Moonstone Information Refinery (Pty) Ltd
Investment Rates
Updated: 18-April-2017 | Valid until: 21-April-2017 |
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This information is supplied as part of our commitment to support and strengthen
independent financial advisors. The information contained below is part of our
growing product research offering.
In order to understand the difference between guaranteed (G) and
linked
(L) rates, kindly click
here for a detailed explanation.
Secured Investment Rates
(Commission at 3% plus VAT - 3.42)
Comparison of secured investment rates (Investment for five year period)
Institution | Nature of Security |
CAR Ratio | Notes | Secured Return** | % Return on investment** | Secured Return*** | % Return on investment*** |
Clientele life* | G |
2.32 | 8 | R 140 911.80 | 7.100% | R 1 417 690.83 | 7.230% |
Absa | L | | 8 | R 139 650.18 | 6.908% | R 1 396 501.78 | 6.908% |
Assupol | G |
2.35 | 8 ; 11 | R 138 429.64 | 6.720% | R 1 412 410.30 | 7.150% |
Discovery* | G |
3.5 | 8 | R 134 288.14 | 6.074% | R 1 377 869.59 | 6.621% |
NEDgroup LIFE* | L |
| 8 | R 129 730.52 | 5.344% | R 1 365 868.22 | 6.434% |
Liberty Life |
G |
3.1 | 8 | - |
- | R 1 370 340.00 |
6.450% |
(Commission at 1.5% plus VAT - 1.71)
Comparison of secured investment rates (Investment for five year period)
Institution | Nature of Security |
CAR Ratio | Notes | Secured Return** | % Return on investment** | Secured Return*** | % Return on investment*** |
Clientele life* | G |
2.32 | 8 ; 10 | R 143 029.54 | 7.420% | R 1 438 971.11 | 7.550% |
Assupol | G |
2.35 | 8 ; 11 | R 140 386.30 | 7.020% | R 1 432 293.76 | 7.450% |
Discovery* | G |
3.5 | 8 | R 136 803.37 | 6.468% | R 1 403 021.85 | 7.007% |
Liberty Life |
G |
3.1 | 8 | - |
- | R 1 393 889.00 |
6.810% |
- A linked policy is defined in the long term Insurance Act of
1998 as: "...a long-term policy of which the amount of the policy benefit is
not guaranteed by the long-term insurer and is to be determined solely by
reference to the value of particular assets or categories of assets which are
specified in the policy and are actually held by or on behalf of the insurer
specifically for the purposes of the policy."
- A company's Capital Adequacy Ratio (CAR) is the actuarially determined
excess of assets over liabilities. The CAR provides a buffer against
experience worse than that assumed in the financial soundness valuation.
- * Capital Gains Tax has been taken in account on the quoted rates of
return at the current tax rates for individuals. However if the tax rate for
CGT changes the additional tax will be recovered from the returns of the
investment (contact institution for details)
- ** Initial investment is R 100,000.
- *** Initial investment is R 1 million.
- Funds received before or on the 15th of a month will have an entry date of
the first of that month. Funds received after this will have an entry date of
the first of the following month. The impact on the values quoted on these
pages should be born in mind when comparing data.
- VAT on commission has been taken in account for Old Mutual Wealth Fixed Investment Bond,Discovery,,ABSA,Sanlam,Clientèle
Life,and Liberty Life.
- Capital Gains Tax has been taken in account on the quoted rates of return
at the current tax rates for individuals. Any change in the tax rate for CGT
will not affect the returns of the investment (contact institution for
details)
- " Clientèle Life 's Guaranteed Growth Plan Initial Capital and Interest
rate is guaranteed back to the beneficiary when they elect to surrender the
policy at death at any given time during the five years.
- The full maturity value is payable on death (excluding pre-existing
conditions - please see the Discovery Invest Fact File for details)
- The returns for the Guaranteed-return Single-premium Policy may change during the week. Please refer to Assupol Life for their latest rates.
- Liberty advises that, as of Monday, 9 May 2016, its minimum premium on the "Guaranteed Investment Plan" and "Guaranteed investment plan - income option" increased to R150 000. Investments above the new value will be subject to the same standard rates and enhancements applicable in the past.
