Masthead

There is no accreditation process for this product. You, as a Financial Adviser, will effectively be selling the product to yourself. This product will be marketed to Masthead Financial Advisers via Masthead Consultants. However, your FSP must be licensed to sell Long Term products.

No, you do not need to be contracted with FMI to obtain this product.

No commission will be payable on the Masthead Adviser Income Protection Plan or the Masthead Adviser’s Employee Plan.

As a Financial Adviser, you sell the product to yourself. This product is exclusively available for Masthead Financial Advisers – designed with you in mind. You cannot sell this product to anyone but yourself.

You can contact your Masthead Consultant or your FMI Financial Adviser Consultant should you require a quote.

You can contact FMI Client Care on 0860 10 11 19 if you would like to lodge a claim.

No, Masthead is not responsible for your claim.

To make administrative changes to your policy, you can contact FMI Client Care on
0860 10 11 19 or e-mail fmiclientcare@fmi.co.za.Should you require changes to benefits, please contact your Masthead Consultant or FMI Client Care.

• Illnesses or injuries you caused deliberately
• War-like or nuclear activities
• Dangerous pursuits including but not limited to extreme sports

However, bear in mind that Special Limited Benefits also apply. These are as follows:

Pregnancy and childbirth – We will pay you one month’s Temporary Income Protection benefit and Business Overhead Protection benefit after you have given birth to a child. The benefit will not be paid if your date of conception is before the commencement date of your policy.

Reconstructive and cosmetic surgery (Temporary Income Protection and Business Overhead Protection benefits only) – If, as a direct result of a medical condition or accident your doctor recommends that you have to undergo cosmetic or reconstructive surgery, we will pay your benefit. However, we will not pay out anything for being unable to work because of any treatments, examinations or operations for purely cosmetic purposes. We will not pay out anything for breast reductions or reconstructions – except if cancer related.

Certain illnesses unless you spend time in hospital (Temporary Income Protection and Business Overhead Protection benefits only) – No claim will be paid for minor infections e.g. influenza, bronchitis, sinusitis, pneumonia, tuberculosis or laryngitis unless you adhere to medical treatment protocol, and meets one of the following:-

1. Undergo diagnostic testing

2. Diagnosed with minor infection by a specialist

3. Admitted to hospital

Please note that there is also a pre-existing conditions clause that is applicable to those benefits accepted under the Free Cover Limit.

Aggregation is where the insurer will reduce the claim pay out because of other income you receive while unable to work.

FMI does not aggregate on our Temporary Income Protection and Business Overhead Protection benefits at claims stage but does aggregate on Permanent Income Protection and Capital Disability benefits. FMI’s Temporary Income Protection benefit can pay for a maximum of two years which means that you could claim for two years before having your claim pay out aggregated.

The rules that we follow in order to aggregate Permanent Income Protection (PIP) and Capital Disability payments are according to industry standard guidelines. At claims stage this works as follows:

• We first determine the Life Insured’s monthly pre-disability earnings. This ignores any income that is earned passively, e.g. rental income.
• We calculate the total permanent income cover the Life Insured has. This is the total amount of PIP cover the Life Insured has with FMI added to any other permanent disability income cover that they have with other insurers. This also includes any other income that they may be earning actively, but ignores any passive income.
• We determine the total lump sum disability cover the Life Insured has, which is the Capital Disability Cover that they have with FMI added to any lump sum disability cover they enjoy with any other insurer. We ignore the first two times annual salary of lump sum disability pay out when determining this amount.
• The pay out from any Dread Disease claim is ignored

Once all these amounts have been determined we need to ensure that the following formula does not exceed the Life Insured’s pre-disability earnings:

Total Permanent Disability Income + (Total Lump Sum Disability/Age factor)

The Age factor will be equal to the policy term multiplied by 12, subject to a maximum of 240.

Please note the following:

• The above formula is the same for determining the aggregation at claim stage, which means that our upfront aggregation should minimise the risk of being aggregated at claim stage.
• The age factor is based on the Life Insured’s original term of their policy, not their remaining policy term when they became disabled.
• We always reduce our Capital Disability pay out before we reduce the PIP pay out.

In practice the other insurer will also likely aggregate their pay out, which will affect how we aggregate our pay out.

In terms of current Income Tax legislation, premiums in respect of Income Protection benefits may be tax deductible. This includes premiums for Temporary Income Protector, Permanent Income Protector, Business Overhead Protector, Temporary Income Protection, Dread Disease Enhancer and Temporary Income Protection Hospitalisation Enhancer benefits as well as their corresponding Continuation benefits.

No, this product is purely voluntary.

A Free Cover Limit is the maximum amount of cover you are able to obtain for a benefit without undergoing medical underwriting. If you wish to apply for cover above the Free Cover Limit (and are allowed to according to our maximum amounts) you will then be medically underwritten. A pre-existing condition clause applies to any benefit amounts accepted under the Free Cover Limit

If a claim arises during the first 12 months of the policy from a condition you were aware of, or could reasonably have been expected to be aware of, in the 6 month period prior to taking the policy, then the claim will not be valid. This clause applies to cover amounts taken up under the Free Cover Limit at application stage and also to any cover increases taken up under the Free Cover Limit during the life of the policy.

