omterms

TERMS AND CONDITIONS

Please note that the type of transaction that you are applying for and the nature of your product will determine which of the following T’s & C’s apply to your request.

By accepting these TERMS AND CONDITIONS you agree to the specific terms that apply to your SPECIFIC TRANSACTION.

If you are uncertain about any aspect of your transaction, you can ask us for assistance, through our Client Services Helpdesk at 0860 50 60 70.

A. FUNERAL CLAIMS

Please Note:

Age adjustments: When we consider a death claim on a Funeral Plan and find that the date of birth of the insured person is different to the date that we have on record, we will change the cover for that person in line with the premiums that have been paid.

Declarations and acceptance

  1. You understand that Old Mutual may approve or decline this claim subject to the terms stipulated in the policy contract(s) and based on the information that has been submitted to Old Mutual in terms of the claim.
  2. In the event that the details of the deceased or claimant on Old Mutual’s records differ from the updated details on this form, you confirm that these people are one and the same.
  3. You further understand that any request for adding an insured person requires further evaluation by the processing centre and that Old Mutual will notify you of the outcome of the request.
  4. You confirm that all the information you provided to Old Mutual electronically for purposes of this claim (whether it was by way of the Old Mutual mobile application, USSD, WhatsApp or any other method) is true and correct.
  5. You give consent to Old Mutual to confirm this information with any appropriate source.
  6. You understand that you will not have any claim against Old Mutual if the money is deposited into an incorrect bank account where you supplied the incorrect bank details.

B. WITHDRAWALS

WITHDRAWALS FROM YOUR 2-IN-ONE SAVINGS PLAN

Withdrawals only from the Short Term Pocket of the 2-IN-ONE SAVINGS PLAN:

  1. You instruct Old Mutual Investment Administrators (Proprietary) Limited (OMIA) to withdraw the requested amount from the Short Term Pocket of my 2-IN-ONE SAVINGS PLAN.
  2. Where your funds are invested in different unit trust funds, the requested amount will be withdrawn evenly from all funds.
  3. You authorise OMIA to pay the withdrawal amount to Old Mutual Life Assurance Company (South Africa) Limited (Old Mutual).
  4. Old Mutual will pay the withdrawal amount into your bank account.
  5. The first two withdrawals per calendar year are free of charge, after which a transaction charge will apply. The Short Term Pocket will be reduced by the withdrawal amount and any transaction charges.
  6. The withdrawal will be processed and paid into your bank account within a maximum of 7 days of you accepting these terms, provided all required documents are received.
  7. You will not have any claim against Old Mutual if the money is deposited into an incorrect bank account where you supplied the incorrect bank details.
  8. You confirm that all the information you provided to Old Mutual electronically for purposes of this claim (whether it was by way of the Old Mutual mobile application, USSD, WhatsApp or any other method) is true and correct.

Withdrawals from the Short Term + Long Term Pockets of the 2-IN-ONE SAVINGS PLAN where there are not sufficient funds in the Short Term Pocket to make up the requested amount and funds must be withdrawn also from the Long Term pocket.
This also applies to a full surrender of the 2-IN-ONE SAVINGS PLAN:

Please Note:
If you pay your premium by debit order and a premium was deducted from your account in the last 9 days, we are waiting for the premium to clear at the bank. The value that is paid into your bank account will be the value quoted less the premium that hasn’t cleared yet. If the debit order clears, we will apply the premium to your Long Term Pocket.

  1. All conditions that relate to the Short Term Pocket (above) are also accepted as if they are part hereof.
  2. If you already made a withdrawal during the first five years of your policy, we will not be able to process your withdrawal request. This is due to legislation that applies to your policy.
  3. As a result of the current financial crisis, Old Mutual will reduce the fund value of your Long Term Pocket by a certain percentage, to protect future bonus levels for customers who leave their money invested until the end of their terms. This is called a Market Value Adjuster (MVA).
  4. You are applying for a withdrawal from the Long Term Pocket of the 2-IN-ONE SAVINGS PLAN, which policy number you have provided during this application. You declare that you are the legal owner of the 2-IN-ONE SAVINGS PLAN and that you have not ceded or pledged it by antenuptial contract or otherwise.
  5. Where your funds are invested in different investment funds, the requested amount will be withdrawn evenly from all funds.
  6. You are aware and give consent that the withdrawal/surrender charge, where applicable, applies.
  7. You request Old Mutual to deposit the withdrawal/surrender proceeds into the bank account, the particulars of which you provided during this claim and declare that the details provided by you are complete and accurate.
  8. You will not have any claim against Old Mutual if the money is deposited into an incorrect bank account where you supplied the incorrect bank details.
  9. You confirm that all the information you provided to Old Mutual electronically for purposes of this claim (whether it was by way of the Old Mutual mobile application, USSD, WhatsApp or any other method) is true and correct.

