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, and valuation and appraisal costs.
- Provision for children’s education.
- And then most importantly: What amount of income your family will need to maintain their standard of living in the event of your death. We do a calculation on the capital required to provide a certain income for a term (usually life expectancy) escalating annually with inflation.
Please speak to us if you would like to know whether your life cover is sufficient or not.