2-IN-ONE SAVINGS
4 EDUCATION
Retail Mass Market
Broker Distribution
February 2014
KEY PRODUCT FEATURES
Saving for tomorrow shouldn't stop you living today
HOW THE 2-IN-ONE SAVINGS PRODUCT WORKS
• It is a savings product you can use to save for your child’s education
• The product is split into a Short Term Pocket and a Long Term Pocket.
• The Short Term Pocket enables you to access your saved money when you need it and the
Long Term Pocket enables you to achieve your savings objective. Your savings in the Long
Term Pocket are invested in the Old Mutual Smoothed Bonus Fund, and your savings in the
Short Term Pocket are invested in the Old Mutual Money Market Fund.
LONG TERM POCKET
Minimum term: 10
years
Fund: Old Mutual
Smoothed Bonus Fund
Growth: Annual
bonuses
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2-IN-ONE SAVINGS
SHORT TERM
POCKET
Minimum term: 12
contributions
Fund: Old Mutual
Money Market
Fund
Growth: Monthly
interest
HOW THE 2-IN-ONE SAVINGS PRODUCT WORKS
For whom is this product suitable?
• This product is designed for customers who are able to commit to savings of at least R150
per month for 10 years or longer, but also require access to some money during this time.
What are the benefits of this product?
LONG TERM POCKET
• The main benefit is the accumulated value of your savings, which will be available in full at
the end of the term of your product, on your death, or on disability.
SHORT TERM POCKET
• The main benefit is the accumulated value of your savings, which will be available any time
you need it. However, as your savings are invested in a Money Market Unit Trust, which is not
like a bank account, it may take up to 10 days to clear and show in your bank account.
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2-IN-ONE SAVINGS
HOW THE 2-IN-ONE SAVINGS PRODUCT WORKS
Monthly contributions are split between the two pockets
• Customers have a choice of the total monthly contribution, but how it is split into the two
pockets is determined automatically. Below are examples of how Old Mutual splits each
monthly contribution:
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2-IN-ONE SAVINGS
Monthly Contribution
Long Term Pocket
Short Term Pocket
R150.00
R130.00
R20.00
R200.00
R130.00
R70.00
R250.00
R162.50
R87.50
R300.00
R195.00
R105.00
R350.00
R227.50
R122.50
HOW CHARGES ARE DEDUCTED
Long Term Pocket Short Term Pocket
Regular premium fee
15% of long term
premium portion
+ R10.00*
No fee
Investment & administration fee
1.25% per year
No fee
Guarantee fee
0.25% per year
No fee
Fund management fee
0.25% per year
0.57% per year
Termination fee
R300* + Reducing
fee**
R155
No fee
Termination fee from paid-up
No fee
* Fees for 2014. Fees are reviewable annually
** Reducing fee depends on how long the product has been active
What are these charges for?
Deducted from long term premiums
• Regular premium fee: for advice, issuing the product, and ongoing servicing. This is
deducted from your long term premiums paid each month.
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2-IN-ONE SAVINGS
HOW CHARGES ARE DEDUCTED
Deducted from long term investment growth
• Investment & administration fee: for administration and maintenance of the product.
• Guarantee fee: for providing the guaranteed part of your payout in the Long Term
Pocket
• Fund management fees: for managing the Smoothed Bonus Fund‘s investments.
Deducted from Long Term Pocket
• Termination fee (Part Withdrawal, Surrender and Paid-up): Administration fee plus a
reducing fee. The reducing fee is only charged if you take money out of your Long Term
Pocket (under certain legislated conditions), or you completely stop paying contributions
within the first half of your product's term.
SHORT TERM POCKET
• Fund management fees: for managing the Money Market Fund's investments. This is
deducted from the monthly interest.
• Withdrawal fee: The first two withdrawals from your Short Term Pocket are free of charge
each calendar year. Thereafter a R50 fee is charged per withdrawal.
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2-IN-ONE SAVINGS
WHAT ARE THE TAX IMPLICATIONS?
LONG TERM POCKET
• Benefits paid out to you from the Long Term Pocket are not taxed. Old Mutual pays the
various taxes on investment growth during the term of your product.