Compulsory Annuity
Not underwritten
Comparison of monthly annuity income (R500000 compulsory, monthly paid in arrears)
Institution |
Escalating 10yrs Certain & Thereafter* (C&T) |
Single Life* 10 C&T |
Joint & Survivor** 10 C&T |
Paramount Life |
R 3 065.58 | R 4 450.48 | R 4
104.21 |
Metropolitan | R 2 943.32 | R 4 314.06 | R 3 861.06 |
Discovery | R 2 826.59 | R 4 233.12 | R 3 862.92 |
Old Mutual | R 2 806.29 | R 4 234.34 | R 3 747.63 |
- * Male 60 alb (DOB 01/01/1957)
- ** Male and female 60 alb
- 0% Tax deducted
- Escalation at 5% per Annum
- Metropolitan Life Annuity Quotation Line for quotations and information-
call 0860 99 00 99
- Paramount Life uses the Estate Protect benefit with pattern 50,10,10 to
match a 10 year guarantee term
- Funds received before or on the 15th of a month will have an entry date of
the first of that month. Funds received after this will have an entry date of
the first of the following month. This will impact on the values quoted on
these pages, and should be born in mind when comparing data.
Underwritten with Estate Protect
- * Male 60 alb (DOB 01/01/1957)
- ** Male and female 60 alb
- 0% Tax deducted
- Escalation at 5% per Annum
- To request an enhanced annuity contact the Paramount Life New Business and
Servicing Centre – 086 100 2027 or
quotes@paramountlife.co.za
- For an explanation of the differences between Estate Protect® and a
guaranteed term please visit
www.paramountlife.co.za
- Paramount Life uses underwriting when
providing annuity quotations to enhance retirement income. This means that
they not only look at age and gender but also the lifestyle (income,
occupation and smoker status) and medical condition of annuitants. Multiple
rates are shown above to illustrate the effect of these rating factors.
- the Lower Rate refers to the income for an annuitant who works in a manual
occupation and/or receives a low income e.g. a cashier earning R8 000 per
month with no medical diagnoses.
- the Average Rate refers to the income for an average retiree with minor
medical and/or a low income and/or a manual occupation and/or who is
currenlty smoking e.g. an administrator earning R13 000 who currently smokes
with minor medical diagnoses.
- the Upper Rate refers to the income for a retiree with serious medical
diagnoses e.g. a nurse earning R10 000 p.m. who has/had serious cardiac
issues, high blood pressure and diabetes.
(Each combination of medical and lifestyle factors results in an
individualised annuity rate for each retiree).
- For more information on enhancing retirement income go to
www.paramountlife.co.za
- Funds received before or on the 15th of a month will have an entry date
of the first of that month. Funds received after this will have an entry
date of the first of the following month. This will impact on the values
quoted on these pages, and should be born in mind when comparing data.
Underwritten
- * Male 60 alb (DOB 01/01/1957)
- ** Male and female 60 alb
- 0% Tax deducted
- Escalation at 5% per Annum
- Funds received before or on the 15th of a month will have an entry date of
the first of that month. Funds received after this will have an entry date of
the first of the following month. This will impact on the values quoted on
these pages, and should be born in mind when comparing data.
- The annuity will vary depending on a number of socio-economic, lifestyle
and medical factors. As examples:
- “Low” would apply for a mild condition such as high blood pressure,
cholesterol, overweight or diabetes.
- “Medium” would apply for a moderate condition such as diabetes, liver
diseases, epilepsy, moderate obesity, or a combination of mild conditions.
- “High” would apply for a more severe condition such as a heart disease,
cancer, severe stroke, severe obesity, uncontrolled diabetes or a
combination of less severe conditions.
- Please see http://www.justsa.co.za/
for more details.
Voluntary Annuity
Comparison of monthly annuity income (R100000 Voluntary, 5 year term certain)
Institution | Gross Income | Taxable Portion | Tax Free Portion | Taxable Percentage |
Metropolitan | R 1 919.78 | R 253.11 | R 1 666.67 | 13.184% |
Old Mutual | R 1 914.46 | R 247.79 | R 1 666.67 | 12.943% |
Annuity with Capital Secured
(Commission at 3% plus VAT - 3.42)
Comparison of monthly annuity income on income plans with capital secured.
