An endowment policy with competitive interest

Boost your pension fund, buy a home or save for education with the Linked Endowment Policy. The policy pays out at the end of the investment term or to your beneficiaries in the event of your death.

What is an Endowment Plan?

A versatile, 5-year, linked endowment policy underwritten by Absa Life. It allows you to construct a personalised investment solution in order to achieve specific objectives. It also acts as a life policy.

Transparency

No hidden fees, charges or sneaky terms and conditions.

Simplicity

Easy to understand product features, fees and administration.

Accessibility

A single, full or partial surrender gives you access, subject to restrictions.

What can an Endowment Plan do for you?

Build a unique investment portfolio that caters to your current circumstances, with a firm eye on your desired lifestyle of tomorrow. With some guidance from your financial adviser, you can construct an exceptional environment for your retirement.

Beneficiary benefits

Your appointed beneficiaries gain immediate access to the investment.

Tax-free benefits

While Absa Life is subject to tax, the payout to you is not.

Use a collateral

You can cede the investment as collateral to a financial institution.

What does an Endowment Plan cost?

The fees include an annual administration and processing fee for services provided by Absa Investments, initial and/or annual financial adviser fee for services rendered and an annual asset management fee that varies depending on the underlying fund(s) selected.

Annual fees are calculated on the market value of the units held in the Fund. Financial adviser fees are negotiable between yourself and your adviser, within limits of the Long-Term Insurance Act.

Please note that a 30-day cooling off period applies to this investment. This allows you to cancel, should there have been no benefit paid or claim lodged under the policy.

Minimum investment

Lump-sum investment
R50 000 per option

Additional investment
R10 000

Recurring investment
R500 per month

Additional investments can be made into the policy during its term, subject to legislative limits. Any additional investments that breach the 120% rule, will result in the policy entering a new 5-year restriction period. In such a case, it is probably more beneficial for you to take out a new policy, than invest into the existing one.
Annual policy charges
First R250 000 – 0,86%

Next R500 000 – 0,57%

Over R750 000 – 0,29%

The annual policy charge is levied per investment policy and applies to both lump-sum and recurring investments.

An annual processing charge of R228.00 per client is levied and is deducted pro rata from the investment on a quarterly basis.

All charges quoted are inclusive of VAT, which is levied where applicable.
Tax implications
Your lump sum payout on maturity of the policy is not subject to tax, but the Absa Life fund itself is subject to individual and Capital Gains Tax throughout the investment period.

Individual investors pay 30% income tax and 12% Capital Gains Tax during the investment term.

Company investors pay 28% income Tax and 22.4% Capital Gains Tax during the investment term.

Untaxed Policyholder Fund pays 0% income tax and 0% Capital Gains Tax during the investment term.

Ready to invest?

1. Download our investment application form.

2. Complete the form and gather the required documentation.

3. Fax the documents to 0861 339 265 or email them to AIMScc@absa.co.za

One Investment form for Individuals

One Investment form for Legal Entities

View the terms and conditions.