FUTURE
NEEDS COVER
PREMIUM PROTECTION
PREMIUM PROTECTION (DEATH) BENEFIT
PREMIUM PROTECTION (DISABILITY) BENEFIT
why?
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To ensure cover remains in place when clients most need their risk benefits.
Provide certainty of risk protection – for the client’s family and business – in future if the premium payer becomes
disabled or dies.
how…
Premium Protection (Death) Benefit will waive the
premiums on the protected benefit, its accelerators
(if applicable), riders and the Premium Protection
(Death) Benefit premium after the death of the
Life Covered on the Premium Protection (Death)
Benefit.
Premium Protection (Disability) Benefit will
waive the premiums on the protected benefit, its
accelerators (if applicable), riders and the Premium
Protection (Disability) Benefit premium while the
Life Covered on the Premium Protection (Disability)
Benefit is disabled as defined:
■■ The Life Covered becomes unable, due to illness
or injury, to perform the material and substantial
duties of his own occupation.
■■ The Life Covered becomes unable, due to
illness or injury, to perform the duties of any
occupation he may reasonably be expected to
perform. The reasonability of an occupation will
be influenced by the Life Covered’s education,
training, experience and employment history.
■■ The Life Covered becomes confined to a bed or
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wheelchair.
The Life Covered becomes unable to use his
hands, feet or eyesight, in any combination of
at least two of these limbs or eyes.
For the purposes of this section: “Hand” means the
part below the wrist. “Foot” means the part below
the ankle joint, or the ankle joint.
this is how
GREENLIGHT sees it
Features offered under these benefits:
Maximum flexibility.
■■ Waives INCREASING premiums and ALLOWS
COVER INCREASES to continue.
■■ Protect risk cover – ALL lump sum cover and
even Future Cover Benefits.
■■ 6-month period to link disability claims – no
second waiting period [Premium Protection
(Disability) Benefit].
■■ 2-in-1 protection [Premium Protection (Disability)
Benefit].
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PREMIUM PROTECTION
more info…
Maximum flexibility
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Each of these benefits can be used on its own or in conjunction with the other.
These benefits can waive the premium of all benefits, except the Daily Tasks Income Benefit,
Occupation Disability (Own) Income Benefit, Occupational Disability Temporary Income Benefit,
Business Overheads Replacer Benefit and the Select Savings Benefit.
EXAMPLES:
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Johan is the Life Covered on a Severe Illness Benefit. Jane, his wife, is the Contracting
Party and premium payer. Jane takes out a Premium Protection (Death) Benefit as well
as a Premium Protection (Disability) Benefit on Johan’s benefit. If Jane dies or becomes
disabled, premiums for Johan’s benefit will be waived – Johan’s cover remains in place and
he will not have to pay premiums.
Peter is the Life Covered and Contracting Party and premium payer on a Death Benefit,
with a Physical Impairment Benefit as an accelerator. He takes out a Premium Protection
(Disability) Benefit on his benefits. If Peter becomes disabled, his premiums on his Death
Benefit, its accelerator (Physical Impairment) Benefit and the Premium Protection (Disability)
Benefit premiums are waived.
Waives increasing premiums and allows cover increases to continue
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If the protected benefit has Compulsory Annual Premium Increases (CAPI) or Scheduled
Annual Premium Increases (SAPI), Premium Protection (Death) Benefit or Premium Protection
(Disability) Benefit will waive these premium increases [subject to the maximum of the South
African inflation-linked rate as determined by Old Mutual (currently capped at 10%) while in
payment].
Some circumstances could result in cover reductions.
Please see detail in GREENLIGHT reference guide.
EXAMPLE:
Johan is the Life Covered on a Severe Illness Benefit. Inflation-linked SACI increases keep
Johan’s cover up to date. Jane, his wife, is the Contracting Party and premium payer. Jane
takes out a Premium Protection (Death) Benefit as well as a Premium Protection (Disability)
Benefit on Johan’s benefit. If Jane dies or becomes disabled, premiums for Johan’s benefit will
be waived – Johan’s cover remains in place AND INCREASES EACH YEAR and he will not have
to pay premiums.
