Terms and Conditions for Claims & Disinvestment | Old Mutual (2024)

TERMS AND CONDITIONS

Please note that the type of transaction that you are applying for and the nature of your product will determine which of the following TERMS AND CONDITIONS apply to your request.

By accepting these TERMS AND CONDITIONS you agree to the specific terms that apply to your SPECIFIC TRANSACTION.

All general TERMS AND CONDITIONS apply – section F.

Old Mutual Limited will perform authentication to verify customers when transacting with us through Old Mutual Mobile Application, USSD, WhatsApp or any other method as part of our security processes.

If you are uncertain about any aspect of your transaction, you can ask us for assistance, through our Client Services Helpdesk at 0860 50 60 70.

A. FUNERAL CLAIMS

Please Note:

Age adjustments: When we consider a death claim on a Funeral Plan and find that the date of birth of the insured person is different to the date that we have on record, we will change the cover for that person in line with the premium that have been paid.

Declarations and acceptance

1. You understand that Old Mutual may approve or decline this claim subject to the terms stipulated in the policy contract(s) and based on the information that has been submitted to Old Mutual in terms of the claim.
2. In the event that the details of the deceased or claimant on Old Mutual’s records differ from the updated details on this form, you confirm that these people are one and the same.
3. You further understand that any request for adding an insured person requires further evaluation by the processing centre and that Old Mutual will notify you of the outcome of the request.
4. You confirm that all the information you provided to Old Mutual electronically for purposes of this claim (whether it was by way of the Old Mutual Mobile Application, USSD, WhatsApp or any other method) is true and correct.
5. You give consent to Old Mutual to confirm this information with any appropriate source.
6. You understand that you will not have any claim against Old Mutual if the money is deposited into an incorrect bank account where you supplied the incorrect bank details.

B. WITHDRAWALS

Withdrawals from your 2-in-One Savings, Old Mutual FutureInvest, and Old Mutual Single Premium Investment Plan

Withdrawals only from the Short Term Pocket of the 2-in-One Savings Plan:

1. You instruct Old Mutual Investment Administrators (Proprietary) Limited (OMIA) to withdraw the requested amount from the Short Term Pocket of my 2-in-One Savings Plan.
2. Where your funds are invested in different unit trust funds, the requested amount will be withdrawn evenly from all funds.
3. You authorise OMIA to pay the withdrawal amount to Old Mutual Life Assurance Company (South Africa) Limited (Old Mutual).
4. Old Mutual will pay the withdrawal amount into your bank account.
5. The first two withdrawals per calendar year are free of charge, after which a transaction charge will apply. The Short Term Pocket will be reduced by the withdrawal amount and any transaction charges.
6. The withdrawal will be processed and paid into your bank account within a maximum of 7 days of you accepting these terms, provided all required documents are received.
7. You will not have any claim against Old Mutual if the money is deposited into an incorrect bank account where you supplied the incorrect bank details.
8. You confirm that all the information you provided to Old Mutual electronically for purposes of this claim (whether it was by way of the Old Mutual mobile application, USSD, WhatsApp or any other method) is true and complete.

Withdrawals from the Short Term + Long Term Pockets of the 2-in-One Savings Plan where there are insufficient funds in the Short Term Pocket to make up the requested amount and funds must now also be withdrawn from the Long Term pocket.

This also applies to a full surrender of the 2-in-One Savings Plan, Old Mutual FutureInvest Plan, and Old Mutual Single Premium Investment Plan.

Please Note:

If you pay your premium by debit order and a premium was deducted from your account in the last 9 days, we are waiting for the premium to clear at the bank. The value that is paid into your bank account will be the value quoted less the premium that hasn’t cleared yet. If the debit order clears, we will apply the premium to your Long Term Pocket.

