Scribd Logo
Upload

Welcome to Scribd!

  • Capital Protection - P27&P28

    Uploaded by

    ONONO KASEMBA
    6 views1 page
    A capital protection plan provides guaranteed lifetime income and a death benefit for life. It works by using part of the annuity payment to purchase a whole life insurance policy. The remainder is paid out as guaranteed monthly income. There are two options: Plan 27 provides lifetime income and guarantees the original purchase amount to beneficiaries upon death. Plan 28 also provides lifetime income but the death benefit decreases gradually after a chosen cover term of 10-20 years. Both options allow the monthly income to remain level or increase at a chosen percentage annually.

    Original Description:

    C

    Original Title

    Capital Protection_ P27&P28

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    A capital protection plan provides guaranteed lifetime income and a death benefit for life. It works by using part of the annuity payment to purchase a whole life insurance policy. The remainder is paid out as guaranteed monthly income. There are two options: Plan 27 provides lifetime income and guarantees the original purchase amount to beneficiaries upon death. Plan 28 also provides lifetime income but the death benefit decreases gradually after a chosen cover term of 10-20 years. Both options allow the monthly income to remain level or increase at a chosen percentage annually.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    6 views1 page

    Capital Protection - P27&P28

    Uploaded by

    ONONO KASEMBA
    A capital protection plan provides guaranteed lifetime income and a death benefit for life. It works by using part of the annuity payment to purchase a whole life insurance policy. The remainder is paid out as guaranteed monthly income. There are two options: Plan 27 provides lifetime income and guarantees the original purchase amount to beneficiaries upon death. Plan 28 also provides lifetime income but the death benefit decreases gradually after a chosen cover term of 10-20 years. Both options allow the monthly income to remain level or increase at a chosen percentage annually.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    Capital protection Plans – P27 and P28

    At retirement you will be faced with various options and products that will enable you to provide an
    income while enjoying your golden years. A capital protection plan will provide you with a guaranteed
    income as well as a death benefit guaranteed for life. Tax: TAX
    Return
    Structure The full gross instalment
    is taxed before being split
    between a premium for the life
    policy and income to the annuitant.
    A nil-year-certain life annuity: Funds the A whole life policy: Provide a death benefit The life annuitant receives a tax certificate
    premium on a whole life policy with the balance payout to beneficiaries at death of the annuitant. for the full gross instalment.
    used to provide a guaranteed income for life. Any change in the tax rate, or changes to
    tax rebates will bring about an associated
    change in the net income.
    Capital protection Option: Whole Life Capital Protection Option:
    (Plan 27): Chosen term (Plan 28): Don’t forget
    Income: Income:
    The life annuity always has a nil-year certain
    Guaranteed income for life. Income guaranteed for life. term and is always a single life annuity.
    Income can be level or increase by a chosen Income can be level or increase by a The product is only available for compulsory
    percentage annually chosen percentage annually. money.
    Life cover: Life cover:
    Original purchase sum is guaranteed at death. Death benefit equal to purchase sum –
    The life cover is guaranteed for life. guaranteed for the chosen level cover term. In a Nutshell:
    Premiums for the whole –life policies are equal At end of level cover term, the death benefit A Single-life, Nil-year certain
    to the risk premiums – no other costs are decreases by 10% per annum. term annuity is bought.
    deducted. The death benefit will never decrease to below A portion of the life annuity
    As cover becomes more expensive, the 25% of the initial death benefit. provides an increasing
    premium of the policy increases. Premiums of the whole life policy will remain instalment which funds the
    The life annuity component that funds this level for life. premiums for the whole life policy.
    premium will provide the increasing life annuity Level cover terms: The balance provides an instalment that is
    that will fund the premium. paid each month as a monthly income to the
    Any term from 10 up to and including 20 years life annuitant.
    may be chosen. This income can be level or increase at a
    chosen percentage.

    LICENSED FINANCIAL SERVICES PROVIDER


    Educational
    V1110 RB 11/2009

    You might also like