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Growth Policy

• In terms of current tax legislation,proceeds from endowment policies are paid out net of income and capital gains tax to the policyholder, either on withdrawal or maturity of the underlying investment.
• The insurer assumes the tax liability on the investment growth accrued over the policy term.
• Accordingly, the rate and maturity value quoted to the policyholder are presented net of such taxes.
• Potential policyholders must seek their own legal or tax advice to confirm how the tax treatment may apply to them. Income Policy •In terms of the Income Tax Act, tax is payable in the hands of the policyholder at their marginal tax rate. The insurer is obliged to deduct income tax from the taxable portion of the income policy, should this amount be above the tax threshold, and pay this over to the South African Revenue Services.
• Potential policyholders must seek their own legal or tax advice to confirm how the tax treatment may apply to them.