1. All conditions that relate to the Short Term Pocket (above) are also accepted as if they are part hereof.
2. If you already made a withdrawal during the first five years of your policy, we will not be able to process your withdrawal request. This is due to legislation that applies to your policy.
3. In the event of a financial crisis, Old Mutual may/will reduce the fund value of your Long Term Pocket by a certain percentage, to protect future bonus levels for customers who leave their money invested until the end of their terms. This is called a Market Value Adjuster (MVA).
4. You are applying for a withdrawal from the Long Term Pocket of the 2-in-One Savings Plan, Old Mutual FutureInvest Plan, or Old Mutual Single Premium Investment Plan for the policy number you have provided during this application. You declare that you are the legal owner of the 2-in-One Savings Plan, Old Mutual FutureInvest Plan, or Old Mutual Single Premium Investment Plan and that you have not ceded or pledged it by antenuptial contract or otherwise.
5. Where your funds are invested in different investment funds, the requested amount will be withdrawn evenly from all funds.
6. You are aware and give consent that the withdrawal/surrender charge, where applicable, applies.
7. You request Old Mutual to deposit the withdrawal/surrender proceeds into the bank account, the particulars of which you provided during this claim and declare that the details provided by you are complete and accurate.
8. You will not have any claim against Old Mutual if the money is deposited into an incorrect bank account where you supplied the incorrect bank details.
9. You confirm that all the information you provided to Old Mutual electronically for purposes of this claim (whether it was by way of the Old Mutual mobile application, USSD, WhatsApp or any other method) is true and correct.

Withdrawals from your Max Investments, Investment Horizons, OM Invest Flexible Plan and GREENLIGHT Savings Plan

Important notes:

We only allow Regular Disinvestments on LISP wrapper plans. This will apply to:

• GREENLIGHT - Select Savings benefit and Flexible Savings benefit;
• MAX Investments - Select Investment plan and Flexible Investment plan;
• OMInvest - Tax Free plan and Flexible Investment plan; And

We only allow Regular Zero Interest loans on LIFE wrapper plans. This will apply to:

• GREENLIGHT - Single Premium Savings benefits, Select Savings benefit and Flexible Savings benefit;
• Investment Horizons - Single Premium Investment plan
• MAX Investments - Select Investment plan and Flexible Investment plan

1. Note: When we use the name “Old Mutual” below, we mean Old Mutual Life Assurance Company (South Africa) Limited (“OMLACSA”) when your product is a funeral policy or investment policy. If your product is an investment product that is issued to you by Old Mutual Investment Services (Pty) Ltd (“OMIS”), then you must read “Old Mutual” as referring to OMIS. Your product documentation will indicate to you whether it was issued to you by OMLACSA or OMIS.
2. Please note that legislation limits your ability to make withdrawals from your investment, where it is a policy issued by OMLACSA. This applies during the first 5 years of your policy. The period could be longer in certain cases. If you, therefore, proceed with the withdrawal within the first 5 years (or longer) of your investment, it could prevent you from making further withdrawals. We suggest that you speak to your adviser or our Client Services Helpdesk at 0860 50 60 70 to get more information about this if you are uncertain.
3. The limitations described above do not apply to Tax Free plans or investments issued to you by OMIS.
4. Old Mutual reserves the right to undertake any realisation of investments necessary for disinvestment purposes over a period of up to 30 trading days on the relevant stock exchange(s) and to determine the total disinvestment value by reference to the amounts realised for such investments over that period.
5. If no Investment Funds are indicated, the total amount or units invested will be proportionally disinvested from all current Investment Funds. Old Mutual is entitled to delay the payment of any disinvestment if any party holding assets on their behalf or any of their partners delay payment of the proceeds to them. If a restriction is placed on the sale of assets in the Underlying Investment Fund, which can happen from time to time, the same restriction will apply to your Underlying Investment Fund. This can significantly delay the processing of disinvestments or switches.
6. Your investment may be terminated if the value of all the Underlying Investment Funds contained therein falls below the minimum limit set by Old Mutual from time to time. You will receive any balance in cash after units have been sold to recover any charges due to Old Mutual that have not yet been recovered.
7. Investment units are priced daily. Old Mutual will use the unit price of the business day after they receive your disinvestment documentation to determine the disinvestment value that you will receive.
8. If you have a Linked Investment Product (LISP) we must receive all completed instructions on any business day before 15:00 (South African time). Any instructions received after 15:00 will be processed on the next business day. For Old Mutual Money Market, the instruction must be received before 13:00.
9. Repurchase transactions will be subject to the terms and conditions in the relevant Trust Deed(s) that apply to the Unit Trust funds in which your savings are invested. Should the units tendered for repurchase have been ceded, the written consent of the cessionary must be provided before the repurchase can be processed.
10. With a full/part disinvestment you must continue with the existing premium schedule or ad hoc investments into your investment subject to the following:
    • If the value of all Investment Funds contained within the Plan/Savings benefit, less the amount of any outstanding loan debt, falls below the minimum limit set by Old Mutual from time to time, your investment will be cancelled. If this happens no further value will be payable to you.
11. Where your investment is a policy that was issued to you by OMLACSA a reduction fee will be deducted from the value of your policy. On certain investments, a reduction fee and transaction admin fee will be deducted. This will reduce the value of your investment. You can ask us, through our Client Services Helpdesk at 0860 50 60 70 to find out what the transaction admin and reduction fee will be before you proceed with your transaction.
12. Where your investment is a GREENLIGHT Savings Benefit your disinvestment is subject to the terms of the Addendum to your Savings Benefit.
13. You may not proceed with this transaction if your investment has been ceded or pledged to anyone. By proceeding, you confirm that you did not cede or pledge it.
14. If you are withdrawing the full value of your investment and requesting that it be cancelled, it will be cancelled in our records and it will cease to exist.
15. The price payable for the units to be repurchased in terms of this request will, under normal circ*mstances, be the Management Company’s repurchase price ruling on the business day after the documentation is received by Old Mutual.
16. If the GREENLIGHT Savings Benefit cancellation is selected, the Savings Benefit premium will be cancelled. The GREENLIGHT Risk Benefit will still continue.
17. Payments will not be made to third-party bank accounts.
    

