An increase was announced with regards to the maximum value of the policy benefits to be provided in terms of an assistance policy (Financial product subcategory 1.1).
As from 11 November 2013, the maximum amount will be increased from R18 000 to R30 000.
The new definition of an “assistance policy” will therefore refer to a life policy in respect of which the aggregate of:
a) the value of the policy benefits, other than an annuity to be provided (not taking into account any bonuses to be determined at the discretion of the long-term insurer);
b) the amount of the premium in return for which an annuity is to be provided,
does not exceed R30 000, and includes a reinsurance policy in respect of such policy.
Assistance Policies exclude policies referred to in the definitions of Long-term Insurance B1, B2 and C and credit life. If you are not sure, please discuss this with your product supplier.