Will I pay tax?
Your premium is NOT tax-deductible
As of 2018, your funeral cover or life insurance premium is paid from your after-tax income. That means that, unlike your medical aid, you won’t be able to claim your insurance premium payments back from the South African Revenue Service (SARS).
All payouts are tax free
The good news is, you won’t pay tax on anything we pay out to you, including:
- lump sum payouts from Funeral Cover, Life Cover or Critical Illness Cover
- income protection payouts from Income Protection, Death Income Protection or Disability Cover
Your full Wealth Bonus payout is tax free
Unlike a retirement annuity (RA), the total Wealth Bonus that gets unlocked when you turn 70 won’t be taxed. The full amount is yours to buy that little house on the coast or take that round-the-world cruise you always dreamt of 🛳.
Your CashDrops are tax free
If you choose to withdraw the unlocked portions of your Wealth Bonus every 60 premiums, these are also tax free 💰.