Comparing Discovery Life to key competitors

Transcription

1 Comparing Discovery Life to key competitors D ISCOVERY LIFE AND SANL A M

2 CONTENTS FUNDING PATTERNS... 3 PREMIUM GUARANTEES... 6 BENEFITS FOR REMAINING HEALTHY AND DRIVING SAFELY... 8 BOOSTING YOUR COVER...12 ACCESSCOVER AND ACCESSCOVER PLUS...13 DEATH BENEFITS...15 BENEFITS TO CHARITIES...17 MINIMUM PROTECTED FUND VERSUS STAND-ALONE BENEFITS...17 INCOME DISABILITY BENEFITS AND OVERHEAD EXPENSES BENEFITS...28 DREAD DISEASE BENEFITS...38 FEMALE SEVERE ILLNESS BENEFIT AND CHILDBIRTH BENEFIT...47 CHILD SEVERE ILLNESS COVER...47 FAMILY TRAUMA COVER...48 PARENT SEVERE ILLNESS BENEFIT...48 PREMIUM WAIVERS...50 COVER IN REAL CURRENCIES...51 INDEMNITY BENEFITS...52 GENERAL EXCLUSIONS...54 In formulating the information in this document, Discovery Life has taken care to make sure that the views and opinions are based on information that is relevant and accurate. The product comparison serves as an illustrative tool only. The information in this document may be changed without notice. If there is a conflict between provisions of this product comparison and the provisions of the policy contract, the provisions of the policy contract will be followed. While every care has been taken before opinions and views are given, no representation, warranty or undertaking (expressed or implied) is given and Discovery Life accepts no responsibility for the accuracy of the information in this document. Any recommendations made must take into account your clients specific needs and personal circumstances. Any legal, technical or product information in this document is not to be considered as advice by Discovery Life.

3 FUNDING PATTERNS Discovery Life has three funding patterns: 1. The AcceleRater Plan An ABI of 3% or CPI can be selected. The ACI is based on the ABI selected and the policyholder's age. Sanlam has five funding patterns: The available payment patterns and growth choices differ between products. 1. Fixed compulsory growth ACI / ABI combinations: ACI ABI 5% 0% 10% 3.5% 12% 5% 7% with whole-of-life guarantee 0% 11% with whole-of-life guarantee 3.5% 13% with whole-of-life guarantee 5% On the compulsory premium patterns, the policyholder is unable to link the growth of his cover to inflation, the highest cover growth option being 5% per year. This will often be inappropriate from a financial planning point of view. It is especially problematic with buy-and-sell agreements, where a policyholder s responsibility (to buy out his partner s share) is linked to the growth of the business. A Lock-in option is available on the AcceleRater funding plan, where the premium and benefit increases stop after 20 years or at age 65 (depending on what option the policyholder selected). At that stage, the policyholder may still choose to have their benefits increase if they wish, in which case an extra premium will become payable. No comparable benefit.. 2. The FlexRater Plan Discounts on the AcceleRater rates for whole-of-life benefits of between 12.5% and 20%. The same annual premium increases as the AcceleRater Plan, plus an additional compulsory increase of 2.25% each year for the first 20 years. The 2.25% increase only applies to premiums that were discounted upfront. 2. Age-related compulsory growth Aggressive option and Standard option available. The Aggressive option starts with a lower initial premium, but has steeper premium increases than the Standard option. Aggressive option ACI% FOR THE SELECTED ABI% ABI = 0% ABI = 3.5% ABI = 5% <29 3% 7.5% 9.5% % 8.5% 10.5% % 9.5% 11.5% % 10.5% 12.5% % 11.5% 13.5% % 12.5% 14.5% % 13.5% 15.5% >40 10% 14.5% 16.5% 3

