PolicyLink (Pty) Ltd is an authorised Financial Services Provider. FSP #: 4412                
How does it work - I dont’ understand how you can buy my policy? Your policy is an investment. It is an asset, just like a house, or shares. And as with any other asset, there is a market price that someone would be willing to pay for it. You might want to sell your asset, like a house, or a car, for immediate cash,  to re-invest or use for whatever purpose. We, now the owner of the policy, would carry it through to maturity, or keep investing in it or re-sell it , taking the risks and rewards as with any other purchase. Why are some policies restricted? According to the Long-term Insurance Act only one loan and one part surrender may be taken out of a policy within the first 5 years. Once a loan and part surrender has been made, no further cash advancements or surrenders can be made until the end of the restriction period (5 years from inception). Furthermore, this 5-year restriction is renewed in the event that the policyholder increases the annual premiums by more than 20% (‘the 20% rule”), placing the maturity date 5 years from the increase in premium. Policies can also be restricted purely by the nature of the product specifications which can vary from one Life Company to another. Example: In certain guaranteed growth plans only 1 part surrender is available and thereafter only at maturity. Are policies in the first 5 years after entry date also restricted? Yes, cash values of policies are limited to contributions plus 5% per annum in the 5 five years. This could also limit the value that is available to you. How long will it take before I receive settlement? We will make an electronic transfer to the policyholder's verified bank account, within 1 business day after the required documentation has been received. Can you still purchase the policy with a loan against it? Yes, our offer is net of any loan or premium debts against the policy and we settle the outstanding debts directly with the Life Office or relevant institution. What happens if I have lost my original policy document? We will request you to complete a “Lost Policy Affidavit” (LPA) to apply for a new one to be issued. This supercedes any previously issued policy document. An LPA should not delay the settlement process. Do I pay tax on the sale of my policy? Current legislation stipulates that your policy sale is not taxable, if you are the original owner. Individual circumstances may differ, so it is always best practice to speak to your Tax Consultant for advice. I am a Financial Advisor  - can I also use PolicyLink for my clients? Yes, absolutely. We work with financial advisors as well as direct clients. In fact, you cannot adhere to appropriate advice if you dont know the true value of your clients portfolio. Is there a way to convert my policy into cash if it is not a restricted policy? Yes, there are alternative solutions for different investments. PolicyLink can put you in touch within other divisions in the group that could assist with cash release products or loans against these policies.
 Frequently asked questions
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