FREQUENTLY ASKED QUESTIONS - FMI · Which existing FMI clients do not qualify for the Income First offer? (i) Clients who already took up the special offer in 2016/2017/2018. (ii)

How do we apply 2-year rule?

The offer is available to qualifying clients where the DOC is between 1 October 2017 and 30 September 2019.

Can a client still qualify for the offer if the qualifying benefit is no longer in force?

No, the temporary income protection or lump sum disability benefit must still be active.

Do we require proof that the existing cover is still in force?

Yes, we will require the following documents: • Original Welcome Pack which will indicate the loadings and/or exclusions.• Latest Policy Schedule – which will confirm the cover is still in place.

Can any of the eligibility rules be amended for clients that are close to the criteria? E.g. the existing policy DOC is 1 September 2017, or the client had their 55th birthday a few weeks prior?

No, there will not be any further concessions to the offer eligibility requirements.

Can you add Critical Illness Lump Sum cover as part of the offer? No, any benefits that don’t form part of the offer can be added as an amendment after the policy is accepted and this will be fully underwritten.

Can you add Future Income Protector benefits as part of the offer? No, any benefits that don’t form part of the offer can be added as an amendment after the policy is accepted and this will be fully underwritten.

Can you select Medical Second Opinion - Family Option as part of the offer?

Yes.

Is tele-underwriting available for the offer?

No, the medical questions must be answered on the Income First application form.

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FREQUENTLY ASKED QUESTIONS

OUR INCOME FIRST OFFER IS VALID: 1 OCT 2019 - 31 JAN 2020

SECTION 1 EXISTING FMI & NEW CLIENTSQUESTIONS AND ANSWERSTO HELP ADDRESS ANY QUERIES YOU MAY HAVE.

TIPCIIEIPLI DLSLLS PVDOCABICOL

Temporary Income ProtectorCritical Illness IncomeExtended Income ProtectorLife IncomeDisability Lump SumLife Lump Sum Present ValueDate of CommencementAnnual Benefit IncreaseCounter Offer Letter

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Client Care : 086 010 1119 | For more information visit: www.fmi.co.zaFMI is a Division of Bidvest Life Ltd, a licensed Life Insurance Company and authorised Financial Services Provider FSP 47801

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What are the rules regarding changing the DOC?

The normal rules will apply:• A client may select a future DOC no more than 60 days from the acceptance date.• Once a DOC has been selected and the case is accepted, the DOC may only be moved once and by 30 days maximum, only if the 30 days falls within the 60 days as confirmed above.• We will not allow the DOC to be moved to a future date after the first debit order has failed and the policy is unpaid. • If the DOC of a policy is changed after the policy is accepted, cover will only commence on the DOC. No immediate cover will apply.

Can you add the Waiver of Premium option as part of the offer?

The Waiver of Premium can be selected on the offer for new FMI clients. Existing FMI clients who have this benefit available (on FMI Individual package 176 and later versions) can add this option.

Can you add the EIP Commutation option as part of the offer?

The EIP Commutation option can be offered on an Extended Income Protector (EIP) benefit being taken for the first time or on the increase of EIP cover.

Can you select TIP75 as part of the offer?

Yes

Are there any waiting period restrictions (apart from the normal ones e.g. one month waiting period for hairdressers) if you add TIP through the DLS offer?

No, however if there are any positive declarations on the health questions, we reserve the right to call for underwriting requirements or questionnaires and terms may be offered. Occupational underwriting will still apply.

Are there any waiting period restrictions if you add TIP through the Temporary Income Protection offer?

The waiting period on the TIP benefit under the TIP offer must be equal to the existing temporary income protection benefit.

Will financial underwriting apply?

Yes, cover will be restricted in line with our financial underwriting guidelines.

What happens if a client’s occupation has changed since taking out their original cover?

This information must be disclosed on the application form and the quote should reflect this change.

Can your Life Income cover amount exceed your TIP cover amount?

Yes, Life Income isn’t limited to TIP cover.

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QUESTIONS AND ANSWERSTO HELP ADDRESS ANY QUERIES YOU MAY HAVE.




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If the existing lump sum disability cover is less than R1 million, will you be allowed to take the pro-rata amount, e.g. a client has R1.4 million cover – can they apply for R14 000 TIP and EIP cover?

Yes, they can apply for the pro-rata amount.

Are applications automatically declined if clients answer yes to any of the medical questions?

No, the underwriters will base their decision on the additional information provided on the application form.

Where an application is declined, can the client reapply through the normal underwriting process?

Yes, a new FMI Individual application form will need to be completed and full underwriting will apply.

Will we allow a client to take out TIP cover, if they were underwritten for lump sum critical illness cover?

No, in order to qualify for TIP cover they must have been underwritten for temporary income protection or occupational lump sum disability cover.

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Can a client retain their existing temporary income protection or lump sum disability cover at another insurer and take additional TIP or DLS cover with FMI?

Yes, provided they’re not over insured across both policies and financial underwriting will apply.

Must TIP or DLS be selected in order to access the other income benefits?

No, if your client has been underwritten for either of the qualifiying benefits, you can select to add any of the available benefits. Please note that CII and EIP can only be selected if the client has TIP cover with FMI.

Will a client qualify for the offer if they have lump sum disability (Own or Similar Occupation) cover with another insurer?

We will consider Own or Similar Occupation disability in this circumstance, subject to occupational underwriting.

