Risk benefits (life cover, disability etc.)
There is no obligation – or need – to provide insurance cover (such as life cover, disability, dread disease and funeral) with a retirement fund, although these may be facilitated. There are essentially two types of risk benefits: approved and unapproved.
An approved risk benefit is a contract between the retirement fund and the insurer; an unapproved benefit is a contract between the employer or the employees as a group and the insurer. There are differences in regulation and tax treatment between these two types of contracts.
10X can facilitate both approved and unapproved insurance benefits.
More about starting a retirement fund
- Legal structure: umbrella or stand-alone?
- Product: Pension or provident fund?
- Who should be eligible to join? Membership criteria
- How much should you contribute? Contribution rates
- Should you attach risk benefits to the fund?
- Who does what? Service providers
- Governance: Board of Trustees and Principal Officer
- Specifics: Fund rules
- Should you offer investment choice?
- Should you offer a preservation fund option?
The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.
