Clientèle Ultimate Foundation Plan

Clientèle Ultimate Foundation Plan

The Clientèle Ultimate Foundation Plan is the first step in building strong foundations for your future. Clientèle recognises that all IFAs need to take care of their families in the event of unforeseen circumstances and at the same time understands that saving is an important part of everyone’s life. So in designing this product for IFAs, Clientèle has added a savings component to the valuable life benefits offered on the plan.

• Entry ages: 18 – 64
• Premium Pay Back Benefit - All Life Foundation premiums paid, are paid back in the event of the natural or accidental death of the Policyholder after a 6 month waiting period. The Premium Pay Back Benefit is forfeited when a policy lapses and starts again after resale.
• Business Fee Pay Back Benefit - All Business Fees paid, are paid back in the event of the natural or accidental death of the Policyholder after a 6 month waiting period. This is calculated from the commencement of the oldest Ultimate Plan and any Business Fees paid prior to the commencement of this plan are excluded. The Business Fee Pay Back Benefit is forfeited when a policy lapses and starts again after resale. Only applicable on 1 IFA policy and should the IFA have more than one Ultimate policy, it will only be paid once.
• Pay Back Benefits at 65 Option - If an IFA is under the age of 50 when purchasing a Clientèle Ultimate Foundation Plan, the IFA has the option to select 50% of the Premium Pay Back and Business Fee Pay Back Benefits to be paid when the Policyholder turns 65. The balance of the premiums will then be paid upon death.
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  • R50,000 Accidental Death Benefit (reduces to 50% at 76 and ceases at 80)
  • R50,000 Accidental Disability Benefit (ceases at 70)
  • R30,000 Dread Disease Benefit (reduces to 50% at 60 and ceases at 70 and excluded pre-existing conditions)
• From the first month 95% of the Savings Foundation premium starts accumulating an investment value, i.e. 95% of R130.
• Earnings Guarantee Benefit - Upon an IFA’s death or total and permanent disability, a lump sum equal to 12 months’ IFA earnings, as per the month prior to the claim event, is paid. In addition, a payment equal to the last monthly earnings earned will be paid for 2 years thereafter.
• Investment Booster provided no claim or surrender has been submitted in the relevant period: For every 60 premiums paid the first 6 months’ Life Foundation premiums will be paid into the Savings Foundation
• Inflation Protection - Built-in annual increases protect your policy from the effects of inflation: Premium increases by 10%. Life Foundation Benefits increase by 6%
• Early Surrender charges In terms of South African law, you may action a maximum of one partial or one full surrender during the first 5 years of the policy. Remember, though, that in order to get the maximum benefit from your investment, you should invest for the full 20 years. This policy has been designed as a long-term investment and early surrenders will have cost implications. Nonetheless, there is no surrender penalty after 120 premiums (10 years) have been paid. An administrative charge (currently limited to a maximum of R500) will still apply.

For example, if you surrender after having paid 85 premiums and at least 85 months have passed since your policy started, your early surrender charge will be 4.5% (you will receive 95.5% of the value of your investment account less the policy surrender administration charge (currently R500).

What Happens If I Want To Surrender My Policy?

A surrender is when you withdraw some or all of the funds from your investment. You may surrender your policy by contacting us on

• 011 320 3000
• encashments@clientele.co.za

It’s very important to remember that this policy was designed as a long-term investment and it is in your best interests to pay the monthly premiums for the whole term on the policy before surrendering. If you choose to surrender the policy before this time, early surrender charges will apply. These charges are used to offset certain upfront costs which become unrecoverable.

FromR260p/m

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• Click here to view the Annual Effective Cost of the Clientèle Ultimate Foundation Plan