NOTE: Numbers are based on rates at time of comparison amounts shown are rounded

Old Mutual
Max Income
Capital Preservation
Benefit
Up to 10% more income
than traditional Capital
Preservation options
Licensed Financial Services Provider
Net Income Comparisons MAX INCOME Capital Preservation Benefit (CPB)
vs Traditional Capital Preservation Option (CPO)
MAX INCOME has been able to maximise the net income after the deduction of tax & the cost of
life cover
Although MAX INCOME CPB gross annuity income is lower than traditional CPO the net income
received is higher
This example illustrates a 7.5% difference in income
60 yr old male, Traditional CPO Max Income CPB
R1m capital
Gross annuity income 7 900 7 100
Less tax (30% assumed) 2 400 2 100
Net of tax income 5 500 5 000
Less cost of life cover 1 800 1 000
Income received 3 700 4 000
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Capital Preservation Benefit
Minimum cover amount is R50 000
May choose Capital Preservation
Benefit equal or lower than capital
investment BUT not higher
No underwriting
Max entry age - 80 yrs
Benefit will cease on death of the
Contracting Party
No loans or withdrawals allowed
from Capital Preservation Benefit
Income For Life
(Life Annuity)
Guarantees an income for
life
Income with Level
Escalation
No Guaranteed Term
option
Single Life only
Income payments monthly
Income from retirement funds
A portion is used to fund
the cost of cover
Licensed Financial Services Provider
When would you make use of the Capital Preservation Benefit
Want to preserve your retirement capital and look after your dependants?
Want to look after your dependants?
Can cover up to the original amount of retirement capital, which pays out to beneficiaries on death
In poor health?
Pays Level Income (maximum initial income) from inception and no underwriting required (no
health loadings!)
Tax efficient convert taxable retirement capital into a lump-sum for beneficiaries free of income
tax
Old Mutual
Max Income
Capital Preservation
Benefit
Guaranteed income and
payout on death
Capital paid out to
beneficiaries free of
income tax
Poor health? No
underwriting required
Income
Lump sum