Should you terminate your membership with Masthead, we will allow you to continue on the policy at the same terms and benefits as applied for prior to the termination of membership. Should you decide to increase your cover after you leave Masthead then medical underwriting will apply to the increase in cover amount.

You will communicate with FMI Client Care for all matters concerning your policy and claims.

The differences between the new BPE offering and the Masthead Adviser Income Protection Plan are as follows:

• Free Cover limits apply to the TIP, BOP, TIP Dread Disease Enhancer and TIP Hospitalisation Enhancer benefits on the Masthead Adviser Income Protection Plan
• The Future Income Protector Option will not be available on the Masthead Adviser Income Protection Plan
• The Accident Only Cover will not be available on the Masthead Adviser Income Protection Plan

There are 4 ways of changing cover over the life of the Life Insured’s policy without undergoing Underwriting – Annual Benefit Increase (ABI), Annual Review Option (ARO), Re-instatement Option and Change in Circumstances Option. These are described below:

• Annual Benefit Increase

On application you can choose an ABI percentage for each of the TIP, BOP, PIP and Capital Disability benefits – either 5%, 7.5% or 10% depending on which is chosen.

Every year on policy anniversary the Life Insured’s cover will increase by the chosen ABI percentage. The premium that they pay will also increase in order to pay for this increase in cover. The Life Insured can either accept the increase and enjoy higher cover with a higher premium, or refuse the increase and keep their cover and premium as is. The ABI benefit falls away once the increase has been refused three times in a row. It can only be selected at application stage and once it falls away it cannot be added again.

• Annual Review Option

On every policy anniversary the Policyholder has the option of increasing cover by up to 20% without medical underwriting. This option may require the Life Insured to provide proof of income. The Annual Review Option may be used to increase cover up until the Life Insured’s 56th birthday.

For younger lives just starting a career, their level of income can increase exponentially over a very short period. Because of this, if the Life Insured is less than age 35 Next Birthday, the Annual Review Option can be used to increase cover by up to 40% instead of 20%.

The Life Insured may also decrease cover by any percentage on the policy anniversary – as long as the new cover amount is not less than the minimum for that benefit.

• Re-instatement Option

If the Life Insured uses the Annual Review option to decrease cover, they have the option at the following policy anniversary to re-instate cover back to the original cover amount before the reduction.

• Change in Circumstances Option

The Life Insured is allowed to increase cover by up to 25% without underwriting on

• Marriage
• The birth or adoption of a child
• The death of a spouse

This option must be exercised within 60 days of the event happening.

If the Life Insured has chosen a retirement age of 55, 60 or 65, they will have the option of extending cover for a further five years once they reach their retirement age. In order to exercise this option the Life Insured will need to submit a satisfactory Declaration of Health, which is a far less onerous requirement than being fully medically underwritten at that age.
This benefit can be exercised multiple times. So if the Life Insured’s original retirement age was 55, they can extend cover to age 60, at age 60 extend cover to age 65 and then at age 65 extend cover to age 70.

70 is the maximum age that the Life Insured can increase cover to.
This Continuation Benefit applies to the following Benefits:

• TIP
• BOP
• PIP
• Capital Disability
• TIP Hospitalisation Enhancer
• TIP Dread Disease Enhancer
• Death Income

All employees must select the same benefits with the same multiple of annual salary, where applicable.

The minimum number of members is 1 if the scheme is compulsory and 5 if the scheme is voluntary.

All of your salaried, non-commission earning employees are eligible for cover.

You, as the employer, will be liable to pay the premium to FMI. Premium contributions or part thereof may be effectively borne by your employees as fringe benefits.

There is no accreditation process for this product. You, as a Financial Adviser, will be effectively selling the product to yourself. This product will be marketed to Masthead Financial Advisers via Masthead Consultants. However, your FSP must be licensed to sell Long Term products.

No, you do not need to be contracted with FMI to be able to apply for this product.

As a Financial Adviser, you sell the product to yourself. This product is exclusively available for Masthead Financial Advisers and their staff members. . You cannot sell this product to anyone but yourself.

In terms of current Income Tax legislation around employer-owned policies, premiums on the scheme may be tax deductible.Certain income benefit pay outs will be taxable.

You can contact your Masthead Consultant or your FMI Financial Adviser Consultant should you require a quote.

They can contact FMI Client Care on 0860 10 11 19 to lodge a claim.

FMI reserves the right to refuse claims as a result of the following:

• Illnesses or injuries caused deliberately by the Life Insured or Policyholder
• Criminal acts
• Dangerous pursuits including but not limited to extreme sports
• War-like or nuclear activities
• Elective surgery
• Abuse of Substances