2-in-one savings slides july2014

2-IN-ONE SAVINGSAdviser Training

Francois Kemp De Wit

PRESENTATION TITLE

2

Research: customers understand the importance of long term saving but they also have immediate needs.

Customers Needs

Accessibility

Flexibility

Protection

Security

RMM LAUNCHING A NEW SAVINGS RANGE

RMM RESPONSE: 2-IN-ONE SAVINGS 4

EDUCATION

2-IN-ONE SAVINGS 4 MY GOAL

PRESENTATION TITLE

2-IN-ONE SAVINGS PLANS REPLACES CURRENT SAVINGS RANGE

3

Smoothed Bonus

Existing Events:Part Withdrawals, Surrenders,

Death & Disability, Cancellation

Our current offerings:Focusing mainly on disciplined

Long Term Savings

Retirement PlanEducation Plan

Investment Plan

Long Term Savings Plan

Smoothed Bonus

Existing Events:Part Withdrawals, Surrenders,

Death & Disability, Cancellation

Our new offering (2-IN-ONE SAVINGS PLANS):One savings plan with TWO pockets, allowing focused disciplined

Long Term Savings as well as addressing Short Term Savings needs

2-IN-ONE SAVINGS PLANS

Money Market Unit Trust

New Events:Part or Full Withdrawals, Savings Top-Up,

Premium increase, Premium decrease

PRESENTATION TITLE

PRODUCT SET

The following products will be available after the launch of 2-IN-ONE SAVINGS PLANS:

� 2-IN-ONE SAVINGS 4 MY GOAL � 2-IN-ONE SAVINGS 4 MY GOAL (with Premium Waiver Option)� 2-IN-ONE SAVINGS 4 EDUCATION � 2-IN-ONE SAVINGS 4 EDUCATION (with Premium Waiver Option)� Retirement Plan� Single Premium Investment Plan

4

PRESENTATION TITLE

PRODUCT FEATURES

• Long Term Pocket fund value increased by amount equal to a number of premiums after a specified number of premiums have been paid (24, 60, 110)

1. Savings Boosters

• Waiver of premium option – lump sum benefit payable on death/disability before 10 years

2. Premium Waiver Option

• Extra lump sum deposit into the Short Term Pocket

3. Savings Top-Up

• Premium holidays can be taken up to 6 times during the lifetime of policy• Increases and decreases of short term contribution facility available after

12 months

4. Flexibility

• Access to the Short Term Pocket anytime• Access to the Long Term Pocket after 5 years (and every 5 years

thereafter)

5. Access5

PRESENTATION TITLE

FAMILY SUPPORT SERVICES

6

Health Support

Legal Support

Trauma, Assault & HIV Treatment

Emergency Medical Response

* Same as our existing products

PRESENTATION TITLE

WHO IS OUR TARGET MARKET?

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.

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PRESENTATION TITLE

INTRODUCTION

TRAINING DVD: CHAPTER 1

8

PRESENTATION TITLE

PRODUCTS STRUCTURES

9

PRESENTATION TITLE

RETAIL MASS MARKET SOLUTION

10


Long Term Pocket

Short Term Pocket

Build for the future Deal with today

PRESENTATION TITLE

WHY LONG TERM SAVING?

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A Child’s tertiary education Income after retirement House or other costs

PRESENTATION TITLE

WHAT SHORT TERM SAVINGS ARE USED FOR*

12

High Priority Low

Buying big ticket items

School expenses Lobola House costs: Maintenance

Coping in January

Other payments

*As concluded from the research

http://www.google.co.za/url?sa=i&source=images&cd=&docid=WcSkB8Qcq7yTYM&tbnid=8zrSnQznkcG9gM:&ved=0CAgQjRwwAA&url=http://martazimm.bloguedemusica.com/&ei=KCqGUpDvG5GAhAeiyYGwBg&psig=AFQjCNGY0KH9_4NXWUDNMAOzngCOMnG_kQ&ust=1384610728520169

