0. The funeral plan range

1. goal categories & the rmm solution
Category
Description
RMM solution
Invest
Saving for a future goal
2-IN-ONE Savings 4 my Goal
Retire
Saving to be able to maintain a lifestyle after retirement
Retirement Plan
Death & Disability
Leaving sufficient funds behind to settle outstanding debt and take care of dependants
Pure Life Plan
Life & Disability Plan
Accidental Death & Disability Plan
Paying for a dignified funeral
Funeral Care Plan
Standard Funeral Plan
Comprehensive + Funeral Plan
Education
Saving for a child's education to ensure a brighter future
2-IN-ONE Savings 4 Education
Debt Free
Settling all debt or consolidating debt to ensure greater disposable income
Old Mutual Finance
Household & Car
Ensuring your personal belongings against theft or damage
iWYZE

2. FINANCIAL GOAL: PAYING FOR A DIGNIFIED FUNERAL
Why would your customers need funeral cover?
The costs of funerals are rising because of inflation.
Customers would like to bury a dependent in a dignified manner.
You cant save for a funeral because death it is an unexpected and unplanned event.
Case study

3. FUNERAL PLAN RANGE: DEPENDENTS
What is a dependent child?
A child automatically covered under the Funeral Plan Range is an own child (including stillborn), stepchild or legally adopted child of the policyholder, who is:
Unmarried and under the age of 21
A full time student, unmarried and under the age of 26
A child who is totally dependent on the parents due to physical or mental disability.
A customer will have the option to cover a child not meeting the above criteria under the extended family. If this is done within 3 months from the child's 21st/26th birthday, cover will continue and there will be no new waiting period.

4. FUNERAL PLAN RANGE: DEPENDENTS
When does Old Mutual recognise someone as a spouse?
A person who is married to the policyholder in terms of any law, custom or religion, and shall include a person who is not married but who is living together with the policyholder as a couple.
What is a stillborn?
Must have had 6 months (182 days) of intra-uterine existence. The Money Back Guarantee and double accident cover is not available for stillborns.

5. FUNERAL PLAN RANGE: DEPENDENTS
Who can be covered under extended family?
A maximum of 8 extended family members can be covered any given time. This number may be exceeded with the following people:
Children older than 21/26
Children -in-law older than 21/26
Aunt/Uncle
Brother/in-law
Sister/in-law
Cousin
Niece/Nephew
Grandparents/in-law
Grand children
Additional/ex-spouses

6. FUNERAL PLAN RANGE: DEPENDENTS
Who can be covered under parents?
Own parents
Parents-in-law
Step parents
Step parents-in-law
Adoptive parents
Adoptive parents-in-law
A maximum of 4 parents can be covered any given time.

7. FUNERAL PLAN RANGE: THEORY TABLE
Care plan
Standard Funeral Plan
Comprehensive + Funeral plan
Eligibility
Individual
Single adult family
Family
Parents
Extended family
Minimum entry age (Policyholder) 16
Maximum entry age (Policyholder) 65 54
Maximum entry age (Covered lives) 84
Minimum premium
Determined by age and cover selected
Maximum premium
Minimum term
N/A
Maximum Premium Paying term
Whole life
Until age 65
Theory table

8. FUNERAL PLAN RANGE: THEORY TABLE
Care plan
Standard Funeral Plan
Comprehensive + Funeral plan
Premium increase
Cover/benefit increase
Double accident cover
Paid-up benefits
Terminal Illness Benefit
Cash Back Benefit
Premium Holiday
Family Support Services
Annual increases will be based on CPI. Increases will be on the 1st July each year. Customers should notify OM in writing by the 1st of April for each year where they wish not to include API.
None Expected
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No

9. FUNERAL PLAN RANGE: MAXIMUM COVER
Care plan
Standard Funeral Plan
Comprehensive + Funeral plan
Individual
R50 000
R70 000
Single Adult Family
Family
Stillborn
25% of selected benefit up to a maximum of R3000
Children
Ages 0 – 5
25% of selected benefit up to a maximum of R10 000
Ages 6- 13
50% of selected benefit up to a maximum of R for natural causes and R for accidental causes
Ages 14 and older
100% of selected benefit

