|
STEP 5: Clients’ needs and circumstances constantly change. Legislation for example, impacting on estate planning and taxation, may be amended from time to time. These aspects need to be considered, and require financial plans to be reviewed regularly in order to remain relevant and up-to-date.
At Intasure, regular and ongoing communication between ourselves and you is essential.
Some of the questions and issues addressed in the financial planning process are:
- What protections are in place in the event of your untimely death?
- Life assurance and allied products can certainly play a role in providing instant cash when needed most, as well as funding for retirement objectives:
- Provision for family needs, in terms of income and capital
- Children's education
- Repayment of mortgage bonds and other debts
- Estate duty, levied on your dutiable estate (assets less liabilities) after deduction of the R1m abatement.
Life Assurance also has a role to play in the business environment:
- Buy-and-sell assurance in conjunction with the relevant legal agreement, which guarantees instant cash on the death or disability of a business partner or shareholder. This facilitates the "purchase and sale of shares" of the business. In this way, the business can continue as normal.
- Key-Man Assurance, on the life of a key-person in a business, whose death or disability could impact adversely on the continuity and smooth running of the business. Instant cash can be available to:
- absorb the shock to the business
- protect existing credit facilities
- fund the recruitment and training of a suitable replacement.
- Contingent Liability, on the life of a director who has provided collateral for the debts of a business. Where the business insures the employee/director against death or disability, for the debts of the business, for which the employee/director has stood personal surety.
- Endowments can be used to fund preferred and deferred compensation plans, to retain and reward valued employees in a tax efficient manner. This situation is provided that appropriate agreements are put in place.
|