PRESENTATION TITLE

13

2-IN-ONE SAVINGS 4 MY GOAL

Long Term Pocket

Short Term Pocket

2-IN-ONE SAVINGS 4 EDUCATION

Long Term Pocket

Short Term Pocket

2-IN-ONE SAVINGS: PRODUCT STRUCTURE

With or without Premium Waiver Option

With or without Premium Waiver Option

PRESENTATION TITLE


14

2-IN-ONE SAVINGS 4 MY GOAL : Long Term Pocket

2-IN-ONE SAVINGS 4 MY EDUCATION : Long Term Pocket

Regulated by the Long Term Insurance Act

PRESENTATION TITLE


15

2-IN-ONE SAVINGS 4 MY GOAL : Short Term Pocket

2-IN-ONE SAVINGS 4 MY EDUCATION : Short Term Pocket

Regulated by the Collective Investment Schemes Control

Act

PRESENTATION TITLE

AGE LIMITS: ELIGIBILITY

16

Product Minimum Entry Age Maximum Entry Age

2-IN-ONE SAVINGS 4 MY GOAL 0 N/A

2-IN-ONE SAVINGS 4 MY GOAL (With Premium Waiver Option)

016 - policyholder N/A

2-IN-ONE SAVINGS 4 EDUCATION 0 – nominated child 14-nominated child

N/A2-IN-ONE SAVINGS 4 EDUCATION (With Premium Waiver Option)

0 - nominated child, 16 – policyholder

14 - nominated child, N/A - policyholder

PRESENTATION TITLE

TERMS

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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

2-IN-ONE SAVINGS 4 EDUCATION (With Premium Waiver Option)

10 Any age

PRESENTATION TITLE

GOAL SETTING

18

It is your duty as an adviser to guide your customers to really know and understand their financial goals.

The new savings plans can help your customers to pay for their shorter term expenses such as school fees or buying new tyres for a car but it can also assist them to achieve their long-term goals like buying a car or paying for a child’s studies.

A customers’ goals will be determined by their life stage but also by the ages and number of their dependants.

An extract from the application form.

Refer to the Advice led conversation workbook: Activity 1

PRESENTATION TITLE

PREMIUM WAIVER OPTION

19

PRESENTATION TITLE

PREMIUM WAIVER OPTION: (PROTECTION)

The Option is only available for the 2-IN-ONE SAVINGS 4 EDUCATIONand 2-IN-ONE SAVINGS 4 MY GOAL.

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.

20Long Term Pocket

ONLY

PRESENTATION TITLE

PREMIUM WAIVER OPTION: 2-IN-ONE SAVINGS 4 EDUCATION

21

15 years10 years6 months

Customer dies or becomes disabled due to Natural Causes before 6 months.

Pay out fund value to beneficiaries or

to client

Customer dies or becomes disabled due to Natural Causes after 6 months and before 10 years.

Lump sum injected into Long Term Pocket. Policy made paid up.

Customer dies or becomes disabled due to Natural Causes after10 years.

Pay out fund value to beneficiaries or

to client

Long Term PocketShort Term Pocket

Pay out investment

value to Estate / to client

Death: Pay out investment value to Estate

Disablement: policy made paid-up

Pay out investment value to Estate or to

client

PRESENTATION TITLE

PREMIUM WAIVER OPTION: 2-IN-ONE SAVINGS 4 EDUCATION

22


Customer dies or becomes disabled due to accident before 10 years.

Lump sum injected into Long Term Pocket. Policy made paid up.

Customer dies or becomes disabled due to accident after10 years.

Pay out fund value to beneficiaries or to

client


Death: pay out investment value to Estate Disablement: policy is made paid-up


client

PRESENTATION TITLE

PREMIUM WAIVER OPTION: 2-IN-ONE SAVINGS 4 MY GOAL

23


Customer dies or becomes disabled due to Natural Causes before 6 months.

Fund value to beneficiaries or to

client

Customer dies or becomes disabled due to Natural Causes after 6 months and before 10 years.

