discovery guaranteed return plans · tax all tax on the guaranteed income plan is taken into...

GUARANTEED RETURN PLANS

DISCOVERY

CONTENTSGUARANTEED RETURN PLANS

You have to invest for a minimum of five years. See when you can access your money, and if you need to withdraw earlier.

Tax efficiency for individuals who have an average tax rate of 30% or more.

At the end of the five-year term, you will be able to reinvest the proceeds of your investment.

Your returns and income can be guaranteed.

Our Guaranteed Return Plans are five-year investment plans that give you peace of mind from knowing exactly what your investment will be worth at the end of the five-year period. You can choose from two Guaranteed Return Plans: the Guaranteed Growth Plan and the Guaranteed Income Plan, for a minimum investment contribution of R60 000. These are low-risk investments that are well-suited for volatile times.

Features of a Guaranteed Return Plan

WHAT IS A GUARANTEED RETURN PLAN?

Read the Guaranteed Return Plan

Fact File relevant to your investment

GUARANTEED GROWTH PLAN

AT A GLANCE

The Discovery Guaranteed Growth Plan is an endowment plan that provides a guaranteed return on your lump-sum contribution at the end of a five-year term.

At the end of this fixed term, your lump-sum contribution, grown at the guaranteed growth rate, will be paid to you. This is called the guaranteed maturity value. The guaranteed return and the guaranteed maturity value you will qualify for are shown on your policy schedule and are after allowing for all taxes, fees and commissions.

You must remain invested for the full five-year term to receive the guaranteed maturity value.

We could pay your investment’s full guaranteed maturity value to your beneficiaries. Certain conditions apply. You can read more about what happens to your investment if you die.

UNIQUE INVESTMENT PROTECTION ON YOUR DEATH

Medium term Long term To retirement

MINIMUM INVESTMENT AMOUNTS

R60 000

INVESTMENT GUARANTEES

Guaranteed return at the end of five years

TAX

All tax on the Guaranteed Return Plan is taken into account in the guaranteed maturity value.

FEES

Financial adviser fees

READ THE RELEVANT FACT FILES FOR DETAILS OF:

The impact of withdrawing before the investment term

How the fees work

Protection during the guarantee period

INVESTMENT TERM



Medium term Long term To retirement

You will receive a regular income throughout the investment. The guaranteed growth portion is available at the end of five years.

MINIMUM INVESTMENT AMOUNTS

R60 000

INVESTMENT GUARANTEES

Guaranteed return at the end of five years

Guaranteed regular income

TAX

All tax on the Guaranteed Income Plan is taken into account in the guaranteed maturity value and guaranteed income.

FEES

Financial adviser initial fees

READ THE RELEVANT FACT FILES FOR DETAILS OF:

The impact of withdrawing before the investment term

How the fees work

Protection during the guarantee period

GUARANTEED INCOME PLAN

The Discovery Guaranteed Income Plan provides you with a guaranteed return and a guaranteed regular income on your investment for five years.

When you invest in this plan, you need to decide how much you want to invest to give you a guaranteed return at the end of five years, and how much you want to set aside to provide you with a guaranteed regular income for five years.

YOUR INVESTMENT WILL BE SPLIT INTO TWO PARTS:

Part 1: Growth portion

We will give you a guaranteed amount at the end of five years. This is known as the guaranteed maturity value.

Part 2: Income portion

We will give you a guaranteed regular income for the five years through a voluntary annuity. When you start your investment, you may also choose to have a level income over the five years or for your income to grow at 5%, 10%, 15% or 20% each year.

We could pay your investment’s full guaranteed maturity value to your beneficiaries. The guaranteed regular income from your plan could be paid to your beneficiaries until the end of the five-year investment term. Certain conditions apply. You can read more about what happens to your investment when you die.

UNIQUE INVESTMENT PROTECTION ON YOUR DEATH

INVESTMENT TERM



FEES TO DISCOVERY INVEST

Any fees payable to Discovery Invest under this contract

have already been taken into account in the guaranteed

rate offered.

FEES TO THE INVESTMENT MANAGER

This investment has no fees payable to the investment manager.

FEES TO YOUR FINANCIAL ADVISER

You may pay an upfront financial adviser fee.

THERE ARE CERTAIN FEES THAT APPLY TO OUR GUARANTEED RETURN PLANS

FEES FOR YOUR INVESTMENT

Refer to the relevant Fact File for more information about all fees.



This brochure is meant for information purposes only and should not be taken as financial advice.

For tailored financial advice, please contact your financial adviser. Discovery Life Investment Services (Pty) Ltd: Registration number 2007/005969/07, branded as Discovery Invest, is an authorised financial services provider. All life assurance products are underwritten by Discovery Life Ltd. Registration number: 1966/003901/06. An authorised financial service provider and registered credit provider, NCA Reg No. NCRCP3555. Product rules, terms and conditions apply.

Discovery Invest

www.discovery.co.za

GM_55737DI_20/11/2018_V10

READ THE RELEVANT FACT FILE AND SPEAK TO YOUR FINANCIAL ADVISERThe details of the features we offer are set out in the relevant Fact File at

Speak to your financial adviser to help you make informed decisions about your investments. If you don’t have a financial adviser, you can contact our call centre on 0860 67 57 77.

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If you need to withdraw your money before the end of the five-year term, the amount you will receive is not guaranteed. You will receive the adjusted market value of the underlying assets that we used to provide the guaranteed return at the end of five years. This adjusted market value changes from week to week. It will depend on how long you have been invested in the Guaranteed Return Plan, the market conditions at the time of your withdrawal as well as the costs and commission incurred when setting up your policy.

The balance of the money (i.e. surrender value minus restricted maximum payment) will remain in the investment until the end of the five-year investment term. The guarantee will fall away once the investment is surrendered.

