RETIREMENT ANNUITY : Retirement annuity is a tax-effective retirement investment vehicle for individuals. You save today so that you can have income in retirement.
RETRENCHMENT PROTECTOR : Pays the monthly cover amount, after the expiry of a 1-month waiting period, for up to 6 months if you are retrenched from full-time employment.
RISKS UNDERLYING A LIABILITY OBLIGATION: These refer to events that might cause an entity to not make good on its liability obligation. Such events usually lead to subsequent financial loss for both the entity and the related third party. Examples of such risks include interest rate risk (the risk that interest rate movements result in a financial loss for the entity), inflation risk (this is the risk that inflation erodes the purchasing power of an entity’s assets) and longevity risk (the risk that individuals live longer than expected and therefore require the entity to make payments for longer in respect of any obligation towards such individuals).
RISK-RETURN PARAMETERS: This refers to the decision making factors an entity needs to consider when assessing the appropriateness of a given investment strategy. These factors are used to assess the trade-off between the expected growth/reward of an asset and the uncertainty around this growth/reward. Risk in this context can be defined in different ways. It usually refers to how volatile (or uncertain) the investment returns of a given strategy are. The higher the risk of a strategy, the higher the expected return of the strategy.