3 years ago
2
ARTICLE AD BOX
In tough times, it is important to think of your family’s future, and nothing says ‘prepared’ better than drafting your Will timely, planning your estate and leaving a proper wealth succession plan – the question is, are you prepared for this?
There is no doubt that the events of the past two years have shone a light on the importance of planning for the unforeseen – be that a rainy day, or the unfortunate loss of a loved one and the good news is that our recent generational wealth survey indicated that 92% of South Africans are tackling their finances head on, despite economic instability.
This is great news as prior to 2020, the outlook was very different.
And while people are taking their finances more seriously, we have to ask the question as to the role of succession and estate planning fits into that financial picture – and the reality is that sadly, at large, it doesn’t!
There is little focus on estate planning where those that have Wills in place stand at a mere 36% – meaning that close to 70% of consumers don’t have a Will.
As the first step in succession planning, this is concerning as it simply means that the ability of consumers to protect their families’ financial futures as well as protect and transfer generational wealth for years to come is diminished.
Tackling this today is a crucial first step to financial succession, yet many consumers are put off as the complexity of estate planning is cumbersome and one very few people have any sort of understanding of how to tackle.
The good news however, is that there are independent advisors available to help guide you and moreso, today there are incredible products out there that make sure consumers are able to not only have life cover but also, that remove the complexity and ensure that costs and challenges traditionally associated with estate planning, executorship and Wills are best planned for, managed.
And very importantly, that one is able to address any estate shortfall to provide liquidity in the estate at a time when the family needs it most.
Ensuring the correct estate planning documents are in place and the estate is correctly set up avoids long, expensive processes and instead speeds up the transfer process, decreases costs, and ultimately, maintains family harmony.
1Life’s new Wills and Estate Plan aims to do exactly this – provide liquidity for the consumer’s family when it is needed most, while protecting the family’s future wealth and ensuring that the money and assets left behind are correctly distributed.
This plan is an innovative life insurance policy that includes critical financial aid from an estate point of view.
Essentially, it is a policy sold through 1Life Vantage and executed in partnership with leading fiduciary experts, Fairheads, which includes an estate shortfall lump sum of up to R10 million, paid out to the Estate, a liquidity benefit of up to R50 000, which is paid out to beneficiaries within 48 hours of a successful claim as well as a monthly income that is paid to the chosen beneficiary for a period of six months.
It also includes a free additional Executor benefit, which provides consumers with significant discounts on executor and conveyancing fees.
This, once again, helps to lessen the financial burden for families when a loved one dies, as well as ensures further liquidity in the estate.
However, more than this and a critical first step in the process – consumer are given access to a 1Life Will.
This is a new, online will drafting service created in partnership with Cliqtech. Included at no extra cost, this service allows users to draft a will in just 15 minutes and is supported by a team of fiduciary experts that work closely with both the adviser and client to draw up a valid, signed, and retrievable will, as well as assist with any estate planning requirements.
Moreover, the document is safely and securely stored in a fireproof facility, after it is completed, ensuring both its validity and security.
The great thing about a product like this is that it offers your financial adviser one view of your assets and life stages, for as long as the Will is kept with 1Life Insurance.
This means that as your financial circumstances shift you and your adviser are better able to adjust financial planning, without having to meet face to face.
Through a digitally enabled, quick and effective platform, policies and information is processed straight away, without having to wait weeks to meet with an adviser and sign a wad of documentation – from Wills to estate planning and digital acceptance.
And, unlike many other players, 1Life ensures no disintermediation – meaning that you and your adviser remain the key partners in the deal,
As a life insurer committed to changing people’s lives, we believe that this offering not only considers the budget constraints of each individual consumers but makes sure that each person’s financial and estate plan is optimised and customised based on individual circumstances.
Our aim is to educate consumers around this important component of wealth transfer to further encourage and promote wealth perseveration and growth for a more sustainable financial future in South Africa.
For more information, simply contact us here.
By Kobus Wentzel, Head of Distribution at 1Life Insurance
English (US)