If both parents of a minor child pass away simultaneously, several critical issues arise: Minor children cannot directly inherit cash. Identifying who the deceased parents appointed as guardians in their wills. Ensuring the appointed guardians have enough financial resources to care for the minors. Confirming if there is a guardianship agreement between the deceased parents and the appointed guardians. At EFS, we have developed a cost-effective solution to address all four of these problems. Contact us […]
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Critical Illness vs Medical Aid
Do You Really Need Critical Illness Cover if You Already Have Medical Aid? You might think that having medical aid is enough, but let’s talk about critical illness cover and why it could still be essential for you. What is Critical Illness Cover? Critical illness cover, also known as severe illness or trauma cover, provides a tax-free lump sum if you’re diagnosed with a serious illness covered by your insurer. Thanks to medical advancements, more people […]
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Ensuring Your Legacy: Understanding Estate Liquidity and Securing Your Future
Estate liquidity is vital for ensuring that your estate can cover all financial obligations upon your passing. This includes debts, estate duties, taxes, and executor’s fees. Without adequate liquidity, the executor may be forced to sell assets at less-than-optimal prices, which could negatively impact your heirs. The best method to address a liquidity shortfall is life insurance payable to the estate. It is considered one of the most effective tools due to its ability to provide […]
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Life cover: How much is enough?
Life cover pays out tax-free in the event of the life insured’s death. At EFS we calculate how much life cover you need, considering the following factors: Your debt. We also recommend settling your spouse’s or partner’s debt. Master’s fees. Taxes such as capital gains tax, income tax and estate duty. Executor’s fees (currently a maximum of 3.5% plus VAT, 4.025% including VAT. Administration fees such as transfer costs on fixed property, bond cancellation costs, advertising, […]
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Lump sum disability cover
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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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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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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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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What is your most valuable asset?
When we ask clients what their most valuable asset is, they invariably mention material things like a property or car, etc. However, we believe anybody’s most valuable asset is their ability to earn an income. This should be protected at all costs! Temporary or permanent disability can cause your income to reduce or stop. We have solutions for this. Temporary disability: A solution that pays you a tax-free monthly income in the event of temporary disability […]
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