WITHDRAWALS FROM YOUR MAX INVESTMENTS, INVESTMENT HORIZONS, OM INVEST FLEXIBLE PLAN AND GREENLIGHT SAVINGS PLAN

  1. Note: When we use the name “Old Mutual” below, we mean Old Mutual Life Assurance Company (South Africa) Limited (“OMLACSA”) when your product is a funeral policy or investment policy. If your product is an investment product that is issued to you by Old Mutual Investment Services (Pty) Ltd (“OMIS”), then you must read “Old Mutual” as referring to OMIS. Your product documentation will indicate to you whether it was issued to you by OMLACSA or OMIS.
  2. Please note that legislation limits your ability to make withdrawals from your investment, where it is a policy issued by OMLACSA. This applies during the first 5 years of your policy. The period could be longer in certain cases. If you, therefore, proceed with the withdrawal within the first 5 years (or longer) of your investment, it could prevent you from making further withdrawals. We suggest that you speak to your adviser or our Client Services Helpdesk at 0860 50 60 70 to get more information about this if you are uncertain.
  3. The limitations described above do not apply to Tax Free plans or investments issued to you by OMIS.
  4. Old Mutual reserves the right to undertake any realisation of investments necessary for disinvestment purposes over a period of up to 30 trading days on the relevant stock exchange(s) and to determine the total disinvestment value by reference to the amounts realised for such investments over that period.
  5. If no Investment Funds are indicated, the total amount or units invested will be proportionally disinvested from all current Investment Funds. Old Mutual is entitled to delay the payment of any disinvestment if any party holding assets on their behalf or any of their partners delay payment of the proceeds to them. If a restriction is placed on the sale of assets in the Underlying Investment Fund, which can happen from time to time, the same restriction will apply to your Underlying Investment Fund. This can significantly delay the processing of disinvestments or switches.
  6. Your investment may be terminated if the value of all the Underlying Investment Funds contained therein falls below the minimum limit set by Old Mutual from time to time. You will receive any balance in cash after units have been sold to recover any charges due to Old Mutual that have not yet been recovered.
  7. Investment units are priced daily. Old Mutual will use the unit price of the business day after they receive your disinvestment documentation to determine the disinvestment value that you will receive.
  8. Repurchase transactions will be subject to the terms and conditions in the relevant Trust Deed(s) that apply to the Unit Trust funds in which your savings are invested. Should the units tendered for repurchase have been ceded, the written consent of the cessionary must be provided before the repurchase can be processed.
  9. With a full/part disinvestment you must continue with the existing premium schedule or ad hoc investments into your investment subject to the following:
    a. If the value of all Investment Funds contained within the Plan/Savings benefit, less the amount of any outstanding loan debt, falls below the minimum limit set by Old Mutual from time to time, your investment will be cancelled. If this happens no further value will be payable to you.
  10.  Where your investment is a policy that was issued to you by OMLACSA a reduction fee will be deducted from the value of your policy. On certain investments, a reduction fee and transaction admin fee will be deducted. This will reduce the value of your investment. You can ask us, through our Client Services Helpdesk at 0860 50 60 70 to find out what the transaction admin and reduction fee will be before you proceed with your transaction.
  11. Where your investment is a Greenlight Savings Benefit your disinvestment is subject to the terms of the Addendum to your Savings Benefit.
  12. You may not proceed with this transaction if your investment has been ceded or pledged to anyone. By proceeding, you confirm that you did not cede or pledge it.
  13. If you are withdrawing the full value of your investment and requesting that it be cancelled, it will be cancelled in our records and it will cease to exist.
  14. The price payable for the units to be repurchased in terms of this request will, under normal circumstances, be the Management Company’s repurchase price ruling on the business day after the documentation is received by Old Mutual.
  15. If the GREENLIGHT Savings Benefit cancellation is selected, the Savings Benefit premium will be cancelled. The Greenlight Risk Benefit will still continue.
  16. Payments will not be made to third-party bank accounts.

