With the Corona outbreak, the major South African Banks has announced relief measures for consumers. Many of these relief measures are from a cash flow perspective only, and the interest on the loans due for this period will simply be capitalised, meaning they will add to the outstanding amount and consumers will pay interest on the amounts for the remainder of the loan term.

The question of credit life insurance was raised, as most people who will need relief has temporarily lost their income. Credit Insurance in South Africa is regulated by the Department of Trade and Industry. In 2017 regulations were issued, determining what should be included and excluded in credit life.

Credit life insurance has to provide for death, temporary and permanent disability and loss of income. In these cases, most workers who have temporary been laid off will be able to claim from this insurance to pay the installments of their loans. The period is the shortest of:
– 12 Months;
– The remaining term of the loan;
– Until an income is earned again.

Self Employed Individuals:
The regulations are vague about self-employed individuals and if they are covered in the current circumstances. The advice would be for the client to read the policy wording and determine from there what should be done.

It is thus recommended that before a premium holiday is considered the debtor consults with the credit provider in order to determine the possibility of a claim under their credit life insurance.

A copy of the regulations can be found here.

, Money is not about money

I have came to realise that the conversations we have about money are not about money.

So often we get stuck in economic pressures, feeling indebted and overwhelmed when we talk about money and then you realise… It is not about money, it’s not even about our behaviour or consumerism, but it’s just about us.

What do we want people to see when they look at us, how people react to us, the adventures we want to embark on, the protection we want for our families, the need to survive, be safe, to be happy, to be recognized and to be someone?

Being someone has a different definition for different people. Success means something different, having something or not having it also has a different definition for different people.

Yet in the end, we will need money to achieve what we set out.
It is thus by the HOW MUCH I WANT IT(being physical things, being experiences, being a legacy), that influences our relationship with money and our relationship with the people that we have.

We all have different ways to approach our money, our specific situations, and often for the average joe public, it’s just simply too much so they play ostrich because they do not know who to TRUST!

AH HA and there we have it. We are not afraid to face our money issues, we are scared that we can’t trust anyone, let alone ourselves. We are afraid that we will feel like failures if we don’t achieve it so we simply just don’t attempt it.

You see, money is not about money but is it about what you want to have, where you want to go and where we can have a fun time, or the legacy you want to leave this earth.
Our inability to seek professional help so that we can change the behaviour is hampered by Trust.

The trust does not simply mean that you are afraid that someone will steal from you, or nor act in your best interest. The lack of trust means that you are afraid that they are going to leave you, or that you will not be able to achieve your goals and be left alone, and simply feel miserable. The fact that you don’t want to feel like a failure so you simply never start.

So money is about money, but not about the money itself but rather the abilities money gives us.

If you are in the Financial Planning Profession, reach out to find out more about how Barbara Mundell Consult(PTY) LTD help you change the experience and build trust.

Barbara Mundell,CFP® BAP(SA)™
Barbara Mundell Consult(PTY)LTD

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