Single Premium Retirement Annuity

This is a product that can be used to transfer a lump sum from an existing RA or pension fund.

These are policies where the policy owner/payer has a lump sum to invest. These investments must be in excess of the minimum of P 1000.00 and for a minimum period of five years.

Such investments could be transfers from other pension funds into Botswana Life single premium retirement annuity (SPRA),

Features

A lump sum investment where there is no life cover.

Benefits

• Low Management Charges
• Tax effective, if paid from gross income
• Tax effective if the funds are transferred from an existing pension fund

Premium Calculations

• As per premium calculation section

Limitations

• Minimum lump sum is P1,000.00

Special Limitations on SPRA

• You cannot use the policy as security(collateral)
• Minimum lump sum is P1,000.00
• No Surrender Value
• No early encashment
• Retirement between 55 and 70 years of age
• Ill-health retirement available

Retirement Annuity Illustrations

Notes to the Illustrations

The Estimated Cash Values shown are not guaranteed and are calculated based on a policy term, in whole years, which is equal to the retirement age less the age next birthday at commencement.

The pension is based on a male single life and would be payable from the retirement age, monthly in arrear, for at least the guaranteed period of 5 years and life thereafter.

Female lives would receive a slightly lower pension. The rate of return specified which is required to be earned by the investment portfolio in order to achieve the illustrated cash values is net of tax and charges. In order to achieve a net rate of return of 12.00% pa, the required gross rate of return is 14.8% pa. It should be noted that as a result of continuing inflation in the future, the purchasing power of the benefits illustrated will be less than at the time of effecting the policy.