ARE YOU READY FOR TOMORROW?
Every day we face risks. Consider the risks you may face in your lifetime?
How would they impact your family, your spouse, your children? What will you do if you lose your basic necessities,
your home, your transport? Who will care for your loved ones when you no longer can?
Are you financially prepared should you suffer a life-changing event? A Dread disease, permanent disability or even death?
Let us help protect yourself and your family from the financial impact of life's unexpected events!
We at PBA Brokers aim to “tailor make” a plan for you should you experience any of these events.
The purpose of life insurance is to protect your family in the event of your death and free them from financial worry after the trauma of your death
Do I Really Need Life Cover?
For someone who is a breadwinner, married or has small children, or really any dependents at all, life cover is as essential as having a regular income. As most people’s net worth is not large enough to be self-insurable, the average person needs life cover to protect the financial needs of their loved ones. Life cover will substitute lost income in the event of the death of the breadwinner as well as a cost effective method of ensuring that there are means to cover the cost of estate duty.
Dreaded Disease/Severe Illness
Dreaded Disease/ Severe Illness cover ensures that in the event that you develop or contract a disease or illness that you are provided with a payout to enable you to maintain your lifestyle. This type of cover is unique in that it is the one type of cover that you will almost certainly put to use. The statistic show that almost everyone who has this type of cover has a claim against it at some stage in their life.
Capital Disability cover helps protect you against financial calamity and assists you to maintain financial stability should you ever become disabled. People often ask us if disability cover is necessary. It’s interesting to note that in many countries, the USA being one of them, the majority of bankruptcies can be attributed to medical expenses. The average person is not able to self-insure themselves against even the medical expenses that will arise after you become disabled.
Your future salary is one of your largest assets. If you are unable to work and cannot earn an income, your family's lifestyle and means of living can be taken away from them. Income protection helps you to be able to take care of them financially, despite that challenges that life might throw at you that negatively affects your income.
Do I need Income Protection?
According to the ABI, one million workers a year find themselves unable to work due to a serious illness or injury.
Whether you have dependants or not – if illness would mean you couldn’t cover your expenses – Self-employed or not, you should consider income protection insurance should your employer not provide it through a pension fund.
One of the main reasons why people approach a Financial Advisor is because they need assistance in planning their retirement. Just the thought of retirement can cause anxiety and many feel overwhelmed and unprepared.
It is no surprise considering that due to inflation and the rise in the cost of living, what you will need to live on in 20 years is substantially more that what you need to maintain your current lifestyle.
It is important to note however that because things cost more with time, if you do nothing with your money, it will lose much of its buying power by the time you need to retire. So why are people still procrastinating when it comes to retirement planning, should it not be a priority?
The Bankers Life and Casualty Centre for a Secure Retirement 2012 conducted a Survey of Retirees which showed that 93% of retired people who were surveyed wished that they had started saving earlier. Furthermore, the 2014 Sanlam Benchmark survey revealed that 59.2% of retirees who participated in the survey indicated that they experienced a shortfall between their income and expense in retirement.
It is however important to remember with the proper advice and planning, the thought of retirement does not need to feel like such an obstacle. It is essential that you identify the main roadblocks to successful retirement planning as well as actively work towards meeting your retirement expectations.
The first thing you need to consider is, ‘how much income do you need to maintain your current lifestyle in retirement?’ It is surprising that majority of people’s answer is, “I don’t know,” If not, they have generally made an inaccurate assumption. If their assumption is too high, the goal of retirement may seem depressingly unreachable, and the entire planning process is disappointing. If their assumption is too low, which is more likely, the retiree could run into a difficult financial situation later in life and have to make drastic, unwanted changes.
There are many mistakes that people often make further to the above. Once you identify these mistakes you will be able to work towards avoiding or mitigating them.
Speaking to a Financial Advisor can help you find a happy medium and set up a plan that suits your lifestyle.
Wealth Creation & Investments
Medium to Long Term Investments
What would you like to achieve in the next couple of years? Perhaps you are saving for an overseas holiday in five years or you want to be sure you can pay for your child’s university education when they finish school in ten years from now. Do you maybe have a larger goal, maybe your goal is of a corporate nature?
