A New Product on Offer to You: Explore Our Personal Self-Funded Policy

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The concept of saving while you pay your monthly premiums sounds pretty great right? Well, it’s not just a concept – it’s a reality with a new insurance product we have on offer to you: Our Personal Self-Funded Policy.

This new personal product, comes as a result of our continual efforts to bring our clients the best insurance solutions possible, and it aligns with our Commercial Risk Retention Policy (CRRP), giving clients with both commercial and personal products the convenience of doubling up on their savings (ask a broker for more info on our CRRP).

Let’s Take a Look at How it All Works:

A percentage of your monthly premiums goes into your pocket so to speak – into a secure investment account with Investec (this is in your own name), where you earn market-related interest month on month.

What You Need to Know:

There are three savings options to choose from with our Personal Self-Funded Policy.

  1. R5000 (20% of your premium is saved).
  2. R10 000 (30% of your premium is saved).
  3. R20 000 (40% of your premium is saved).

The above percentage options show how much goes into your savings account – with the remainder going to the insurer.

Say you have a monthly premium of R3000 per month. 20% (R600) would go to your Investec account (your self-funded portion that’s accepted by you for each and every occurrence), and 80% (R2400) would go to the Insurer.

Handling A Portion of Your Risk

With this policy, we recommend you choose a threshold to which your Personal Self-Funded Policy applies, and up to which you are willing to absorb your own risk. Any claims made before the threshold is reached would be self-funded.

Covering Self-Claims

Once your investment has reached around 2x your threshold, we advise that you can now draw out of your investment in order to cover any excess on your claim (or your claim in full if need be).

Example: If your premium is R3000 per month, then we recommend a threshold of R6000 – this would take 10 months of saving to reach. On month 10, you would then reach the ‘self-claim bracket’.

What are the Benefits of This Policy?

  • You save while you pay.
  • You can withdraw your money at any time.
  • You can use your savings to cover losses within your self-funded portion.
  • You have a fixed excess on claims (no percentage-based surprises).

As one of the first companies in the country to provide such a product, we believe this fund will be a huge help to savvy individuals seeking the most rewarding insurance options available to them.  

As with all our products, Ts and Cs apply, and we are happy to discuss these with you. For any questions on this fund, please get in touch with our team