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If your family relies on your income, then this should be an extremely important part of planning for your family’s future. One is never ready for death to occur but you can duly plan for it and leave your loved ones in the safest hands with Old Mutual.
When you buy a Term Life policy, Old Mutual pays your stated beneficiaries a specified amount in case anything happens to you during the term of the policy.
- The minimum entry age is 18.
- The maximum entry age is 70 for the insured person. However, the cover will cease when the person reaches the age of 75.
- The life protection cover amount is between NGN500,000 to NGN200,000,000.
- The policy term lasts between 1 year to 20 years.
- The premium will be paid monthly, quarterly or annually and is dependent on the age, gender and health of the insured person.
- You may choose to increase both your premiums and cover amount with a scheduled annual escalation of 10% on each policy anniversary until the end of your policy term.
- You may choose to receive 20% of your premiums back at the end of the term if there is no claim and the policy is still in-force.
- The policy can be renewed as long as the insured person is not changed. Also, the policy term may only be extended to a maximum of 20 years or until the insured person reaches the age of 75.
- No medical requirement is necessary for cover of NGN10,000,000 and below except the completion of a medical questionnaire. However, for cover above NGN10,000,000 the insured person is required to complete a medical questionnaire and undergo a medical test.
- All accidental death cover starts upon the receipt of the first premium.
- Non-accidental death cover starts at the end of the risk waiting period for premiums NGN10,000,000 and below while for premiums above NGN10,000,000 the non-accidental death cover will start upon the confirmation of the first full premium.
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Questions and Answers.
Is the policy right for me?
The policy is suitable for you if you are looking for affordable cover to provide financial protection for yourself, your family and your business.
What are the benefits provided by the policy?
Lump sum cover amount
You decide how much cover you would like when you apply for the policy. The amount of your chosen cover will be shown on your Certificate of Policy Commencement, which will be sent to you when we issue your policy. Please note that you may increase or decrease your cover voluntarily at any time, but only once a year between policy anniversaries, subject to the minimum and maximum limits. You may also choose to increase your cover amount by 10% on each policy anniversary until the end of your Policy Term. The policy will provide insurance cover for the death of the Life Assured during the term that you choose at the start of the policy. In the event of the death of the Life Assured and if all claim requirements are met, the policy will pay out a lump sum to the nominated beneficiary. The amount of the lump sum will be equal to the cover that you chose at the start of the policy, plus any voluntary increases, less any voluntary decreases, plus the optional annual escalations of 10% if you have chosen this.
Full cover amount payable for accidental death during Risk Waiting Period
The Risk Waiting Period is a period of 6 months, which begins from the start date of your policy during which the cover amount will not be payable if the Life Assured dies as a result of natural causes. If the Life Assured dies as a result of an accident during the Risk Waiting Period, the full cover amount will be payable. The Risk Waiting Period only applies to policies where the cover amount is below 10 000 000.
You may choose one of two options namely the cashback option or the non-cashback option. In the event that the Life Assured survives to the end of the term and is on a cashback option, 20% of all the Premiums paid will be paid back as a lump sum, provided the policy is still in force. No Premiums will be paid back at the end of the Policy Term if you have chosen the non-cashback option.
Please note that your policy will never have a surrender value. This means that we will not pay any Premiums, cover amount or cashback amount to you if you surrender your policy before the end of your chosen term. The cashback option is available on policies with a minimum term of 3 years.
Who may be covered by the policy?
The policy can cover any individual subject to age limits. The person who is covered by the policy is known as the Life Assured. You may buy the policy and also be the Life Assured. Subject to certain conditions, and provided that they have given consent, you may also make someone else the Life Assured. The Policyholder (the person who contracts with Old Mutual and is responsible for paying the Premiums) and any Life Assured must be at least 18 years old. The maximum age the Life Assured can be at the start of the policy is 70 years old. Cover for any Life Assured will end when the Life Assured reaches the age of 75.
Who are the beneficiaries of the policy?
If the Policyholder is also the Life Assured, he/she may nominate up to 5 beneficiaries to receive the proceeds (Beneficiaries for Proceeds) of the policy in the event of a valid claim. The Policyholder may revoke or change the beneficiary at any time during the term of the policy. If the Policyholder and the Life Assured is the same person and there is no valid beneficiary nomination, the cover amount will be paid to the Policyholder’s estate. If the Policyholder and Life Assured are not the same Person, the cover amount will be paid to the Policyholder in the event of the Life Assured’s death.
If the Policyholder and the Life Assured is not the same Person, the Policyholder may nominate a Beneficiary for Ownership to take over the position of Policyholder in the event of the death of the Policyholder.
How long will my policy last?
You may choose the term which suits your needs. There is a choice of a term between 1 to 20 years.
Your policy will end if:
- Your policy reaches the end of the policy term.
- We pay a claim.
- You stop paying your Premiums before the end of the policy term and use up all 3 reinstatement periods.
You may choose to renew your policy at the end of the term. This renewal of your policy is subject to the Life Assured not being 75 years old. The policy may only be renewed for a term equal to or shorter than the original term and not beyond the Life Assured being aged 76 years at last birthday. You may not renew your policy for a different Life Assured than the Life Assured that was originally covered under your policy. Only one renewal is allowed.