    WITHDRAWALS FROM YOUR TAX FREE PLAN


    Additional to the above, the following applies:

  1. Note: Due to the annual limit that applies to the amount of contributions that you can make per tax year to your investment, any amount withdrawn cannot be reinvested in a specific tax year if you have already contributed the total allowed by legislation.
  2. Old Mutual is obliged to carry out an instruction to withdraw an investment over a period of up to 7 business days and to determine the value according to the amounts realised for the investment over that period.

C. POLICY LOANS (Zero Interest Loans)

  1. You are applying to Old Mutual for a Zero Interest Loan from Old Mutual.
  2. It is a condition of the loan that we will switch an amount equal to the loan amount from the underlying investment funds that you chose for your policy, to the Capital Secured Fund. It will remain in the Capital Secured Fund until such time as you have repaid the loan in full. and,
  3. You, therefore, instruct us to switch an amount equal to the realisable Rand value of the units from the investment fund(s) underpinning your policy to the Capital Secured Fund.
  4. You will not earn any growth on the funds that are switched to the Capital Secured Fund.
  5. Where your investment is a policy that was issued to you by OMLACSA a reduction fee will be deducted from the value of your policy. On certain investments, a reduction fee and transaction admin fee will be deducted. This will reduce the value of your investment. You can ask us, through our Client Services Helpdesk at 0860 50 60 70 to find out what the transaction admin and reduction fee will be before you proceed with your transaction.
  6. The amount of the loan may be limited as a result of legislative restrictions.
  7. The law currently allows long-term insurers to grant only one loan during the first five years of a policy. This period can be extended under certain circumstances.
  8. By proceeding with this application for a loan you warrant (confirm) that you have not been sequestrated and/or that you did not cede (transfer) the rights in your policy to another person or the bank as security for debt.

  9. PAYMENT OF LOAN AMOUNT

  10. Old Mutual has the right to pay you the loan amount in more than one instalment, should debit order or stop order clearance still be required in respect of any premiums or contributions paid by you under the policy.
  11. REPAYMENT OF LOAN

  12. Repayments may be made at any time, without notice, either in full or in instalments, provided that the instalments meet Old Mutual’s minimum instalment requirements for loan repayments from time to time, except that for Max Investments Flexible Plans (Xtra): Repayments may not be made in the first 5 years of the Plan. After the initial 5 years, repayments may be made at any time, without notice, whether in full or in instalments, provided that the instalments meet Old Mutual’s minimum instalment requirements for loan repayments at the time.
  13. Depending on the specific product, certain unique loan repayment rules may apply. You must check whether such rules apply when you want to make a repayment.
  14. The full amount of the loan amount will become due and payable on the first occurring of the following events:
    • upon any benefits in terms of the Plan/Savings Benefit becoming due and payable; or
    • death or insolvency/liquidation of the/any one of the Contracting Party/ies; or
    • if the value of an investment fund contained in the Plan/Savings Benefit falls below the minimum limit set by Old Mutual from time to time.
  15. If you do not repay your loan, Old Mutual shall apply the benefits payable in terms of the Plan/Savings Benefit towards settlement of the loan.
  16. If there is more than one borrower, you will be jointly and severally liable for the repayment of the loan.
  17. By applying for this loan you also agree to an amendment of your policy contract to the effect that you may not cede (transfer) the policy to another person until such time as the loan is repaid in full.
  18. You will not have any claim against Old Mutual if the money is deposited into an incorrect bank account where you supplied the incorrect bank details.
  19. You confirm that all the information you provided to Old Mutual electronically for purposes of this transaction (whether it was by way of the Old Mutual mobile application, USSD, WhatsApp or any other method) is true and correct.
  20. Your banking details will need to be verified by your bank and Old Mutual has the right to request such account confirmation in writing, and in addition, for amounts over R50 000 Old Mutual may confirm the details with you telephonically.
  21. The transaction will only be processed once Old Mutual has received the confirmation as required.