RISK QUESTIONAiRE
Want to Know a little about Client Risk Questionaire? Let us tell you.
The questions below pertain to your overall attitude toward investing and your ability to take on risk.
What is Your attitude towards Investing.
There are no right or wrong answers. Approx. 5 minutes to complete.
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Life Insurance 101
Life Insurance 102
Wills
Life Insurance 101
Life Insurance 101
Life Insurance shouldn’t be complicated.
But in today’s competitive markets there are so many options to choose from.
At XINIX we strive to make insurance products as easy to understand as possible. So, if you are currently considering any long-term insurance products we have available, here is some FAQs to help you understand this a little better.
So where to begin?
Above is our easy to use life insurance form, why not try it to get a sense of what your long term insurance needs might be and what we require in order to get you going?
Want Life Insurance, here’s how
With the pandemic ripping through our country, on and off, first wave, second, third, we have had numerous clients contacting us to assist in revaluating their financial wellbeing.
Getting life cover need not be complicated. At XINIX, we have in fact transformed the process with a hybrid version of both online questionnaires and face-to-face / Zoom or MS Teams online meetings.
What you will find here, is transparency and a user-friendly process that will make taking out life insurance straight forward and easy, BUT still with the added advantage of skilled, qualified, and competent financial advisors who will hold your hand through the process.
So, here’s how it works:
Step 1
Complete the online questions
Step 2
Download the consent letter, sign, and return to life@xinixinsurance.co.za
Step 3
A qualified financial advisor will personally call you to set up, either a face to face or online meeting.
Step 4
At the meeting or before, it all depends on you, the advisor will get to know you better, answer your questions and do a financial needs analysis using your completed questionnaire as a guideline. You will have view on some quotes prepared.
Step 5
We will give each other time to action anything that needs to be done and a follow up meeting will be scheduled.
Step 6
We look forward to becoming family, partnering to service you as we navigate life together.
What covers do I need to consider?
*Income protection against dying or being disabled;
* Goal savings. This will include all your financial goals, whether short or long term;
* Retirement savings. This should be treated separately from your other financial goals because of its importance; and
* Health assurance. Your medical scheme as well as hospital and chronic disease cover must be measured to see if they meet your needs.
The question is – how much money can you allocate to each of the above, and what will this buy you?
The best place to start is with how much risk assurance you need against dying or being disabled.
When you decide how much risk assurance you need, you must take the following into account:
* What you will need if you become disabled;
* Whether you have dependants, how many, and what their needs will be if you die or become disabled;
* Your assets. The more assets you have, the less you need in assurance. If you are wealthy, you do not need as much risk assurance as someone with low accumulated wealth but a high income;
* Your liabilities. What happens to your debts if you die or are disabled? The more money you owe, the more risk assurance you will probably need, and the greater the necessity for a properly constructed and targeted savings and investment plan;
* Your income and spending: Your current and future income and spending will determine the design of your financial plan, allowing you to decide on risk and/or investment priorities and what you can leave until later when you are earning more.
* Your health. If you are healthy, you can take a greater chance of meeting your risks through your income than someone who is unhealthy;
* Your current risk cover. Assess your current cover for death and disability to see if you have too much or too little, bearing in mind any benefits you will receive from a retirement saving plan, whether it is employer sponsored or attached to a retirement annuity; and time period. You need to break your risk insurance into different periods. For example, you do not need life insurance to cover the education of children until you are 70.
When assessing your life insurance needs, remember that you should aim to leave your dependants an adequate amount of money. Rather than leaving them immensely wealthy, you should use as much as possible to improve your wealth, particularly for your retirement.
Life Insurance 102
How does Life cover work?
When you die, your beneficiary receives a tax-free, once off lumpsum payment, dependent on the cover amount you chose.
How much will I pay per month for life cover?
Your premium is determined by your age, risk profile (i.e. health, smoker status, etc.) and the amount of cover your require.