10. FUNERAL PLAN RANGE: MAXIMUM COVER
Care plan
Standard Funeral Plan
Comprehensive + Funeral plan
Parents
R50 000
Extended family
R30 000
Maximum aggregate
R70 000
The minimum cover for the Funeral Plan Range is R5000.
R 5 000
R10 000
R15 000
R20 000
R25 000
R30 000
R40 000
R50 000
R60 000 R

11. FUNERAL PLAN RANGE: FEATURES EXPLAINED
Who can be the premium payer for the Funeral Plan Range?
Premiums are payable by stop order from the customer’s pay slip or by debit order from the bank account of:
The customer
The customer’s spouse
The employer of the customer (The employer cannot be the beneficiary if he/she is the premium payer)
What is the Cash Back Benefit? (N/A for the Care Plan)
Standard Funeral Plan: After every 36 premiums received by Old Mutual, a customer will get a cash back amount equal to 2 current premiums.
Comprehensive + Funeral Plan: After every 36 premiums received by Old Mutual, a customer will get a cash back amount equal of 6 current premiums.

12. FUNERAL PLAN RANGE: FEATURES EXPLAINED
How long is the waiting period for the Funeral plan Range?
Waiting period for natural causes death and suicide:
6 months from policy acceptance date.
If a covered life dies due to natural causes or suicide during the 6 month waiting period the Money Back Guarantee applies.
Waiting period for accidental death:
No waiting period. Cover commences from policy acceptance date.

13. FUNERAL PLAN RANGE: FEATURES EXPLAINED
What is the Terminal Illness Benefit? (N/A for the Care Plan)
50% of the benefit will be available after the policy has been in force for at least 10 years if:
Old Mutual’s Chief Medical officer confirms that a covered life is expected to die within 12 months.
The benefit is in a active status.
No previous terminal illness payments was made from the policy.
The claim of this benefit is prior to the death of the life assured.
Please take note: The remaining 50% of the cover will remain active for as long as the customer continues to pay premiums and it will pay out on the death of the covered life.

14. COMPREHENSIVE+ FUNERAL PLAN: EXCLUSIVE FEATURES
Brother: R × 2 = R20 000
4 year old child: R × 25 % = R3750
R 3750 × 2 = R7500
8 year old child: R × 50% = R7500
R 7500 × 2 = R15 000
How does the double accident cover work?
If a covered life dies due to accidental causes under a Comprehensive+ Funeral Plan, double the cover amount will be paid for a valid claim. The double accident cover applies to all covered lives except for stillborns.
The double accident cover is also available when the policy is in a paid-up status.
Example:
James covered is brother under Comprehensive + for R He also covered his family for R He has two children ages 4 and 8.
If any of the people covered in the scenario above should die due to an accident, the following amount will be paid:
Please take note that you first need to calculate the percentage of cover applicable to children according to their ages before you calculate the double cover amount. It is very important to also remember legislative limits for cover on the lives of children.

15. COMPREHENSIVE+ FUNERAL PLAN: EXCLUSIVE FEATURES
Accidental death/disability of policyholder
Natural causes death/disability of policyholder
Policyholder stops paying premiums
Any time after policy acceptance date
After 12 months
At age 65
100% Paid-up
100% Paid-up
100%-Paid-up

16. COMPREHENSIVE+ FUNERAL PLAN: EXCLUSIVE FEATURES
Case study
1. Jane dies after 2 months due to an accident.
The policy will become paid-up and Jane's two sisters will remain covered.
2. Jane dies after 6 months due to natural causes.
The policy will cease.
3. Jane becomes disabled after 2 years due to natural causes.

17. Age Adjustment- background
Age adjustment calculations account for the bulk of the mailbox volume of work managed in Product Support.
The average was 2000 per month, for the 2015 year and similar volumes have been received for These calculations are done manually.
The manual intervention impacts customer experience negatively as payments cannot be made immediately but need to be referred to Product Support for calculation of the revised cover amount.

18. Age Adjustment- background
Impact of age adjustments on Customer Experience
Reduced cover paid at claim stage compared to expectations
Delay in payment
Customer unhappiness and complaints needing explanations for the difference in payment received
Reputational impacts

19. 2. What is age adjustment?
Premium rates are determined using the age of lives covered at date the benefit is purchased.
Where dates of birth as captured, differ from validated ID numbers, the premiums for the relevant benefits have to be recalculated to determine the correct cover amount that would have been purchased (with the premiums actually paid).
Errors in age are usually identified at claim stage. This will impact on the customers’ expectations of their benefit payment
Refer to D12 in the Rate Book- Age Adjustments
When, at claims stage, we find that the age of the life assured has been misstated on the application form, we will adjust the benefit where appropriate.

