Goal-driven savings

Sanlam Wealth Edge Endowment Plan

Get extraordinary benefits and peace of mind with a five-year tax-efficient investment solution underwritten by Sanlam Developing Markets Ltd and administered by Sanlam Life Insurance Ltd. It offers a boost to the initial investment amount, a reward for staying invested and optional protection to limit losses in a declining market.

This flexible investment solution has all the benefits of ordinary endowments plus a number of very attractive additional features.

Minimum contribution

The minimum contribution for the Sanlam Wealth Edge Endowment Plan is R100 000

How long to invest for

You have to invest for a minimum initial term of five years.

Freedom to change your choice

You have the freedom to change your underlying investments. There is no charge to make a change, but depending on where you move your money to, initial investment charges may apply.

Your investment choices

You can choose from a range of solution funds managed by a dedicated team of investment specialists, according to your chosen risk profile. If you prefer to do so, you can also construct your own portfolio in collaboration with your financial planner, from a range of carefully selected investment funds to suit your risk profile.

Benefits

  • An additional allocation of 8% is made to the investment amount upfront, giving your investment growth a head start.
  • A defined fund range makes it easier to select the most appropriate range of funds for your needs
  • You have the option of adding a unit price guarantee on selected investment funds to limit capital losses during market downturns.
  • After the fifth plan anniversary, the accumulation of a will commence, to reward you for staying invested.
  • You could benefit from income and capital gains tax advantages.
  • The policy pays out on the death of the last life insured, to beneficiaries nominated by you.
  • If your endowment policy has been invested for three years and you or your spouse is the life insured, the policy benefits are protected against creditors.

How it works

  • You make a lump sum contribution
  • We invest the money in the underlying investments that you choose in collaboration with your financial planner
  • Your money can grow over time based on your underlying investment
  • At the end of the initial five-year investment term, the investment will continue until you redeem the proceeds
  • The plan pays out on the death of the last life insured. Payment of the benefit will take place irrespective of whether the estate has been wound up.

Access to your money

The initial policy term is five years, known as the restriction period. During this period, contributions, loans and surrenders are restricted in terms of the Long-Term Insurance Act. After the first five years you can make any number of withdrawals, subject to a minimum amount that must remain in the plan until it is terminated.

Ownership and rights

You may use your rights to the policy as security for a loan. You may also transfer these rights to someone else by means of an outright cession.

Tax

  • Income tax benefits:
    • While interest is usually taxable at your marginal rate, interest declared within The Wealth Edge Endowment Plan is currently taxable at 30%, so you save on tax if your is higher than 30%.
  • Capital gains tax benefits:
    • While capital gains tax is usually calculated and recovered as a percentage of your , capital gains within The Wealth Edge Endowment Plan are taxable at a rate of 12% and recovered within the policy.

Fees

Fees vary per product and your underlying investment. Please speak to your financial planner to make sure you understand which fees you pay and why.

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