Lump sum injected into Long Term Pocket. Pay out fund value to

beneficiaries or to client

Customer dies or becomes disabled due to Natural Causes after10 years.


client


Pay out investment value to Estate or

to clientPay out investment value to Estate

or to client


client

PRESENTATION TITLE

PREMIUM WAIVER OPTION: 2-IN-ONE SAVINGS 4 MY GOAL

24


Customer dies or becomes disabled due to accident before 10 years.

Lump sum injected into Long Term Pocket. Pay out fund value to beneficiaries or to client

Customer dies or becomes disabled due to accidents after10 years.


client


Pay out investment value to Estate or to clientPay out investment value to Estate or to

client

PRESENTATION TITLE

WHAT HAPPENS IF THE CLIENT DIES?

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Product Long Term Pocket Short Term Pocket2-IN-ONE SAVINGS 4 MY GOAL

Fund value pays to beneficiaries

Fund value pays to customer’s estate

2-IN-ONE SAVINGS 4 MY GOAL (with Premium Waiver)

Lump sum injection up to Year 10 and then Fund value pays to beneficiaries

2-IN-ONE SAVINGS 4 EDUCATION

Fund value pays to beneficiaries

2-IN-ONE SAVINGS 4 EDUCATION(with Premium Waiver)

Within 10 years: made paid-up

After10 years: fund value pay to the beneficiaries

Retirement Plan To SARAF N/A

PRESENTATION TITLE

WHAT HAPPENS IF THE CLIENT BECOMES DISABLED?Product Long Term Pocket Short Term Pocket2-IN-ONE SAVINGS 4 MY GOAL

Fund value pays to the customer


2-IN-ONE SAVINGS 4 MY GOAL (with Premium Waiver)

Lump sum injection up to Year 10 and then Fund value

pays to beneficiaries2-IN-ONE SAVINGS 4 EDUCATION


2-IN-ONE SAVINGS 4 EDUCATION(with Premium Waiver)

Within 10 years: made paid-up

After10 years: fund value pay to the client

If Long Term Pocket is made paid-up, the Short Term Pocket is also made paid up

If the Long Term Pocket fund value is paid out, the Short Term Pocket fund value is also paid out

Retirement Plan Fund value pays to the client (subjected to R75 000 rule)

N/A

26

PRESENTATION TITLE

WHAT HAPPENS AT THE END OF THE TERM?

27

Product Long Term Pocket Short Term Pocket2-IN-ONE SAVINGS 4 MY GOAL

Transfer to Short Term Pocket

After Long Term Pocket fund value transferred to Short Term Pocket, Short Term

Pocket remains paid-up until the customer claims the

maturity proceeds

2-IN-ONE SAVINGS 4 MY GOAL (with Premium Waiver)2-IN-ONE SAVINGS 4 EDUCATION2-IN-ONE SAVINGS 4 EDUCATION(with Premium Waiver)Retirement Plan Fund value pays to the

customer(subjected to R75 000 rule).

N/A

PRESENTATION TITLE

THE FINANCIAL PLAN

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It is your duty as an adviser to have an in depth conversation with your customers in order to gain the required information for you

to be able to help them create a financial plan.

You must record more detailed and specific information around the customers goals. This applies to recording values to help the customer develop a financial plan to reach their goals.

You have to determine their needs and their current circumstances to be able to determine whether any gaps or shortfalls exist. You can only do this by asking the right questions.

An extract from the application form focussing only on the new savings plans.