SHORT TERM POCKET
• You will owe income tax on the total interest you earn from all your investments, including
the interest added into your Short Term Pocket, if it is above a certain level specified by
SARS.
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2-IN-ONE SAVINGS
PRODUCT FEATURES AND BENEFITS
Minimum Premium:
R150.00 split to:
Long Term Pocket: R130
Short Term Pocket: R20
With Premium Waiver Benefit:
R175.00 split to:
Long Term Pocket: R130 + 10% Savings Protection = R143
Short Term Pocket: R20
What is a Premium Waiver Option?
If you die or become disabled in the first 10 years of taking out your product, Old Mutual will pay an
amount into your Long Term Pocket. This amount will be equal to the current value of the remaining
long term premiums (after regular premium fees) up to the first 10 years of your product. If you die or
become disabled due to natural causes in the first 6 months, this amount is not payable.
This option needs to be chosen at the time of application and increases your monthly contribution to the
Long Term Pocket by 10%.
A premium waiver charge of 10% will be added to your contribution for the Long Term Pocket if you
select the Premium Waiver Option. The 10% increase will be used as a waiver charge for the first 10
years and will not be invested in the Smoothed Bonus Fund. After 10 years, the full Long Term Premium
will be invested in the Smoothed Bonus Fund (10% included).
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2-IN-ONE SAVINGS
PRODUCT FEATURES AND BENEFITS
Minimum Term:
Long Term Pocket: 10 years
Short Term Pocket: 12 contributions
Investment Fund:
Long Term Pocket: Smooth Bonus Fund
Short Term Pocket: Money Market Fund
Growth:
Long Term Pocket: Bonuses declared annually
Short Term Pocket: Interest added at end of each month
Benefit available:
Long Term Pocket: Available in full at the end of the term, on death,
or on disability
Short Term Pocket: Benefit is the value of your savings, which will be
available any time you need it
Premium Holiday
Benefit:
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2-IN-ONE SAVINGS
The Premium Holiday allows for up to six premiums to be skipped,
during the term of the policy. This benefit is available again to the
client, on payment of the skipped premiums
PRODUCT FEATURES AND BENEFITS
Contribution
Increases:
Contributions increase in July each year, as long as it has been
active for at least 6 months. The increase is determined by Old
Mutual and will be related to the level of inflation. Customers can
choose to decline the increase
Savings Boosters:
These are amounts added by Old Mutual to your Long Term Pocket
to motivate you to be disciplined towards your long term savings,
and to keep paying your premiums until maturity.
After
24 premiums
60 premiums
110 premiums
Part Withdrawals:
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2-IN-ONE SAVINGS
Savings Booster added is an amount equal to:
2 Long Term premiums
3 Long Term premiums
8 Long Term premiums
Long Term Pocket: One part-withdrawal up to 100% will be available
within the first 5 years of the policy term, and then
at 5-yearly intervals thereafter. The period
between any part-withdrawals must also be at
least 5 years
Short Term Pocket: Any withdrawal amount, up to the sum of all Short
Term contributions received
24 HOUR FAMILY SUPPORT SERVICES
Access to the following Family Support Services* from independent service providers:
Health support*:
Telephone access to health advisers for assistance with
health queries
Trauma, assault and HIV treatment*: Assistance and treatment following assault (e.g. rape,
hijacking, child abuse), accidental exposure to HIV or
other kinds of trauma
Emergency medical response*:
Advice, emergency treatment and transportation to an
appropriate medical facility
Legal support*:
Free telephone advice and assistance on legal matters,
help with legal documents
Important note:
*Family Support Services - Certain terms and conditions apply to the facilitation of this access. For a copy of these, call 0860 00 1919.
Old Mutual facilitates access to independent Family Support Service providers. Such access is not offered as a benefit under your insurance policy
and may be varied or cancelled at any time. The service providers provide services directly to you on terms agreed between you and the service
providers. Old Mutual does not accept any liability arising from the services rendered by the service providers.
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2-IN-ONE SAVINGS