Protect risk cover – all lump sum cover and even Future Cover Benefits
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This is comprehensive protection for the GREENLIGHT plan – applying to the family’s cover,
as well as life, retrenchment, illness, impairment, future needs and lump sum earning ability
cover.
6-month period to link disability claims – no second waiting period
[Premium Protection (Disability) Benefit]
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If a benefit event happens within 6 months of recovery from a previous period of disability, the
Contracting Party can choose to have the previous claim reinstated and thereby avoid having to
go through another waiting period.
2-in-1 protection [Premium Protection (Disability) Benefit]
OMMS 06.2010 T1266
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Provides the Life Covered with cover against occupational disability and some physical impairment
events.
FUTURE COVER
FUTURE COVER (CORE) BENEFIT
FUTURE COVER (COMPREHENSIVE) BENEFIT
why?
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Use the client’s health status now to buy the option to apply for cover when it is needed most in the future. Health
is a great asset.
Insure the client’s future insurability for all types of cover (including illness, impairment and disability cover).
Remove the uncertainty of future insurability – especially the insurability at life-changing moments when risk
protection is important.
this is how
GREENLIGHT sees it
how…
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This benefit allows the Contracting Party, on
the occurrence of specified events, to apply
for one or more new benefits with limited
medical underwriting (HIV test, cotinine test
on non-smokers and Questions 1 and 8 of the
Underwriting Annexure).
Where the Contracting Party already has
GREENLIGHT benefits that were effected as a
result of a GREENLIGHT Future Cover option,
the Cover Amount on these benefits may be
increased at future Option Events.
By undergoing full medical underwriting for
risk cover at a young age, the Future Cover
Benefit allows you to take out more cover
later in life with limited underwriting. You
only need an HIV test, a cotinine test (if
you are a non-smoker) and you have to fill
in questions 1 and 8 of the Underwriting
Annexure. Also included are:
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GREENLIGHT Future Cover (Core) Benefit
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Buy the option to apply for a GREENLIGHT Death
Benefit.
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GREENLIGHT Future Cover
(Comprehensive) Benefit
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Cost effectiveness for future certainty.
If you don’t use it – you DON’T lose it.
MOST comprehensive list of option events –
including every 3 years.
Range of benefits to apply for on Option Events
– ALL lump sum benefits.
Generous cover to meet real needs.
Buy the option to purchase one or more of the
GREENLIGHT lump sum benefits in the following
categories:
■■ Life Cover.
■■ Earning Ability Cover.
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Lifestyle Adjustment Cover.
These benefits will be available provided that
Old Mutual has not discontinued them.
more info…
Cost effectiveness for future certainty
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These benefits allow clients to take advantage of being
underwritten at a young age, but to exercise the option of
applying for cover at a “future” date.
Benefits taken out as a result of exercising an option under
a Future Cover Benefit will cover events occurring after
the Cover Start Date of the applicable benefit.
Exercising an option under one event does not affect the
Contracting Party’s ability to exercise options on other
events.
FUTURE COVER
more info…
EXAMPLE:
John buys a Future Cover (Comprehensive) Benefit with Cover Amount of R10m when he is
healthy, at age 30. At age 40, his business is doing so well that he needs to increase his Life
Cover. He exercises 50% of his Cover Amount – R5m – to purchase a Death Benefit at this
stage.
A year later, he suffers a heart attack. On his next (third) benefit anniversary, John exercises
25% of his Cover Amount – R2.5m – to purchase a Severe Illness (Core) Benefit. He is
able to get this cover at standard rates because of his Future Cover Benefit. Any heart
attacks occurring after the Cover Start Date of his Severe Illness Benefit are covered and his
GREENLIGHT benefit will pay out R2.5m.