4 FUNDING PATTERNS (CONT.) Standard option ACI% FOR THE SELECTED ABI% ABI = 0% ABI = 3.5% ABI = 5% <31 0% 4.5% 6.5% % 6.5% 8.5% % 7.5% 9.5% % 8.5% 10.5% % 9.5% 11.5% % 10.5% 12.5% % 11.5% 13.5% % 12.5% 14.5% % 13.5% 15.5% >61 10% 14.5% 16.5% The above table applies to whole life products only, the increases are different for income protector products. 3. The Standard Plan Premiums remain level over the term of the contract for a level amount of cover. Annual cover increases (ABI s) may be selected with corresponding annual contribution increases (ACI s): ACI ABI 0% 0% 10% 6.5% CPI + 3.5% A Paid-up option is available where all premiums stop at age 65, even though level benefits continue for whole of life. The policyholder may still choose to have their benefits increase if they wish, in which case a portion of the premium will continue after age 65. CPI 3. Level: Growth optional Premiums remain level over the term for a level amount of cover. Growth choices: ACI ABI 0% 0% Not specified in advance* 5% Not specified in advance* 10% Not specified in advance* CPI (min 0%, max 15%) Not specified in advance* R/$ (min CPI, max 35%) Not specified in advance* R/Pound (min CPI, max 35%) Not specified in advance* R/Euro (min CPI, max 35%) *The payment increase will depend on the increase in the benefit amount and the age of a life insured at the time of the cover increase. No comparable benefit. 4

5 FUNDING PATTERNS (CONT.) Discovery has no equivalent premium pattern. 4. Stepped: Growth optional Premiums are guaranteed for a choice of 10, 15, 20 or 25 years. Same premium and cover growth combinations as on the Level option. At the end of the initial guarantee period, the policy is automatically extended and the premium recalculated based on age at the time of increase. Thereafter five-year guarantee periods will commence. The increases after the first guarantee period and every five years thereafter on the Sanlam Stepped option are based on the age of the policyholder at each date. The percentage increase in premiums at each period is as follows: STEPPED Initial premium R153 Increase after 10 yrs 71% Increase after 15 yrs 32% Increase after 20 yrs 35% Increase after 25 yrs 46% Increase after 30 yrs 87% *35 year old non-smoker R1m life cover, 0% ABI The premiums on the Sanlam Stepped option are clearly not sustainable, as can be seen from the high premium increases reflected in the table above. This leaves great uncertainty for policyholders as there is no guarantee on the premium increase from year to year. Discovery has no equivalent premium pattern. 5. Yearly Rated Growth The payment will be recalculated each year using the increased benefit amount (if cover growth applies), payment rates for new business and the age of the life insured at the time of increase. Same premium and cover growth combinations as on the Level option. Rates are not guaranteed. 5

6 PREMIUM GUARANTEES Discovery s premiums are priced for whole of life. Should an increase in premium be required, the premium is guaranteed not to increase by more than 25% at the end of 10 years and every 10 year period thereafter. This applies to all socio-economic classes of business. Policyholders who are also members of Vitality could enjoy additional premium certainty. The maximum increase of 25% at the end of the 10-year period could be reduced as follows: - Per Blue status year: 0% - Per Bronze status year: 0.5% - Per Silver status year: 1.5% - Per Gold or Diamond status year: 2.5% Discovery Life does not guarantee premiums for the Global Health Protector, the Global Education Protector, the Health Plan Protector and the Lock-in and Paid-Up options, as these benefits are exposed to unpredictable factors such as Rand depreciation, education inflation, medical inflation and investment returns. No guarantee period applies to plans with the yearly-rated payment pattern. On the other payment patterns, Sanlam provides the following guarantee options for Whole Life products: 1. Guarantee for life - The initial payment has been calculated for the full term of the benefits. - Only available if compulsory premium growth of 7%, 11% or 13% has been selected at the start of the policy. 2. Guarantee term between 5 and 15 years - The initial payment has been calculated for the full term of the benefits. - Not available for the Stepped and Yearly Rated Growth premium patterns. - At the end of the first guarantee period, Sanlam guarantees that the premium increase will not be more than the following: INITIAL GUARANTEE PERIOD MAXIMUM % PREMIUM INCREASE 5 years 20% 6 years 21% 7 years 22% 8 years 23% 9 years 24% 10 years 25% 11 years 26% 12 years 27% 13 years 28% 14 years 29% 15 years 30% - After the initial guarantee period, premiums are reviewed every five years. - Increases are not quantified at these later reviews. Discovery provides certainty for whole of life on all funding plans, where Sanlam only quantifies guarantees for whole of life on their 7%, 11% and 13% Fixed Compulsory growth plans. On all other plans, Sanlam does not quantify guarantees after the initial guarantee period. This may leave clients in a position where they need their cover to continue, but they cannot afford the premium increases on their policies. 6