PRESENTATION TITLE

CONTRIBUTIONS & CHARGES

29

PRESENTATION TITLE

HOW WILL CONTRIBUTIONS BE COLLECTED? – ONE SAVINGS PLAN WITH TWO POCKETS

30

Total Contribution is collected from the Customer

Contribution will be split into the Long Term Pocket and the Short Term Pocket

Total Contribution

Long Term Pocket Short Term Pocket

R150 R130 R20R160 R130 R30R900 R585 R315R2000 R1300 R700

Access to funds Existing product rules apply

Full balance available (48 hour notice)

Example: without waiver benefit

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

Contribution Collection

Contribution

Split

Smoothed Bonus Money Market Unit Trust

PRESENTATION TITLE

MINIMUM CONTRIBUTION (WITHOUT PREMIUM WAIVER)

31

2-IN-ONE SAVINGS

Plan

Long Term Pocket

Short Term Pocket

R150

R130 R20Total contribution Less R130equals short term contribution

PRESENTATION TITLE

CONTRIBUTIONS ABOVE R200 (WITHOUT PREMIUM WAIVER)

32

2-IN-ONE SAVINGS

Plan

Long Term Pocket

Short Term Pocket

R300

R195 R10565% of total contribution 35% of total contribution

PRESENTATION TITLE

MONTHLY CONTRIBUTION TABLE (WITHOUT PREMIUM WAIVER)

33

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

R2000 R1300 R700

If the total contribution is > R2000, customer should be offered a choice to speak a Retail Affluent PFA

PRESENTATION TITLE

Short Term

PocketPremium Waiver

Long Term Pocket

MINIMUM CONTRIBUTION: R165WITH PREMIUM WAIVER OPTION

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2-IN-ONE SAVINGS

PlanR165

R22

R130 R13

PRESENTATION TITLE

MONTHLY CONTRIBUTIONS TABLEWITH PREMIUM WAIVER OPTION

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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

R2000 R1220.66 R122.07 R657.27

PRESENTATION TITLE

REGULAR FEES

36

Long Term Pocket Short Term PocketRegular Premium fee

15% of each long term premium plus

R10* (2-IN-ONE SAVINGS 4 MY GOAL &

EDUCATION)

No fee

Investment and administration fee

1.25% per year No fee

Guarantee fee 0.25% per year No fee

Fund management fee

0.25% per year 0.57% per year

*These fees are annually reviewable and subject to change

PRESENTATION TITLE

AFFORDABILITY

37

It is your duty as an adviser to conduct an affordability analysis with your customers. The main focus of this is to analyse your

customers’ expensesThe core of every affordability analysis should be to understand what your customers spend their money on and what expenses could be reduced to increase their disposable income.

You must educate your customers on how to wisely use this extra money that will be available after unnecessary expenses have been reduced for example:

Increase their savings by increasing their premium that goes into the short term pocket or using the savings Top-up Benefit.

An extract from the application form .


PRESENTATION TITLE

CONTRIBUTION INCREASE / DECREASE

38

PRESENTATION TITLE

CONTRIBUTION INCREASES

39

Annual Contribution Increase

Long Term Pocket

Short Term Pocket

1st July every year after the policy has been in force for 6 months

It applies to both the Long Term premium & Short

Term contribution

Linked to Inflation

PRESENTATION TITLE

SHORT TERM CONTRIBUTION INCREASES AND DECREASES

40

1 2 3 4 5 6 7 8 9 10 11 12

13 14 15 16 17 18 19 20 21 22 23 24

No changes allowed within the first 12 contributions

Changes allowed after paying 12 contributions

A customer can increase or decrease their short term contribution by at least R20

once every year.

For Short Term

Pocket ONLY!!!!

PRESENTATION TITLE

SAVINGS TOP-UP

41

PRESENTATION TITLE

SAVINGS TOP-UP: (FOR FLEXIBILITY)

42

1 2 3 4 5 6 7 8 9 10 11 12

Minimum=R250Maximum =R5000

Any time after inception of the policy

ONCE OFF DEBIT ORDER ARRANGED AT A

CUSTOMER SERVICES BRANCH

Any amount for the Savings Top-up will first be used to pay the long term premiums that may be in arrears.

Note that the limits can be reviewed

Months

For Short

Term Pocket

ONLY!!!!

