Frequently Asked Questions

A retirement annuity is a savings plan towards retirement that pays a lump sum in cash as well as a monthly income during your retirement.

Life insurance gives you insurance cover for a certain period of time (this is the policy's "term"). If you were to die while the policy is in force, the insurance company pays out a tax-free sum. If you survive to the end of the term, the policy is finished and has no residual value. It only has a value if there is a claim. This policy also does not allow its owner to invest in it, making it entirely about insurance.

A fixed asset is refers to your properties or possessions that cannot be moved, for example a building.

Also known as home contents insurance and residential insurance, domestic insurance includes contents and house insurance. Contents insurance covers the contents of your home against theft or damage and can include your furniture, clothes, appliances and general household possessions. Home owners insurance covers your house with reference to damage to the actual building and structure.

A broker is an intermediary appointed by someone seeking financial advice and who will advise them on insurance matters as well as arrange insurance cover for them. A broker is independent and not affiliated or linked to only one insurer.

A claim is a notification to an insurance company that either a payout or some benefit is needed because a loss which is covered by the policy has occurred.

The excess is the share of an insurance claim which the insured person is responsible for paying and ranges up to a value determined by the insurance policy.

A policy is a document issued to an insured person from the insurer and which sets out the terms and conditions of the insurance contract.

In so far as is possible, an indemnity policy restores the insured person to the same financial position they were in immediately prior to the loss, accident or damage that the insured person suffered.

It is the prescribed amount paid by the insured person for the active insurance coverage that the insurance company provides.

It is the process an insurer goes through when evaluating, accepting or rejecting an insurance risk.

In terms of retirement funds, the benefit refers to any amount payable in terms of the fund’s conditions. A benefit may be paid on cancelation, retirement or the death of the member.

This type of insurance covers a business, institution or commercial entity and its assets against possible losses or damage.

This type of insurance covers your car against theft as well as damage that can result from an accident.

This type of insurance covers you against the expenses associated with your own funeral, or the funeral of a family member.

Short-term insurance encompasses all types of insurance policies other than life insurance cover and is taken for set periods.