20. 2. What is age adjustment? 1.Other scenarios requiring adjustment are:
Where the life assured relationship differs to the policyholder, e.g. a Parent could be an Elder;
In this scenario, the elder should be covered under the extended family benefit and not the parent cover.
Page 119 of the adviser workbook covers the definitions of both the extended family and parent.
Where the maximum entry age of 84 years is exceeded – in this instance a refund of premiums is paid instead of the cover amount purchased.

21. 3. What actions advisers can take
To make sure that the Age captured is correct:
Ask the customer to provide some form of identification/ a copy of:
ID document or
Drivers licence
If this is not possible, ask the customer to verify the ID number with the life covered. Hold off on submitting the business until the life covered age can be verified.
Explain to the customer the consequences of not capturing the correct age.
Example of possible impacts for the customer
Reduced cover paid at claim stage compared to expectations
Delay in payment

22. Scenario 1:
Thandi would like to cover her mother under the funeral care plan.
When asked about her mother’s date of birth, Thandi responds with “I think it’s the 21st of January… (54 years old)”. Thandi seems hesitant. Thandi further requests R cover which amounts to a premium of R193
Thandi’s mom passes away 10 years later and Thandi goes to customer service to make a claim. Thandi is asked to provide Identity document of her mom. The ID states that Thandi’s mom was born the 21st January (makes her mom 56 years at date of issue-2 years older)... The premium should have been R239.
The rule states:
4. Test your understanding with these Scenarios to better understand the implications of capturing the incorrect age (based on June 2016
When, at claims stage, we find that the age of the life assured has been misstated on the application form, we will adjust the benefit where appropriate.

23. The cover for Thandi’s mother will be adjusted according to the premium due at issue.
a. Discuss what impact this might have on Thandi
b. Discuss how this could be avoided
4. Test your understanding with these Scenarios to better understand the implications of capturing the incorrect age (based on June 2016

24. Scenario 2:
Nelly approaches a financial adviser and requests to cover her father. She would like to cover him under the Standard Funeral Plan. Nelly states that her father is 76 years of age and she would like R cover, which amounts to a premium of R460
Nelly’s father passes away 6 years later and Nelly goes to customer service to make a claim. Upon a request to prove insured…. (That this is nelly’s father/parent) Nelly explains that this is actually an elder/uncle not her actual father, but he raised her as his own.
According to the definitions Nelly should have covered him under the extended family plan and not the parent cover, due to the difference in rates, the premium at issue should have been R608, the cover needs to be adjusted accordingly.
4. Test your understanding with these Scenarios to better understand the implications of capturing the incorrect age (based on June 2016

25. a. Discuss what impact this might have on Nelly b
a. Discuss what impact this might have on Nelly b. Discuss how this could be avoided
4. Test your understanding with these Scenarios to better understand the implications of capturing the incorrect age (based on June 2016

26. Scenario 3:
Mzi sets up an appointment with you to make provision in the event of death of his uncle. Mzi says his uncle is quite elderly and at the age of 82. Mzi says he feels he needs to cover his uncle as soon as possible and wants the comprehensive plan of R which amounts to a premium of R473
Mzi’s uncle passes away 9 years later and Mzi proceeds to make a claim. Upon providing his uncles information, it is discovered that Mzi’s uncle was 85 at the date of policy issue.
According to the Funeral plan rules (page ), Mzi’s uncle exceeds the maximum entry age of 84. Mzi’s uncle should not have been able to take funeral cover.
Mzi will receive a refund of all the premiums that he has paid into the policy.
4. Test your understanding with these Scenarios to better understand the implications of capturing the incorrect age (based on June 2016

27. a. Discuss what impact this might have on Nelly b
a. Discuss what impact this might have on Nelly b. Discuss what impact this might have on Old Mutual c. Discuss how this could be avoided
4. Test your understanding with these Scenarios to better understand the implications of capturing the incorrect age (based on June 2016

28. a. Discuss what impact this might have on Nelly b
a. Discuss what impact this might have on Nelly b. Discuss what impact this might have on Old Mutual c. Discuss how this could be avoided
4. Test your understanding with these Scenarios to better understand the implications of capturing the incorrect age (based on June 2016