling […]
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A living will
A living will is a legal document that sets out your wishes for your healthcare when you cannot share them yourself. It guides your family and healthcare providers when you are not in a condition to make decisions or express your wishes. The document gives instructions for not being kept alive through expensive life-support or other artificial medical interventions when there is no hope of recovery and death is inevitable – for example, if someone is […]
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Cyber fraud is increasing massively!
There have been increasing instances of fraudsters impersonating financial services providers to get hold of their clients’ personal information via SMSs, fake websites, emails, and phone calls. In this vein, phishing SMSs and emails are being sent by fraudulent third parties to a random recipient list. The SMS attempts to trick clients into believing that they have a claim, or that their security has been compromised, and requests the recipient to contact a specific number (that […]
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Short-term Insurance
Is your short-term insurance cover adequate and up to date? Short-term insurance is for a time when you need protection against the financial risks that you have with your possessions (your things). Essentially, a short-term insurance policy is an agreement between a policyholder and an insurer that is in place for a limited time. Your insurance needs for these possessions will change over time, too. The policy can be flexible to provide enough cover for different […]
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The importance of an emergency fund
As the name indicates, an emergency fund is an investment or bank account that provides funds in the event of an emergency, such as car repairs, temporary unemployment, medical expenses not covered by medical aid, etc. During COVID many people realised just how crucial an emergency fund can be. It is recommended that you have between 3 and 6 months’ net income in the fund. In other words, if your net (after tax) income is R20 […]
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Are you co-habitating (living together)?
An increasing number of couples opt to cohabit rather than formalize their relationship through marriage. This choice raises pertinent questions about the financial and legal ramifications involved. When a couple resides together in a manner akin to a marital relationship without undergoing the legal procedures of marriage, it is legally termed “cohabitation,” also known as “living together” or forming a “domestic partnership.” There exists a prevalent misconception suggesting that couples cohabiting for a particular duration, typically […]
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Medical Aid
A serious medical event can be financially crippling for a family. A good medical aid should come to the rescue, especially for large hospital expenses. Plan options can be comprehensive (covering chronic, day-to-day, and hospital expenses) or limited to chronic and hospital expenses. The more comprehensive the option, the higher the contribution. Your membership is guaranteed, but a scheme may impose a 3-month general waiting period (during which no claims will be paid) and/or a 12-month […]
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Budgeting
Over many years as financial planners, we have found that many people do not budget. Our guess is the “schlep” factor is a major reason for this. What is a budget? It is a dynamic summary of your net (after tax and other deductions) household income and expenses. If you are living above your means (spending more than you are earning), you are using debt to finance your lifestyle. An important part of budgeting is making […]
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Funeral cover
Everybody should have funeral cover, either by way of a benefit provided by an employer or a personal funeral policy. So why do you need funeral cover if you have life insurance? Funeral cover usually pays out within 48 hours when your family urgently needs cash for a burial or cremation whereas life insurance can take months to pay out. Some modern policies offer funeral cover, included with life cover. An average funeral costs about R20 000 […]
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