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Questions and Answers.
What returns will I earn?
Returns are calculated monthly.
The following annual returns, with reference to the Monetary Policy Rate (MPR), apply to active policies:
TIME FROM FIRST
TIME FROM FIRST
Year 1 MPR – 11.0% (i.e. 2.5%) MPR – 11.0% (i.e. 2.5%) Year 2+ MPR – 10.5% (i.e. 3.0%) MPR – 9.5% (i.e. 4.0%)
The following annual returns apply to paid-up policies:
FROM THE DATE
MPR – 10% MPR – 10%
These returns are subject to fluctuations in the MPR. The MPR value used is determined as at the 15th of the preceding month.
Both the returns from the Secured Money Market Fund and the Short Term Savings Fund are subject to review and may be adjusted at our discretion, in the event of:
• Fund expense or tax changes or,
• MPR is no longer published or,
• MPR exceeds the prevailing money market returns by 1%
(adjustment percentage). To determine prevailing money market returns, Old Mutual will review returns on our internal money market funds. Where the rate of return is adjusted, Old Mutual will determine a new adjustment percentage for
We guarantee non-negative returns. This means that the return is guaranteed not to be below 0%. Returns allocated to you are after fund charges and withholding tax, if applicable.
Is the policy right for me?
The policy is suitable for you if you are looking for affordable cover to provide financial protection for yourself, your family and your business.
What are the benefits provided by the policy?
Lump sum cover amount
You decide how much cover you would like when you apply for the policy. The amount of your chosen cover will be shown on your Certificate of Policy Commencement, which will be sent to you when we issue your policy. Please note that you may increase or decrease your cover voluntarily at any time, but only once a year between policy anniversaries, subject to the minimum and maximum limits. You may also choose to increase your cover amount by 10% on each policy anniversary until the end of your Policy Term. The policy will provide insurance cover for the death of the Life Assured during the term that you choose at the start of the policy. In the event of the death of the Life Assured and if all claim requirements are met, the policy will pay out a lump sum to the nominated beneficiary. The amount of the lump sum will be equal to the cover that you chose at the start of the policy, plus any voluntary increases, less any voluntary decreases, plus the optional annual escalations of 10% if you have chosen this.
Full cover amount payable for accidental death during Risk Waiting Period
The Risk Waiting Period is a period of 6 months, which begins from the start date of your policy during which the cover amount will not be payable if the Life Assured dies as a result of natural causes. If the Life Assured dies as a result of an accident during the Risk Waiting Period, the full cover amount will be payable. The Risk Waiting Period only applies to policies where the cover amount is below 10 000 000.
You may choose one of two options namely the cashback option or the non-cashback option. In the event that the Life Assured survives to the end of the term and is on a cashback option, 20% of all the Premiums paid will be paid back as a lump sum, provided the policy is still in force. No Premiums will be paid back at the end of the Policy Term if you have chosen the non-cashback option.
Please note that your policy will never have a surrender value. This means that we will not pay any Premiums, cover amount or cashback amount to you if you surrender your policy before the end of your chosen term. The cashback option is available on policies with a minimum term of 3 years.
Who may be covered by the policy?
The policy can cover any individual subject to age limits. The person who is covered by the policy is known as the Life Assured. You may buy the policy and also be the Life Assured. Subject to certain conditions, and provided that they have given consent, you may also make someone else the Life Assured. The Policyholder (the person who contracts with Old Mutual and is responsible for paying the Premiums) and any Life Assured must be at least 18 years old. The maximum age the Life Assured can be at the start of the policy is 70 years old. Cover for any Life Assured will end when the Life Assured reaches the age of 75.
Who are the beneficiaries of the policy?
If the Policyholder is also the Life Assured, he/she may nominate up to 5 beneficiaries to receive the proceeds (Beneficiaries for Proceeds) of the policy in the event of a valid claim. The Policyholder may revoke or change the beneficiary at any time during the term of the policy. If the Policyholder and the Life Assured is the same person and there is no valid beneficiary nomination, the cover amount will be paid to the Policyholder’s estate. If the Policyholder and Life Assured are not the same Person, the cover amount will be paid to the Policyholder in the event of the Life Assured’s death.
If the Policyholder and the Life Assured is not the same Person, the Policyholder may nominate a Beneficiary for Ownership to take over the position of Policyholder in the event of the death of the Policyholder.
How long will my policy last?
You may choose the term which suits your needs. There is a choice of a term between 1 to 20 years.
Your policy will end if:
- Your policy reaches the end of the policy term.
- We pay a claim.
- You stop paying your Premiums before the end of the policy term and use up all 3 reinstatement periods.
You may choose to renew your policy at the end of the term. This renewal of your policy is subject to the Life Assured not being 75 years old. The policy may only be renewed for a term equal to or shorter than the original term and not beyond the Life Assured being aged 76 years at last birthday. You may not renew your policy for a different Life Assured than the Life Assured that was originally covered under your policy. Only one renewal is allowed.