Mod 3 Part 3 Funeral Plan Range as at Oct2014

PRESENTATION TITLEPRESENTATION TITLE

GOAL CATEGORIES & THE RMM SOLUTION

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Category Description RMM solutionInvest 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


FINANCIAL GOAL: PAYING FOR A DIGNIFIED FUNERAL

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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 can’t save for a funeral because death is an

unexpected and unplanned event.


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 21A full time student, unmarried and under the age of 26A 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.

FUNERAL PLAN RANGE: DEPENDENTS

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FUNERAL PLAN RANGE: DEPENDENTSWhen 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.

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FUNERAL PLAN RANGE: DEPENDENTSWho 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

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•Aunt/Uncle•Brother/in-law •Sister/in-law•Cousin

•Niece/Nephew•Grandparents/in-law•Grand children•Additional/ex-spouses


FUNERAL PLAN RANGE: DEPENDENTSWho can be covered under parents?

Own parentsParents-in-lawStep parentsStep parents-in-lawAdoptive parentsAdoptive parents-in-law

A maximum of 4 parents can be covered any given time.

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FINANCIAL GOAL: PAYING FOR A DIGNIFIED FUNERAL

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Total amount needed

Amount already provided

Shortfall

Family/Own Funeral

R20 000 R20 000 R0

Parents Funeral R30 000 R0 R30 000

Extended Funeral

R10 000 R5000 R5000

The financial plan

Which shortfall is Mira’s highest priority, and why?


FUNERAL PLAN RANGE: THEORY TABLE

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Theory table

Care plan Standard Funeral Plan

Comprehensive + Funeral plan

Eligibility • Individual• Single adult family

• Family• Parents

• Extended family

•Individual•Single adult family

•Family•Parents

•Extended family

•Individual•Single adult family

•Family•Parents

•Extended family

Minimum entry age (Policyholder)

16 16 16

Maximum entry age (Policyholder)

65 65 54

Maximum entry age (Covered lives)

84 84 84

Minimum premiumDetermined by age and cover selected

Maximum premium

Minimum term N/A N/A N/A

Maximum Premium Paying term

Whole life Whole life Until age 65




Premium increase

Cover/benefit increaseDouble accident coverPaid-up benefits

Terminal Illness BenefitCash Back Benefit

Premium Holiday

More 4U

FUNERAL PLAN RANGE: THEORY TABLE

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Yes Yes Yes No

Yes No Yes No Yes No



NoNo

Yes Yes Yes NoNoNo

Yes Yes Yes NoNoNo

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.


FUNERAL PLAN RANGE: MAXIMUM COVER

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Individual R50 000 R70 000 R70 000

Single Adult Family R50 000 R70 000 R70 000

Family R50 000 R70 000 R70 000

Stillborn25% of selected benefit up to a maximum of R3000

Children

Ages 0 – 525% of selected benefit up to a maximum of R10 000

Children

Ages 6- 1350% of selected benefit up to a maximum of R25 000 for natural

causes and R30 000 for accidental causes

Children

Ages 14 and older100% of selected benefit


FUNERAL PLAN RANGE: MAXIMUM COVER

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Parents R50 000 R50 000 R50 000

Extended family R30 000 R30 000 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 R70 000.


FUNERAL PLAN RANGE: FEATURES EXPLAINEDWho 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 customerThe customer’s spouseThe 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 EXPLAINEDHow 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.

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FUNERAL PLAN RANGE: FEATURES EXPLAINEDWhat 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.

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COMPREHENSIVE+ FUNERAL PLAN: EXCLUSIVE FEATURESHow 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 R10 000. He also covered his family for R15 000. 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:

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Brother: R10 000 × 2 = R20 000

4 year old child: R 15 000 × 25 % = R3750 R 3750 × 2 = R7500

8 year old child: R15 000 × 50% = R7500 R 7500 × 2 = R15 000

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.


COMPREHENSIVE+ FUNERAL PLAN: EXCLUSIVE FEATURES

Accidental death/disability of

policyholder

Any time after policy acceptance

date

100% Paid-up

Natural causes death/disability of

policyholder

After 12 months

100% Paid-up

Policyholder stops paying premiums

At age 65

100%-Paid-up


COMPREHENSIVE+ FUNERAL PLAN: EXCLUSIVE FEATURES

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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.

The policy will become paid-up and Jane's two sisters will remain covered.

Case study


FUNERAL PLAN RANGE

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Cover & Premium tables

Documents

Mod 3 Part 3 Funeral Plan Range as at Oct2014