A Fin24 user wants to convert a life policy to boost her retirement savings. She writes:
My partner has a life policy with Discovery and wants to know if it is possible to covert the life policy into some sort of savings investment.
The policy is presently being used as security on his share of the house bond, but there is very little owing at present on our bond account.
Is there a valuation amount one can use towards a retirement savings vessel? He needs to boost his retirement savings now.
Craig Sher, head of product development at Discovery Invest, responds:
Yes. Discovery Invest focuses on providing solutions for clients applicable to every life stage that they reach.
We offer a number of products that provide flexibility and solutions that address the needs of clients such as you.
These include products such as:
The Discovery retirement Optimiser, which is designed to supplement shortfalls in retirement funding.
South Africa traditionally has a low savings culture and, as a result, many South Africans will not be able to retire comfortably.
They will have to rely on state welfare or to continue working well after their planned retirement age.
The Discovery retirement Optimiser allows consumers to use their existing Discovery products more optimally.
It provides clients with a tax-efficient savings vehicle that, when combined with a Discovery Life Plan, allows them to reduce the cost of investments.
It gives them additional funds to invest in retirement savings. It also gives consumers the opportunity to convert unused life cover from a Discovery Life Plan into tax-free installments during retirement.
The Discovery Life Cash Conversion Benefit converts life cover into cash.
With the Cash Conversion Benefit, clients can receive a percentage of their life cover as a cash payout while they are alive, even before they retire, and throughout the policy term.
We recognise that the healthier our clients are, the longer they are expected to live and that they will need more savings to sustain themselves.
Therefore, the more steps clients take to manage their health and wellness, the higher their Cash Conversion payout will be.
My partner has a life policy with Discovery and wants to know if it is possible to covert the life policy into some sort of savings investment.
The policy is presently being used as security on his share of the house bond, but there is very little owing at present on our bond account.
Is there a valuation amount one can use towards a retirement savings vessel? He needs to boost his retirement savings now.
Craig Sher, head of product development at Discovery Invest, responds:
Yes. Discovery Invest focuses on providing solutions for clients applicable to every life stage that they reach.
We offer a number of products that provide flexibility and solutions that address the needs of clients such as you.
These include products such as:
The Discovery retirement Optimiser, which is designed to supplement shortfalls in retirement funding.
South Africa traditionally has a low savings culture and, as a result, many South Africans will not be able to retire comfortably.
They will have to rely on state welfare or to continue working well after their planned retirement age.
The Discovery retirement Optimiser allows consumers to use their existing Discovery products more optimally.
It provides clients with a tax-efficient savings vehicle that, when combined with a Discovery Life Plan, allows them to reduce the cost of investments.
It gives them additional funds to invest in retirement savings. It also gives consumers the opportunity to convert unused life cover from a Discovery Life Plan into tax-free installments during retirement.
The Discovery Life Cash Conversion Benefit converts life cover into cash.
With the Cash Conversion Benefit, clients can receive a percentage of their life cover as a cash payout while they are alive, even before they retire, and throughout the policy term.
We recognise that the healthier our clients are, the longer they are expected to live and that they will need more savings to sustain themselves.
Therefore, the more steps clients take to manage their health and wellness, the higher their Cash Conversion payout will be.