PRESENTATION TITLE

SAVINGS BOOSTERS

43

PRESENTATION TITLE

SAVINGS BOOSTERS: (FOR ENCOURAGEMENT)

44

When: Savings Boosters is an amount equal to:

After 24 premiums Sum of the last 2 long term premiums



To Motivate our customers to be disciplined in their long term savings. It is paid to the Long Term Pocket

only.

For Long Term

Pocket ONLY!

PRESENTATION TITLE

45

24R137.

80

23R137.

80

22R137.

80

21R137.

80

20R137.

80

Savings Boosters

Amount = R275.60

SAVINGS BOOSTERSExample : Initial long term premium of R130

Annual contribution increase of 6%

PRESENTATION TITLE

46

60R164.

12

59R164.

12

58R164.

12

57R164.

12

56R164.

12

Savings Boosters

Amount = R492.37

SAVINGS BOOSTERS

PRESENTATION TITLE

47

110R219.6

3

Savings Boosters

Amount = R1 682.47

SAVINGS BOOSTERS

109R219.6

3

108R207.2

0

107R207.2

0

106R207.2

0

105R207.2

0

104R207.2

0

103R207.2

0

Annual contribution

increase

PRESENTATION TITLE

KEY RISKS

48

PRESENTATION TITLE

KEY RISKS The amount of savings at maturity, death or disability might not be

enough to meet the intended financial goal or need.

The annual bonus on the Long Term Pocket and the interest on the Short Term Pocket may be less than inflation, resulting in the buying power of the fund value being reduced.

Beneficiaries must be made aware of the death benefit available in order to notify Old Mutual of the policyholder’s death. This will speed up the payout process.

Part Withdrawals are allowed from the Long Term Pocket after the first 5 years of the policy.

There is an additional premium amount payable for the Premium Waiver Option.

49

PRESENTATION TITLE

PRIORITIES & BENEFIT RECOMMENDATION

50

Priorities are established by the customer not the adviser, however, as the adviser, you have an obligation to guide and

educate the customer through this process.

You have to make the customer aware of certain prioritisation risks for example:

The customer identified a higher priority for funeral cover over saving for retirement. This will not be in the customer’s best interest if there is currently no provision for retirement and sufficient cover in place for dependants.

For every shortfall there must be a priority and for every priority there must be a benefit recommendation.

You have to make the customer aware of certain product risks for example:

If a customer chooses the 2-IN-ONE Savings for my Goal (Without the Premium Waiver Option) rather than the 2-IN-ONE Savings for my Goal (With the Premium Waiver Option), Old Mutual will not inject a lump sum into the policy in the event of the customer’s death or disability.


PRESENTATION TITLE

PREMIUM HOLIDAY

51

PRESENTATION TITLE

PREMIUM HOLIDAY Can miss up to 6 contributions during the term of the policy

Automatic premium holiday: � 1 per year, can accumulate up to 6 premium holiday� Automatically applied if contribution is not received when due

Requested premium holiday:� Qualify for 6 after paying 6 contributions

Automatic premium holiday + Requested premium holiday cannot be more than 6 over the term of the policy

Short term pocket in premium holiday:� Savings Top-up allowed� Withdrawals allowed52

PRESENTATION TITLE

2-IN-ONE SAVINGS PLANS’ FEATURES


53

PRESENTATION TITLE

PART-WITHDRAWAL, PAID-UP, SURRENDER

54

PRESENTATION TITLE

PART WITHDRAWALS

55

Year 1 Year 2

1 2 3 4 5 6 7 8 9 10 11 12

Short Term Pocket

Long Term Pocket

Free of charge

Free of charge

Free of charge

Free of charge R50

R300+ Reducing fee

R300+ Reducing fee

Years

PRESENTATION TITLE

SURRENDER

56

The customer can withdraw the full accumulated balance from the Short Term Pocket at any time.It will remain active, even with a balance of zero, as long as the Long Term Pocket is still receiving premiums.A customer can start to pay contributions towards the Short Term Pocket again at anytime, but change is allowed once a year.If a customer surrenders the Long Term Pocket the entire policy will cease.

