We all have the same basic wants and concerns when it comes to retirement:
- Certainty around the amount we’ll receive each month;
- Peace of mind that we’ll maintain our buying power or that our income will increase in line with inflation, and
- Knowing that our loved ones will be taken care of when we’re no longer around.
In the current environment, the first two – income certainty and maintaining buying power – should be the primary focus of most retirees, but we understand that for many, leaving a is just as important.
The Sanlam Income with Capital Preservation Plan is the ideal consideration for those approaching retirement, and who are seeking a guaranteed income for life, along with the ability to still leave a lump sum for their beneficiaries. The income is provided from a life annuity underwritten by Sanlam Life and the is provided by an added life cover policy. You can decide on the value of the at inception of the solution – and this can be any amount ranging from the minimum of R20 000 to the maximum of the value of your initial investment amount. No medical underwriting is required when you take out the solution.
Income payable
You can select to increase your income each year by up to a maximum of 7%, or you can select that your annual income adjusts in line with inflation. You’ll be taxed on this income at your .
Your starting income amount will depend on a few factors, including:
- The prevailing interest rate when we receive your capital amount;
- Your age and gender (and also the age and gender of the second life insured);
- The percentage annual income increase you select; and
- The amount of life cover you select.
This income is paid monthly until the death of the last life insured. The Sanlam Income with Capital Preservation Plan allows for two lives to be insured, and a guaranteed income will be paid for the lifetimes of these two people, as well as the life cover proceeds that will be paid to the nominated beneficiaries on the death of the last life insured. If no beneficiaries have been selected, the life cover proceeds will be paid into your estate.
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At a glance - How the Sanlam Income with Capital Preservation Plan works
You give us the proceeds of your retirement savings – a minimum of R20 000, and we issue you with two life annuities and a life cover policy that requires no medical underwriting. You can also convert your existing living annuity to this product.
One life annuity pays an income to you during retirement, for as long as you live, while the other pays the premiums on the life cover policy. Your income is not decreased to fund your life cover, and your life cover never gets decreased during your lifetime.
You get whole of life cover, which means that you will be certain of a guaranteed retirement income for the rest of your life and the life of a second insured, if you wish.
The capital is only available through regular income payments, and no withdrawals can be made.
After your death, your dependants or beneficiaries will receive a amount that you chose at the start of the investment.
We take care of tax:
Tax is payable on the income payments from the life annuities, but we will deduct the tax and pay it over to SARS on your behalf. No tax is payable on the life cover proceeds.
