Old Mutual revamps flexible Life Plan to offer greater choice with the same good value and quality of service provision

Old Mutual announced a revamp of its flexible Life Plan solutions aimed at boosting the financial security of South African breadwinners and their families at the lower to mid end of the market.

The Life Plan range aims to help these customers keep their cover during tough economic times and safeguard their families’ dreams.

Thembisa Mapukata, Old Mutual’s Mass Foundation Cluster marketing executive, said: "The re-launch of the Life Plan range complements our existing customer risk proposition and group life offering. In the current economic climate, the recently released Old Mutual Savings and Investment Monitor shows that many South Africans feel they’re coping financially if they simply meet their day-to-day costs. They regard providing for their future as something that’s not affordable.”

This “now-ism” exposes them and their families to the risk of hardship later in life and highlights the need for cover that is flexible.

“Financial services providers need to offer products that not o­nly provide protection from financial loss as a result of death and disability, but which also take into account the financial pressures people face.

“In the context of the Life Plan range, this means we’re able to provide peace of mind for policyholders and their families. Losing a breadwinner should not end any family’s dream of sending a child to university, for instance.”

Mapukata explains that policyholders can choose between the Pure Life, Life & Disability and Accidental Death & Disability Plans, depending o­n their needs and affordability.

Realistic new benefits include:
•A premium holiday – miss up to six premiums over the life of the policy without the policy being cancelled
•A start-again benefit – if the policy is cancelled, it may be restarted under certain conditions
•Money-back guarantee – premiums are repaid o­n a valid claim if there’s a waiting period
•Cash-back benefit – if premiums are paid for five years, the client gets a benefit equal to a number of premiums every five years, provided they’re still paying premiums
•Paid-up benefit – stop paying premiums after 10 years and remain covered for 50% of the benefit
•Minimum cover of R50 000

Mapukata notes that products such as this are especially relevant at a time when, according tothe Old Mutual Savings and Investment Monitor, about 45% of formally employed South Africans have no form of retirement savings.

“The more accessible, flexible and affordable we can make these products, the easier it will become for consumers to have financial security. We have an obligation to find ways for consumers to deal withtoday’s hard realities and help them cope with the real demands of making ends meet while also providing for the future,” says Mapukata.