A1. This refers to the maximum period that a benefit will be paid to the client in the event of a claim.

A2. FMI offer three options of commission payments to the brokers. These are:

• As-and-When Commission.
  Commission is calculated as a percentage of monthly premium, and is payable monthly in arrears for each collected premium, for the life of the policy.
• Annualised Commission
  Primary Commission is calculated upfront at the start of the policy, based on Life Commission calculations, and is paid as a lump sum payment upon first premium collection. Secondary commission is calculated as a third of Primary commission and is payable as a lump sum upon the 13th premium collection.
• Monthly Commission
  Primary Commission is calculated Upfront at the start of the policy, based on Life Commission calculations, but is paid over a 12-month period, beginning from first premium collection. Secondary commission is calculated as a third of Primary commission and is payable over 12 months beginning from the 13th premium collection.

A3. A client may elect at the inception of cover to choose a pre-claim benefit of 0%, 5%, 7,5% and 10%. This means that should the client have opted for this escalation, their cover will escalate annually by the amount chosen and this will result in an increase in premium. During a claim the amount payable will increase on anniversary of claim based on the percentage chosen at inception. This increase in benefit will not be subject to underwriting.

A4. Level Cover
The selected amount of cover will be subject to a compulsory annual 5% increase in premium. In the event that the client has opted for the automatic benefit increase (ABI) in cover, the cover will escalate annually be the amount selected.

Income Stages
For a selected amount of cover the premium is fixed for the life of policy. . In the event that the client has opted for the automatic benefit increase (ABI) in cover, the cover will escalate annually be the amount selected.

A5. Yes, however a new quote would have to be done, taking into account the current age of the client.

A6. No, FMI do not accept cash premiums.

A7. The main difference between these three benefits is the waiting periods. These are as follows:

Primary Cover :
Benefit pays retrospectively from day one after an initial waiting period of 7 days following an accident and 14 days following an illness (Professional Elect Primary Cover is 7 days accident and illness).

Monthly Cover :
A waiting period of 30 days applies to this benefit. Benefit does NOT pay retrospectively to day one. Benefit pays from day 31.

Quarterly Cover:
A waiting period of 90 days applies to this benefit. Benefit does NOT pay retrospectively to day one. Benefit pays from day 91.

A8. This benefit is more commonly referred to as PHI cover in the insurance industry. The EIP benefit pays on expiry of the selected waiting period until a client has returned to work or until retirement age is reached, whichever is the earlier. Payment of the EIP benefit is subject to LOA rules.

A9. No, as long as the broker retains the original forms on his records.

A10. Some of the benefits under the VISION scheme are age related. These age related increases are effected on the 1st of October of each year.

A11. Yes. A policy may be amended during claim, however an amendment will only affect future cover or claim payment. The existing claim will continue to pay out as per the status of the policy at date claim commences.

A12. In terms of section 11(a) of the Income Tax Act for self-employed/commission earners and section 23 (m) of the Income Tax Act for employed salaried members, income protection premium contributions are tax deductible.

A13. A claim may be lodged by contacting the FMI Call Centre on 086 010 1119.

A14. Temporary Income Protection:
The maximum period we pay out for this benefit is shown on a client’s schedule. They will either have chosen 6, 12 or 24 months. However the payouts may stop before the maximum period is up. We payout only until the first of these events takes place:

• The client’s full recovery;
• The day we consider the client able to go back to their own occupation;
• The client’s death;
• The policy anniversary following the client’s chosen retirement age or at the expiry of the term of the policy, whichever is the earlier;
• The end date of this benefit;
• Notification from the client to cancel the policy.
The terms and conditions of the policy will prevail.

Permanent Income Protection: The payouts end on the earliest of:
• The date the client is fully recovered;
• The date the client are able to work in their own occupation or any suited occupation they can be expected to do because of training, skills or experience;
• The client’s death;
• The policy anniversary following the client’s chosen retirement age;
• The end date of this benefit.
The terms and conditions of the policy will prevail.

A15. Yes, if a client requests an increase in cover then the increase will be subject to underwriting. This does not apply to cover increasing due to the annual Automatic Benefit Increase (ABI).