WHAT IS AN ENDOWMENT PLAN?

ENDOWMENT FEATURES

BENEFITS

An Endowment is a focused investment which is the perfect vehicle for your goal-orientated savings. Whether its saving for that new car, your children’s education or that Hajj trip you’ve always dreamed about.

The cost effectiveness of endowments benefit investors with a marginal tax rate greater than 30% and a minimum investment horizon of 5 years.

The underlying investment options are from the range of top-performing Shariah compliant Unit Trusts which have consistently delivered strong investments return since inception. The consistency of the investments performance is reflected in these funds being awarded numerous local and international investments performance accolades.

•    Fixed Investment period;
•    Minimum term in 5 years;
•    One withdrawal permitted during the 5 year term;
•    You have the choice of the underlying portfolios, allowing to choose you to choose Shariah compliant funds.

“Do not save what is left after spending, but spend what is left after saving.” Warren Buffet

unit

Unit Trust

•    Taxed at your marginal rate, up to 41%
•    May use your interest exemption
•    May use your Capital gains exemption
•    Flexible and accessible
•    No option to code a security
•    No option to appoint beneficiary
•    Tax efficient for individuals with a marginal tax rate below 31%

Endowment

•    Taxed at 30%
•    No interest exemption
•    No capital gains exemption
•    Minimum five-year term
•    May code as security
•    May appoint beneficiary
•    Tax efficient for high-income earners who have used up their interest exemption

•    Estate planning benefits;
•    Taxed within the investment at 30%;
•    Beneficiaries have access to your investment in the event of your death;
•    Minimum contribution: R500.00 monthly or R20 000.00 lump sum;
•    Investment can be ceded as security for a loan;

unitS

•    ID document.
•    Proof of residence not older than three months.
•    Proof of banking details in the form of an account statement or a cancelled cheque.