Intelligent life insurance

Transcription

1 Intelligent life insurance Create a flexible, personal risk insurance solution to suit you. Our life insurance goes beyond the norm: its intelligent design means that your insurance can remain cost effective while adapting to your changing circumstances. So that you can receive reliable insurance that gives you the protection you need - at the times you need it most.

2 Factors to consider when taking out life insurance The Discovery LIFE PLAN is designed to offer you flexible personal and business financial protection at a cost-effective premium to suit your needs. In this brochure we aim to provide you with a better understanding of the protection you need and what you need to consider when structuring your life insurance. DISCOVERY life offers you the most relevant cover This section introduces you to Discovery Life and highlights some of our unique benefits. 02Why NEEDs will THE LIFE PLAN MEET? 04WHAT This section provides information on the Discovery Life benefits that are designed to protect you against the financial impact of a particular risk you may face during your life. AccessCover Benefit - access to your life cover in times of need Discovery Life is the only life insurance company that allows clients to access their life insurance. This section 06explains how this unique patented benefit works. How MUCH COVER DO I NEED? This section provides information on what you need to consider when deciding how much cover 07you need. HOW CAN I MAXIMISE MY COVER AT THE LOWEST PRICE? This section provides information on increasing your at a discounted rate and using your life 08policy to supplement your retirement savings. Cash Conversion Benefit - convert your life cover into cash throughout your policy term This section provides information on how to receive tax-free lump sums throughout your policy term to 10assist with retirement savings. HOW CAN I INCREASE MY RISK COVER BY UP TO 40% This section provides information on how you can increase your cover by up to 40%, at no additional 11premium. HOW CAN I ENSURE THAT MY PREMIUM IS SUSTAINABLE? This section provides information on the range of 12premium payment options. How can i reduce my monthly premiums? This section provides information on Integrating your LIFE PLAN if you are a Vitality member or 13have a Discovery Health Plan. PayBack Benefit - get up to 60% of your premiums back This section provides information on how to receive a percentage of your premiums back 14annually or every five years. HOW to structure your life plan a case study This section provides a case study on how to get 15the best value from Integrating your LIFE PLAN. next steps This section provides information on how to 16get a LIFE PLAN. Remember that the best way to determine the level of financial security you need is to examine the different types of insurance with a financial adviser. You should also determine the advantages each one holds for you before making a choice. For more detailed information refer to or speak to your financial adviser.

3 Why Discovery Life offers you the most relevant cover Discovery Life is part of the JSE-listed Discovery Group, a multi-national financial services company with operations in South Africa, the United Kingdom, the United States and China. Since its launch in 2000, Discovery Life has led the regeneration of the South African life insurance industry. Our innovations have come from a single philosophy: focusing on the consumer in everything we do. Discovery Life provides unique and comprehensive product solutions that offer protection for your entire family. We provide whole body cover for your entire life and your benefits automatically change according to your needs. However, what makes us truly unique are the benefits listed below. Highly efficient premiums through Integration 01 If you have a Discovery Health Plan or are a member of Vitality, you can Integrate these products with your Discovery LIFE PLAN and enjoy upfront premium discounts of up to 20%. You are also able to manage your premium adjustments and increase your discount even further through health and wellness management. 02 You can get a guaranteed annual PayBack of up to 30% of your premiums each year Get up to 60% of for the first 10 years of your policy term. The PayBack can be increased to up to your premiums 60% of your premiums every five years if you manage your health and wellness. back through the PayBack Benefit 03 Get the Cover Integrator to increase your at an average discount of 50%. The Lowest cost for Financial Integrator, together with the Cover Integrator, can provide up to 60% additional additional cover cover at an extremely efficient premium. 04 By structuring your LIFE PLAN efficiently, you will not only get access to the most Turn your cover comprehensive cover, you will also receive significant tax-free cash payouts into cash to throughout your policy term, through the unique Cash Conversion Benefit. supplement retirement savings 05 We pay claims quickly and fairly Through our unique proactive claims service, Discovery Life can identify when a Discovery Health member qualifies for a claim, without them needing to contact us. With our Smart Claims facility, claims are assessed on site and all relevant documents are collected for the claim to be processed. Your cover does also not necessarily end after your first claim. Our market-leading multiple claims facility ensures your cover lasts your entire life regardless of how many times you claim. 2 3

