Spotlight on the Sygnia Investment Policy

Whatever your current financial situation, you may still have lingering concerns about how much you are contributing towards your savings. Am I spending too much? Should I be saving more? If that’s the case and you have some disposable income available then you may want to consider the Sygnia Investment Policy.

The Sygnia Investment Policy is a discretionary savings product which enables higher income tax payers to save and invest in a more tax efficient manner. In addition, it can be a valuable estate planning tool, because it allows you to nominate beneficiaries on the investment and your investment can also be ceded as security for debt or commitments.

This product enables you to save and invest in a more tax efficient manner.

Here are the key Features of the Sygnia Investment Policy:

Access to funds: The initial term of the investment is five years, during which you only have two opportunities to access your funds: you are allowed one loan and one surrender. The maximum amount you may access is the lesser of, the premiums you have paid, plus 5% compounded interest, and the market value of the investment amount less fees and charges. After the initial term has expired, you may continue with the investment, which will then have an open term and you may access it in full at any stage thereafter.

Additions to the existing investment: You have the option of increasing your debit order contributions, or making additional ad hoc contributions to your investment. However, if the contribution exceeds 120% of the greater of your previous two annual contributions, your initial period will be extended by another five years and the same restrictions to accessing your funds will apply.

Investment options: The underlying investment instruments can be selected from any of the wide range of investment options available on the Sygnia Alchemy Platform. This includes our Unitised Life Funds and our Hedge Fund Offering. You may switch between investment options at any time and at no extra cost.

Tax implications: All income and growth is taxed within the policy. This means that you will not pay tax at your marginal rate on the income and growth of your investment. Instead, Sygnia is responsible for paying all taxes on the investment at a flat rate. For individual investors, interest and rental income is taxed at a rate of 30%, while capital gains are taxed at a rate of 10% and dividends at a rate of 15%. You will receive the proceeds at the end of the investment term net of tax.

Death benefits: Your death benefit will be the value of the underlying investments at the time of your death. You do have the option of nominating beneficiaries on this investment, but if you have not nominated any beneficiaries, the proceeds will be paid to your Estate.

The Sygnia Investment Policy is governed by the Long Term Insurance Act. The policy is structured as a sinking fund.

ADDITIONAL NOTES

MARISKA REDELINGHUYS

RETAIL LEGAL ADVISOR

Mariska is an admitted attorney, notary and conveyancer. Prior to joining Sygnia, Mariska worked as Fiduciary Specialist with Absa Trust.

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Sygnia Newsletter Sep 2015**

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