Hollard Guaranteed Growth Plan

Hollard's Guaranteed Growth, with its Guaranteed Maturity Value, offers tax advantages.

Overview

Offering Guaranteed Investment returns via a 5-year endowment

Please note this product is currently closed to new business. 

Hollard’s Guaranteed Growth offers a Guaranteed Maturity Value (GMV).

The Hollard Guaranteed Growth Plan is an endowment that offers a beneficial tax rate and a guaranteed return after five years.

Equity-linked investments may rise and fall in value and returns may be unpredictable. An investor can often find comfort in a product that offers a guaranteed effective return, like the Guaranteed Growth Plan with its Guaranteed Maturity Value (GMV).

This diagram illustrates how guaranteed returns are achieved:

Client Invests 

R100 000

Investment grows for 

5 years at 

5.31% p.a. effective

Guaranteed Maturity Value 

paid out tax free

R129 518.41

These figures are for illustration purposes only
Minimum investment R100,000

Key Features

Click here to learn more about our Guaranteed Growth Plan. 

Features & Benefits

Understand the guaranteed returns offered by our Guaranteed Growth Plan

 

Features and Benefits Product Details
Tax Implications Benefits are paid out tax-free.
Death Benefits
  • Death benefits are paid by the policy on the death of the last life assured as specified for the policy. The policyholder will be the life assured unless they indicate otherwise or in the case of a policyholder which is a Trust.
  • Death benefit proceeds will be paid directly to the Beneficiaries as specified by the Policyholder and will not be paid to the estate of the deceased.
  • Avoids executors' fees.
Access to Capital

During the first five years of the policy you may take one full or partial withdrawal, the value of which is limited by legislation. A withdrawal from the policy during the five year period will affect your Guaranteed Maturity Value. A new policy value and related new maturity value will be calculated using market rates at the time of withdrawal, and surrender charges will apply. 

After five years all restrictions on the policy fall away, and you may withdraw all or a portion of the value of the policy at any time, with no limit on the number of withdrawals which may be taken. Withdrawals from the policy after the restricted period will be processed free of charge, but will incur Capital Gains Tax at the rate specified.

Other Product Features
  • The policy may be ceded as security.
  • The policy guarantees a specific return after five years provided that the policy remains in force for the full period and there have been no surrenders. At this point you may choose to take the proceeds in cash, or continue to enjoy the tax benefits of the product by investing the proceeds into the range of Unit Trust Funds offered.
  • Any South African resident of 18 to 80 years old, as well as South African trusts where the trustees and beneficiaries are all individuals, may invest in Guaranteed Growth.

 

Product Charges

What will it cost?

The Guaranteed Endowment Rate applied to the investment is net of all fees and tax.

Product Details Product Charges 
Annual Product Charge Built into the Guaranteed Maturity Value rate for the first five years of the policy, and 0,5% per annum excl. VAT thereafter.
Income Tax Charge Built into the Guaranteed Maturity Value rate for the first five years of the policy, thereafter as specified for the Unit Trust Funds into which the policyholder chooses to invest.
Capital Gains Tax Charge Built into the Guaranteed Maturity Value rate for the first five years of the policy, thereafter as specified for the Unit Trust Funds into which the policyholder chooses to invest.
Dividend Withholding Tax 15% applicable for local dividends distributed by the Unit Trust Funds in which the policy invests after the 5 year restricted period.
Advisor Initial Commission

Maximum of 3% (excluding VAT)

Built into the Guaranteed Maturity Value rate for the first five years of the policy. 

Advisor Annual Advice Fee

Maximum of 1%  per annum (excluding VAT)

Applicable for investments of Guaranteed Maturity proceeds into Unit Trust Funds, only applicable after the first five years of the policy. 

Underlying fund Fees

Applicable for investments of Guaranteed Maturity proceeds into Unit Trust Funds, only applicable after the first five years of the policy. Charged separately (see Fund List).

Surrender Charges

(Applicable during the first 5 years of the policy)

Policy Year Surrender 
One  1.50%
Two  1.25%
Three  0.80%
Four  0.50%
Five  0.00%

FAQs

What are Guaranteed Investments?

Find out everything you need to know about Guaranteed Growth Plan here.

