Mod 3 Part 6 2-IN-ONE Savings and SPInv Plan as at Oct2014

PRESENTATION TITLEPRESENTATION TITLE
GOAL CATEGORIES & THE RMM SOLUTION
1
Category Description RMM solution
Invest Saving for a future goal • 2-IN-ONE Savings 4 my Goal
• Single Premium Investment plan
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

2
Why would your customers need to save for a
future goal?
Case study
FINANCIAL GOAL: SAVING FOR A LONG-TERM GOAL
• Saving for a goal, means that you do not have to incur debt to
reach a goal
• Saving over a long term results in better growth for your money
because of compounding
• Saving for a goal, means that you do not have to incur debt to
reach a goal
• Saving over a long term results in better growth for your money
because of compounding

Who should buy the 2-IN-ONE Savings plans?
The 2-IN-ONE Savings plans are designed for customers who want to commit to a
specific long term goal, but also want access to money during this period if
required.
It is not aimed at customers wanting to save solely for the period shorter than 10
years.
2-IN-ONE SAVINGS PLANS
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2-IN-ONE Savings plans
Long Term Pocket Short Term Pocket
Build for the future Deal with today
Regulated by the Long Term
Insurance Act
Regulated by the Collective
Investment Schemes Control Act

What are the age limits?
4
Product
Minimum entry
age for
policyholder
Maximum entry
age for
policyholder
2-IN-ONE SAVINGS 4 MY GOAL 0 N/A
2-IN-ONE SAVINGS 4 MY GOAL (With Premium
Waiver Option)
16 N/A
2-IN-ONE SAVINGS 4 EDUCATION 0 N/A
2-IN-ONE SAVINGS 4 EDUCATION (With
Premium Waiver Option)
16 N/A

5
Product
Minimum entry
age for the child
Maximum entry
age for the child
2-IN-ONE SAVINGS 4 EDUCATION Birth 14
Birth 14

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What are the minimum and maximum terms?
Product Minimum Terms
When maturity
benefit is
available
2-IN-ONE SAVINGS 4 MY GOAL 10 Any age
2-IN-ONE SAVINGS 4 MY GOAL (With Premium
Waiver Option)
10 Any age
2-IN-ONE SAVINGS 4 EDUCATION 10 Any age
10 Any age

HOW CONTRIBUTIONS ARE COLLECTED
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Total
Contribution
Long Term Pocket Short Term Pocket
R150 R130 R20
R160 R130 R30
R900 R585 R315
R2000 R1300 R700
For contribution from R150 – R200 a month:
R130 goes into long term and the rest goes into
the short terms savings.
For contributions over R200 a month:
65% goes to long term and 35% to short term.

PREMIUM SPLIT: WITHOUT PREMIUM WAIVER OPTION
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How is the premium split?
Total Contribution Long term premium Short term contribution
R150 R130 R20
R200 R130 R70
R250 R162.50 R87.50
R300 R195 R105
R400 R260 R140
R500 R325 R175
R1000 R650 R350

PREMIUM SPLIT: WITH PREMIUM WAIVER OPTION
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How is the premium split?
Total contribution Long term
premium
Premium for
Premium Waiver
Short term
contribution
R165 R130 R13 R22
R200 R130 R13 R57
R250 R152.58 R15.26 R82.16
R300 R183.10 R18.31 R98.59
R400 R244.13 R24.41 R131.45
R500 R305.17 R30.52 R164.32
R1000 R610.33 R61.03 R328.64

FEES
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It is of crucial importance that you disclose these fees to your customers.
This links closely to TCF legislation in that you have to be transparent
regarding anything that could impact a customer’s savings.

