Tues, 25 May 2021
Lochner and Venter Consulting

When it comes to group scheme insurance, not only do the employees benefit but there are also a host of benefits for the employer such as tax benefits and knowing you have you a motivated, healthy workforce. Not only do your employees have peace of mind for their and their family’s wellbeing and financial future but offering employment benefits to your workforce is seen as a drawcard and a reason to stay.  

Types of group insurance offerings

The great news is that you can tailor your group benefits to your industry and what your employees need and can afford. There are three main types of employee benefits that we’ll explore, and they fall into the categories of Risk, Investments, and Healthcare. 

Group risk product options

Risk products are a practical and common group scheme offering an array of products that an employer can select from:

1. Group life cover

Life cover, normally a mandatory option, if offered to employees provides peace of mind to family members that they can cope financially should anything happen to the life insured (employee). Some companies will include this as part of your cost to the company, while others will share the costs with employees. Usually, the insured value that an employee qualifies for will be based on their position and a multiple of their annual earnings. When group life cover is offered, companies might not offer you a funeral cover option as many life policies now include an ‘immediate’ release of funds to cover these expenses.

2. Disability and Dread disease cover

These are ancillary products that can be added to your group life cover. It’s worth understanding if the disability cover offered is a lump sum or monthly payment option. If it’s the latter, you’re generally covered between 70-80% of your monthly salary, should you be permanently disabled until retirement. Lump-sum disability will pay you a percentage of the 100% you are insured for, dependent on the extent of the disability. This also applies to how dread disease cover works, commonly known as critical illness cover.  

3. Group funeral cover

A group funeral insurance offering can also be tailor-made to the employer. This extends to the amount of funeral cover and who’ll be covered by the policy. An employer can offer cover amounts such as R5 000 or R10 000, which will come with a fixed premium amount per cover, regardless of the employee’s position or age. Most group funeral policies will offer cover for immediate family – spouse and children – as well as extended family, but it’s not always the case. Additional benefits can also be added such as repatriation, grocery, or airtime benefits, but the more basic the cover, the more cost-effective. 

4. Investments

Companies offering investment options in the form of group retirement funds are seen as leaders within the industry as South Africans are known to be poor savers and this way responsible investment behaviors can be instilled. 
Retirement options

A) Provident fund

Provident funds are common when being offered group investment options nowadays. Most of the time it’s a mandatory offering by companies but the flexibility comes in regarding the percentage of your monthly salary you’d like to invest, ranging from 5-20%. To keep costs low, your funds will also be placed in an umbrella fund, this means that many companies join one investment fund as opposed to a specific fund being created for a single company. Another investment option available is ‘life stage portfolios’; where dependent on your age and risk profile, you’ll automatically be allocated to a portfolio. Either way, this offers great tax benefits, and should you resign before retiring, you can preserve the funds, transfer to your new employer’s provident fund or take the amount as a lump sum, but it will be taxed heavily. 

B) Pension fund

Pension funds are offered by more established corporations, but the principles of provident funds apply, with the greatest difference being the accessibility to your funds. If you resign, you will only have access to one-third of your funds, where the remaining must provide you with an income during retirement, so will need to be preserved. 

C) Retirement annuity

Generally taken out in one’s own capacity and where you have complete control on how you’d like to invest your contributions, subject to limits set out by retirement fund regulations. 

5. Healthcare 

Having healthy, productive staff is the cornerstone of any successful business; which is why group health insurance is offered by most companies. 

Medical aid

Once again, a mandatory group cover option, where you can be presented with options of medical aid companies that the employer works with, should you not have one in place already. The onus is on you to do your research on which company you’d like to deal with and what type of plan you’d like, i.e. comprehensive cover or a hospital plan. Once more, companies might include this as cost to company or offer to pay up to 50% of the premium on your behalf. You can normally add your dependants which might work out more cost-effectively. 

Gap cover 

If gap cover is offered as part of your group healthcare options, you need to belong to medical aid to take this as supplementary cover. It covers the gap owed, as with medical aids there tend to be shortfalls, which can put a strain on your budget. Under group cover, you will also generally get a better premium for gap cover. 

Employee benefits are imperative for both employers and employees and should not be overlooked. With the many options available, companies can truly find a solution that fits their unique needs to support and empower their employees. Lochner and Venter Consulting offers a range of affordable group employee benefits, namely: 

  • Group life cover
  • Group health insurance 
  • Group Investments

If you are looking for cost-effective, holistic group employee benefits or want to find out if your group cover is enough for you and your family please contact us for an appointment.

