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MAX Education Plan
Value proposition

 The MAX Education plan is a unit linked savings product.
 There will be a compulsory life cover.
 T...
ENTRY LIMITS
MINIMUM

MAXIMUM

REMARKS

18
1

55
17

ANB

TERM

10

20

Yrs

PREMIUM

7, 000

100,000

KShs/ per month

70...
Death Cover

 Death cover will be available as a multiple of the monthly
contribution selected by the member.
 This mult...
Death Cover
 The automatic Waiver of Premium on the contract premium up to a limit
of KES 20,000 p.m. will be paid on the...
Death Cover

 Accidental Death Benefit
 On death of the Applicant as a result of an Accident, the full cover amount
appl...
Disability Benefit
 Disability is defined as the ‘inability of the applicant/premium payer, due
to injury, to perform the...
Waiver of Premium
 The benefits payable on the Waiver of Premium are limited to a maximum
contribution amounts of KES 20,...
Investment Benefit

 The investment part of the Max Education cover will be unit linked.
 The investment portion will be...
Investment Benefit
 Lock in Period.
The lock in period for the investment benefit is five (5) years before the
applicant ...
Investment Benefit

Paid Up Values
Months

Description

% of accumulated
unit fund value

0-6

Less than 6 months worth o...
Investment Benefit

Withdrawals
 After the five (5) years lock in period, the applicant can terminate his
policy by with...
New Business Underwriting

For the application to be considered, the applicant must do the
following:





Fill in the...
Policy Services
 Alterations
 Frequency change

Premium payments can be changed between monthly, quarterly,
semi-annual...
Policy Services : Alterations
 Decrease in cover
 Cover can only be decreased if contribution amounts are decreased
subj...
Policy Services
 Termination of Premium
 Premiums shall cease to be payable as from the first day of the month in
which ...
Reinstatement

 If premiums are not paid within the due date the investment
benefit will go paid up and the risk benefits...
Policy Services

 Cooling Off Period
 The premium payer has the right to withdraw from the contract within 30 days if
he...
Premium Payment Methods

M-Pesa /Zap
Check-off
Posta Pay
Cheque
Debit/Standing order
 Please note that the 1st premi...
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WHAT EXACTLY CAN OLD MUTUAL BENEFIT YOU-Maximum education

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with old mutual products and services offered you can now seat and relax and wait for them to plan your future

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WHAT EXACTLY CAN OLD MUTUAL BENEFIT YOU-Maximum education