4 What needs will the LIFE PLAN meet? The Discovery LIFE PLAN is designed to offer you flexible personal financial protection at a cost-effective premium to suit your needs. Together, these benefits combine to form the Discovery LIFE PLAN, which covers the entire range of financial and health risks you may face. Within the Discovery LIFE PLAN, the level of protection differs between the Classic LIFE PLAN and the Essential LIFE PLAN. The Classic LIFE PLAN is designed to provide the most comprehensive and efficient longterm protection for you and your family. The Essential LIFE PLAN provides costeffective protection for a defined level of cover for you and your family. Life cover Provides a lump sum amount to protect your family s financial security in the event of your death. Health Plan Protector Discovery Life s Health Plan Protector covers the cost of your family s Discovery Health Medical Scheme contributions for up to 10 years. Severe Illness Benefit You can insure your lifestyle against the impact of a severe illness. This means if you get severely ill, you will receive a lump sum payout. Global Education Protector If you suffer a life-changing event, such as severe illness, disability or death, we will pay for the education of your children. AccessCover Benefit Allows you and your family early access to your life cover for a full range of life-changing events and on reaching certain age milestones. Supplementary Cancer Protector Protects you from the financial strain of unexpected, non-medical costs associated with cancer. Income Continuation Benefit The Discovery Life Income Continuation Benefit allows you to insure your monthly income, so you can maintain your standard of living if you are not able to earn an income due to an injury or illness. In addition, the Overhead Expenses Benefit ensures your monthly business expenses are met under these conditions. Global Health Protector We cover you and your family for certain procedures not performed in South Africa, or where your chances of survival are much higher if performed in the USA. Capital Disability Benefit Discovery Life s Capital Disability Benefit provides a lump sum to ensure you stay financially secure if you become disabled. Philanthropy FUND Discovery Life s Philanthropy FUND is a non-profit benefit that allows you to make a contribution to your choice of charities every five years and to leave a lump sum to these charities when you die. 4 5

5 AccessCover Benefit - access to your life cover in times of need With Discovery Life s unique AccessCover Benefit, you will be able to convert your life cover into an immediate payout at a pre-defined conversion rate for a range of life-changing events. Why would I need access to my life cover early? People s needs and circumstances are changing constantly. For this reason, it is very difficult to predict exactly how much cover you will need if something happens to you or your family. With the emergence of new medical technologies, people are living longer and are more exposed to impairments at older ages than before. The result is a general risk of being under-insured in the event of a severe illness or disability and therefore requiring access to funds at a time when you are most exposed. Making sure I have enough cover If you choose to convert your cover into cash through the AccessCover Benefit, your cover will reduce for future claims. It is important to speak to a financial adviser to understand the implication this decision may have on your future cover and on estate planning. Which events will allow me to convert my life cover into cash? The AccessCover Benefit is available on diagnosis of a wide range of lifechanging medical events. You can also buy the AccessCover PLUS Benefit, which will allow you to convert your life cover into immediate cash at a better rate as well as on the following events: If you, your spouse or any of your children become disabled as a result of an accident or violence. If your spouse dies because of an accident or violence. If you reach the age of 80 (or older) and need access to your life cover for your retirement income. The amount of life cover you can convert will depend on the life-changing event and whether you have other qualifying benefits on your LIFE PLAN. 6

6 How much cover do I need? To work out how much life cover you need, you have to take all your current financial commitments and those you will have in the future into account. This amount will become your LIFE FUND, the financial mechanism of your LIFE PLAN. How your cover should increase over time You will need to consider if your cover must stay level or grow each year. This is an important consideration to ensure the payout is enough if you ever need to claim. You can have your benefits increase every year at the consumer price index (CPI) or a fixed percentage. Ensure the level of your cover will never drop below a minimum level after you claim You can prevent yourself from running out of cover through the Minimum Protected FUND. This benefit allows you to specify a minimum level for your. Your will never drop below this minimum protected level - no matter how many benefit payments have been made or what the value of the payments were. At Policy Inception claim payout with Minimum Protected FUND without Minimum Protected FUND LIFE FUND Minimum Protected FUND It is important to consider the impact of an increase in the cost of living on your life insurance benefits. You can choose to have your benefits increase every year at the consumer price index or a fixed percentage. After 14 days, the cover reinstates to the minimum protected level. With the Minimum Protected FUND, you specify a minimum level for your. If you need to claim, your will reduce by the claim amount unless you have the Minimum Protected FUND Minimum Protected FUND It s important to remember that life insurance isn t a financial product you can buy and then neglect. You need to regularly review your level of cover. Life-changing events such as having another baby or moving house can affect how much life insurance you need so make sure you review your requirements with your financial adviser when something significant happens to you. 7