There are a number of investments that may suit these need and many others. Can you afford to invest something on a monthly basis or do you have a lump sum that you would like to grow? We can assist you to make that money work hard for you.
Short Term Investments
We offer Unit Trusts in a long and Short term capacity. A Unit Trust has a number of very nice tax breaks. A unit trust is a form of collective investment constituted under a trust deed. One of many of the tax benefits of having a unit trust is that investors have a R30,000 CGT exemption in each tax year.
Perhaps you are looking for a slightly different investment? How about an endowment?
What is an 'Endowment'?
An Endowment is an investment with a minimum term of 5 years. It can be used for the purpose of general wealth creation or saving for your child’s education. There are tax benefits to having an endowment and it is also a good option if you are looking for an offshore investment.
Medical Aid, Gap Cover & Top Ups
Health is something that we take for granted and tend not to think about until something goes wrong! If you were to be involved in a car accident, became aware that you had a disease that you needed treatment for, sustained an injury or had something as simple as bad flu, are you aware of how much it would cost you in medical expenses.
Statistics show that a large amount of bankruptcies in South Africa can be attributed to exorbitant medical costs. Inflation for medical expanses is much higher than average inflation. In 2013 one study showed, the average cost of one day spent in ICU was around R6,634. Further to this, this was just basic ICU care, it did not include ventilation or special procedures that would have to be undertaken when caring for each patients specific problem.
Its seems that in the absence of even the most basic medical cover, the average person would be forced to make use of our State Hospital System with absolutely no guarantee as to what type of help and services they would receive.
We at PBA Brokers can provide advice and assistance with regards to the following health needs:
Assisting you the individual client to select an appropriate medical aid scheme taking into consideration affordability and individual needs.
Taking care of administration and intervene on behalf of members to get matters resolved.
Communicate with members regarding important issues such as medical aid reviews and changes to benefits at year end.
Ongoing advice and assistance when required.
Assisting companies with advice, year-end presentations and the administration of the scheme on a monthly basis.
Assisting employees with changes and individual advice and presentations when required.
What is 'Gap Cover'?
As a member of a medical aid scheme you will probably enjoy the benefits of being covered from 100% to 200% of the National Health Reference Price List (NHRPL) tariffs, depending on your plan. We all know if we have had the experience of being hospitalised that our professional doctors often do not adhere to the NHRPL rates
Gap Cover is a product that you add onto your medical aid in order to try and cover any shortfalls that you may experience when in hospital. It will pay the difference between the NHRPL tariff and the actual cost charged by your doctor, up to a maximum of five times the NHRPL tariff in the event of hospitalization or surgery.
Guardrisk offers “Admed” to at a rate of R299 a month for a family or an individual. HOWEVER… They have allowed PBA Brokers to sell Admed at a discounted rate of R129 per month provided that PBA Brokers either administers the clients medical aid or the client has their life cover with PBA.
No one likes to be reminded that at some point, everyone will pass away. However, its Vital to keep this in mind. Death can occur at any time and should this happen, you need to know that your loved ones will not be left with the crippling costs of a funeral and all things involved.
When you arrange a burial, you will have to look at things like:
Cremation or Burial Costs
Protect your family and friends from unnecessary expenses. Speak to one of our brokers about arranging funeral cover.
Last Will & Testament & Funeral Plans
We at PBA Brokers feel that it is crucial for our clients to have a Will that reflects their true intentions, their wishes, as well as to be informed of the legal implications should they not have a Will. It has also come to our attention that a copious number of our clients who do have a Will, have appointed their bank as their executor. We would not recommend this as the fees are generally higher to unwind their Estates and, from our experience, the processes take much longer.
That is why we have chosen to partner up with one of the leading professional Will drafting and Estate Planning companies in South Africa, Capital Legacy. We can recommend Capital Legacy. Further to this, the consultation and the drawing up of the Will comes to you at no cost. Should you want to eliminate all costs of unwinding your estate, the consultant will be able to discuss a solution with you. Please let us know should you wish for one of their consultants to contact you directly and discuss your Will with you.