The life plan range

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

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

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 R500 000 R250 000 Maximum cover/benefit Combined R750 000 Theory table

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

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

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

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.

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

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

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

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

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.

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 R500 000 Life and/or disability cover Life and/or disability cover R500 000

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.

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 R100 000. 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 = R100 000 × (1+5%) ÷ (1+3%) =R100 000 × 1.05 ÷ 1.03 =R101 942

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.

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)

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.

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.

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.