7 How can I maximise my cover at the lowest price? With the Cover Integrator, you can increase your at an average saving of 50% on the increased cover, while the Financial Integrator increases your to give you comprehensive cover and financial benefits throughout your policy term. How the Cover Integrator works How the Financial Integrator works Cover Integrator 5% 100% Cash Conversion including Cover Integrator Financial Integrator 10% 10% 10% 10% 10% 100% Cash Conversion including Financial Integrator Policy inception Age 65* Policy inception 15 Years 20 Years 25 Years 30 Years Age 65* 1. increase your cover at a 50% saving The Cover Integrator gives you the ability to increase your at an approximate premium saving of 50% on the increased cover. You have two options to choose from: 1. Cover Integrator equal to 20% of the 2. Cover Integrator equal to 40% of the 2. your increased cover will fluctuate on a yearly basis, depending on your Vitality status 3. you get an automatic 5% Cash Conversion at age 65* On the Classic LIFE PLAN, you get an automatic 5% Cash Conversion, whereby 5% of your Cover Integrator FUND is paid to you as a cash lump sum at age 65*. 4. you can choose to increase your Cash Conversion to 100%*** You can buy up the Cash Conversion, allowing you to receive 25%, 50%, 75% or 100% of your Cover and Financial Integrator FUNDS at age 65 as a tax-free cash lump sum to supplement retirement savings. If you die before age 65, you are guaranteed to get the premiums you paid for the Buy-up Cash Conversion benefit refunded to you. 5. your cover is maintained after age 65* The Cover Integrator and premiums will continue for whole of life, with no additional Integrated Cover Adjustments after age 65.* 1. Increase your cover The Financial Integrator gives you the ability to maximise your and receive significant tax free cash lump sum payments. You have two options to choose from: 1. financial Integrator equal to 20% of the 2. financial Integrator equal to 40% of the 2. your increased cover will fluctuate yearly, depending on your Vitality status 3. you get an automatic 10% Cash Conversion every five years Every five years, 10% of the Financial Integrator Fund is paid as a tax-free lump sum. This payment will be paid to you every five years and will start 15 years after the inception of this benefit.** 4. you will also receive an automatic 10% Cash Conversion at age 65* 5. you can choose to increase your Cash Conversion to 100% at age 65*** You can buy up the Cash Conversion, allowing you to receive 25%, 50%, 75% or 100% of your Cover and Financial Integrator FUNDS at age 65 as a tax-free cash lump sum to supplement retirement savings. If you die before age 65, you are guaranteed to get the premiums you paid for the Buy-up Cash Conversion benefit refunded to you. 6. your cover is maintained after age 65* the Financial Integrator and premiums will continue for whole of life, with no additional Integrated Cover Adjustments after age 65*. * The later of age 65 and 10 years after the start of your benefit. *** Does not apply if you were older than 55 at the start of your benefit. * The later of age 65 and 10 years after the start of your benefit. ** The five-yearly Cash Conversion will stop after age 60 but all clients will receive at least one Cash Conversion after 15 years. *** Does not apply if you were older than 55 at the start of your benefit. 8 9

8 Cash Conversion Benefit - convert your life cover into cash throughout your policy term With the Cash Conversion Benefit you can receive a percentage of your Cover or Financial Integrator Funds throughout your policy term. Through structuring your LIFE PLAN efficiently, you will not only get access to the most comprehensive cover at the lowest premiums. You will also receive significant tax-free lump sums throughout your policy term through the unique Cash Conversion Benefit. The Cash Conversion Benefit The Cash Conversion Benefit pays out a percentage of your Cover and Financial Integrator Funds at predefined durations in your policy term. The more steps you take to manage your health and wellness, the higher your Cash Conversion payout will be. We recognise that the healthier you are, the longer you are expected to live and you will need more savings to sustain yourself in retirement. The Cash Conversion payouts will not reduce your Cover, Financial or base S. The Buy-Up Cash Conversion You can buy up the Cash Conversion on both the Cover and Financial Integrator to receive 25%, 50%,75% or 100% of your Cover and Financial Integrator FUNDS at age 65*** as a tax-free cash lump sum to supplement retirement savings. If you die before age 65, you are guaranteed to get the premiums you paid for the Buy-up Cash Conversion refunded to you. These payouts will not reduce your cover amounts. The default Cash Conversion The default Cash Conversion is available at no additional premium and will pay out the following cash lump sums: You will receive 5% of your Cover Integrator Fund at age 65* (only on the Classic LIFE PLAN) You will receive 10% of your Financial Integrator Fund at age 65* (only on the Classic LIFE PLAN) You will receive 10% of your Financial Integrator Fund every five years from year 15** * The later of age 65 and 10 years after the start of your benefit. ** The five-yearly Cash Conversion will stop after age 60 but all clients will receive at least one Cash Conversion after 15 years. 10 *** Does not apply if you were older than 55 at the start of your benefit.