How much does the policy cost?
Our financial advisers will provide you with a quotation, which will tell you how much the policy will cost you. The quotation will depend on:
- your personal circumstances – for example your age, gender and health;
- the amount of life cover you select;
- whether you select the cashback option;
- how long you want the cover to last.
How regularly will Premiums have to be paid?
You will be required to pay Premiums on a regular basis. You may choose to pay your Premiums in advance on a monthly, quarterly, semi-annual or annual basis. Premiums will be payable on the 1st day of the chosen Premium payment period whilst the policy is in force.
Do the Life Assured or I have to go for medical tests or complete medical questionnaires as part of my application?
Medical tests will only be required for the Life Assured, depending on the level of cover you choose. However a medical questionnaire is part of the application.
Can I change my policy after it has started?
Yes. You may increase your chosen amount of cover, subject to acceptance by us and the maximum cover limits applicable at the time. Cover increases may require further medical testing. You may also reduce the amount of the cover, as long as the Premium does not drop to below our minimum Premium at the time. Speak with an Old Mutual adviser or visit an Old Mutual office when you plan to increase your cover.
Can my Premium payments change in the future?
Yes, if you have requested either a voluntary increase or decrease to your Premium and cover amount at any time, or have chosen to have both your cover amount and Premium increased by 10% each year on your policy anniversary until the end of the term. We may review your policy at any time, and if the Premiums you are paying at that time are not enough to maintain the current level of cover, you may either:
- continue paying the same Premiums and reduce the level of cover, or
- increase your Premiums to maintain the same level of cover.
Our aim is to efficiently manage your policy so that it remains affordable to you. Therefore, increases to your Premium will only happen in exceptional circumstances, for example change in laws, adverse claims experience or prolonged poor economic conditions.
What will happen if I stop paying Premiums?
If there is non-payment of Premiums by the Premium Due Date, the benefits provided herein shall cease on such a date and there shall be no cover provided within that period, unless and until the Premium is received. For the avoidance of doubt, if a claim is made during a period of non-receipt of an outstanding Premium, the No Premium, No Cover rule shall apply.
May I change my mind and cancel my policy?
Yes, you may. You have 30 days from the date of issue of your policy documents to write and ask us to cancel your policy. This is called the cool-off period. If you decide to cancel your policy within the cool-off period we will refund any Premiums you might have already paid. If you decide to cancel your policy after the cooloff period, we will not refund any Premiums that you may have paid (except Premiums paid more than one month in advance). Your cover will continue until the due date of your next Premium after which it will stop. If payment is by bank mandate or salary deduction we will instruct your payment channel to stop making Premium deductions. Any Premiums deducted after you have cancelled your policy will be paid back to you. You may cancel your policy before receiving any documents by contacting us.
How do I make a claim?
You may make a claim at any Old Mutual Branch. The person making the claim should notify us as soon as possible in the event of the death of the Life Assured. In the event of a claim under this policy we may require a Cause of Death certificate and, in the event of death due to an accident or unnatural cause, a police report.
When will the policy not pay out the cover amount?
This section outlines the main policy exclusions. For full details of all the reasons why we may not pay a claim, please refer to the policy terms and conditions. If we apply any additional exclusion(s) to your policy, we will tell you before your policy starts and show them in your Certificate of Policy Commencement. We may not pay a claim and will cancel all cover in the following circumstances:
- If you have previously made a fraudulent claim from Old Mutual.
- You did not provide to us all the information we asked for when you applied for your policy, or when you made a claim.
- You have not made all the Premium payments as per the policy terms and conditions.
- Your claim arises from death caused by intentional selfinflicted injury, suicide, attempted suicide, hazardous activities or willful exposure to danger.
- Your claim arises from sickness or injury that first appeared, happened or was diagnosed before your cover started, increased or was last reinstated (unless disclosed to and accepted by us as part of the application or reinstatement process).
- Your claim arises directly or indirectly as a result of the Life Assured’s involvement in war or war like operations, terrorism, or a criminal act.
- You did not provide us with honest and full information about the following, when you applied for your policy:
- personal health
- family medical history
- alcohol consumption
- smoking habits
- use of recreational drugs or drugs not prescribed for you.
What about taxation?
The tax treatment of any benefits taken from this policy will depend on the personal circumstances of the claimant, including their country of residence. Please consult your relevant
financial professional if you are in any doubt as to the extent to which you may be liable to any tax under this policy. If the policy is held in trust, then different taxation rules may apply. Old Mutual is unable to provide individual tax guidance and recommends that you always seek professional tax advice.
Can I transfer ownership of my policy?
Yes, Outright assignment will be allowed on the policy. Outright assignment involves transferring all rights and title to the Assignee (i.e. to the person to whom the policy is assigned to). This normally occurs when the Policyholder is not the same as the Life Assured.A security cession transfers the rights to the proceeds of the policy to a third party, normally a bank, should the insured event happen. The Policyholder or Beneficiaries of proceeds will be entitled to any balance of the benefit remaining after the secured debt has been satisfied. No loans will be issued/granted by Old Mutual Nigeria under this policy.