    Withdrawals from your Tax Free Plan
    Additional to the above, the following applies:
    

18. Note: Due to the annual limit that applies to the amount of contributions that you can make per tax year to your investment, any amount withdrawn cannot be reinvested in a specific tax year if you have already contributed the total allowed by legislation.
19. Old Mutual is obliged to carry out an instruction to withdraw an investment over a period of up to 7 business days and to determine the value according to the amounts realised for the investment over that period.

C. PLAN CANCELLATION

This section applies where you are not only withdrawing money from your investment product, but also want us to cancel your plan altogether.

This applies to a 2-in-One Savings Plan, Old Mutual Single Premium Investment Plan, Old Mutual FutureInvest Plan, Max Investments (excluding Max Retirement Annuities), Investment Horizons, OM Invest Flexible, Tax Free Plan and GREENLIGHT Savings Plan.

1. Any cancellation is subject to the terms and conditions of the specific product.
2. To the extent that we will process a withdrawal upon cancellation of your plan, the terms above that applies to withdrawals from your product applies as-is to a full cancellation too. This includes any fees or amounts that may be deducted from the proceeds, as well as any legislative (legal) limits on your ability to make withdrawals from your investment.
3. If you have a Linked Investment Product (LISP) we must receive all completed instructions on any business day before 15:00 (South African time). Any instructions received after 15:00 will be processed on the next business day. For Old Mutual Money Market, the instruction must be received before 13:00
4. Old Mutual reserves the right to undertake any realisation of investments necessary for disinvestment purposes over a period of up to 30 trading days on the relevant stock exchange(s) and to determine the total disinvestment value by reference to the amounts realised for such investments over that period. If no Investment Funds are indicated, the total amount or units invested will be proportionally disinvested from all current Investment Funds.
5. On a Regular Premium Investment Plan/Committed Investment Plan/Focussed Investment Plan/a Plan Amendment Charge/Reduction Fee/Transaction Admin Fee will be deducted from the fund value.
6. For a Flexible Plan (Xtra), a reduction fee will be deducted from the fund value if the plan is cancelled within the first 5 years.
7. Plan/Savings Benefit cancellation results in the Investment Plan/Savings Benefit ceasing.
8. If the GREENLIGHT Savings Benefit cancellation is selected, only the Savings Benefit premium will be cancelled. The GREENLIGHT Risk Benefit will still continue and you must continue to pay premiums on your risk benefit.
9. Where your investment contract was issued to you by Old Mutual Investment Services (Pty) Ltd:
   • You WARRANT (declare) THAT:
   • Your/the Contracting Party’s estate has not been sequestrated/liquidated; and
   • The Plan/Savings Benefit has not been ceded or pledged to anyone.
10. The price payable for the units to be repurchased in terms of this request will, under normal circ*mstances, be the Management Company’s repurchase price ruling on the business day after the documentation is received by OMIS.
11. Repurchase transactions will be subject to the terms and conditions in the relevant Trust Deed(s).
12. Should the units tendered for repurchase have been ceded as security, the written consent of the cessionary must be provided before the repurchase can be processed.