9 How can I increase my risk cover by up to 40%? With the BenefitBooster you can increase your risk cover by up to 40% at no additional premium. Structure your LIFE PLAN efficiently with the BenefitBooster Your benefits can either be: Accelerated which means that claims on the benefit reduce your, or Non-accelerated or standalone which means that claims on the benefit do not affect your. If you choose any of the following accelerated benefits, you can receive additional cover through the BenefitBooster at no additional premium: Severe Illness Benefit Spouse Life Cover Spouse Capital Disability Benefit Spouse Severe Illness Benefit The amount of additional cover you receive depends on the benefit amount as a percentage of your according to the table below. Important information to consider You need at least 70% accelerated Capital Disability Benefit and a Capital Disability Benefit amount of at least R to qualify for the BenefitBooster. Your will not be reduced by the BenefitBooster amount if you claim. The Severe Illness BenefitBooster and Spouse Severe Illness BenefitBooster only apply to Severity A and B illnesses. The Spouse Capital Disability BenefitBooster only applies to Category A, B and D (if applicable) disabilities. Benefit percentage of ancillaries BenefitBooster percentage 0% - 49% 0% 50% - 59% 10% 60% - 69% 15% 70% - 79% 20% 80% - 89% 30% 90% - 100% 40% 11

10 How can I ensure that my premium is sustainable? We understand that everybody has unique needs and financial circumstances and for this reason we have created a range of premium payment options to best suit your needs and lifestyle. While you are working Choose between these three flexible funding options at inception of your policy to suit your needs and to ensure you are able to maintain your cover. 1. Standard This option has the highest initial premium, but has the lowest future premium increases to maintain cover. Sustaining your premiums for retirement The Paid-up and Lock-in options ensure that you are able to maintain your cover, by keeping your premiums affordable. 1. Paid-up option on the Standard plan This option ensures that you stop paying premiums at age 65, but the benefits continue at a level amount for the rest of your life. Monthly premium 2. AcceleRater Duration of policy Your initial premium is lower than the Standard funding option, but will increase every year according to your age to maintain your cover at the right level as you get older. Monthly premium Monthly premium Premium for Standard with Paid-up 65 Duration of policy 2. lock-in benefit on the AcceleRater plan Premium for Standard Plan This option ensures that premiums and benefits remain level after 20 years or on reaching age 65. Monthly premium Duration of policy Duration of policy Premium for AcceleRater with Lock-in 65 or 20 years Premium for AcceleRater Plan 3. FlexRater This option has the lowest initial premium of all the options. Annual compulsory increases maintain cover at a specified level as you get older. These compulsory increases are higher than those applicable for the AcceleRater funding option for the first 20 years of the policy. Monthly premium Duration of policy GUARANTEED PREMIUMS We guarantee that your premium will not be increased by more than your automatic annual increases for the first 10 years of your policy. We further guarantee that if we need to increase your premium at the end of the first 10 years and any 10-year period thereafter, these increases will never be more than 25% of the premium you are paying at the time. If you are a Vitality member, you can increase this guarantee even further. The maximum potential increase is reduced according to your Vitality status. The percentage reduction is determined by the number of years you have been on each Vitality status. Per Blue status year Per Bronze status year Per Silver status year Per Gold status year Per Diamond status year 0% 0.5% 1.5% 2.5% 2.5% 12

