The following charges are currently deducted off each premium received before investing in our Smoothed Bonus fund.
| |
% charge (as a % of each Premium) |
Rand fees (per month) |
Investment and Capital charge per year |
| Investment Plan |
11.50% |
R10.55 |
1.75% of fund value |
Reduction in Yield
The Reduction in yield shows the impact that the charges have on the growth of your policy.
| Term (in years) |
R150 |
R200 |
R250 |
R300 |
| 10 |
6.00% |
5.50% |
5.30% |
5.10% |
| 15 |
4.50% |
4.20% |
4.10% |
4.00% |
| 20 |
3.80% |
3.60% |
3.50% |
3.40% |
What does Reduction in Yield tell you?
If the total return earned is 10% and the Reduction in Yield is 3.3%, then the return after charges would be 6.7% (10% less 3.3%). *The 10% return used in this example is not guaranteed. It is just for illustrative purposes only.
- A lower Reduction in yield implies better value for money.
- The longer the term of the Investment Plan, the lower the Reduction in Yield.
- The higher the monthly premiums, the lower the Reduction in Yield.
Past Bonus Rates
Investment returns earned on the Smoothed Bonus Fund are given back to our policyholders in the form of bonuses. Bonus is added to your investment value every year.
| Financial Year |
Total Bonus |
Financial Year |
Total Bonus |
| 1996 |
16.00% |
2004 |
11.00% |
| 1997 |
16.00% |
2005 |
15.00% |
| 1998 |
6.00% |
2006 |
18.00% |
| 1999 |
9.00% |
2007 |
15.00% |
| 2000 |
13.00% |
2008 |
5.00% |
| 2001 |
13.00% |
2009 |
6.00% |
| 2002 |
6.00% |
2010 |
9.00% |
| 2003 |
9.00% |
2011 |
5.50% |
The actual bonus rates declared each year for a similar performing portfolio (after deduction of actual tax and management fees) are shown above. Please note that past investment performance is not necessarily indicative of future investment performance.