Money Matters: Understanding an endowment policy

An endowment policy is one of several investment options, but one should enlist the help of an adviser to understand the laws and terms which regulate endowments in the country.

This is according to Harry Joffe, Head of Legal Services at Discovery Life, who spoke to #NightTalk's Gugs Mhlungu and Sizwe Dhlomo about endowment policies.

An endowment is a life insurance policy under the Long Term Insurance Act

Harry Joffe, Head of Legal Services at Discovery Life

Joffe says that it is important for one to read the Long Term Insurance Act to understand how endowment policies are governed in South Africa.

According Joffe, the existence of offshore endowments and several rules in endowment policies also make it important for one to know the Income Tax Act.

Offshore endowments are a very tricky part of the Income Tax Act

Harry Joffe, Head of Legal Services at Discovery Life

You're getting a tax benefit in the endowment

Harry Joffe, Head of Legal Services at Discovery Life

Endowment policies are designed to pay a lump sum after a specific term.

Joffe says that regulators put in place tax benefits in an endowment so that a person can be in an endowment plan for at least five years.

There is not a perfect investment. Each investment has its pros and cons

Harry Joffe, Head of Legal Services at Discovery Life

Describing the nature of long-term investments and life insurance plans, Joffe says that it is important for a person to choose a plan which is right for them.

Listen to the conversation below:

Watch Harry Joffe responding to a question on the relationship between loans and endowment policies.

Read More
'Haiti is the missing piece in the AU'

'Haiti is the missing piece in the AU'

Ambassador of Haiti to South Africa Jacques Baril describes Haiti's historic relationship with the African continent.

'Having sex will not make you cleverer'

'Having sex will not make you cleverer'

Neurologist Professor Girish Modi describes the effect of sex on one's memory.

How to survive a hostile job interview

How to survive a hostile job interview

Recruitment specialist Candice Martin describes how one can get past a hostile job interview

'State must apologise and compensate Marikana families' - legal representative

'State must apologise and compensate Marikana families' - legal representative

SERI's Nomzamo Zondo describes the process the families of injured and killed Marikana miners have gone through to get compensation from the state.

Recognising the experience of women in South African mines

Recognising the experience of women in South African mines

Dr Asanda Benya has done work to put under the spotlight the role of women in the occupational culture of South African mines.

'Salaries of nurses in South Africa were and are appalling'

'Salaries of nurses in South Africa were and are appalling'

Denosa President Simon Hlungwani describes the factors behind nurse shortages in South Africa.

Popular articles
It's not the end of the road... Top tips to improve your matric

It's not the end of the road... Top tips to improve your matric

"Recognise that it’s not the end, it’s the beginning." Expert advise for school-leavers who want to improve their results.

14 job titles that callers can't take seriously

14 job titles that callers can't take seriously

People do some very interesting things for a living, but some job titles are given more credit than others.

Pamela Nomvete on her downfalls as actress, and 'climbing back'

Pamela Nomvete on her downfalls as actress, and 'climbing back'

This week Xolani Gwala's speaks to former Generations actor Pamela Nomvete for #WhatInTheWorldHappenedTo feature.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

[WATCH] New adapted national anthem by students

[WATCH] New adapted national anthem by students

Fees Must Fall activists singing the national anthem with a new melody and phrases calling it a 'decolonised national anthem'.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?

Jack Mabaso resurrected on 'Generations The Legacy'

Jack Mabaso resurrected on 'Generations The Legacy'

Will Jack Mabaso's return to the realm of Generations boost ratings? Well it seems not all viewers are impressed by the come-back.