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Guaranteed Growth

Guaranteed Growth

Features and Benefits of the Guaranteed Growth Plan 

Guaranteed Growth is a feature in itself; find out more about the other benefits to this investment plan.

Guaranteed Growth | Features and Benefits

Key Benefits:

  • All your capital is guaranteed
  • Enhanced net return on your annuity
  • Benefit upon death, which provides a capital guarantee for beneficiaries
  • You can get liquidity through one capital surrender
  • Your benefits are paid out free of any tax obligation
  • Your investment can be used as collateral
  • You get a guaranteed maturity value (GMV) through a fixed rate of return annually

Guaranteed Growth Features:

Rates are revised weekly – valid from Monday to Saturday each week, rates are applicable on the date you deposit your funds into the Hollard Wealth bank account and your paperwork is received

Policies begin on the first day of any given month – you’ll be credited with interest from the time your money is received to the date of inception of the endowment policy

The Guaranteed Growth investment plan has a 5-year term – any South African resident between 18 and 80 years old, as well as trusts where the trustees and beneficiaries are all individuals, may invest in Guaranteed Growth

Death benefit – upon death of the life assured a death benefit will be paid out to the beneficiaries and the policy will cease to exist

You can surrender the policy – one part or full surrender may be taken from the endowment portion only. A new policy value and related new maturity value will be calculated using market rates at the time of surrender

Collateral cession – you can use this policy as security to raise a loan from a lending agency or registered South African bank

Outright cession – you can transfer the policy to a new owner (cessionary). The proceeds of the policy will then be paid directly to the new cessionary and not the previous owner or their estate

No capital gains tax (CGT) – under current legislation, maturity is not subject to CGT in the hands of the original policy owner

Your return is guaranteed – provided the policy is in force for the 5-year term

 

Guaranteed Growth

Guaranteed Growth Investment Planning FAQs

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

Q: When do I receive a secure rate of return?
A: Rates are revised weekly and are valid from Monday to Saturday, weekly. The rates are applicable on the date that you deposit your funds into the Hollard Wealth bank account and your completed paperwork is received by Hollard.
Q: What happens to my money while it’s in the Hollard Wealth account?
A: Policies commence on the 1st day of any given month. You’ll be credited with interest from the time your money is received by Hollard Wealth to the date of inception of the policy. Please note, the interest amount is already taken into account at quotation stage and included in the rate of return and, therefore, the maturity value. Hollard Wealth assumes the funds are received every Monday. As such, interest is calculated from the Monday until the day of commencement.
Q: Does the 30-day cooling-off period apply?
A: Due to the nature of this policy, the 30-day cooling-off period is not applicable.
Q: What’s my minimum investment amount?
A: The minimum amount that you can invest is R100,000.
Q: What’s the term of this policy?
A: The Guaranteed Growth policy has a 5-year term.
Q: Who may invest in Guaranteed Growth?
A: Any South African resident between 18 and 80 years old may invest in Guaranteed Growth. This product is not available to pension funds, companies (including Section 21 companies), closed corporations and trusts.
Q: What happens if the life assured passes away?
A: Upon death of the life assured, a death benefit will be paid out to the beneficiaries and the policy will cease to exist.

Where no previous 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 time of claim.

Where a part surrender has been taken from the policy, the death benefit will be the fair value of the policy at the time of claim.
Q: Can a surrender be taken on the policy?
A: One part or full surrender may be taken out of the fair value of the policy. A new policy value and related new maturity value will be calculated at market rates at the time of surrender. Please note, surrender charges will apply on a time based scale.
Q: Can the endowment be ceded?
A: 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 sole discretion of the cessionary and will in no way imply any liability, either directly or indirectly, on behalf of Hollard Wealth.

Outright cession – Hollard Wealth will record a cession of the policy upon the receipt of a written request to do so, and will note the cession without expressing any opinion on the validity thereof.
Q: Are loans permitted against the policy?
A: Unfortunately, Hollard Wealth does not permit a loan to be taken on the policy.
Q: Is this investment subject to capital gains tax (CGT)?
A: Under current legislation, the investment maturity is not subject to CGT in the hands of the original policy owner.
Q: Will my return be guaranteed?
A: Yes, your return will be guaranteed provided the policy is in force for the 5-year term. In addition, any change in tax legislation made by the government may affect the guarantee of the returns. A part surrender taken during the 5-year term will also affect the return.
 

Please contact us should you require any further investment planning tips or help.

Guaranteed Growth

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