New Strategic Partners coupled with Enhanced Products

FINANCIAL ADVISER NEWS         Volume 34, October 2009

FMI, the leaders in Income Protection, are currently undergoing a very exciting phase in the life of our company. We proudly welcome the Lombard Insurance Group on board as our new underwriters and as strategic partners. The partnership is already bearing fruit, the results of which can be seen in the introduction of a completely revised unique group product Vision and in the number of market leading innovative enhancements to our Business Person Elect product.

For over 19 years Lombard Insurance Company Limited has operated as a specialist insurer operating largely in the guarantee market and in credit insurance, where they are recognised and respected for their expertise and superior products. Lombard has impeccable financial credentials and enjoys a reputation for independence, reliability and exceptional client service. It is a member of the Hollard Group of companies. As part of FMI’s growth strategy, FMI recently entered into a partnership with Lombard Insurance Company and as a result, Lombard acquired a 15% shareholding in FMI. This exciting development has enabled FMI to effectively deliver on our promise of continuous product development, innovation and service excellence.

All of FMI’s existing policyholders with benefits underwritten by Medscheme Life, can rest assured that their policies remain in force with full cover. Medscheme Life remains a secure and fully operational assurer with their benefits being re-insured by Swiss Re.

 

We believe that the combination of a highly focussed product provider and the strong backing of our underwriters and re-insurers provide our client’s with an unbeatable risk solution.

FMI is proud to introduce our two enhanced products to the market. Business Person Elect and Vision have been re-designed to work in conjunction with each other to offer business owners and their staff industry leading income protection cover in order to safeguard their businesses.

Business Person Elect (BPE) has been designed for the business owner who understands the risks involved with owning their own business and appreciate the enormous risk of not being able to sustain their personal income from their business should they become incapacitated and unable to work. In an effort to improve on the product previously introduced into the market in 2007, FMI have made some of the following product enhancements to maintain Business Person Elect’s position at the leading edge in Income Protection:

 

1. Accident only Benefit - This benefit is offered to those aged 32 or younger and requires no medical underwriting. For the first 3 years, the policy will be accident only cover at 50% of the premium. On the third policy anniversary this benefit automatically upgrades to full cover and full premium for both accident and illness benefits with no additional medical underwriting required.

2. Annual Review and Re-instatement Benefit - Every year on date of commencement, there is the option to increase cover by up to 20% over and above the selected Annual Benefit Increase, without medical underwriting or to reduce cover by any percentage. In the event of the Annual Review Benefit being utilised to reduce cover on policy anniversary, there is the option to re-instate cover back to the level at previous anniversary, without medical underwriting.

3. Increased Cover Levels – BPE now offers cover levels of up to R120 000 pm on the Temporary and Permanent Income Protection benefits.

4. Occupation Definition – BPE’s Permanent Income Protection benefit includes the options of Own or Own / Similar Occupation definition to offer additional benefit flexibility.

5. Special Benefits – Pregnancy and childbirth is no longer listed as a special limited benefit. FMI will pay a 1 month benefit after the Life Assured has given birth to a child. Complications during pregnancy are treated as a normal claim. Psychological disorders, hysterectomies and conditions not detected by scanning and imaging have all been removed from special limited benefits and are viewed as normal insurable events.

Vision has been extensively revised to offer a complete range of risk protection benefits to guard against the financial hardships which may result from an employee’s incapacity or death. This unique product protects employees during times of distress and financial insecurity whilst also ensuring that the business is able to cope with the costs associated with an employee being incapacitated. The following benefits ensure that Vision remains an innovative and relevant basket of risk benefits:

 

1. Minimum number of members – Should the group scheme be compulsory for all employees, the minimum group member size is 1.

2. Levels - Vision caters for two levels within a group of employees, with a different benefit structure to accommodate staff members with different financial requirements.

3. Free Cover Limits – The free cover limits on each benefit have increased substantially which has reduced the amount of underwriting required.

1. Family Cover - The member & family funeral benefit provides cover for up to 6 children and 2 spouses. In addition members can also choose to add funeral cover for up to six of their extended family members. As an added benefit, the dread disease benefit offers up to 10% cover for dependant children.

2. Payment of Benefits - All benefits except Temporary Income Protection is paid to the Life Assured, a nominated beneficiary or the employee’s estate. The Temporary Income Protection benefit is paid directly to the employer to either contribute towards the disabled employee’s salary or towards the cost of a replacement.

 

Operating in the income protection market for over 15 years, FMI truly understands the needs of the business owner and have spared no effort in ensuring that our products exactly match the unique requirements of this market.

 

For more information please visit www.fmi.co.za, call FMI’s Financial Adviser Distribution team on 0860 10 52 08 or email sales@fmi.co.za.

Lombard as Partners

Product Enhancements

FMI is an authorized Financial Services Provider FSP 2717

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