Guaranteed Investor is a Tax-free, non-participating, interest-sensitive investment product that offers nominal insurance coverage and can be surrendered without penalty at any interest review date. The policy is available for a minimum investment amount of $50,000.

Lump-Sum Payments

The lump-sum deposit is payable on the Issue Date. Additional lump sums are not allowed on the same policy; a new policy will have to be issued.

Life Insurance

The policy provides nominal life insurance. In the event of death, the benefit payable is the aggregate of the sum insured and the surrender value, subject to the provisions of the policy.

 

Tax Status

Where you invest up to $1 million in any one year or $5 million over the first 5 years, it is treated as tax-exempt. During the first 5 years (the taxable period) up to 75% of the earned interest is available tax-free at each Interest Review Period, and beyond the taxable period, 100% of the earned interest is available tax-free. Where you invest more than $1 million in any one year or $5 million over the first 5 years, all interest earned on the excess will be taxable upon withdrawal and surrender.

Interest

The interest rate applied to the lump sum deposit is initially guaranteed for a three (3) months term (the Investment Period) to the end of the term (the Interest Review Date). If the policy is not surrendered at the Interest Review Date, the Principal and interest are reinvested at a new interest rate which is guaranteed for another three (3) months term until the next Interest Review Date. There is no limit as to how often the principal and interest may be reinvested.

Interest Payment

You have the option to receive prescheduled interest payments on each Interest Review Date of up to 75% of the interest earned for the Investment Period. Interest can also be withdrawn before the Interest Review Date, but a penalty equal to 50% of the accrued interest will be deducted.

The Accumulated Fund

The Accumulated Fund of the policy at any date in a policy month will be the value of the Fund at the beginning of the policy month PLUS Interest Earned in the month MINUS Interest Paid.

Taxation

The Company shall withhold from the Accumulated Fund any tax or other levy which the Company is obliged to withhold by law.

Surrender Value

The policy may be surrendered for the Accumulated Fund on the next Interest Review Date, provided that written notification is submitted to the Company within 7 days of this date. If the policy is surrendered at any other time, a surrender charge of 50% of all due since the last Interest Review Date will apply. This interest penalty also applies to policy surrenders done prior to the Interest Review Date. For tax-exempt policies, if the amount withdrawn within the taxable period results in an accumulated fund that is lower than the original deposit, then this will trigger a full surrender for withholding tax is payable. For non-tax-exempt policies, any withdrawal or policy surrender will be subject to withholding tax.

Plan Features:

• Minimal Lump Sum - $50,000

• Tax-Free Allowable Investment - $1 million per annum to a maximum of $5M in a 5 year period

• Tax-Free Investment Period - 5 Years

• Investment Period - 3 Months

• Interest Review Date - Date of Interest Review or rollover of the Principal and/or Interest

• Interest Payments - Up to 75% of the earned interest is available at each Interest Review Period with the remaining 25% added to the principal and continues to earn interest

• Early Encashment - 50% of accrued interest payable since the last review will be paid for encashment made within any review period

• Withholding Tax - Where the original investment is not retained for 5 years then the applicable withholding tax of 25% will apply