Regular ZIL Disinvestment Declaration (RSA)-NGP t&c's

IMPORTANT NOTES

In this document:

  • the singular form of a word includes the plural and vice versa;
  • any gender includes the other gender;
  • any references to persons include individuals, juristic persons, partnerships and any other body of persons.
PAYMENTS

Regular payments are drawn proportionately according to the current total value of each fund.

ELIGIBILITY
  • These transactions are available on Single Premium products only, and only on a Plan/Savings Benefit outside of the restriction period. (Refer page 3 for a definition of the Long-term Insurance Act.)
  • These transactions are available on existing business only.
  • Please note that a regular disinvestment/regular zero interest loan will be dependent on whether you have invested in a Life or LISP wrapper, determined by your Plan/Benefit number.
IMPORTANT TIME PERIODS

A schedule can only be added after the cool-off period, i.e. 45 days after the commencement date of the Plan/Savings Benefit or an additional Lump Sum Injection and cannot be scheduled for a start date 3 months in advance from current date.

Please be aware that it will take approximately 7 working days to effect the first income payment. For example, if you require your first income payment on the first of the month, Old Mutual will have to receive this form by the 25th of the previous month.

This schedule will replace any previous schedule that you may have had on this Plan/Savings Benefit.

LOAN TERMS AND CONDITIONS
LIMITATION OF LOAN AMOUNT

In certain circumstances the regulations promulgated under S54 of the Long-term Insurance Act limit the amount that Old Mutual may loan to you. The loan amount will therefore be limited to the lesser of:

  • The sum applied for; or
  • The maximum amount available under the said regulations.

I warrant that:

  • My/the Contracting Party’s estate has not been sequestrated/liquidated; and
  • The Plan/Savings Benefit has not been ceded or pledged to anyone
REPAYMENT OF LOAN

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.

All repayments of the loan must be made in South African currency, at Old Mutual’s principal place of business.

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.

Old Mutual shall apply the benefits payable in terms of the Plan/Savings Benefit towards settlement of the loan.

AMENDMENT TO TERMS AND CONDITIONS OF PLAN/SAVINGS BENEFIT

I agree to the amendment of the terms and conditions of my Plan/Savings Benefit as follows:
No cession: I undertake not to alienate or pledge the Plan/Savings Benefit until the loan has been repaid in full.

NOTICES

All notices shall be deemed to have been received by you, unless you prove it was not, if it was:

  • posted to you at the address recorded for the Contracting Party whose name appears first on Old Mutual’s records in respect of the Plan/Savings Benefit;

or

  • sent to you by e-mail or fax as elected by you in this application form.

I select as my physical address for the delivery of documents, the physical address provided in the Plan/Savings Benefit.

APPLICABLE LAW

This loan agreement will in all respects be governed by and construed in accordance with the laws of South Africa.

CONDITIONS, DECLARATIONS AND RESTRICTIONS

Financial Advisory and Intermediary Services Act

  • It is my responsibility to ensure that this form is fully completed and accurate before I sign it.
  • I will on request be provided with a copy or a printed record of this transaction within a reasonable time.

Tax

  • Disinvestments from LISP policies are subject to Capital Gains Tax

Long-term Insurance Act
The law currently restricts Old Mutual from paying Benefits to you within certain periods.

This means you may only make one loan and one disinvestment:

  • during the first five (5) years of the Plan, and also
  • for a period of five (5) years starting from the first day of the month that you pay a premium
    • that by itself exceeds, or
    • if added to the other premiums already paid and still to be paid in that year exceeds, or
    • if it is the first of recurrent premiums which if paid at that rate for the whole year will cause the total value of the premium to exceed the premiums you paid in one of the two previous years by more than 20%.

I confirm that I have read this declaration, warranty and acknowledgement as well as the loan terms and conditions and I understand the content and implications thereof.

I am aware that a Reduction Fee/Plan Amendment Charge and a Transaction Admin Fee (if applicable) may be levied in terms of the Plan/Savings Benefit in the event of a loan.

I declare that I have full power/authority to apply for and enter into this transaction.