I have life cover through my employer, is that enough?
Some companies pay death in service benefits, if you die while you are still employed and is usually 2 or 3 times your annual salary. If you leave this employer these benefits fall away. A Financial Advisor will be able to identify through the process of a needs analysis, if the life cover with your employer is adequate or not based on your specific needs.
What is the difference between funeral cover and life cover?
Funeral cover insures you for when your death occurs and funeral services needs to be arranged, the funeral cover will cover the expenses/costs needed for the funeral.
Life cover is to secure the financial well being of your loved ones in the event of your death.
Do I need to go for medicals?
Yes, the insurers we work with will require you to go for medicals and you will have underwriting done prior to putting the policy in place. This will ensure an easier process at the time of a claim. The cost of the medicals will be paid by the insurer. You can consider it as a free medical check up.
Do I only need life cover?
There are many other covers which can be taken with life cover. Cover like disability cover and severe illness cover is also usually taken out together with life cover.
What is Disability Cover?
This is cover which you would take out in the event of becoming permanently disabled. The insurer will pay a lump sum benefit to you, where your claim is approved. This will allow you to make necessary renovations as a result of your disability. E.g. for moving around in a wheel chair and also to assist in paying off your outstanding debt.
What is Severe Illness cover?
This type of cover will cover you in the event of you being diagnosed with a terminal illness eg cancer, heart attack etc. The benefit will pay out dependent on the severity of the illness and this will assist in covering extra medical costs and paying off debt in the event that you are not able to work anymore.
Is there any waiting period for suicide?
Yes, there is a 2 year waiting period for suicide, if a suicide happens before 2 years there will be no cover.
What is the minimum and maximum entry age for Life Cover?
Dependent on the insurer, but most work within a range of a Minimum 15 years and Maximum 62 years.
What is the minimum and maximum entry age for Disability Cover?
Dependent on the insurer, but most work within a range of a Minimum 15 and Maximum 62 years.
What is the minimum and maximum entry age for Severe Illness Cover?
Dependent on the insurer, but most work within a range of a Minimum 15 and Maximum 62 years.
What is the minimum and maximum cover amount for Life cover?
Dependent on the insurer, but most work within a range of a Minimum R150 000 with no maximum, however anything over R7 million will require financial underwriting.
What is the lumpsum minimum and maximum cover amount for Disability?
Dependent on the insurer, but most work within a range of a Minimum R50 000 and Maximum R35 million.
What is the minimum and maximum cover amount for Severe Illness?
Dependent on the insurer, but most work within a range of a Minimum R50 000 and Maximum R6 million.
Is Life cover offered as a standalone benefit?
Yes, Life cover can be taken as a stand alone, you do not need to take any other cover with it to get life cover. In fact, most insurers offer all the benefits as a standalone benefit.
How would I know what cover is right for me?
Based on your needs and your lifestyle, our qualified financial advisors will be able to take you through the entire process to determine the cover needed to suit your specific needs best. Also you can make use of our cover calculators when completing the life questionnaire which also guides you on how much cover you may need.
Will I get anything back if I do not claim for a long period of time?
There are cash back options that is offered on our products at an additional charge, our advisors will be able to discuss these benefits better with you. Some of our insurer partners, in addition to cashbacks have loyalty rewards that result in you receiving cash lumpsums for keeping your policy active and for not claiming.
What will happen if I don’t pay my premium?
Not paying your premium will result in a double debit the next month and if it is also unsuccessful this will result in the policy lapsing / cancelling. Your cover will end.
Does my cover amount increase yearly?
You have the option of deciding whether you would like a benefit increase yearly or not. A financial advisor will be able to assist you at best, dependent on your needs.
Can my premium stay the same if I choose not to increase my benefit?
Yes, you can guarantee your premium and benefit amount for a specific period. Example 10 years. After the 10 years have expired, your premium will be reviewed, and the premium may change.
Wills
Why do I need a will?