PRODUCT FEATURES
Short -term contribution increases and decreases
A customer can increase or decrease their short term contribution by at least R20
once every year. No changes are allowed for the first 12 months.
Savings top-up
A Top-up can be made anytime, provided that a previous top-up contribution has
been finalised. The top up limits are as follows:
Minimum top-up amount – R250
Maximum top-up amount – R5000
Top-ups can only be made via a once off debit order arranged at a client services
branch. Any amount for the savings top-up will first be used to pay the long-term
premiums that might be in arrears.
11

When: Savings Boosters is an amount equal to:
After 24 premiums Sum of the last 2 long term premiums
PRODUCT FEATURES
Savings boosters
To motivate our customers to be disciplined in their long term savings. Old Mutual
will pay into the long-term pocket, the following:
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Activity
Amount = R275.60
24
R137.80
23
R137.80
22
R137.80
21
R137.80
20
R137.80
Premiums

DISABILITY, DEATH & MATURITY
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Long-term pocket Disability of
policyholder
Death of
policyholder
Maturity
2-IN-ONE Savings 4
my Goal
(Without Premium
Waiver Option)
The customer has 3
options:
1.Continue paying
premiums
2.Request that the
policy be made
paid-up if the
minimum paid-up
value is met.
3.Claim the fund
value with a valid
disability claim
The fund value
available at the time
of death will pay
out, if claimed by
the nominated
beneficiary.
The fund value is
transferred to the
short -term pocket.
2-IN-ONE Savings 4
Education
(Without Premium
Waiver Option)

DISABILITY, DEATH & MATURITY
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Short-term pocket Disability of
policyholder
Death of
policyholder
Maturity
2-IN-ONE Savings 4
my Goal
(With and without
Premium Waiver
Option)
If the long-term
pocket is made
paid-up, the short-
term pocket will also
be paid-up.
The fund value
available at the time
of death will pay
into the customer’s
estate.
After the long -term
pocket fund value is
transferred to short
term -pocket, the
short-term Pocket
remains paid-up until
the customer claims
the maturity
proceeds
2-IN-ONE Savings 4
Education
(With and without
Premium Waiver
Option)

THE PREMIUM WAIVER OPTION
What is the premium waiver option?
It can only be selected on application of the policy.
It protects the customer’s savings only for the first 10 years, irrespective of the
term selected by the customer.
It costs a customer an additional 10% of the long term premium, for10 years only,
thereafter this additional amount is paid to the Long Term Pocket.
There is a 6 months waiting period on death or (certain) disability as a result of
natural causes.
15

How does the premium waiver work?
The premium waiver comes into effect when the policyholder dies or becomes
disabled. Old Mutual will inject a lump sum, equal to the remainder of the
premiums required up to a term of 10 years. After the lump sum was injected, the
following applies:
2-IN-ONE Savings 4 my Goal – The policy will pay out.
2-IN-ONE Savings 4 Education – The policy will become paid-up.
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Activity
1. A customer has a 2-IN-ONE Savings 4 my Goal and dies due to natural causes
after 4 months from applying for the policy.
The fund value available at the time of death will pay out to the beneficiary.
2. A customer has a 2-IN-ONE Savings 4 my Goal and dies due to natural causes
after 2 years from applying for the policy.
Old Mutual will inject a lump sum, equal to the remainder of the premiums
required up to a term of 10 years and the policy will pay out.
3. A customer has a 2-IN-ONE Savings 4 Education and becomes disabled due to
an accident after 1 month from applying for the policy.
Old Mutual will inject a lump sum, equal to the remainder of the premiums
required up to a term of 10 years and the policy will become paid-up.
17

18
2-IN-ONE Savings 4 my Goal and Education
(With Premium Waiver Option)
Death of Policyholder
Natural Causes Accident
Less than 6
months from
application
date
The fund value available at the time of
death will pay out, if claimed by the
nominated beneficiary.
Waiver benefit applies
More than 6
months from
application
date
Waiver benefit applies Waiver benefit applies
After 10 years The fund value available at the time of death will pay out, if claimed by the
nominated beneficiary.

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Disability of Policyholder
Natural Causes Accident
Less than 6
months from
application
date
The customer has 3 options:
1.Continue paying premiums
2.Request that the policy be made
paid-up if the minimum paid-up value is
met.
3.Claim the fund value with a valid
disability claim
Waiver benefit applies
More than 6
months from
application
date
Waiver benefit applies Waiver benefit applies
After 10 years The customer has 3 options:
1.Continue paying premiums
2.Request that the policy be made paid-up if the minimum paid-up value is met.
3.Claim the fund value with a valid disability claim