1 122 73 6 11 135 8 9 10 144

Short term contributionLong term premium

14

PRESENTATION TITLE

PAID-UP

57

1 92 3 8 104 5 6 7 11

Short term contribution Long term premium

1615 1712 13 14 18 19 20

Automatic paid-up : if client stop paying contributions and they have used up all their premium holidays.

If the Long Term Pocket is paid-up then the Short Term Pocket must also be paid-up

The accumulated fund value will continue to grow with smoothed bonuses and interest

A customer can also request for their 2-IN-ONE SAVINGS PLANS to be made paid-up at any time, as long as the minimum fund value is greater than R1000 after a paid-up charge is taken off.

PRESENTATION TITLE

CASUAL EVENT CHARGES

58

Long Term Pocket Short Term PocketPart withdrawal R300* + reducing fee.

Sum must not be more than 30% of fund value

First 2 per calendar year freeR50* per additional withdrawal

Paid-up R300* + reducing fee


No charge

Surrender (from active status)

R300* + reducing fee


No charge

Surrender (from paid-up status)

R155*, which must not be more than 30% of fund value

No charge

*These fees are annually reviewable and subject to change

PRESENTATION TITLE

CASUAL EVENT REDUCING FEE

59

Start at 15% at the time of application and reduces monthly over the charge term to 0%.

Charge term is half of the term, but at least 5 years and at most 10 years.

PRESENTATION TITLE

CASUAL EVENT REDUCING FEE - EXAMPLE

60

2-IN-ONE SAVINGS PLAN with a term of 10 years

15%

0%

Application Date

5 years

Charge term:10 years / 2 = 5 years

PRESENTATION TITLE


61


15%

0%

Application Date

10 years(120

premiums)

Reduction term:20 years / 2 = 10 years

PRESENTATION TITLE


62


15%

0%

Application Date 10 years

(120 premiums)

Reduction term:30 years / 2 = 15 yearsIt’s greater than 10 years, so reduction term = 10 years

PRESENTATION TITLE

REVIEW

63

Key elements to keep in mind for review

• Advisers must review a customer’s Financial plan at least every 6 months or at a frequency preferred by the customer.

• Advisers must agree on a next visit date at each interaction with the customer.

• The review does not necessarily lead to a sale.

• Do not re-do a financial plan with each visit, use the previous financial plan as a base to work from.

• Review is an important part of both relationship management and building trust between the adviser and customer.

PRESENTATION TITLE

SMOOTHED BONUS FUND

64

PRESENTATION TITLE

65

Normal Bank Savings

Smoothed Bonus Fund: Education/Investment Plans

Smoothed Bonus Fund: Retirement Plan

Normal Balanced Fund

Years

Savi

ngs

Valu

e

Growth

Smoothing

Smoothing

Tax Benefits

SMOOTHED BONUS FUND

Normal Bank Savings

Smoothed Bonus Fund: 2-IN-ONE SAVINGS 4 MY GOAL & EDUCATION

Smoothed Bonus Fund: 2-IN-ONE SAVINGS 4 RETIREMENT

Balanced Fund without smoothing

PRESENTATION TITLE

HOW ARE SAVINGS INVESTED

66

PRESENTATION TITLE

2-IN-ONE: HOW SAVINGS ARE INVESTEDLong Term Pocket

Savings in the Long Term Pocket are all invested in the Old Mutual Smoothed Bonus Fund.

The fund then invests in a mix of investments, such as:

a) High growth investments: ………?…………..and…………?……………

b) Medium growth investments: ……………?…………………..

c) Low growth investments: ……………?………………

d) Foreign investments: ……………?…………………67

PRESENTATION TITLE

2-IN-ONE: HOW SAVINGS ARE INVESTED

Long Term Pocket

a. This is a ……………?…………. risk fund: Under bad market conditions, customers may get less than what was invested.

b. Customers’ savings grow by………?………… declared in …………?…………..each year for the previous year.

c. Guaranteed to receive not less than ………………?…………. at: a) Death, Disability or Maturity

d. Guarantee falls away on ………?……… or ………?…….. or …………?…………..68

PRESENTATION TITLE


These fees are taken from the annual bonus before added to customers’ savings.