(Investment amounts R100 000 and R1 000 000)
Institution | NatureSecurity | CARRatio | Notes | Gross annuity income (R100 000) | Taxable portion (R100 000) | Gross annuity income (R1 000 000) | Taxable portion (R1 000 000) |
Clientele life* | G |
2.35 | 5 ; 9 | R 549.74 | R 82.55 | R 5 677.60 | R 877.40 |
Discovery* | G |
3.5 | 5 ; 6 | R 478.50 | R 28.01 | R 5 267.18 | R 596.11 |
NEDgroup LIFE* | L |
| 5 | R 440.93 | R 33.10 | R 5 150.69 | R 481.70 |
(Commission at 1.5% plus VAT - 1.71)
Comparison of monthly annuity income on income plans with capital secured.
(Investment amounts R100 000 and R1 000 000)
Institution | NatureSecurity | CARRatio | Notes | Gross annuity income (R100 000) | Taxable portion (R100 000) | Gross annuity income (R1 000 000) | Taxable portion (R1 000 000) |
Clientele life* | G |
2.35 | 5 ; 9 | R 570.90 | R 88.66 | R 5 888.80 | R 940.10 |
Discovery* | G |
3.5 | 5 ; 6 | R 503.61 | R 31.71 | R 5 514.90 | R 632.69 |
A linked policy is defined in the long term Insurance Act of
1998 as: "...a long-term policy of which the amount of the policy benefit is
not guaranteed by the long-term insurer and is to be determined solely by
reference to the value of particular assets or categories of assets which are
specified in the policy and are actually held by or on behalf of the insurer
specifically for the purposes of the policy."
- Income is guaranteed/secured for a five-year term after which the capital
is guaranteed back to the investor.
- * Investor should not have to pay capital gains tax (contact institution
for details)
- Nedgroup Life pay monthly in advance as opposed to other institutions that
pay monthly in arrears.
- VAT on commission has been taken in account for Nedgroup Life
,Sanlam,Investment Frontiers Old Mutual, ABSA.
- The full maturity value of the endowment policy is
payable on death (excluding pre-existing conditions – please see the Discovery
Invest Fact File for details)
- Clientèle Life's Guaranteed Income - Annuity with Capital Guarantee: VAT
is taken into account on the plan and the value will not change for
Vat-payable brokers or non VAT-paying brokers. The initial capital amount is
guaranteed back to the beneficiary when they elect to surrender the policy at
death at any given time during the five years at a different quotation.
Guaranteed Escalator Annuity from Discovery Invest
Initial annual Guaranteed Minimum
Income percentage | Age Next |
56 - 60 | 61 - 65 |
66 - 70 | 71 and older |
Male investors - starting annual guarantee | 3.25%
per
year | 3.50% per
year | 3.75% per
year | 4.25% per
year |
Female investors - starting annual guarantee |
3.00% per
year | 3.25% per
year | 3.50% per
year | 4.00% per
year |
- The Guaranteed Minimum Income is a Rand guarantee given from inception.
- Each year, if the guaranteed unit price of an Annuity Escalator Fund
chosen reaches a new highest value, the Guaranteed Minimum Income will
increase to a new level for life.
- Investors have the flexibility to choose an annuity income of between
2.5% and 17.5%. Certain restrictions may apply in order to maintain the
Guaranteed Minimum Income.
- A comprehensive range of Annuity Escalator Funds are available, each
allowing unlimited market upside potential while protecting against market
downturns.
- The full remaining fund value is paid out on death, ensuring no part of
the investment is forfeited in the event of an untimely death.
For more information, please visit
www.discovery.co.za
Annuity codes
Institute | Annuity code |
Metropolitan | Metquote Codes : FDB63 30DE2 80A03 F0149 |
Metropolitan | Metquote Codes : F43CE 476E5 60F9A F0286 |
Metropolitan | Metquote Codes : 728AA 056F8 B6DFD C0311 |
Old Mutual | Max Income : 39KZAJJJJYJJJJJJHHHHHHHHL4WJYJHJKB2 |
Old Mutual | Ann : 88AMR 3RFGS 93HWH UCF82 |
- All the information in the tables was generated from official quotation packages supplied by the different companies.
- The percentage return for the guaranteed investment plans was determined by expressing the maturity benefit as a percentage of the initial investment amount and may differ from the percentages calculated on the official quotation packages.
- Although great care is taken to ensure accuracy, Moonstone Information Refinery (Pty) Ltd. cannot accept responsibility for any errors and advisors are urged to verify any actual quotation to clients with an official quotation from the financial institution.
- This information is copyrighted by Moonstone Information Refinery (Pty) Ltd. and may not be duplicated without written permission.
For further information or comments please contact us at
info@MoonstoneInfo.com or visit our website
http://www.MoonstoneInfo.com.