CAUSAL EVENTS
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Long-term pocket Short-term pocket
1 part-withdrawal after every 5 years Money can be withdrawn at any time up to a
balance of R0.
Surrender value is available at any time Will automatically surrender when long-term pocket
is surrendered
Will automatically become paid-up when customer
stops paying premiums and the premium holiday
benefit and the grace period is used if the value is
greater than R1000.
Customer can also request for it to be made paid-up
if the minimum paid-up value is met.
Will also be paid-up if the long-term pocket is paid-
up.
Part-withdrawals
Surrender
Paid-up

FEES & CHARGES APPLICABLE FOR CAUSAL EVENTS
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Event Fees & Charges
Part withdrawal
R300* + reducing fee.
Sum must not be more than 30% of fund value
Paid-up
Surrender (from active status)
Surrender (from paid-up status) R155*, which must not be more than 30% of fund
value
Under certain extreme circumstances (for instance, investment market crash), we
may reduce the Part Withdrawal and the Surrender Values by a percentage as a
protective measure. Once the market normalises, the reduction percentage may
be removed.

THE REDUCING FEE: SAVINGS PLAN WITH A TERM OF 10 YEARS
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15%
0%
Application 5 years
Charge term
10 years/2 = 5 years

23
15%
0%
Application 10 years
Charge term

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15%
0%
Application 10 years
Charge term
Maximum penalty term is 10
years.

HOW SAVINGS ARE INVESTED
Long Term Pocket
1. Savings in the Long Term Pocket are all invested in the Old Mutual Smoothed
Bonus Fund.
2. The fund then invests in a mix of investments, such as:
a) High growth investments: Shares
b) Medium growth investments: Property
c) Low growth investments: Bonds
d) Foreign investments: All of the above
25

3. This is a medium risk fund: Under bad market conditions, customers may get less
than what was invested.
4. Customers’ savings grow by bonuses declared each year for the previous year.
5. Guaranteed to receive not less than sum of the accumulated net premiums at:
a) Maturity
b) or death.
6. Guarantee falls away on taking part-withdrawals or surrender of policy.
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The yearly bonuses we declare are not guaranteed. This means that the
bonus may be reversed in extreme market conditions.

Short Term Pocket
1. Savings in the Short Term Pocket are all invested in the Old Mutual Money
Market Fund.
2. The fund then invests in cash and other banking investments.
3. This is a low risk fund: Very small chance that customers would get less than
what was invested.
4. Customers’ savings grow by interest, which is added at the end of each month.
5. For customers exiting, the interest earned up that day is added.
27

2-IN-ONE SAVINGS 4 EDUCATION: EXCLUSIVE FEATURES
What limits apply to children?
A customer can take out the 2-IN-ONE Savings 4 Education for any child, it does
not have to be a dependent, own or legally adopted child.
A customer can change the name of the child on the plan for any reason and
at any time.
The investment term for the child will be determined by the age of the child.
The normal age at which a child finishes with school is at 18. It would make sense
for a customer to select a term that would reach maturity when the child reaches
18 or 19 years.
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2-IN-ONE SAVINGS 4 EDUCATION: EXCLUSIVE FEATURES
What happens on death or disability of the child?
On death or disability of the child the customer has the following options:
Replace the child on the plan with another child and continue paying premiums.
Request the fund value to be paid out with a valid disability or death claim.
Request for the policy to be made paid-up if minimum paid-up value is met.
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2-IN-ONE Savings Plans assessment

THE SINGLE PREMIUM INVESTMENT PLAN
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Single Premium Investment Plan
Minimum entry age for policyholder None
Maximum entry age for Policyholder None
Minimum premium R2000
Maximum premium R200 000
Minimum term 5 years
Maximum term None
Who can be the premium payer? Anyone can pay

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Single Premium Investment Plan
Premium Holiday
Surrender value available?
Part-withdrawals allowed?
Paid-up option available?
API applicable?
Family Support Services
Excluding Funeral Support
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No

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Single Premium Investment Plan assessment

SAVINGS RANGE: THE ADVICE LED CONVERSATION
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The value of Advice Led Conversation.

THANK YOU
Old Mutual is a licensed Financial Service Provider
THANK YOU
Old Mutual is a licensed Financial Service Provider

Mod 3 Part 6 2-IN-ONE Savings and SPInv Plan as at Oct2014

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