|
Category:
Insurance
News /
Life
Insurance /
July 2006
Old Mutual launches revolutionary funeral plan
In
keeping with Old Mutual's commitment to providing affordable product
offerings that are innovative and appropriate to clients' needs, Old
Mutual Group Schemes has launched the Comprehensive+ Funeral Plan
that is designed to give clients and their families a dignified
farewell.
 Andrew Le Roux, Product Actuary for the Mass Retail Market at Old
Mutual, says the new Comprehensive+ Funeral Plan - which will
replace an existing range of funeral plans sold by Old Mutual
advisors - offers customers a number of added benefits at no extra
cost.
"The pricing is the same as that of our old product range, so new
clients will get the added benefits in this new product range for
free. We will also give existing clients the option to convert to
this new product range at no extra cost."
He
says one of the key benefits of the new range is that premium rates
will increase by 7% p.a., while cover will increase by 10% on the
date of the premium increase.
"These levels would not be adjusted unless the inflation levels
change substantially. The important thing for customers is that they
will always get a bigger cover increase than the premium increase
they pay," says Le Roux.
He
says this allows affordable contribution increases towards funeral
benefits that increase in line with funeral expenses to help ensure
a dignified funeral. "Cover increasing at a higher rate than the
premium rate, means that future cover is effectively becoming
cheaper every year.
"You may also choose not to increase your contribution in any year.
However, if the increased contribution is not paid, your cover will
remain unchanged as well. There is also flexibility to skip payment
if you are unable to pay for a short period."
He
says that under this new plan, any cover amount up to R30 000 per
person can initially be chosen and premiums only need to be paid
until the main policyholder turns 65, whereas cover continues beyond
that date to the death of every person who is covered.
Le
Roux comments that another innovation in this plan is that it gives
anyone who stops their premiums - after paying for at least 10 years
- lifelong paid-up cover at 50% of the cover that exists when the
premiums stop. "This applies regardless of the reason for stopping
the premiums and we see it as a way to reward customers for their
loyalty and ensure that they get something out."
He
adds that the new Terminal Illness benefit - which is also available
after 10 years - provides the option of taking a lump sum of 50% of
your cover to fund medical or other expenses if it is established by
Old Mutual that the life assured is expected to have less than a
year to live. "On the subsequent death of the life assured, the
remaining 50% is available for funeral costs."
"Furthermore, under the Comprehensive+ Funeral Plan, anyone who dies
in an accident will receive double their chosen amount of cover."
Le
Roux says this new product range is an example of how Old Mutual is
making substantial investments of money, time and energy in finding
attractive and highly innovative financial services solutions for
those outside the traditional insurance markets.
"Old Mutual Group Schemes was looking for ways to meet the needs of
middle to lower income customers long before it became fashionable
to do so and we continue to understand the importance of designing
products like the Comprehensive+ Funeral Plan range that are
affordable and appropriate to customer needs."
Source: ITInews – Insurance
Times and Investments Online
www.itinews.co.za
 |
