Turn Your Investment Policies and Fixed Deposits Into Quick Cash!

TWO THINGS IN LIFE WE CAN ALL AGREE ON

• Life is unpredictable; and
• We all (urgently) need some extra cash at some stage

• Micro Lenders charge extremely high rates
• All lenders will charge initiation and ongoing admin fees
• Interest rates on personal bank loans are also normally high
• Affordability assessment in accordance with the national credit act

• To qualify often means selecting the lowest premium
• The lowest premium is often linked to the longest repayment term
• Institution might also require term life policy to secure their debt
• Loan approval process sometimes takes weeks

• What is the Secondary Assurance and Investment Market?

  Often referred to as the second-hand Policy and Investment market, the Secondary Assurance and Investment market and trusted Market Makers like us play a critical role in helping you, the Policy and Fixed Deposit Holders and/or your Brokers/Advisors unlock value from your assets when you need it most.

• When will you need us most?

  When you or third parties are forced to early terminate your policies, investments and/or fixed deposits. Some of the most likely and often unpredictable life and business events that could lead to this includes : –

  • Liquidity or emergency cash flow needs
  • Liquidations, retrenchment or going under administration
  • Security being called up to service debts or avoid a default
  • Divorces and separations
  • Alternative investment or business opportunities
  • Emigration or resettlement
  • Legal, medical or educational expenses
  • Deceased estates or funeral expenses
  • Inability to continue paying the premiums on your policies

• How long will this take?

  From the time you give us the required approval to do a valuation of your policy, investment and/or fixed deposit, to the time we agree a price with you can take as little as 48-72 hours, and for the whole transaction to be concluded, 5-7 days.

  Whilst we always strive to meet these timelines, there are several factors that could delay the process by a couple of days, like :-

  • How long it takes the insurers and banks to provide us with the correct information
  • How long it takes for our panel of buyers to make suitable offers
  • How long it takes for you or a third party to accept the offer to purchase
  • How long it takes to get all the required documentation correctly completed and signed to facilitate and finalize your sale
  • How long it takes for the money to clear into your or a designated 3rd party’s account

• Never Surrender! Policy and Fixed Deposit Holders

  As an Insurance Policy and Fixed Deposit Holder you should never surrender your insurance policies or early terminate your Fixed Deposits, before having it valued by ourselves to see whether we can unlock additional value to that offered by your Insurance Company or Bank.

• Insurance Brokers

  As a Broker it is not only your “duty of care” to help your clients make the best and informed financial decisions but especially so when they are forced to surrender or early terminate their policies, investments of fixed deposits.

  As a rule, you should never allow your clients to surrender their policies or early terminate their Fixed Deposits, before having it valued by someone like ourselves to see whether we can unlock additional value for your client to that offered to them by their Insurance Company or Bank.

• Legal Practitioners, Debt Administrators, Trustees and Executors of Estates

  In your capacity in any of the above roles, it is your “duty of
  care” to help your clients make the best and informed financial decisions, but especially so when they are forced to surrender or early terminate their policies, investments or fixed deposits.

  As a rule, you should never allow your clients to surrender their policies or early terminate their fixed deposits before having them valued by someone like ourselves, to see
  whether we can unlock additional value for your client, as compared to that offered by their insurance company or bank.

• What if you don’t represent the Policy, Investment of Fixed Deposit Holder?

  The same “duty of care applies” if you act on behalf of your client in claiming a third parties investment products, with a view to terminating these products, to recoup monies owed to your client.

  In fact, your “duty of care” could potentially extend to include both parties :-

  • Your client who expects you to maximize recoupment of monies owed.
  • The debtor who could claim that you had not performed the necessary duty of care in the process, leaving them liable for the difference between what you could have secured by selling the investments, compared to what was secured through the insurer or bank.

• Which Policies and Fixed Deposits are saleable?

  As a rule, all Restricted (legislative or product) policies, investments and Fixed Deposits are normally saleable. If you have performed any of the actions below your policy or fixed deposit is most likely restricted and thus sale/tradeable :-

  • Taken a loan against your policy
  • Exercised a part withdrawal on your policy
  • Increased your monthly premium by more than 20%?
  • Already taken a withdrawal from your Fixed Deposit

• Which Life Insurance Companies Products or Endowments that are restricted, do we purchase?

  • Old Mutual
  • Sanlam
  • Liberty Life
  • Momentum
  • Metropolitan
  • Discovery Invest
  • Cadiz
  • Hollard
  • PSG
  • Aims
  • Ashburton
  • Standard Bank
  • Endowment Products
  • Outsurance Endowment Products
  • Allan Grey Endowment Products

• What specific types of policies that are restricted do we purchase?

  • Growth and income plans.
  • Policies and investments offered by all South African insurers.
  • Structured products.

• Which Banks Fixed Deposits do we purchase?

  • Absa
  • Capitec
  • Old Mutual
  • FNB
  • African Bank

• When does a policy become restricted?

  The Long-term Insurance Act allows a Policy Holder to make only one loan and one part surrender on a policy within the first 5 years. Once you have made one loan and a part surrender you will not be able to take any more loans (cash advancements) or part surrenders until the end of the restriction period (5 years from inception).

• What is the 20% Premium Increase Rule

  Should the premiums on a policy increase by more than 20% compared to
  the aggregate premium paid during the last two premium periods, a new 5 year restriction term will come into effect.

• What other product specific rules are there?

  Life Insurance Companies may also apply different rules and restrictions to some of their products to that contained in the Long-term Insurance Act. For example, in certain guaranteed growth plans, only 1 part surrender is available to the policy holder prior to maturity.

• What other restrictions are there on policies that are less than 5 years old?

  The maximum cash value that policy holders can access during a policies initial five year term, is limited to contributions plus five percent.

• Which policies and products are not saleable?

  The following policies and products are not saleable under current South African legislation :-

  • Retirement annuities or living annuities
  • Pension/Provident/Preservation fund policies
  • New generation pure life cover only policies
  • Medical or disability cover policies
  • Funeral policies
  • Deferred compensation plans and policies
  • Policies that have already matured

  Not sure if your policy or product qualifies? No problem, we still offer a free valuation service. Please note, in terms of current legislation, it is not possible to transfer ownership on any retirement / living annuities or pension / provident / preservation fund policies, and therefore they cannot be sold.