Is the Hollard Guaranteed Growth Plan open for new business?
The Hollard Guaranteed Growth Plan is currently closed to new business.
How does the Guarantee work?
After five years the guaranteed maturity value will be realised and become available. At this point you may choose to take the proceeds in cash, or continue to enjoy the tax benefits of the product by investing the proceeds into the range of Unit Trust Funds offered.
What is the term of the policy?
The Guaranteed Growth policy is open ended and as such does not have a term. Policies have a five-year restriction period from inception during which there are withdrawal limitations and surrender charges in place.
Who may invest in the Guaranteed Growth Plan?
Any South African resident of 18 to 80 years old, as well as South African trusts where all beneficiaries are natural persons, may invest in Guaranteed Growth. This product is not available to pension funds, companies, closed corporations or trusts.
What happens if the life assured passes away?
On the death of the life assured, a death benefit will be paid out to the beneficiaries specified for the policy and the policy will cease to exist. During the five year restriction period if no part surrender has been taken, the death benefit is guaranteed to be the greater of the initial single premium and the fair value of the policy at the date of death. Where a surrender has been taken, the death benefit will be the fair value of the policy at the date of death. Subsequent to the five year restriction period, the death benefit will be the market value of the Unit Trust Fund investments in the policy at the time of processing the death claim.
Can a surrender be taken on the policy?
During the first five years of the policy you may take one full or partial withdrawal, the value of which is limited by legislation. A withdrawal from the policy during the five year period will affect your Guaranteed Maturity Value. A new policy value and related new maturity value will be calculated using market rates at the time of withdrawal, and surrender charges will apply. After five years all restrictions on the policy fall away, and you may withdraw all or a portion of the value of the policy at any time, with no limit on the number of withdrawals which may be taken. Withdrawals from the policy after the restricted period will be processed free of charge, but will incur Capital Gains Tax at the rate specified.
Can the policy be used as security?
Collateral cession - The policyholder may use this policy as security to raise a loan from a lending agency or registered South African bank. The value of such security is at the discretion of the cessionary and implies no liability, either directly or indirectly, to Hollard Investments. Outright cession - Hollard Investments will record a cession of the policy on receiving a written request to do so, and will note the cession without expressing any opinion on its validity.
Are loans permitted against the policy?
Hollard Investments does not permit a loan to be taken on the policy.
Is this investment subject to Capital Gains Tax (CGT)?
Under current legislation, the guaranteed investment maturity is not subject to CGT or Income Tax in the hands of the Policyholder. Investments in Unit Trust Funds after the pay-out of the maturity proceeds will incur Income Tax and a CGT charge on withdrawal or switch out, specific to the Unit Trust Fund(s) selected.
Is my return guaranteed?
Yes, your return will be guaranteed if the policy is in force for the five-year period. However, any change in tax legislation may affect the guarantee of the return. A surrender taken during the five-year period will also affect the return. Hollard Investments does not provide a guarantee on the value of the investment after the maturity date and pay-out of the guaranteed maturity value. The market value of the investment may fluctuate and go down as well as up, and past performance is not necessarily a guide to future performance. The Policyholder carries the investment and market risk which includes the possibility of losing capital.
Do I need a Financial Advisor to invest in this product?
Yes, Hollard Investments does not accept any investments into this product without a Financial Advisor being appointed.

Customer Support

Contact details

  • Tel: 0860 202 202
  • Email: hwnewbusiness@hollard.co.za
  • Fax: +27 11 351 3816
  • For compliments and complaints please fill in the Customer Support form on the right. Alternatively view our complaints process by clicking here.

Select and complete the form of your choice

  • Select the relevant form from the list below
  • Print and complete the form
  • Attached all required documentation
  • E-mail or fax the completed form to hwnewbusiness@hollard.co.za or +27 11 351 3816

Existing Investors FICA & FATCA Documents
Beneficiary Nomination Form FICA list
Death Claim Form 3rd Party Payment Letter
General Disclaimer No FSP Form Sighting of Original Documents
Surrender Request Form Site Visit Declaration
Financial Advisor Appointment Form Cohabitation Declaration
Maturity Form FATCA Questionnaire for Individuals
Security Cession Form FATCA Questionnaire for Legal Entities
Outright Cession Form
Static Details Change Form
Additional Lives Nomination
Switch Form
Unclaimed Benefits Withdrawal