Annuity
What is an Annuity ?
An annuity plan is an arrangement whereby Sanlam, in exchange for the purchase price/money, enters into a contract to pay a set amount of money (the annuity) on agreed dates for life or an agreed term. Its purpose? To ensure that upon your retirement, an income for life or for a convenient number of years is streaming in.
You can also arrange for joint life annuity provision which, if required, can be extended to cover your children. Our annuity plans are favourably designed to provide assurance against the possibility of the annuitant outliving the purchase premium.
- Fill out an Annuity Purchase proposal form, which should be submitted to Sanlam together with your National ID and a copy of your PIN certificate.
- Evidence of your existence will be required on an annual basis.
- Annuitants may opt to receive their payments monthly, quarterly, semi-annually or annually.
- You are free to select the level of increasing/escalating installments.
- Installments that increase will be at a fixed percentage each year on an agreed date.
- Escalations are essential to offset the effects of inflation.
- Under the present tax regulations, the first KSh25 000/= of your monthly annuity income is not subject to tax and the remainder is taxed at the Withholding Tax rates.
The Last Expense rider benefit is optional and pays either KSh100 000 or KSh200 000 on a premium from as little as KSh1 200 or KSh3 000 respectively. The payable benefit is given to the beneficiaries of the policy holder in the event of the policy holder’s death to take care of funeral expenses.