If a person dies without a will, it could lead to severe administrative, tax and legal problems and possibly also lead to financial losses.
In your will, you determine how your assets should be divided, and nominate an executor and trustee to take care of the division of the estate’s assets and to handle the administration of any trust assets.
You have the right to name heirs as you wish in your will. If you don’t, your assets will be divided according to the Intestate Succession Act, No 81 of 1987, after your death. This could mean that persons you would have preferred not inherit from you, could inherit.
Your will therefore determines the future of everything that you’ve built up through the years – and your heirs can be directly disadvantaged if you don’t plan correctly. Estate duty, income tax, VAT and capital gains tax (CGT) can take a big chunk out of your estate if your planning is incorrect.
What if my will is complex?
If you suspect that your will might be more complicated (for instance because there are children from a previous marriage, complex business arrangements and specific wishes), then it is best to contact us.
What is an executor?
The executor of your estate must administer your estate in terms of the Administration of Estates Act 66 of 1965, and any other relevant Acts, and execute your estate in accordance with the stipulations of your will (or Intestate Succession Act, when applicable) under supervision of the Master of the High Court. An executor ensures that all debt enforceable against your estate, as well as the necessary tax and administration costs, are paid, and that what remains of your estate is distributed according to the terms of your will.
The executor is the company, firm or person that you appointed in your will. If you choose to draft an online will, we will automatically allocate a Sanlam executor to your estate.
How do I nominate an executor?
The appointment of an executor is a big responsibility. You may appoint your spouse, but this is in most cases not a good idea, since your spouse could be emotionally shattered and not ready to take important financial decisions.
Without the necessary knowledge, your spouse will also not know where to get the best advice or service. Your spouse may be exposed to someone serving his own interests, in which case the estate’s funds might end up in the wrong hands.
Approaching a reputable company or section of a company specialising in wills, estates and trusts is a much safer idea:
You will enjoy the benefits of specialised experience and knowledge
Your estate will be handled deftly and professionally and you are ensured of objective advice
You enjoy complete security through internal control
Sophisticated computer systems ensure top quality service
We are partnered up with one of the best trust company in South Africa, so you will get expert management of deceased solvent estates and living and testamentary trusts.
Are there any costs involved?
Should you choose to draft a will with us, our Trust partner will act as the expert executor of your estate and a nominal annual fee of under R60 will be charged. This fee covers the administration costs and safe keeping of your will in a vault. Please note: If you are 65 or older, this fee will not apply to you and we will provide these services free of charge.
You will also get:
Expert management of your estate and any testamentary trusts
A 5% discount on executor’s fees (terms and conditions apply)
Safe storage of your will in a vault
Free revision of your will on request
A free living will on request. A living will allows you to detail your desires regarding medical treatment when you are terminally ill or permanently unconscious and no longer able to express informed consent, making things easier for your family.
What if I need a Shariah will?
The content of a Shariah will is fixed and complies with Muslim or Islamic laws. If you would like to compile a Shariah will please contact us.
What if I have questions or want to make changes?
If you or your beneficiaries have any queries or would like to make changes to the will, please contact us.
What should I do after completing the online will?
An email with instructions will be sent to the email address provided
Please review, print and sign the will
If you’ve nominated our partner insurer as the Trust company as the executor of your estate, you will need to make arrangements for the original printed and signed copy to be sent to them for safe storage in their vault at a nominal annual fee of under R60 (fee subject to change). Please call us to arrange assistance so your original will is sent to them for safe keeping. Your original signed will is what is needed to carry out your instructions. If we have assisted with the drafting of your will we will ensure that the will is sent to them and will provide proof of the same.
We suggest that you keep copies with you and let your family know where this is kept. If we have been appointed as your Financial Advisor, we will regularly remind you to review your will and make changes as your needs change.
If you’ve nominated another party as executor, we strongly advise that you ensure that your will is safely stored and that the party you have nominated as executor is informed of this.
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