1. The life plan range

2. 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

3. Why would your customers need life & disability cover?
FINANCIAL GOAL: LEAVING SUFFICIENT FUNDS BEHIND TO SETTLE OUTSTANDING DEBT AND TAKE CARE OF DEPENDENTS
Why would your customers need life & disability cover?
Settling outstanding debt in the event of death or disability.
Taking care of dependents financially in the event where the main breadwinner should die or become disabled.
Case study

4. Theory table Life plan range Pure Life Plan Life & Disability Plan
Accidental Death & Disability Plan
Eligibility
Policyholder only
Minimum entry age 16
Maximum entry age 60
Minimum premium
Determined by age and cover selected
Maximum premium
Minimum term
N/A
Maximum term
Whole life
Minimum cover/benefit
R50 000
Maximum cover/benefit R R
Maximum cover/benefit Combined R
Theory table

5. Life plan range Pure Life Plan Life & Disability Plan
Accidental Death & Disability Plan
Premium increase
To be determined by Old Mutual but expected to also be 5%
Cover/benefit increase 5%
Paid-up benefit
Terminal Illness Benefit
Income Assistance Benefit
Cessions Allowed
Cash Back Benefit
Premium Holiday
Family Support Services
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
Yes No
Yes No
Yes No

6. Accidental Death & Disability Plan
Life plan range
Covered events
Pure Life Plan
Life & Disability Plan
Natural Causes
Death
Natural Causes
Death
Accidental Causes
Disability
Accidental Causes
Disability
Accidental Death & Disability Plan
Natural Causes
Death
Accidental Causes
Disability

7. LIFE PLAN RANGE: EXCLUSIONS
Claims will not be paid if the benefit is not valid or if there is evidence of fraud
There will be claims underwriting to investigate fraud and non-disclosure
Death Exclusions
Deliberate exposure to exceptional danger, attempted suicide, self inflicted injury or the insured’s own criminal act.
War, terrorist activities, riots, civil commotion, rebellion or insurrection.
Injury or sickness in respect of which the insured received treatment of any kind during the three year period immediately prior to the date he/she became covered for disability benefits
Disability Exclusions

8. Life plan range: features explained
What is the Terminal Illness Benefit? (N/A for ADDP)
50% of the benefit will be available after the policy has been in force for at least 5 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.

9. Life plan range: features explained
What is a staggered waiting period? (N/A for ADDP)
Earlier in this module you learned what a waiting period is and why it is necessary. Let’s take a look at how waiting periods work when dealing with the Pure Life Plan and the Life & Disability Plan.
On death/disability due to natural causes:
12 months
100% of Cover
6 months
50% of Cover
Money Back Guarantee

10. Life plan range: features explained
On death due to suicide
24 months
100% of Cover
Money Back Guarantee
On disability due to attempted suicide
Money Back Guarantee

11. Life plan range: features explained
On death/disability due to accident
100% of Cover

12. Life plan range: features explained
The Income Assistance Benefit? (N/A for ADDP)
Waiting period
Death due to natural causes
Death due to an accident
Income assistance portion
Remainder of the benefit
Less than 6 months
No Income Assistance Benefit
Money Back Guarantee
10% of Cover up to a maximum of R50 000
90% of cover
More than 6 months but less than 12 months
40% of cover
Equal to or more than 12 months

13. Life plan range: features explained
Waiting period
Death due to natural causes
Death due to an accident
Income assistance portion
Remainder of the benefit
Less than 6 months
No Income Assistance Benefit
Money Back Guarantee
R10 000
R90 000
More than 6 months but less than 12 months
R40 000
Equal to or more than 12 months
Income Assistance activity.