The Guaranteed Return Plans are structured as five-year products and it is recommended that you remain invested for the full term. The guaranteed payout at the end of five years from the endowment plan, shown on your policy schedule, only applies if you are still invested in your Guaranteed Return Plan at the end of the term.

LINKED PAGESACCESS TO YOUR INVESTMENT WITHIN THE FIVE-YEAR TERM



THIS IS HOW TAX WORKS

All tax on the endowment policy is taken into account in the rates and income provided by Discovery and shown on your policy schedule. If there are any changes to legislation or the tax treatment of these policies, we reserve the right to amend your guaranteed rate or income levels.



OPTIONS AVAILABLE AT THE END OF THE FIVE-YEAR TERM

At the end of the five-year term, you will be able to reinvest the proceeds of your Guaranteed Return Plan in any investment options made available by Discovery Invest at the time. Alternatively you may withdraw your proceeds in full.

Discovery Invest will send you a letter which will explain the options available to you. The proceeds of your investment will remain within the endowment policy and invested in a cash-holding account until you inform Discovery Invest of your decision.



WHAT HAPPENS TO YOUR INVESTMENT WHEN YOU DIE?

Guaranteed Growth Plan

If the life assured dies before the end of the five-year investment term, an amount equal to the guaranteed maturity value reflected on your policy schedule will be paid to your beneficiaries, provided the life assured is younger than age 70 at the time of their death. The policy will then end and no further amounts will be paid. If you, the policyholder, have not nominated a life assured on your application form, the death benefit will apply on your death.

The death benefit will not be payable:

If you, the policyholder, or the life assured is younger than 14 years of age at the inception of the policy

If the death is as a result of any pre-existing conditions, physical defects, illnesses, bodily injuries or diseases that you, the policyholder, or the life assured (whichever is applicable) has suffered from, was aware of, or received medical treatment or advice for during the three years before the commencement date of the policy

If the death is a result of suicide within the first two years after inception of the policy

If you, the policyholder, or the life assured (whichever is applicable) is aged 70 or older at the time of death, your beneficiaries or estate will receive the lump-sum contribution accumulated at the guaranteed return shown on your policy schedule to the date of death.



WHAT HAPPENS TO YOUR INVESTMENT WHEN YOU DIE?

Guaranteed Income Plan

If the life assured is younger than 70 and dies before the end of the five-year investment term, an amount equal to the guaranteed maturity value of the endowment portion of the policy will be paid to your beneficiaries, with no further payment at the end of the five-year term.

The income from the voluntary annuity will be paid to your beneficiaries until the end of the five-year term and will not be paid as a lump-sum amount (commuted). Only the amount allocated to the guaranteed component of your five-year Guaranteed Income Plan qualifies for a death benefit. If you, the policyholder, have not nominated a life assured on your policy schedule, the death benefit will apply on your death.

The death benefit will not be payable:

If you, the policyholder, or the life assured is younger than 14 years of age at the inception of the policy

If death is as a result of any pre-existing conditions, physical defects, illnesses, bodily injuries or diseases you, the policyholder, or the life assured (whichever is applicable) has suffered from, was aware of, or received medical treatment or advice for during the three years before the commencement date of the policy

If the death is a result of suicide within the first two years after inception of the policy

If you, the policyholder, or the life assured (whichever is applicable) is aged 70 or older at the time of death, your beneficiaries or estate will receive the amount allocated to the endowment policy at the start of the policy, accumulated at the guaranteed return reflected on your policy schedule to the date of death.



ADVISER

ADVANTAGES OF USING A FINANCIAL ADVISERTHINGS TO DISCUSS WITH YOUR FINANCIAL ADVISER

Longevity

We’re living longer – and that has changed traditional retirement practice. A potentially longer retirement timeline means that you need to save more money and that you need to invest your money differently in the years leading up to retirement.

The unpredictable nature of markets

Markets are unpredictable. They can go up one day and down the next. These market changes are risks to your investment because if you have to withdraw your money while there is a market downturn, you might lose money on your investment. When you have a longer investment horizon you can afford more risk, but as retirement approaches you need to consider moving money to lower-risk investments.

The impact of inflation

Inflation is the rise in the cost of living. This means you will pay more for the same goods and services tomorrow than you do today. When you are investing for your future, it’s important that the money you invest grows at the same or higher rate than inflation.

Compound interest

Because of compound interest, the more time you have available to invest, the greater your benefits will be in retirement.

Diversifying

It’s important to spread your investments among different asset classes, such as equities (shares), bonds, property and cash. This will ensure that your risk is spread – so if one asset class performs poorly, the value of your other investments can make up for this. How much risk you can afford to take

Your investment strategy starts with understanding your attitude to risk. Generally, the higher the potential risk of an investment, the higher the potential return. Different asset classes like cash, bonds, property and equities have different levels of expected risk and return; cash has low levels of expected risk and return, while equity has high levels of expected risk and return.

Knowledgeable about managing money

Financial advisers are qualified in financial planning and can help you decide on – and keep track of – your investment goals, savings strategies and retirement options.

High standards of competence

To give expert financial advice, financial advisers need to meet certain standards of competence, including professional qualifications, passing regulatory examinations and undergoing training.

Licensed to sell certain products

We only allow financial advisers who are registered with the Financial Sector Conduct Authority (FSCA) to sell you specific financial products. They are required to have extensive knowledge of the product they are recommending to you, and they must be competent (professional and skilled) in the financial advice they provide.

Objective advice

Our code of conduct for financial advisers is strict: our advisers must be able to give clients objective advice about the products they buy so that they can make informed decisions. It’s essential that clients’ best interests are at the heart of everything our advisers do so they must avoid or disclose any conflicts of interests. At the core of everything is treating clients fairly.



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