Key Benefits of Life Insurance

Family Care And Protection
Dear Clients,
With the first quarter of the year behind us, we would like to give you an in-depth view of why Life Insurance is so crucial.

Reasons for life cover:                                                                                                 
As we grow older, get married, getting children, and start. business, we come to realize life insurance is a fundamental part of having a sound financial plan.

Life insurance: give you the power to replace your income.
If you pass away you will not leave your family devastated, because you did not provide for them in unforeseen circumstances. Financial stress on the family can easily be resolve through a well-planned Financial plan. It’s crucial to have the entire family involved, mother, father, and children when sitting down to plan your financial legacy.

Life cover is a tool to pay debt and other expenses.
After working so hard to earn you money, the last thing you want is an unplanned occurrence that potentially can take all your savings and ruin your financial legacy.  Life Cover is essentially your backup plan that will protect your assets in the event of a dread event and requires a large amount of money to resolve. The way life insurance is structured can protect your assets.
Get the right insurance.
The correct insurance is a key foundation to your financial plan. Insurance coverage should include Disability, Severe illness, Income Protection, and with business owners, overhead expenses insurance. Having the right insurance can turn what could otherwise be a major disaster into a mere inconvenience.
The question is then how much insurance I need.
Here are few tips:
– Think about future costs.
– Do you have any other savings?
– How many people depend on you?
– For how many people do you provide for      
For more info and help let us, Lochner Venter Consulting, help you with our years of experience in the field and ensure sound Financial Planning for you and your family.

This article was written by Jenita Du Plessis

Offshore investments locked in at R10.90 to the Dollar.
Upfront and ongoing premium discounts of up to 42% on your other Discovery plans.
Access to expert medical practitioners and facilities, globally with the Global Treatment Benefit.
Earn additional cover free of underwriting at no additional cost, by managing your health and wellness.
Convert your future health and wellness into a tangible offshore financial asset with the Dollar PayBack Fund.
Risk protection in Dollars which is insured and paid internationally.
Sound long-term financial planning ensuring you remain protected against the financial impact of a life-changing event.

Tax-Free Season Coming To An End

The benefits are in the name — Tax-Free. That means that the interest you accumulate in this type of account will not be taxed. The Tax-Free Investment account works best as a long-term option, which allows you to take advantage of compound interest.
Compound interest is where the interest you earn on your investment creates an even bigger savings total, which then earns even more interest. The longer you leave the money in the account, the greater your investment will be. This rule applies to dividends too.
That makes it perfect for goals you have set for yourself that can only be realized in a few years’ time. With a Tax-Free account, you can start small, with investments from as little as R500, while benefitting from a proper investment strategy, as compared to a savings account.
The interest, capital gains, and dividends you earn are completely tax-free. Your investment can be paid to your beneficiaries immediately and there are no executor fees.
There are, however, some rules attached to the Tax-Free account. You can only invest up to R36 000 a year, and up to R500 000 in your lifetime. Your access to the money also comes with conditions and the contribution season stretches from 1 March to 28/29 February for your R36 000 yearly amount.
To find out more or to maximize your early contribution, please click on the “speak to a financial advisor” button below.
The golden rule it is time in the market not timing the market. Happy investing your LVC team

This Article was wrote by Rudolf Froneman

Goodbye 2020, Welcome 2021

May this new year all your dreams turn into reality and all your efforts into great achievements. We hope everyone enjoyed the festive season.

Our office is open and ready for the big year of 2021. Please note some staff is still on holiday, you can get hold of them via email if they’re not at the office yet.

Quote for 2021
“If the plan doesn’t work, change the plan, but never the goal”
– Author Unkown

Kind Regards

The LVC Management and Staff Teams.

Lochner and Venter Consulting (Pty) Ltd

Holiday Greetings from Lochner and Venter Consulting

Dear Clients

We never thought that this year would turn out to be one of the most memorable and unique years of the decade.

For a year of lockdown, this year surely flew by and therefore we would like to send out our office year-end dates.

Our office will be closing on Thursday 24 December 2020 at 12h00 and we will open again on Monday 4 January 2021.

A special thank you to all our clients for your loyal support through this tuff year. Our business consists of our customers, and therefore we strive to provide only our best service to you.

We would like to make use of this opportunity and wish everyone a happy festive season and safe travels.

Kind Regards

The LVC Management and Staff Teams.

Lochner and Venter Consulting (Pty) Ltd