What happens to your life insurance when you retire? Most people face a difficult choice between continuing to pay steep premiums or abandoning coverage they've funded for decades. Sean Hanlon, Executive Director at Bright Rock, reveals a game-changing alternative.
The premium settlement option stands out as Bright Rock's signature offering. Unlike competitors who limit this benefit to age 65, Bright Rock allows clients to activate it from age 55, provided they've paid premiums for 15 years. This means you can stop paying premiums while your coverage remains intact—a crucial advantage when pension funding becomes your priority and rising insurance costs become burdensome.
Beyond this cornerstone feature, Hanlon unpacks several innovative benefits that redefine traditional insurance approaches. The pre-funded funding pattern allows clients (particularly business owners and farmers) to pay slightly higher premiums initially while enjoying level payments and 4% annual coverage growth. This creates predictable cash flow and significant long-term savings—millions of rands over a lifetime.
Perhaps most revolutionary is Bright Rock's underwriting approach. When you take out a policy, you're underwritten in bands of R10 million, giving you access to additional coverage without further medical underwriting. This proves invaluable when circumstances change, such as when business opportunities require increased loan facilities, and your health might have changed. Even more remarkable, the "change moment payout" feature provides income for 10 years after retirement, functioning as a pension booster that pays out even if you've previously claimed on your income protection policy.
Whether you're planning for retirement, structuring business insurance, or ensuring fair inheritance between children with different career paths, these features offer unprecedented flexibility. Listen now to discover how these innovations might transform your financial planning approach. Have you considered how your insurance needs will change in retirement?
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