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Guardian Life has a history of more than 150 years in sound insurance financial planning. As the recognized leader in product innovation, we have introduced the Lifestyle Personal Pension Plan and its accessory Leading Edge.
Lifestyle Personal Pensions has been designed with several important considerations in mind: to give you the very best of financial and security option and the most effective opportunities available in Trinidad and Tobago today, to enhance and maximise the dollars you send ahead to secure your lifestyle in retirement.
Key Benefits
- Participation in the tax-free investment growth of the Lifestyle Pension Fund.
- Offers the advantage of 100% tax relief on your premium.
- Investments cover a range of possibilities permitting the safety of investment.
- Minimum growth rate of 4.5% per annum on your premium.
The Policy
Lifestyle Personal Pension Plan is a flexible, investment-linked annuity policy which provides funds for the purchase of a retirement pension beginning at any age between 50 and 70 years. At your chosen retirement age, a guaranteed pension is available. However, because your plan enjoys full participation in the investment performance of the Lifestyle Pension Fund, your eventual pension on retirement is expected to exceed this guaranteed accrual.
Should you pass away before retirement, your policy will provide the return of all premiums, or the full value of your client accumulation, if greater.
Retirement Benefits
At your chosen retirement age you have two options. You can take 25% of your accumulation in cash, tax free and use the balance to purchase an immediate annuity at the Company's then current rates or at the guaranteed rates, if better. Alternately, you can use the full accumulated value to purchase an immediate annuity at the Company's then current rates or at the guaranteed rates, if better.
An early start to a well earned retirement is possible with your Lifestyle plan. Provided that your policy has been in force for the last 2 years, the flexibility of the plan allows you to retire at any age other than the one chosen at the outset, granted that the new retirement age is not prior to the age 50 or later than age 70. All of the normal options, apart from the guaranteed annuity purchase rate will then be available to you. The benefits available will be those applicable to the alternative retirement age chosen.
More than just a Tax Benefit
Under current laws, not only do your accumulations in the Lifestyle Pension Fund grow entirely free of tax, but, subject to the statutory limits, all premiums paid are 100% tax deductible. The statutory limit is 1/6 of your chargeable income up to $18,000, inclusive of claims for mortgage interest. If you pay tax currently at a rate of 35% and your monthly premium amounts to $500, your actual net output is only $325 per month. This calculation does not take into account any claims for mortgage interest.
Who qualifies for Lifestyle Personal Pensions?
Persons at least 18 years old at their last birthday may purchase Lifestyle Pensions. The Maximum age limit is 49 years at last birthday.
Premium Payments
The minimum monthly premium is $200. Premiums are accepted in $25 increments above this level. Unscheduled payments of at least $500 are acceptable at any time.
After your client accumulation has grown over the initial 2-year period, should your personal financial situation cause you to consider a temporary break in payments, you may do so and recommence payments at your convenience.
Where does your premium go?
Every year after the first policy year, 100% of your full premium is allocated to the Lifestyle Pension Fund. However, during the first policy year, depending on the level of payments, a portion of the full premium received is retained to meet establishment expenses, thus reducing the portion allocated to the fund.
If premiums are increased, 45% of the increase will be allocated to the Fund in the year of the increase and 100% thereafter,
In the case of unscheduled payment, 95% of the deposit will be allocated to the Fund.
Both regular and unscheduled premiums are allocated to the Fund at a purchase rate of 103% of the then Lifestyle Pension Fund Index.
Free Premium Credits, only from Guardian Life
We have introduced a new concept for annuities in Trinidad & Tobago. On your Lifestyle Pension Plan you can earn additional free allocations to your account - the longer your policy remains in force, the better the return.
After four years premiums have been paid, we will make "bonus" allocations to your client accumulation in the form of special premium credits on your regular premium payments. This benefit could amount to as much as 5% of the regular premium depending on how long your policy has been in force. Increases in regular premiums, but not unscheduled payments will qualify for free premium credits.
An Exciting Investment Opportunity
The Lifestar Pension Fund, our companion investment portfolio has grown impressively since its inception in April 1988. We confidently expect that the Lifestyle Pension Fund, enhanced by its tax-free status, will perform at least as well as the Lifestar Fund. Your eventual returns can be significantly more than that earned by traditional policies which build values only after two or three years.
In any event, the Lifestyle Pension Fund Index is guaranteed to grow at a rate of not less than 4.5% per annum over the life of the policy. It offers an exciting opportunity to make retirement a holiday not a hardship.
Waiver of Premium
This benefit provides for the waiver of premiums payable under a policy during periods of total disablement. No premiums will be waived during the first six months of any period of disablement. This benefit is allowed to employed persons between the ages 18-49 but not for duration of fewer than 10 years.
Benefit and premiums cease on the policy preceding age 60 for men and 55 or women or at the end of the term of the basic policy, if earlier.
