If you cede a life assurance policy as security for a loan, your loved ones may be in trouble if you die prematurely, because your creditors will take what is due to them, and anything left over may be tied up in your estate. Read "Be sure you know what you're doing if you cede a life policy" for the full story. Illustration: Colin Daniel
Do your loved ones a big favour: draw up a will2010-03-06 This week we deal extensively with the problems of cessions of life assurance policies to provide security for loans. It is a complex issue and one that can become a great deal more complex if you do not have a will.
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Thresholds for grants to rise2010-03-06 The asset and income thresholds for social grants will increase by between four and seven percent from April 1, when the social grant increases also take effect.
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When you take out a loan or buy on credit, you may be expected to provide security for your debt in the form a life policy that you cede to the financial institution. However, ceding a policy may have a number of implications of which you are unaware - particularly when it comes to how the future benefits of your policy are distributed. Personal Finance looks at all the issues of which you should be aware when you cede a policy.
Also in our weekend print edition:
Recently introduced estate planning techniques that can help you save tax.
It's time to get organised if you do not have a valid will.
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