Moonstone Information Refinery (Pty) Ltd
Investment Rates

Updated: 18-April-2017Valid until: 21-April-2017

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)
InstitutionNature of Security CAR RatioNotesSecured Return**% Return on investment**Secured Return***% Return on investment***
Clientele life*G 2.328 R 140 911.807.100%R 1 417 690.837.230%
AbsaL 8R 139 650.186.908%R 1 396 501.786.908%
AssupolG 2.358 ; 11R 138 429.646.720%R 1 412 410.307.150%
Discovery*G 3.58R 134 288.146.074%R 1 377 869.596.621%
NEDgroup LIFE*L  8R 129 730.525.344%R 1 365 868.226.434%
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)
InstitutionNature of Security CAR RatioNotesSecured Return**% Return on investment**Secured Return***% Return on investment***
Clientele life*G 2.328 ; 10R 143 029.547.420%R 1 438 971.117.550%
AssupolG 2.358 ; 11R 140 386.307.020%R 1 432 293.767.450%
Discovery*G 3.58R 136 803.376.468%R 1 403 021.857.007%
Liberty Life

G

3.1

8- - R 1 393 889.00 6.810%


  1. 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."
  2. 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.
  3. * 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)
  4. ** Initial investment is R 100,000.
  5. *** Initial investment is R 1 million.
  6. 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.
  7. VAT on commission has been taken in account for Old Mutual Wealth Fixed Investment Bond,Discovery,,ABSA,Sanlam,Clientèle Life,and Liberty Life.
  8. 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)
  9. " 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.
  10. The full maturity value is payable on death (excluding pre-existing conditions - please see the Discovery Invest Fact File for details)
  11. The returns for the Guaranteed-return Single-premium Policy may change during the week. Please refer to Assupol Life for their latest rates.
  12. 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 4 450.48R 4 104.21
MetropolitanR 2 943.32R 4 314.06R 3 861.06
DiscoveryR 2 826.59R 4 233.12R 3 862.92
Old MutualR 2 806.29R 4 234.34R 3 747.63


  1. * Male 60 alb (DOB 01/01/1957)
  2. ** Male and female 60 alb
  3. 0% Tax deducted
  4. Escalation at 5% per Annum
  5. Metropolitan Life Annuity Quotation Line for quotations and information- call 0860 99 00 99
  6. Paramount Life uses the Estate Protect benefit with pattern 50,10,10 to match a 10 year guarantee term
  7. 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

Institution Escalating with 10 yr C&T
equivalent Estate Protect® *
Single Life* with 10 yr C&T
equivalent Estate Protect® *
Joint & Survivor with 10 yr C&T
equivalent Estate Protect® *
Paramount Life (Lower Rate) R 3 194.43 R 4 502.70 R 4 121.26
Paramount Life (Average Rate) R 3 667.87 R 4 967.66 R 4 550.38
Paramount Life (Upper Rate) R 6 929.89 R 9 884.19 R 8 676.85

  1. * Male 60 alb (DOB 01/01/1957)
  2. ** Male and female 60 alb
  3. 0% Tax deducted
  4. Escalation at 5% per Annum
  5. To request an enhanced annuity contact the Paramount Life New Business and Servicing Centre – 086 100 2027 or quotes@paramountlife.co.za
  6. For an explanation of the differences between Estate Protect® and a guaranteed term please visit www.paramountlife.co.za
  7. 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).
  8. For more information on enhancing retirement income go to www.paramountlife.co.za
  9. 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

Institution Escalating 10yrs Certain &
Thereafter* (C&T)
Single Life* 10 C&T Joint & Survivor**
10 C&T
Just Lifetime Income (Low)6 R 3 177.04 R 4 491.17 R 4 012.28
Just Lifetime Income (Med)6 R 3 361.48 R 4 625.85 R 4 093.13
Just Lifetime Income (High)6 R 3 624.23 R 4 808.84 R 4 222.83


  1. * Male 60 alb (DOB 01/01/1957)
  2. ** Male and female 60 alb
  3. 0% Tax deducted
  4. Escalation at 5% per Annum
  5. 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.
  6. 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.
  7. Please see http://www.justsa.co.za/ for more details.


Voluntary Annuity

Comparison of monthly annuity income (R100000 Voluntary, 5 year term certain)
InstitutionGross IncomeTaxable PortionTax Free PortionTaxable Percentage
MetropolitanR 1 919.78R 253.11R 1 666.6713.184%
Old MutualR 1 914.46R 247.79R 1 666.6712.943%


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)
InstitutionNatureSecurityCARRatioNotesGross annuity income
(R100 000)
Taxable portion
(R100 000)
Gross annuity income
(R1 000 000)
Taxable portion
(R1 000 000)
Clientele life*G 2.355 ; 9R 549.74R 82.55R 5 677.60R 877.40
Discovery*G 3.55 ; 6R 478.50R 28.01R 5 267.18R 596.11
NEDgroup LIFE*L  5R 440.93R 33.10R 5 150.69R 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)
InstitutionNatureSecurityCARRatioNotesGross annuity income
(R100 000)
Taxable portion
(R100 000)
Gross annuity income
(R1 000 000)
Taxable portion
(R1 000 000)
Clientele life*G 2.355 ; 9R 570.90R 88.66R 5 888.80R 940.10
Discovery*G 3.55 ; 6R 503.61R 31.71R 5 514.90R 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."
  1. Income is guaranteed/secured for a five-year term after which the capital is guaranteed back to the investor.
  2. * Investor should not have to pay capital gains tax (contact institution for details)
  3. Nedgroup Life pay monthly in advance as opposed to other institutions that pay monthly in arrears.
  4. VAT on commission has been taken in account for Nedgroup Life ,Sanlam,Investment Frontiers Old Mutual, ABSA.
  5. 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)
  6. 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 - 6061 - 65 66 - 7071 and older
     Male investors - starting annual guarantee3.25% 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

    InstituteAnnuity code
    MetropolitanMetquote Codes : FDB63 30DE2 80A03 F0149
    MetropolitanMetquote Codes : F43CE 476E5 60F9A F0286
    MetropolitanMetquote Codes : 728AA 056F8 B6DFD C0311
    Old MutualMax Income : 39KZAJJJJYJJJJJJHHHHHHHHL4WJYJHJKB2
    Old MutualAnn : 88AMR 3RFGS 93HWH UCF82

     
    For further information or comments please contact us at info@MoonstoneInfo.com or visit our website http://www.MoonstoneInfo.com.