Hollard Endowment Plan

Yes, your endowment policy investment account is flexible. You can choose to switch Investment Portfolios at any time at no cost to you.

No, there are no withdrawal charges levied.

Certain Investment Portfolios may do. Please refer to the Investment Portfolio List for details on all available options.

Yes, however, legislation limits the additional amounts that can be contributed to your endowment policy in the following ways:

• During the first year after the initial investment takes place, there is no limitation on the additional contribution amounts.
• In subsequent years, a maximum of 120% of the larger contributions made during either of the two years prior may be invested. Should the additional contribution exceed this amount, you will be required to open a new policy for which the five-year restriction period will apply.

If you pass away, your policy will pay a benefit equal to the policy value (less fees and charges), if you're both the policyholder and the nominated life assured. If there are other lives assured on the policy, the policy will continue until the death of the last surviving life assured. Once the last surviving life assured has passed away, the death benefit will be paid to the nominated beneficiaries. If there are no beneficiaries, the benefit will be paid to the estate.

No, loans are not permitted against the policy.

Endowment policies underwritten by Hollard Life are taxed within the individual policyholder fund in accordance with Section 29A of the Income Tax Act as amended from time to time. The individual policyholder fund is subject to income and capital gains tax at the prevailing rates prescribed by legislation. Policy proceeds paid out to policyholders are net of tax. 

Any amendments to the tax legislation may affect the withdrawal value of your endowment policy. Policyholders should obtain independent tax advice, relevant to their circumstances, prior to investing.

The endowment policy is subject to dividend tax. This will be withheld from the local dividend portion of a distribution received from an investment portfolio.

During the first five years of the endowment policy, you can make one full or partial withdrawal (with no withdrawal charges), the value of which is limited by legislation. After five years all restrictions on the policy fall away and there is no limit on the number of withdrawals you can make, and you may withdraw everything from your policy or a portion of the value of the policy.

Yes, security and outright cessions are permitted.

There is a cooling-off period of 31 days applied on a Hollard Endowment Plan Policy. Any fees paid to Hollard Life and your financial advisor will be reversed.

The endowment policy is open-ended and does not have a term. Policies however have a five-year restriction period from inception during which time there are withdrawal limitations. Once the restricted period ends, there is no restriction on the value you may withdraw or the number of times you may withdraw from your policy.

Hollard Life in their capacity as the Administrator does not provide financial advice and may only supply factual or administrative information relating to investment products and portfolios.

Hollard will always recommend that you consult a professional, qualified financial advisor to help you choose suitable products and portfolios for your specific financial needs. Comprehensive financial planning goes far beyond simply choosing a product. It encompasses many elements that all work together towards a successful financial outcome.