The LifeCycle Life Defined Growth Investment Policy is a long-term, investment-linked life endowment policy designed to help you grow your savings in a tax-efficient and secure way. If you’re comfortable with a fixed five-year term, want predictable returns, and seek liquidity outside your estate, this policy may be the right fit for you.

Key Benefits:

• Fixed 5-year investment term for stability and growth.
• Secure investment in a low-risk portfolio.
• Tax-efficient structure with returns paid out free of tax in your hands.
• Estate planning benefits, ensuring direct payouts to beneficiaries.

How It Works:

• You invest a lump sum for a fixed term of 5 years.
• Minimum investment: R100,000.
• No additional contributions allowed, but you can take out multiple policies.
• Upon maturity, you receive a lump sum payout.

Where Your Money is Invested:

• Funds are placed in a King Price investment policy, offering a low-risk profile.
• Investment exposure is limited to King Price, major South African banks, international banks with a minimum credit rating of A, and South African government bonds.

What Happens at Maturity?

• You can cash out your policy benefits or reinvest into a new 5-year policy.

Accessing Your Money:

• One withdrawal allowed during the 5-year period.
• Maximum withdrawal: The lower of:
• Your initial contribution plus 5% compound interest per year, OR
• The market value of your investment minus fees and taxes.

What Happens When You Pass Away?

• Your nominated beneficiaries receive the payout directly.

Tax Considerations:

• The policy benefits are not taxable in your hands. Any tax that may be due by LifeCycle Life in respect of the policy is deducted and paid to SARS.

Policy Restrictions:

• Cannot be ceded as security for a loan.
• No loans allowed, but one withdrawal is permitted.
• Policy ownership can be transferred to another natural person or special trust.

This policy is ideal for investors looking for:

• A secure, fixed-term investment with predictable returns.
• Estate planning advantages, avoiding delays and executor fees.
• Tax efficiency, with no tax on personal returns.
• Low-risk exposure, invested with King Price and leading banks.

 

• Upfront policy fee: 2.35% (incl. VAT) of your lump sum investment.
• Upfront advisor fee: Negotiable (capped at 3.00% excl. VAT).
• No ongoing fees: All charges are deducted upfront, so your money grows without additional costs.

1. Get a Quote

• Ask your financial advisor to request a quote from LifeCycle Life Limited.

2. Complete the Application

• If you’re happy with the quote, complete the application form.

3. Gather Required Documents

• Valid ID or passport
• Proof of residence
• Proof of banking details
• Income tax number confirmation

4. Submit Your Application

• Email your documents to lifecycle@thecycle.co.za.

5. Make Your Investment

• Transfer your lump sum contribution.

What Happens Next?

• You receive a welcome letter and policy document.
• You get online access to track your investment.
• You receive regular investment statements.