  1. 1. MAX Education Plan
  2. 2. Value proposition  The MAX Education plan is a unit linked savings product.  There will be a compulsory life cover.  The life cover is a multiple of 10 of the monthly contribution selected.  MAX Education has compulsory waiver of premium on death and on disability.  There will be no medical testing!!  Maximum life cover per proposer will be KShs. 1 Million  The product has a guaranteed review period of 1 year
  3. 3. ENTRY LIMITS MINIMUM MAXIMUM REMARKS 18 1 55 17 ANB TERM 10 20 Yrs PREMIUM 7, 000 100,000 KShs/ per month 70,000 N/A 1 Million N/A KShs. Per Applicant - AGE COVER Proposer Child Proposer Child
  4. 4. Death Cover  Death cover will be available as a multiple of the monthly contribution selected by the member.  This multiple is ten times (10 times) the monthly contribution to a maximum multiple figure of KShs. 1,000,000 per applicant.  The death cover is not extended to children under 18yrs of age.  There is a waiting period of three years during which death due to natural causes will not be covered.  Accidental Death cover is available from the onset of the cover at 100% of the Sum Assured.
  5. 5. Death Cover  The automatic Waiver of Premium on the contract premium up to a limit of KES 20,000 p.m. will be paid on the accidental death of the premium payer for a maximum period of 10 years.  The benefit will also be paid if death is due to natural causes only if the death occurred after a three year waiting period.  Death Of a Child  a) Below age 10 On death of the child before maturity of the policy, if the child is below the age of ten years, the benefit will be a return of the investment component of the premium. b) Above age 10 If the child is above the age of ten years, the benefit will be the accumulated fund value at that point in time.
  6. 6. Death Cover  Accidental Death Benefit  On death of the Applicant as a result of an Accident, the full cover amount applicable at date of death will become payable.  An Accident is a fatal and unforeseeable event that occurs after the Commencement Date and which, in a violent, external and visible manner, independent of any other cause, directly causes an injury resulting in the Applicant’s death.  Suicide does not classify as accidental death but as death due to causes other than an Accident (subject to the conditions and exclusions in the contract schedule).
  7. 7. Disability Benefit  Disability is defined as the ‘inability of the applicant/premium payer, due to injury, to perform the duties of his or her occupation and any occupation which he or she could reasonably be expected to follow taking into account his or her education, training, experience and employment history.’  On disability as a result of injury ,the waiver of premium benefit will pay the contract premium for a maximum period of ten years or expiry of the policy term whichever is earlier.  Premium waiver is up to a maximum of KES 20,000 per month contributions and payable for a maximum term of 10 years or until the contractual premium paying term expires, whichever is earlier.  A waiting period will apply as defined by Old Mutual before the benefit is paid out.
  8. 8. Waiver of Premium  The benefits payable on the Waiver of Premium are limited to a maximum contribution amounts of KES 20,000 per month per applicant (regardless of the number of policies an applicant may have taken up) and the maximum term of 10 years or the benefit premium term, whichever is earlier, from when the benefit started to be paid.  Once the waiver of premium benefit ends, the policy is deemed to have matured.  The waiver of premium shall pay the contract premium in the same frequency that prevailed before the waiver of premium benefit commenced.  If the beneficiary chooses to surrender the policy while the waiver of premium benefit is active, the benefit paid will be equal to the fund value less any applicable charges if the child is 10 years and over and a return of investment premium component if the child is under 10 years.
  9. 9. Investment Benefit  The investment part of the Max Education cover will be unit linked.  The investment portion will be made up of 77% of the monthly contribution.  The client can choose to invest in two funds  Money Market  Balanced Fund  The client will be entitled to a premium holiday facility and the term will then be re-dated by the missed premium period. SDT will have to ensure that re-billing of units does not affect the price at which units were purchased before the premium holiday.  If an applicant fails to pay premium when due, the investment benefit will go paid up and the risk benefits will lapse  There will be no non-forfeiture loan facility on this product.
  10. 10. Investment Benefit  Lock in Period. The lock in period for the investment benefit is five (5) years before the applicant can access the funds.  Part Maturities This is allowed on the last 4 (four) years to maturity. These partial maturities are distributed as shown below: Years to maturity 4 3 2 1 Maturity % of fund value 20% 20% 20% 20% 100% NO PART SURRENDERS ARE ALLOWED
  11. 11. Investment Benefit Paid Up Values Months Description % of accumulated unit fund value 0-6 Less than 6 months worth of premium has been received 0% 7-12 Less than 12 months worth of premium has been received 70% 13-48 Less than 48 months worth of premium has been received 85% 49+ Less than 60 months worth of premium has been received 100%
  12. 12. Investment Benefit Withdrawals  After the five (5) years lock in period, the applicant can terminate his policy by withdrawing his paid up value if he stopped premium payments within the five (5) year periods or the full fund value if he has maintained his premium payments over the five (5) year period.  Withdrawals within the first five (5) year are not allowed. However if the child dies then: Age of child Benefit Under 10 years Refund of premium less the cost of life cover, charges and any partial maturity payments made. 10 years and over Accumulated Unit Fund Value
  13. 13. New Business Underwriting For the application to be considered, the applicant must do the following:     Fill in the application form and the short health questionnaire Submit ID and PIN copies Pay 1st Premium in full using any of our easy payment options No medical test will be required . Financial Underwriting :  Financial underwriting will apply where the premium to be paid exceeds KES 20,000 per month. This will be done through a separate financial questionnaire and with the help of a Financial Advisor. Stamp Duty  This is calculated as KES 7.50 per KES 10,000 sum assured. ( this cost will be borne by the company)
  14. 14. Policy Services  Alterations  Frequency change  Premium payments can be changed between monthly, quarterly, semi-annually and annually on the policy anniversaries.  Clients may increase or decrease premiums or change premium frequency on a policy anniversary. Premiums will not be recalculated but will be converted between frequencies using the specified conversion factor. Risk Benefit changes  Increase in cover  Cover is a fixed multiple of contributions and can only be increased by increasing the contractual monthly contributions up to a maximum cover of KES 1 Million per applicant.  The increased portion of the sum assured will also be subject to the waiting periods for death due to natural causes. This may be done on the policy anniversary.
  15. 15. Policy Services : Alterations  Decrease in cover  Cover can only be decreased if contribution amounts are decreased subject to the minimum amount of KES 70,000 (A multiple of ten times (x10) the minimum premium). This may be done on the policy anniversary.  Change in premiums MAX clients may increase or decrease premiums on the policy anniversary. The increased or decreased premium will form the new contractual premium for the remainder of the policy year. Increased portion of risk cover is subject to the 3 year waiting period. The applicant will however continue to enjoy their current life cover if its waiting period is exhausted.  DOB change  The change of the date of birth of the proposer is allowed. The cover will be recalculated as new contracts.
  16. 16. Policy Services  Termination of Premium  Premiums shall cease to be payable as from the first day of the month in which the contract term comes to an end. Failure to pay premiums when due will result in the investment benefit becoming paid up and the risk benefit lapsing .  Premium Holiday  There will be a maximum allowance of 6 months within each five year period in which case the client may apply for the premium holiday facility and any outstanding premiums do not have to be made up. In this case the policy will be re-dated and the term extended by the missed period. Re-dating can only occur a maximum of twice within the five year period provided the six month holiday period has not been exhausted.  Period of Grace: This is 30 days from the premium due date
  17. 17. Reinstatement  If premiums are not paid within the due date the investment benefit will go paid up and the risk benefits will cease.  Revival may be done within six months of lapse by paying all the missed premiums.  The applicant can also opt for a premium holiday ( see terms and conditions)  If the policy holder fails to reinstate within the six month period the policy will remain in a paid up status to maturity and a new policy will have to be purchased subject to the terms and conditions applying at that time.
  18. 18. Policy Services  Cooling Off Period  The premium payer has the right to withdraw from the contract within 30 days if he/she is not entirely satisfied with the product. The 30 days period will commence from the date that the policyholder receives the policy document.  Wording to inform the policyholder of this right and what procedures should be followed if he/she decides to exercise his/her right is contained in the Policy Contract.  In the event that a client has paid a premium, the full premium will be refunded.  Risk benefits expiry When the risk benefits reach the end of their term cover will automatically end. In the case of the Waiver of Premium in payment when 10 years elapse before the end of the policy term the benefit will automatically mature. The Life cover expires on death or on maturity of the fund. ( whichever is earlier)
  19. 19. Premium Payment Methods M-Pesa /Zap Check-off Posta Pay Cheque Debit/Standing order  Please note that the 1st premium must be paid for the application to be considered.  No cash payments will be accepted

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