D. POLICY LOANS (ZERO INTEREST LOANS)

1. You are applying to Old Mutual for a Zero Interest Loan from Old Mutual.
2. It is a condition of the loan that we will switch an amount equal to the loan amount from the underlying investment funds that you chose for your policy, to the Capital Secured Fund. It will remain in the Capital Secured Fund until such time as you have repaid the loan in full. and,
3. You, therefore, instruct us to switch an amount equal to the realisable Rand value of the units from the investment fund(s) underpinning your policy to the Capital Secured Fund.
4. You will not earn any growth on the funds that are switched to the Capital Secured Fund.
5. Where your investment is a policy that was issued to you by OMLACSA a reduction fee will be deducted from the value of your policy. On certain investments, a reduction fee and transaction admin fee will be deducted. This will reduce the value of your investment. You can ask us, through our Client Services Helpdesk at 0860 50 60 70 to find out what the transaction admin and reduction fee will be before you proceed with your transaction.
6. The amount of the loan may be limited as a result of legislative restrictions.
7. The law currently allows long-term insurers to grant only one loan during the first five years of a policy. This period can be extended under certain circ*mstances.
8. By proceeding with this application for a loan you warrant (confirm) that you have not been sequestrated and/or that you did not cede (transfer) the rights in your policy to another person or the bank as security for debt.
9. You will not have any claim against Old Mutual if the money is deposited into an incorrect bank account where you supplied the incorrect bank details.
10. You confirm that all the information you provided to Old Mutual electronically for purposes of this transaction (whether it was by way of the Old Mutual mobile application, USSD, WhatsApp or any other method) is true and correct.
11. Your banking details will need to be verified by your bank and Old Mutual has the right to request such account confirmation in writing, and in addition, for amounts over R50 000 Old Mutual may confirm the details with you telephonically.
12. The transaction will only be processed once Old Mutual has received the confirmation as required.

PAYMENT OF LOAN AMOUNT

1. Old Mutual has the right to pay you the loan amount in more than one instalment, should debit order or stop order clearance still be required in respect of any premiums or contributions paid by you under the policy.

REPAYMENT OF LOAN

1. 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, except that for Max Investments Flexible Plans (Xtra): Repayments may not be made in the first 5 years of the Plan. After the initial 5 years, repayments may be made at any time, without notice, whether in full or in instalments, provided that the instalments meet Old Mutual’s minimum instalment requirements for loan repayments at the time.
2. Depending on the specific product, certain unique loan repayment rules may apply. You must check whether such rules apply when you want to make a repayment.
3. 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.
4. If you do not repay your loan, Old Mutual shall apply the benefits payable in terms of the Plan/Savings Benefit towards settlement of the loan.
5. If there is more than one borrower, you will be jointly and severally liable for the repayment of the loan.
6. By applying for this loan you also agree to an amendment of your policy contract to the effect that you may not cede (transfer) the policy to another person until such time as the loan is repaid in full.

E. RETIREMENT ANNUITY – FULL COMMUTATION AND RA SURRENDER

For Flexi, Conventional, MAX Investments, Investment Horizons, Investment Horizons (Offshore) and Essentials savings products

Important Notes

• Should the markets fluctuate and the value increase above R15 000, we will not be allowed to proceed with the payment
• The funds will be re-invested into the contract should the scenario above occur
• Old Mutual cannot be held responsible for any loss due to market exposure during that period
• Please allow a maximum of three (3) months for SARS to finalise and return the Tax Directive to SARAF. Old Mutual and SARAF will not be held responsible for any delays which may occur while SARS completes the assessment.

ANNUITY OPTION

Important Notes

• Your instructions can only be processed once all the relevant requirements have been met.
• A tax directive will be required from the South African Revenue Service, which will be applied for on your behalf. No lump-sum payment can be made without this clearance.
• Once the directive is returned to SARAF, tax will be paid over to SARS and the remaining funds will be deposited into the bank account supplied.
• Any IT88 (outstanding tax) amounts will also be deducted before paying the member.
• Please allow a maximum of three (3) months for SARS to finalise and return the Tax Directive to SARAF. Old Mutual and SARAF will not be held responsible for any delays which may occur while SARS completes the assessment.