14. Life plan range: features explained
What is a cession? (N/A for ADDP)
In an earlier module you learned that when a customer cedes a policy to a financial institution as security he/she becomes the cedent and the financial institution becomes the cessionary.
Below is an illustration of how a cession works.
When a Pure Life Plan or a Life & Disability Plan is ceded to a financial institution, the waiting period will be waived if:
The financial institution is willing to accept it as security.
It is taken out with a new home loan.
The cession is done within 6 months of taking the new home loan.
Financial institution
Customer
Bond or loan R
Life and/or disability cover
Life and/or disability cover R

15. Life plan range: features explained
When will the benefit cease?
The Pure Life Plan, Life & Disability Plan and Accidental Death & Disability Plan will cease under the following conditions:
Death of the policyholder
Disability of policyholder, if policyholder claims or stop paying premiums because of the disability.
If premiums cease, the Premium Holiday Benefit is exhausted and the grace period used.
If stop order has not started operating 6 months after application
If debit order has not started operating 2 months after signing.

16. Life plan range: features explained
How does the annual premium and cover increases work?
Cover increases annually on 1 July by 5% provided the policy has been in force for more than 6 months.
The premium increase can vary annually but it is expected to be the same as the cover increase. A customer has the option to not pay the increased premium. This would lead to a situation where Old Mutual must amend the cover .
Following below is an example of how the cover will be amended if a customer chooses not to pay the increased premium.
A customer purchases a Life &Disability Plan for a R At July the cover will increase by 5% and the premium by 3%. The customer does not want to pay the increased premium.
The cover will be amended as follows:
New cover = R × (1+5%) ÷ (1+3%)
=R × 1.05 ÷ 1.03 =R

17. Life plan range: features explained
Who can be the premium payer for the Life 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
What is the Cash Back Benefit? (N/A for Pure Life Plan and Life & Disability Plan)
After every 60 premiums received by Old Mutual, a customer will get a cash back amount equal to 5 current premiums.

18. LIFE PLAN RANGE: UNDERWRITING PROCESS
Call Centre
The Call centre will call the customer and ask the relevant medical questions. The Call Centre could reject application for the following reasons:
1. Customer could not ne reached after 9 attempts.
2. Customer’s contact details is incorrect.
3. A loading is applied to a stop order application
Underwriting Department
The Underwriting Department can do one of three things with the application:
1. Accept
2. Decline
3. Load
The Adviser
You have to contact the customer again to arrange a follow up meeting during which a new premium must be calculated should the customer choose to keep the same cover amount.
Call Centre
The Call Centre will contact the customer again and give him/her 2 loading options:
1. Lower cover for the same premium
2. The same cover for a higher premium (Premium loading)

19. LIFE PLAN RANGE: UNDERWRITING PROCESS
Why do we make use of a call centre in underwriting process?
Benefits for you
Time constraints at point of sale is reduced.
Removes the responsibility from you to ask sensitive medical questions.
Underwriting questions are recorded, this can be used as proof at claim stage.
Benefits for the customer
It is easier for customers to answer sensitive questions coming from someone that they do not know and probably will never meet.
Customers can choose when they want to be called and this creates a convenient time for them.

20. LIFE PLAN RANGE: UNDERWRITING PROCESS FOR HIV+ LIVES
Background
The industry has traditionally shied away from covering the HIV positive customers on an emotional level.
South Africa’s focus on making anti-retroviral medication available to all and the fact that the industry now has sufficient statistics to price realistically led to a scenario where we can offer benefits to HIV + customers.
It is regarded to be a controllable chronic disease like diabetes and rated accordingly.
At a previous ASISA conference a suggestion was made that smokers may be a worse risk than certain HIV + risk profiles.
Life expectancy of HIV+ people are now estimated to be around 80-85% that of an HIV- person.

21. LIFE PLAN RANGE: UNDERWRITING PROCESS FOR HIV+ LIVES
The following HIV+ customers will be accepted:
Well controlled customers with acceptable CD4 counts and who have been on anti-retroviral treatment for 12 months or more.
Healthy customers not yet on anti-retroviral treatment but with good CD4 counts.
There is a further requirement for those not on anti-retroviral treatment however:
They need to commence with treatment when recommended and they must continue with treatment for at least 12 months.