69

Fees As a % of Fund Value

Investment & Administration Fee

? % per year

Guarantee Fee ? % per year

Fund Management Fee ? % per year

PRESENTATION TITLE


Short Term Pocket

a) Savings in the Short Term Pocket are all invested in the …………… Fund.

b) The fund then invests in …………?…………. and other banking investments.

c) This is a …………?…………. risk fund: Very small chance that customers would get less than what was invested.

d) Customers’ savings grow by …………?…………… , which is added at the end of each month .

70

PRESENTATION TITLE

2-IN-ONE: HOW SAVINGS ARE INVESTEDShort Term Pocket

For customers exiting, the interest earned up that day is ………?……...to the fund invested in the Short Term Pocket.

These fees are taken from the ………………?………….. before added to customers’ savings .

71

Fees As a % of Fund Value

Investment & Administration Fee

? % per year

Guarantee Fee ? % per year

Fund Management Fee ? % per year

PRESENTATION TITLE

SUMMARY

72

PRESENTATION TITLE

SUMMARY

73

Feature Short Term Pocket Long Term PocketMinimum starting premium

R150

Minimum term 12 premiums(After which changes are possible)

10 years

Withdrawal of funds Full balance available (in 5 business days).

A part withdrawal possible after 5 years, thereafter every 5 years

Annual premium increases

Annual increase Annual increase

Premium increases (any time)

After 12 premiums are paid (minimum R20 increase)

Not allowed

Premium decreases (any time)

After 12 premiums are paid (minimum R20 decrease)

Not allowed

PRESENTATION TITLE

SUMMARY

74

Feature Short Term Pocket Long Term PocketSavings Top-up Can be made at anytime,

(Minimum and maximum limits apply)

Not allowed

Savings Boosters None Depending on the number of premiums paid, Old mutual will deposit extra funds into the fund value

PRESENTATION TITLE

SUMMARY

75

Retail Mass Market


Customers with Long & Short Term savings needs

ONE savings plan with TWO pockets

Listening & Responding to our customers’ needs

• Saving for Future Goals through the Long Term Pocket

• Access to Savings in the Short Term Pocket

August 2014

PRESENTATION TITLE

RECAP ON 2-IN-ONE FEATURES


76

PRESENTATION TITLE

RETIREMENT PLAN

77

PRESENTATION TITLE

RETIREMENT PLAN: UNIQUE FEATURES

For the retirement benefit larger than R75 000, only up to 1/3 can be taken as cash, while the rest must be used to buy an annuity.

78

R50 000

R50 000

R50 000

3/3 = R150 000

1/3 = R50 000

2/3 = R100 000

PRESENTATION TITLE


For the retirement benefit lower than R75 000, the full amount may be taken as cash.

79

R20 000

R20 000

R20 000

3/3 = R60 000

R60 000

3/3 = R60 000

<R75 000Cash payout

PRESENTATION TITLE

Advantages of a RETIREMENT PLAN

The long-term premiums are tax-deductible, up to a limit. For tax-paying customers, this reduces the overall tax they owe SARS.

Investment growth on the Long Term Pocket is not taxed, which means the savings growth is higher than other plans, every year.

A portion of the retirement benefit from the Long Term Pocket is not taxed when taken as cash, up to a certain limit.

80


PRESENTATION TITLE


Restrictions of a RETIREMENT PLAN

Retirement may only occur after age 55. This means that the retirement benefit is only available after age 55. Before age 55, the following 3 types of payouts are possible:

………………?………………. ………………?………………. ………………?……………….

81

PRESENTATION TITLE

SUPERVISION

82

THANK YOU

Old Mutual is a licensed Financial Service Provider

2-in-one savings slides july2014

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