11 How can I reduce my monthly premiums? If you have a Discovery Health Plan or are a Vitality member, you can benefit from Integrating these products with your LIFE PLAN to enjoy an initial premium discount, the ability to control your premium over time and the opportunity to have a portion of your premiums paid back to you every five years or annually. You can pay lower premiums with our range of Integrators When you decide to Integrate your policy, it will either be Personal or Business Integrated depending on your level of benefits. These Integrators offer you the ability to control your premium increases. With the Personal Integrator you can also receive the PayBack benefit. This is what each has to offer: Personal Integrator Upfront discounts of up to 20% 10% Additional benefit requirements Yes No Will you get the PayBack Benefit Yes, up to 60% No Business Integrator You must have additional benefits on your LIFE PLAN, for example the Severe Illness Benefit or the Capital Disability Benefit, to qualify for the Personal Integrator. The Integrators are: THE HEALTH INTEGRATOR FOR DISCOVERY HEALTH and vitality MEMBERS This Integrator allows you to receive an initial premium discount of up to 20% and the power to control future premium increases or adjustments by actively managing and improving your health and lifestyle. If you have the Classic LIFE PLAN and the Personal Integrator, you can also receive up to 60% of your premiums paid back to you every five years. Your upfront premium reduction You can manage your premium increases The type of Discovery Health Plan you have, your funding option and whether you have a Personal or Business Integrated policy will determine your initial premium reduction. Your initial premium reduction will be as indicated in the table below: Upfront Premium Reduction Executive/ Comprehensive/ Priority Standard/AcceleRater Personal Integrator Business Integrator FlexRater Personal Integrator 20% 10% 15% 7.5% Core/Saver 17.5% 8.75% 15% 7.5% Business Integrator Every year, we will look at your Discovery Health claims, together with your Vitality status over the previous policy year, to determine your premium adjustment. The Discovery Health claims that are included are the Hospital and the Chronic Illness claims for the principal life, spouse and children on the Discovery LIFE PLAN, as well as medical expenses accumulating towards and above the Above Threshold Benefit for the principal life and spouse on the Health Plan. There are, however, numerous health claims that are excluded from the calculation, including optometry, dentistry, childbirth without complications, screening benefits and many more. THE VITALITY INTEGRATOR FOR DISCOVERY VITALITY MEMBERS This Integrator allows you to receive an initial premium discount of up to 17.5% and the ability to control future premium adjustments by improving and managing your health. If you have the Classic LIFE PLAN and the Personal Integrator, you could also receive up to 25% of your premiums paid back every five years. Your upfront premium reduction You can manage your premium increases by engaging in Vitality Your funding option and whether you have a Personal or Business Integrated policy will determine your upfront premium reduction. Your upfront premium reduction will be as indicated in the table below: Personal Integrator Standard/AcceleRater 17.5% 8.5% FlexRater 15% 7.5% Business Integrator With the Vitality Integrator, your future premium adjustments are determined by your Vitality status. If you have decided to Integrate your policy, your premium will not be more than an equivalent policy that is not Integrated for the first five years. 13

12 PayBack Benefit - get up to 60% of your premiums back Discovery Life s PayBack Benefit returns a percentage of your LIFE PLAN premiums as a reward for actively managing and improving your health and wellness. 1. How it works Discovery Life s PayBack Benefit returns a percentage of your LIFE PLAN premiums as a reward for actively managing and improving your health and wellness. The percentage refund you receive will depend on your Vitality status and your health claims (Health Integrator only). Depending on the structure of your LIFE PLAN, you can choose for your PayBack to be received: Every five years, or Annually for the first 10 years and every five years thereafter 2. Guaranteed PayBack If you have selected the annual option, you will receive a Guaranteed PayBack each year for the first 10 years. The level of your Guaranteed PayBack will be: Up to 15% depending on your Discovery Health Plan (7.5% for Vitality Integrator); PLUS An additional Guaranteed PayBack of up to 7.5% of your premiums for Vitalitydrive members (3.75% on Vitality Integrator), depending on your driving behaviour. Discovery Life is the first life assurer to reward you for safe driving; PLUS An additional 7.5% Guaranteed PayBack for channelling your spend through your DiscoveryCard. 3. increase your PayBack through health and wellness management You can increase your PayBack to up to 60% on the Health Integrator and up to 25% on the Vitality Integrator every five years through engaging in Vitality and managing your health and wellness. Your five-yearly Payback will be reduced by any claims you have on your Life Plan. A client on a Health Integrator with a Comprehensive Health Plan, who drives safely as measured by Vitalitydrive and spends more than the specified monthly amount on his DiscoveryCard, is guaranteed to receive 30% of his premiums back every year for the first 10 years. Through managing his health and wellness, he can increase his PayBack to up to 60% every five years. As at the end of 2012, Discovery Life paid over R420 million back to our clients through the PayBack Benefit. 14

