The Hollard Fund Endowment is an investment solution that enables saving with tax benefits and other advantages. Enhance your investment returns over time with reduced administration costs and a simplified investment offering. If you’ve got time to invest, this is a solution that will ripen with age.
You’ll need a minimum investment of R100 000 to open a Hollard Fund Endowment.
The investment is an investor-owned linked endowment Policy that invests in the Investment Portfolios you choose. Hollard Life issues and underwrites the endowment policy as part of its long-term insurance business under the provisions of the Long-term Insurance Act, No. 52 of 1998, as amended and Insurance Act 18 of 2017.
You may contribute via an initial once-off investment. No recurring monthly debit order contributions are permitted.
Yes. Legislation limits the amount that can be contributed to the policy via an additional contribution or as follows:
You can select any one or a combination from the range of Hollard Prime Unit Trust Funds. You may switch between funds when you want. It’s up to you to monitor and review your investment portfolio selection regularly so that your investment continues to meet your financial needs.
Yes, you may cede some or all of your investment as collateral/security.
During the first five years of the 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.
No, there are no withdrawal charges levied.
No, loans are not permitted against the policy.
There is a cooling-off period of 31 days on the Hollard Fund Endowment. This period begins from the date of receipt of the policy schedule (which shall be regarded as having been received within 7 days of the policy inception date). In the event you request to cool off, the amount paid back to you will be the market value of the Investment Portfolios at the time of processing the instruction. This may be more or less than the initial investment amount due to the Investment Portfolio market movement. Any fees paid to Hollard Life, your financial advisor or Hollard Investment Managers will be reversed.
Yes, your investment is flexible. You can choose to switch Investment Portfolios at any time at no cost to you.
No, the product does not provide a guarantee on the investment value of your investment account, nor does it guarantee the performance of the investment. The market value of the investment may fluctuate, and past performance is not necessarily a guide to the future. You carry the investment and market risk, which may include the possibility of losing capital.
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.
The tax charge determined by Hollard Life may change because of a change in circumstances including, inter alia; changes to tax legislation (including regulations) impacting current or potentially prior years, a corporate action or any other reason not anticipated at the inception of the policy. Any such change would be subject to review by the Head of Actuarial Function (HAF), acting as an independent party advising the Board for Hollard Life. Prior written notice will be provided in the event of a change.
Tax relating to taxable capital gain and taxable income will be passed on to policyholders in the form of an interest and capital gains tax charge. The tax charges applied are disclosed on the investment quotation / Investment Portfolio list and are subject to change by Hollard Life.
During the Restricted Period of the policy, a tax charge as disclosed on the investment quotation, or detailed in subsequent policy endorsements issued to the policyholder, will be levied on any taxable capital gain or taxable income earned in the Investment Portfolios the policyholder is invested in.
Subsequent to the Restricted Period of the policy, the tax recovery charges will change to the prevailing individual policyholder fund tax rates.
Any amendments to the tax legislation may affect the Withdrawal value of the Policy. Policyholders should obtain independent tax advice, relevant to their circumstances, prior to investing.
The Policy is subject to dividend tax. This will be withheld from the local dividend portion of a distribution received from an Investment Portfolio.
On your passing, your policy will pay a benefit equal to the policy value after fees and charges due, if you are both the policyholder and the nominated life assured. If there is more than one life assured on the policy, the policy will continue until the death of the last surviving life assured. When the last surviving life assured passes away, the death benefit will be paid to the nominated beneficiaries for the policy. If there are no beneficiaries nominated, the benefit will be paid to the estate.
It is recommended that you appoint a financial advisor to assist you. Hollard Life in their capacity as the Administrator and the Manager do not provide financial advice and may only supply you with factual or administrative information relating to the investment products and portfolios.
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