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Capital
Accumulation Plan The Cannon Accumulation Plan is exclusively for the high level saver: It must be stressed immediately that the Cannon Capital Accumulation Plan is not for everyone. It was specifically designed by Cannon Assurance to meet the needs of particular individuals - including those who, for one reason or another are not fully insurable. By its very nature it is restricted to the man or woman who is prepared to invest at least Shs.1,000/= per month. It offers the high level investor, a number of things. Secondly, excellent growth prospects through the unit linked investment. Thirdly, a tax efficient method of savings to accumulate capital. And fourthly, a nominal life cover equal to five times your Annual Contribution subject to a limit of Shs. 200,000/= What you might reasonably expect from Cannon Capital Accumulation Plan:
You are aged 45 and agree to invest Shs.1,000/= each month. Your main benefits: 1. At certain annual rates of Unit growth, the plan's cash value and profit element would be:
Bear in mind that the cash value of the plan cannot be guaranteed since it will directly reflect the perfomance of the Unit Account. 2. Tax - free cash value: The cash value figures shown above are entirely tax free no matter how high your level of taxation. 3. Immediate Life Cover of Shs.60,000/= (five times your annual contributions) 4. Minimum guaranteed cash value of Shs.300,000/= after 20 years. How the plan works - Contributions and investments You contribute a regular amount each month or less frequently. Cannon Assurance invests from 50 to 90% of each contribution rising to100% after 10 years. In the first years about 50% is invested. Units are quoted with only one price every month. Your personal illustration will show precisely how much is invested, how much you can expect by way of cash value as the valuable life insurance and other benefits. Cashing In You can cash in any time without any penalty whatsoever. But this is not available during the early years of the plan as the value would be small owing to lower allocations to the unit account (this is to cover the Company's initial marketing and administrative expenses) and also because there has been insufficient time for growth to occur. Temporary Financial Difficulty If you run into a period of temporary financial difficulty, your Capital Accumulation Plan will not be affected for one full year from the date of an unpaid premium. Your life assurance will stay in force and your investment will remain in the Account. When the temporary difficulties have passed within the year you simply bring your plan up to date with a late payment fee and the plan continues in perfect order. This benefit applies after the first three years' premium has been paid. In the event that you are not able to continue paying, the plan can be made paid up and your savings can continue to benefit fully from investment perfomance. How is your money invested: The bulk of each contribution is invested in the Company's Policy Value Account. This Account was created in 1974 and each unit in the account at that time was valued at Shs.100/=. As at 31-12-2001, the unit price was valued at Shs. 595.65, showing a growth of over 590%. The Company's policy value account contains a mixture of Equity, Treasury Bonds/ Bills, Bank Deposits and property. The Investment Committee is always on the lookout for opportunities provided by the ever changing economic circumstances. The accounts investments policy is designed to achieve stable and steady growth throughout the life of the plan. An important point to remember about Equity and Property is that whilst values can go down as well as up, experience shows that the long term trend has always been upwards. For further information
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