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The best way for families to tackle and overcome
the challenges of modern living and have a financially secured future is
to opt for Life insurance.
Speaking to Business Nation, Mr David Vidot, who is the Life
Project Manager at H. Savy Insurance, said the different Life policies
being offered by the company provided various possibilities to enable
families to fulfil both short and long-term goals.
Designed primarily to protect individuals or their dependants in
instances of accidents or other misfortunes, Mr Vidot said Life
insurance should now more than ever be seen as the ideal saving option,
given the substantial reduction in interest rate at the commercial banks
and with certain banks no longer allowing the opening of new savings
account.
"With the policies being offered at HSI, you can plan for your
retirement, your children's education and realise whatever projects you
have in mind," Mr Vidot said.
Under the endowment plan with profits, provision is made for the family
of the life assured in the event of early death. The age of entry is
between 18 to 58 years and the maximum age of maturity is 63 years. The
term of the policy is five to 45 years and the minimum sum assured can
be R10,000.
The special endowment policy should interest those who, besides planing
for their retirement and family, feel the need to have payment at
periodic intervals while the policy is in full force. There are three
main types of plans under this policy. The first is for the 15-year
term, in which the age of entry is between 18 to 48 years with R50,000
as the minimum sum assured. During the course of this plan, the
policy-holder will receive 25% of the sum assured in the event of
surviving five years and a further 25% payable at 10 years. The
remaining 50% of the sum assured is payable at the end of the 15-year
term with accumulated bonuses.
The second plan is for a 20-year term. The age of entry is 18 to 43
years and the minimum sum assured is R50,000. During the course of the
policy, the holder will receive 15% of the sum assured upon surviving
five years and a further 15% after the next 10 years. Upon surviving 15
years the policy holder will also receive 20% of the sum assured and the
remaining 50% at the end of the 20-year term with bonuses.
The third plan is also for a 20-year term, but with 10% of the sum
assured payable to the policy holder at the end of the first 10 years. A
further 15% is payable on his surviving 15 years and upon reaching the
20-year term, the holder gets 100% of the sum assured, as well as
bonuses. The age criteria and minimum sum assured are similar to the
second plan.
Parents are also being encouraged to take the junior education policy,
which provides for a sum assured to be kept aside to meet the
educational expenses for children. Under this plan the sum together with
vested bonuses are to be paid at the end of the selected term, normally
on the child's 18th birthday. However, the Life assured or beneficiary
can opt to receive the amount in ten equal half-yearly instalments, with
the first being paid on the date of maturity.
The age of entry for parent is 18 to 58 years and the minimum term of
the policy is five years and maximum term 18 years. The minimum sum
that can be assured is R10,000.
Premiums for all policies can be paid on either a monthly, quarterly,
half-yearly or yearly basis.
H. Savy Insurance also provides cover for Total and Permanent Disability
(TPD) for Endowment, Special Endowment and Junior Education policies. Mr
Vidot explained that in the event that a policy holder becomes
permanently disabled, H. Savy Insurance would pay the Life assured by
monthly instalment and the client would no longer be entitled to pay the
basic premiums. Instead the client is paid double of the sum assured.
For instance, he explained, if a client who has assured for R100,000 for
a five-year term become TPD, the company would pay out the sum over a
period of 10 years, which means the holder will receive about R800 per
month.
However, upon reaching the maturity term of five years, the holder will
be paid the full R100,000 plus the remaining R50,000.
The other policy being offered by the company is Mortgage Protection
Assurance policy, which is a document required to secure the payment of
a loan to a lending institution. The premium quotation depends on the
rate of interest involved in the loan transaction and the term of the
loan.
For instance if a 26-year old person has applied for a housing loan at
R300,000 payable over a 15-year period at 10% interest rate, the
individual only has to pay HSI about R6,000 one-off payment to get the
Mortgage Protection.
The age of entry is between 20 to 50 years and the maximum age of
maturity is 63 years. It is compulsory for potential clients to go
through a medical examination to acquire this policy.
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