13 How to structure your LIFE PLAN a case study The need: Paul, age 40, needs life cover of R2 million to pay off his debt and to protect the lifestyle of his family if he dies. He also needs disability and severe illness cover to protect him and his loved ones for such life-changing events. Paul has a Comprehensive Discovery Health Plan and is a member of Vitality. The Discovery Life solution: Paul decides to take out a Classic LIFE PLAN with a of R1.25 million, with disability and severe illness cover. He adds extra risk cover through the Cover and Financial Integrator, increasing his by 60% to R2 million, at a discounted premium. Paul chose the Standard premium payment option, resulting in a premium of R The unique benefits of the Discovery LIFE PLAN 20% upfront premium discounts He has a Discovery Health Classic Comprehensive Plan which he Integrates with his LIFE PLAN. This gives him an upfront premium discount of 20%, saving him R260 and reducing his premium to R1040. Guaranteed annual PayBack of up to 15% In addition to this premium saving, he will also receive a guaranteed PayBack of 15% each year for the first 10 years. Paul is guaranteed to receive R1870 back at the end of the first year. Over the first 10 years, he will receive R of his premiums paid back to him. Up to 60% PayBack through healthy living and wellness Paul can increase this PayBack to up to 60% of his premiums through actively managing his health and wellness. Any PayBack amount over the guaranteed 15% will accumulate and be paid out at the end of year five and again in year 10. Paul could receive R back over the first five years and a total of R after 10 years. After the first 10 years, he can receive up to 60% of his premiums back every five years. Significant tax-free cash lump sums throughout the term of the policy Paul also has the Financial Integrator on his LIFE PLAN, which means that he will also receive five-yearly Cash Conversions equal to 10% of his Financial Integrator FUND from year 15 until the age of 60. If Paul starts engaging in Vitality and achieves Gold Vitality status for three years and remains on Diamond thereafter, the following Cash Conversions will be paid to him. Age 55 R R R Cash Conversion Payout By Integrating his LIFE PLAN, Paul receives an upfront premium discount of up to 20%. He will also receive a guaranteed PayBack every year, the Financial Integrator Cash Conversion and PayBack every five years, summarised as follows: Present value of cash flows Years 1 5 Years 6 10 Year 11 Age 65 Value of premiums paid without any Integration benefits R R R Value of Integration savings for an engaged client on Gold Vitality status (20%) R R R Guaranteed PayBack (15% per year) R9 090 R9 303 Not applicable Potential additional PayBacks every five years for an engaged client on Gold Vitality status R R R Cash Conversion Benefits Not applicable Not applicable R TOTAL ADDITIONAL SAVINGS AND BENEFITS R R R Assumptions: Standard Plan with CPI benefit increase. Discount rate of 8%. Gold Vitality status for three years, Diamond thereafter. The long term value of the Discovery LIFE PLAN is highlighted by the fact that the total savings and benefits for an engaged client from year 11 to 65 are approximately equal to the premiums payable. 15

14 Next steps The Discovery LIFE PLAN was created to offer the most relevant and personalised levels of protection and benefits at the most cost-effective premium. Follow the steps below together with information provided to get a LIFE PLAN. 1.Speak to your financial adviser The best way to determine the level of financial security you need is to examine, with the help of a financial adviser, the different types of insurance available to you. Financial advisers are qualified and registered professionals who are able to help you get the best cover. 2. Perform a financial needs analysis By performing a financial needs analysis with your financial adviser, you can determine what your ongoing and future obligations are. This amount should also cover your main debts, such as a home loan or credit card debt. It is also important to consider the impact of an increase in the cost of living on your life insurance benefits. 3. Complete the application Once you have selected benefits that meet your needs, a quote will be drawn up for you. If you are happy with the quote you need to fill in the necessary application forms and complete underwriting, if required. When completing your application, always be completely honest about your health, any pre-existing medical conditions and personal circumstances, because this affects your policy. 4. Review your policy During the lifetime of your policy, it is important to regularly review your LIFE PLAN and to update it if your circumstances change, for example when buying a new home or the birth of a child. This will ensure you and your family are covered when your needs change. 5. Service and information At Discovery Life, we believe in being as open and transparent as possible. If you feel that the information or service you have received was not satisfactory, contact our Compliance Department at compliance@discovery.co.za. You can also contact the Ombudsman for Long-term Insurance on

15 GM_21164DL_15/05/13 SYLPE05/13 Physical address: 155 West Street, Sandton Postal address: PO Box 3888, Rivonia 2128 Contact centre: Fax number: Discovery Life is an authorised financial services provider. Registration number 1966/003901/06