INTRODUCTION
Heritage planning has emerged as a paramount facet of personal financial management, driven by the unsettling reality that a majority of families exhaust their wealth within three generations. Despite the complexity inherent in heritage planning, we maintain that every individual possesses the capacity to pursue a legacy of prosperity akin to that established by affluent lineages. This entails minimising avoidable costs associated with estates and safeguarding the emotional narrative of their family history, thereby establishing a solid foundation upon which financial prosperity can flourish for generations to come.
Creating generational wealth using life insurance involves a strategy where life insurance policies are used not only for protection but also as a financial tool to transfer wealth across generations.
THE SOLUTION
MyProtector is pioneering yet another milestone. We have chosen to support families in commencing their heritage journey by providing tools accessible to each individual through their LegalTech vault. Upon a member's demise, only the heritage data contained within their vault is integrated into the MyProtector family heritage archive. We employ a life policy to finance your family archive and the transfer of assets into your newly created trust to safeguard your family history and generational wealth goals.
1 – To provide liquidity to fund the transfer of assets into the trust
2 – To provide liquidity to fund generational wealth projects
3 – To finance major debts outside of the myPRO services
4 – To provide data security and support for family history
5 – To pay the premiums of future cash value life insurance on the lives of all members
6 – To provide family services (meetings, education, investments)
7 – To serve as a source of income replacement for surviving family members
POLICY CRITERIA
THE MONTHLY SUBSCRIPTION
The policy is limited to the following criteria:
1. Whole life level premium policy
2. Sum assured is dependent on your risk profile, so you need to do an insurance assessment
3. Maximum entry age 65 years
4. Normal underwriting done by Guard Risk
5. Beneficiary is the member's created heritage archive trust
6. Trust is managed by the MyProtector Group
WHO CAN ACCESS THIS POLICY?
Anyone will have access to this bespoke policy.
THIS PRODUCT IS STAND ALONE, ALTHOUGH OTHER PRODUCTS CAN BE LINKED TO IT
DEATH BENEFIT
Triarc will pay the insured benefit as a lump sum on the death of the life insured:
Minimum sum assured: R100 000
Maximum sum assured: R10 000 000
FUNERAL ADVANCE
A portion of the death benefit will be paid within 48 hours of receipt of the claim. The amount that is paid is 20% of the death benefit up to a maximum of R50 000.
BENEFICIARIES AND SESSIONS
Beneficiaries may be appointed by the policyholder. Collateral cessions are allowed.
BENEFIT TERMINATION EVENTS
The payment of the full benefit amount. The cancellation of the policy or benefit as a result of:
- Any event covered in the policy contract
-
Notification of the policyholder
-
The death of the insured life
-
The end of the benefit term
PREMIUM INCREASE OPTIONS
LEVEL PREMIUM PATTERN
BENEFIT INCREASES: 0%, 3% AND 6%
COMPULSORY 5% PREMIUM PATTERN
BENEFIT INCREASES: 0%, 3% AND 6%
WHO UNDERWRITES THE POLICY?
Triarc Insurance (FSP45009), is a registered financial services provider, underwritten by Guardrisk Life FSP76, a licensed Life Insurer. This means you’re partnering with a reliable, stable insurance brand that’s been around the block, and who you can rely on.
MYPROTECTOR'S SERVICES
MyProtector has designed bespoke services to cater for the objectives of this policy. These include the following:
BUILT-IN POLICY SERVICES
1 – Heritage preservation trust deed (Irrevocable)
2 – Generational wealth strategy & family education
3 – Legal Will & Legacy constitution
4 – Family heritage archives
5 – Independent trustee services & family office
6 – Estate board and administration services
7 - Trustee services at our member's discounted trustee rates
TRUST CREATION PURPOSE
1 – To preserve and protect assets for future generations
2 – To provide a legal structure for wishes and family vision
3 – To fund the policy premiums of all family members
4 – To serves as the central vehicle for managing and distributing assets
5 – To help members to maintain control over their assets
6 – To protect assets from creditors, lawsuits, and other legal claims
N.B Policy ceded to the estate does not increase estate costs.
TRUST STRUCTURE
HOW IT WORKS
HOW DOES IT PAY OUT?
When you pass away, the policy pays the full sum assured value into your newly created trust which is managed by MyProtector (Executors / trustees).
FUNDS ARE USED FOR:
The funds are used to pay the costs associated with the transfer of your assets into the trust and to fund your next generational family heritage goals. Some of the funds are used to purchase life cover on the lives of your children and grandchildren with the beneficiary being the family trust. The funds are also used to create, secure and preserve your family's heritage on the MyProtector heritage archive. There are many more uses and rules for consideration which will be discussed with our attorneys when establishing the document rules.
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