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SPECIAL INVESTMENT PLAN
This policy will offer an individual the opportunity to set up a retirement fund, which is not only inflation friendly but offers life assurance protection.
Don’t take chances, guarantee your retirement income.
We will all retire from active employment later in life and with retirement often comes diminished capacity for self-maintenance if adequate provisions have not been made.
Advances in medical science and health facilities have increased life expectancy. The most convenient way for people to meet the economic problems of old age and provide financial security for themselves and their families is by purchasing for themselves supplementary Private Pension Schemes (SPECIAL INVESTMENT PLAN).
BENEFITS OF THE PLAN
Cushions the client financially by providing the person with substantial cash payment on retirement;
Guarantees the client and the family total protection of life assurance. In other words, should the client die even a day after the policy becomes operational, the person’s estate will receive a guaranteed life sum;
Policy Loans may be granted once the policy acquires cash value. A plan may gain cash value two years after becoming effective. However, policy loans may not exceed 80% of the cash value of the plan. Furthermore, Provident Life Assurance Company will not impose any interest on policy loans debited to the assured’s account; and
Can be hedged against inflation
The S.I.P provides the following benefits summary:
A. Financial Security at old age
B.
Financial Security to the family on untimely death
C.
Protection against the effects of inflation on your investment
D. Capital accumulation through monthly savings.
E. Easy access to policy funds
F. Flexible Premium contributions
HOW DOES THE PLAN WORK
At the start of the contract, the client determines how much money he can conveniently contribute monthly i.e. 5 or 10% of monthly salary.
This contribution will purchase a correspondent death benefit (sum assured) of several multiples of the monthly contribution.
Monthly Premium Contribution |
Sum Assured
(Life Cover) |
GH¢5.00 |
GH¢600.00 |
GH¢10.00 |
GH¢1,200.00 |
GH¢20.00 |
GH¢2,400.00 |
GH¢30.00 |
GH¢3,600.00 |
GH¢40.00 |
GH¢4,800.00 |
GH¢50.00 |
GH¢6,000.00 |
Each Monthly Contribution is allocated into a high interest yielding account. The money in this account is invested by the purchasing of bonds, shares and stocks, Government paper, mutual funds etc, which eventually hedges against inflation. Each year, the yield on the total fund is allocated to each members account on a compound interest basis.
DEATH OF THE CLIENT
Should the client die before retirement age, the following would occur; the client’s family would
either receive the assured amount at death or the accumulated sum of the money contributed into this special account provided such accumulated fund on the member’s account is greater than the sum assured, the greater amount is payable.
RETIREMENT OF THE CLIENT
At retirement age, the total amount plus all compound interest accrued to the account which would have grown in line with inflation is payable as lump sum. Alternatively, 50% can be received in cash and 50% to purchase a life annuity to provide the member with an income for the rest of his life.
ANNUITY PAID-OUT [ MONTHLY INCOME PAYMENT]
The Provident Life Assurance Co. Ltd. undertakes in favour of the Annuitant to pay the Annuity Benefits described below:
SETTLEMENT OPTIONS
The contracts proceeds payable prior to the Annuity Date, at the Annuity Date and at Retirement of the Annuitant may be any of the following.
We will pay you the 50% accumulated value on the annuity date.
You may request the other 50% Accumulated value to be applied to any of our settlement options.
If no election has been made by the Annuitant’s death, the Beneficiary may then make an election within one year.
PERMANENT PERSONAL DISABILITY
It is possible to incorporate permanent personal disability protection in the plan.
PORTABILITY AND FLEXIBILITY OF THE SCHEME
The structure of this scheme is so flexible that it allows for increases in contribution amounts as and when necessary. Because the accounts are set up in each individual member’s name, any individual can transfer his account when he moves to a new employer.
WHO SHOULD CONSIDER THE SPECIAL INVESTMENT PLAN (S.I.P)?
i. Everyone between the ages of 18years and 55years and gainfully employed.
ii. Anyone who wants an unstructured premium payment with flexibility.
iii. Anyone who wants to build cash values which will be inflation sensitive and give high returns on investment.
WHAT IF DEATH OCCURS BEFORE RETIREMENTS?
Because S.I.P has Life Insurance cover, your estates will receive the guaranteed live cover.
WHEN IS THE BEST AGE TO START?
Now, the earlier you start investing, the greater your return. A delay of even a year can substantially reduce the cash sum you will receive at retirement. Even if retirement still seems a very long way off, the best time to start is now. |