If you don’t use it – you don’t lose it
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The Cover Amount does NOT decrease if an option is not exercised. The full Cover Amount
remains in place until the benefit ceases.
MOST comprehensive list of option events – including every 3 years
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Clients can exercise an option on every third benefit anniversary for a benefit AS WELL AS on
other important dates.
An application to exercise an option can be made within 60 days of the option event date.
Option event
% of Future Cover Amount applicable
Marriage
25%
Permanent separation
25%
Mortgage bond
the smaller of 50% and the value of the bond
New child dependant
25%
Child dependant’s education cost
the smaller of 25% and the number of years
of future attendance at institutions times first
year’s tuition fees PLUS number of years of future
attendance at institution times first year’s fees for
accommodation provided by the institution
Child born with mental retardation
25%
Child born with spina bifida
25%
Child born with cerebral palsy
25%
Increase in personal liability as a result of business
activities
the smaller of 50% and the amount to increase in
the Life Covered’s monetary liabilities as a result of
the business activity
Every third benefit year
25%
Generous cover to meet real needs
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OMMS 06.2010 T1266
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Cover limits are generous and SACI increases may be added to keep cover relevant.
The Cover Amount does NOT decrease if an option is exercised – which is why premiums are not
affected at this time.
The total Cover Amount of all options exercised is limited to the Cover Amount of the Future
Cover Benefit.
SAVINGS
FLEXIBLE SAVINGS BENEFIT
FOCUSSED SAVINGS BENEFIT
why?
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The convenience of having an independent savings benefit together with risk benefits within one GREENLIGHT plan.
To preserve risk benefits in the future.
To get CASH BACK.
Disciplined savings AND accessible funds in ONE plan.
Access to a savings vehicle with low minimum contributions.
how…
this is how
GREENLIGHT sees it
GREENLIGHT Focussed Savings Benefit
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A contractual savings vehicle within which the
client commits to invest a schedule of premiums
for a specified term and frequency.
GREENLIGHT Flexible Savings Benefit
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A savings vehicle that allows the client the
freedom to choose to invest:
• A one-off premium,
• A schedule of future premiums by setting up a
facility to collect such premiums, or
• A lump sum injection into the benefit at any
point.
No contractual commitment is made to future
premiums.
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Best value for monthly contributions of R50.00.
Choice of Flexible and Focussed savings.
Choice of investment funds.
Independent from risk benefits.
more info…
Best value for monthly contributions of R50.00
GREENLIGHT’s Focussed Savings Benefit gives clients the
best value for an affordable monthly premium of R50.00 or
more, with a premium paying term of 10 years or longer
Choice of Flexible and Focussed Savings
Disciplined savings as well as more flexible savings
arrangements can be made in ONE GREENLIGHT plan.
Choice of investment funds
Three investment funds are available to suit the client’s
needs:
■■ Smooth Performance Fund
■■ Secured Money Market Fund
■■ Wealth Defender Fund
Independent from risk benefits
Savings are separate from risk cover – which means that
accessing the savings funds will not affect the GREENLIGHT
risk cover.
SAVINGS
Saving your risk cover
GREENLIGHT provides risk cover. So why add a Savings Benefit to your
GREENLIGHT plan?
3 great reasons to start saving now
1. Get CASH back
The Savings Benefit is an independent, standalone benefit. Accessing your savings will not reduce
or destroy your cover.
2. Keep your cover in hard times
No need to worry. You can use your Savings Benefit to preserve your risk benefits and stop paying
premiums for as long as there is sufficient value in your Savings Benefit, allowing you to
get back on your feet financially.
3. Fund your risk cover after retirement
OMMS 06.2010 T1266
Using your Savings Benefit, you can stop paying your whole-life risk benefit premiums for as long
as there is sufficient value in your Savings Benefit, allowing you to do what YOU want with
your hard-earned pension!