Guaranteed Income is made up of two policies. An endowment policy provides a return of the premium after a 5-year period and a temporary life annuity policy provides a 5-year guaranteed monthly income.
With a minimum investment of just R100,000, this is a guaranteed investment and thus a safe way to plan for your future.
These figures are for illustration purposes only
Minimum investment R100,000
*Please note that this annuity payment will cease after 60 months or on death of the life assured, whichever occurs first.
- All your capital is guaranteed
- Enhanced net return on your life annuity and endowment policy
- Benefit upon death, which provides a capital guarantee for your beneficiaries
- You can get liquidity through one capital surrender
- Your benefits are paid out free of any tax obligation
- Tax advantages
- Your investment can be used as collateral
Guaranteed Income Features:
Tax advantages – this Guaranteed Income policy investment is governed by the Section 10A exemption of the Income Tax Act, which provides for an exemption of the capital portion of a voluntary purchase annuity
Rates are revised weekly – valid from Monday to Saturday each week, rates are applicable on the date that you deposit your funds into the Hollard Wealth bank account and paperwork is received
Guaranteed Income 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 policy
The Guaranteed Income policy 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 this policy
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 Guaranteed Income policy – one part or full surrender may be taken from the endowment policy 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 Guaranteed Income policy is in force for the 5-year term
Where a part surrender has been taken from the endowment policy, the death benefit will be the fair value of the policy.
Upon death of the life assured, a death benefit will be paid out to the beneficiaries.
The fair value of the policy consists of the value of the endowment plus the commuted value of the monthly annuity payments on the temporary life annuity.
This is calculated from the date of maturity to the date of claim, as signed for in the policy application form and policy quote.
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. Due to the nature of the temporary life annuity, Hollard Wealth doesn’t permit cessions on the annuity portion of this investment.
Hollard Wealth will pay the tax across to the Receiver of Revenue and issue the policyholder with an IRP5 at the end of the tax year. If no tax has been deducted, Hollard Wealth will issue an IT3A to the policyholder. You can also provide us with a tax directive.
In addition to this, any change in tax legislation made by the government may affect the guarantee of the income.
Please contact us should you require any further Guaranteed Income policy help.