F. PAID UP REQUEST

IMPORTANT NOTES

I understand that

1. For certain benefits, I am required to pay a lump sum within the next 30 days before the plan can be made paid-up.
2. I am aware that there will be a paid-up charge before the plan is made paid-up.
3. A monthly paid-up charge will also apply on my Old Mutual Group Schemes paid-up plans.
4. All paid-up charges are reviewable and may change.
5. I understand that any paid up requests for Flexi policies, will only be acted on, on receipt of my signed quotation.

FOR OLD MUTUAL GROUP SCHEMES ONLY

I understand that the 2-IN-ONE SAVINGS PLAN consists of a Long and Short Term Pocket. I will not be able to make one Pocket paid-up without making the other Pocket paid-up. Both Pockets will be made paid-up. I also understand that, after the Pockets have been made paid-up, I may not make any more Savings Top-ups into the Short Term Pocket.

The Long Term Pocket is the portion of your 2-IN-ONE SAVINGS PLAN that aims to help you achieve your future, longer term financial goal (e.g. your children’s education or a deposit on a house). The value of the Long Term Pocket is the total of the Long Term Pocket premiums we have received, minus charges and part-withdrawals you have taken, plus bonuses and Savings Boosters.

The Short Term Pocket is the portion of your 2-IN-ONE SAVINGS PLAN that is available to you whenever you need money. The value of the Short Term Pocket is the total of the Short Term Pocket contributions we have received, plus or minus any increase or decrease in value due to investment growth, plus any Savings Top-ups, minus any part-withdrawals you have taken and minus all charges.

G. GENERAL TERMS AND CONDITIONS

POPIA NOTICE

The Old Mutual Group would like to offer you ongoing financial services and may use your personal information to provide you with information about products or services that may be suitable to meet your financial needs. Please SMS your ID number to 30994 if you would prefer not to receive such information and/or financial services. The Old Mutual Group may use, share or obtain your personal information (including criminal and/or health information) for the following purposes:

• Underwriting
• Assessment and processing of claims
• Where applicable, credit reference searches or verification, credit scoring and assessment and credit management
• Verification of personal information (including your identity, address and banking details)
• Updating your personal information
• Claims checks (Industry Life & Claims Register(s))
• Tracing beneficiaries
• Debt tracing or debt recovery
• Tracing you where you are uncontactable
• Prevention and detection of fraud, crime, money laundering (including anti-money laundering screening) or other malpractice
• Market or customer satisfaction research or statistical analysis
• Audit & record keeping purposes
• Compliance with legal & regulatory requirements and in connection with legal proceedings
• Sharing information with service providers we engage to process such information on our behalf or who render services to us. These service providers may be abroad, but we will not share your information with them unless we are satisfied that they have adequate security measures in place to protect your personal information.

You agree that Old Mutual may view, search and update your information.

You may access your personal information that we hold and may also, under certain circ*mstances, request us to correct any errors or to delete this information. In certain cases you have the right to object to the processing of your personal information.

You also have the right to complain to the Information Regulator, whose contact details are:

www.justice.gov.za/inforeg/index.html

General enquiries:
enquiries@inforegulator.org.za
inforeg@justice.gov.za

Complaints:
POPIAComplaints@inforegulator.org.za
complaints.IR@justice.gov.za

View our full privacy notice here and to exercise your preferences here.

Our AML Obligations

We have to apply South Africa’s laws against money laundering (AML) and terrorist financing. We have to perform a customer due diligence exercise on any person associated with this plan (including you) before making payment to them. This will include any person that you nominate as a beneficiary or replacement owner, where applicable. It also applies to any owner to whom you cede the plan, where allowed.

TERMS OF USE

You hereby instruct Us via the Services to effect transactions in accordance with these terms and conditions in accordance with Your instructions.

Your instruction becomes irrevocable once submitted to Us, and an instruction is deemed to have been submitted once You have positively indicated Your verification of the instruction by means of the functionality available.

You must take all reasonable precautions to prevent unauthorised use of the Services and unauthorised access to Your mobile device.

If You suspect that Your device has become known to an unauthorised person, you must immediately notify the Client Services Helpdesk at 0860 50 60 70. Any act performed, obligation undertaken or omission of any person other than Us, in connection with the Services, shall be deemed to have been performed, undertaken, or made by you, unless You are able to prove that a person other than You has obtained Your Mobile device through Our negligence or internal fraud.