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Benefit Income First offer Maximum allowable under the Income First offer

TIP Add TIP R10k TIP for every R1M lump sum disability (pro rated), max R35 000 p.m.

CII Add CII TIP + CII <= R50 000 p.m.

EIP Add EIP R10k EIP for every R1m lump sum disability (pro rated), max R35 000 p.m.

DLS Add DLS 100% of lump sum disability cover in place with another insurer

(whether replaced or added), max R7M

LI Add LI

Estate Liquidity for 12 or 24 PV LI + LLS added through the offer < R10M

months or Child Beneficiaries up

to age 18, 21 or 24

LLS Add LLS Up to max of existing lump sum disability or life cover in place with another insurer

PV LI + LLS added through the offer < R10M

OFFER 1 - USE DISABILITY LUMP SUM TO ADD INCOME BENEFITS


TIP Add TIP 100% of existing temporary income protection, max R50 000 p.m.

CII Add CII TIP + CII < R50 000 p.m.

EIP Add EIP 100% of existing temporary income protection, max R50 000 p.m. (EIP <= effected TIP cover)

DLS Add DLS 240 x existing temporary income protection cover, max R7M

LI Add LI

Estate Liquidity for 12 or 24 PV LI + LLS added through the offer < R10M

months or Child Beneficiaries

up to age 18, 21 or 24

LLS Add LLS 120 x existing TIP cover

PV LI + LLS added through the offer < R10m

OFFER 2 - USE TEMPORARY INCOME PROTECTION TO ADD MORE INCOME BENEFITS

SECTION 2 NEW CLIENTS





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Which existing FMI clients do not qualify for the Income First offer?

(i) Clients who already took up the special offer in 2016/2017/2018.(ii) Clients on the ABSA AIFA Scheme, or clients from this scheme that have converted to an FMI policy.(iii) Clients who do not meet the set qualification criteria. (Refer to the qualification criteria on the information brochure.)

Can an existing client take out LLS cover if they were underwritten for and have DLS cover in place?

Yes, a client qualifies for LLS subject to financial underwriting.

If an existing policy has an occupational loading applied to the DLS or TIP through a counter-offer letter, but no health loading, are they still eligible to apply for cover?

Yes, they will be eligible provided they were accepted at standard rates. However, the new benefits will be subject to occupational underwriting.

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TIP Add TIP R10k TIP for every R1M DLS (pro rated), max R35 000 p.m.

CII Add CII TIP + CII <= R50 000 p.m.

EIP Add EIP R10k EIP for every R1M DLS (pro rated), max R35 000 p.m.

DLS Not available

LI Add LI PV LI + LLS added through the offer < R10M

Estate Liquidity for 12 or 24 months or

Child Beneficiaries up to age 18, 21 or 24

LLS Add or increase LLS Up to max of existing DLS or LLS cover in place with FMI


OFFER 1 - USE DISABILITY LUMP SUM TO ADD INCOME BENEFITS


TIP Add or increase TIP 100% of existing TIP, max R50 000 p.m.

CII Add CII Increased TIP + CII <= R50 000 p.m.

EIP Add or increase EIP 100% of existing TIP, max R50 000 p.m. (EIP <= effected TIP cover)

DLS Add or increase DLS 240 x existing TIP cover, max R7M

LI Add LI PV LI + LLS added through the offer < R10M

Estate Liquidity for 12 or 24 months or

Child Beneficiaries up to age 18, 21 or 24

LLS Add or increase LLS 120 x existing TIP cover


OFFER 2 - USE TEMPORARY INCOME PROTECTION TO ADD MORE INCOME BENEFITS

SECTION 3 EXISTING FMI CLIENTS

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Will we accept cases that don’t have a loading or exclusion, however a COL was generated due to a shorter waiting period being declined and a longer waiting period offered?

If a policy has a longer waiting period for occupational reasons only with a counter-offer issued, then they are eligible. For example:A client was quoted as a business owner but is actually a beautician. In this case, there are times that underwriting will issue a COL instead of requesting a new signed quote. This shouldn’t be a problem. The COL just corrects a misclassification of the occupation. It’s not the fact that a COL was issued that disqualifies someone, it’s whether they were issued at standard rates or not.

Is the offer only available to clients whose premium payments are up to date?

Yes, any client who has a double debit pending or is in arrears is disqualified from exercising the offer. On receipt of the application, FMI will revert should we determine the premiums are not up to date.

If an existing FMI client selects to add new benefits or to increase their existing cover through the offer, will the amendment be made on their existing policy or will a new FMI Individual policy be issued?

Where existing clients have selected an Annual Benefit Increase of 0%, 5% or CPI, the additional cover will be added to the existing benefit. If they have ABI of 7.5% or 10%, the additional cover will need to be taken on a new policy and the ABI will be limited to 0%, 5% or CPI.

Is the maximum of R50 000 TIP and EIP cover based on the additional cover that can be taken through the offer?

Yes, the offer will allow clients to add 100% of their existing cover, up to R50 000 p.m. Financial underwriting will apply to ensure that the increased cover amount does not exceed net income.

Can CI Income be added to TIP where a client has more than R50 000 cover in place?

Yes, this will be allowed.

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Documents

FREQUENTLY ASKED QUESTIONS - FMI · Which existing FMI clients do not qualify for the Income First offer? (i) Clients who already took up the special offer in 2016/2017/2018. (ii)