Calculate my pre-tax rate Build my fixed outcome
Yes, the Fixed OUTcome Endowment is a fixed-term investment with a 5-year investment policy that invests in a 5-year fixed deposit.
It's best to invest with the intention of not withdrawing early, as withdrawals are limited by regulation. You are only permitted one partial or one full withdrawal over the first 5 years. If you withdraw early it's unlikely your investment would be equal to the maturity value shown during sign-up.
The proceeds of the investment will count towards estate duty (payable to the government). The good news is that, if you specify beneficiaries, the proceeds won’t be eligible for fees charged by executors to wind up the estate – these can be as high as 4%.
You can specify the percentage split allocation to your beneficiaries and in the event of your death, they could be able to access the proceeds within days.
The policy benefits to be paid to the beneficiaries will be based on the market value of your fixed investment policy at the time of death. The rights of a security cessionary have preference over any rights of a beneficiary, as long as the security cession is noted by the Administrator.
If no beneficiary is noted on the policy, the proceeds will be paid to the estate of the policyholder.
Our Fixed OUTcome Endowment differs from other fixed investments in that the return you get is after all taxes and fees have been deducted.
We only accept a single Investment contribution to be made at the outset of the policy. If you wish to make further investment contributions then you will be required to open a new investment policy.
Like any fixed investment, there is always some degree of fixed investments risk. In the context of the Fixed OUTcome Endowment, risk means that should the bank at which your investment contribution is invested default on a payment to the insurer, you will lose some or all of your investment contribution and policy benefits.
However, our fixed term investments are invested with a reputable South African bank in order to minimise this risk.