7 PREMIUM GUARANTEES (CONT.) 3. Guarantee term of 10, 15, 20 or 25 years - Only available on the Stepped pattern. - The initial payment has been calculated for the guarantee period only. - After the initial guarantee period, premiums are reviewed every five years. - Premium reviews will be based on the life insured's age at that point in time. - No limit to the increases at the end of each guarantee period. On the stepped payment pattern you could expect to see increases that look as follows: AGE PREMIUM INCREASE 40 18% 45 35% 50 42% 55 37% *Assumptions: Male non-smoker; R2 million life cover Sanlam has only one guarantee option on their Income Protector products: - An initial guarantee period of five years applies, at the end of which Sanlam guarantees that the premium will not increase by more than 20%. - After the initial guarantee period, premiums are reviewed every five years. No quantified premium guarantees are offered at these later reviews. - The initial payment has been calculated for the full term of the benefit. Discovery's whole of life premium guarantee also applies to the Income Continuation Benefit. This provides certainty of future premiums. 7

8 BENEFITS FOR REMAINING HEALTHY AND DRIVING SAFELY Health Integrator Provides initial premium reductions of up to 20%. Uses a client's Vitality status and Discovery Health claims to determine their future premium adjustments. Discovery Life provides premium certainty to claimants by capping Health Integrator adjustments at 0% after a qualifying claim. Includes the PayBack benefit (on the Classic Life Plan), which provides a return of up to 60% of a policyholder s Discovery Life premiums every five years, depending on their Vitality status and claims on the Discovery Health and Discovery Life Plan. Clients are given the option to receive PayBacks annually for the first 10 years. Annual PayBacks are guaranteed. Guarantees of up to 30% are possible depending on Health Plan type, Vitalitydrive status and DiscoveryCard spend. Clients can increase their guaranteed PayBack by a further 5% by electing to receive their PayBacks every 5 years through the Cumulating PayBack Option. After year 10, PayBack guarantees will be determined using the client's Vitality Memory Score (which is based on historic Vitality engagement). Sanlam has no matching benefit. The Integrator mechanism allows policyholders to control their premiums and increase their PayBack through their health and wellness management and driving behaviour. They may obtain further premium reductions by progressing through the Vitality and Vitalitydrive statuses. In addition to the normal premium guarantees, Discovery Life offers a further guarantee on the Health Integrator, Vitality Integrator and Vitalitydrive Integrator through the Maximum Protected Premium. By incentivizing a healthy lifestyle through financial rewards, Discovery Life is able to maintain a healthy risk pool - thereby reducing mortality and morbidity costs. By rewarding good driving behaviour, Discovery Life is able to maintain a risk pool with low involvement in car accidents - further reducing mortality and morbidity costs. This value is then returned to clients through the PayBack benefit. The Annual Guaranteed PayBack provides optimal short-term tangibility and certainty for clients, while Vitality Memory allows clients to build additional longterm certainty and sustainability into their PayBack. 8

9 BENEFITS FOR REMAINING HEALTHY AND DRIVING SAFELY (CONT.) Vitality Integrator Provides initial premium reductions of up to 17.5%. Uses a client's Vitality status to determine their future premium adjustments. Discovery Life provides premium certainty to claimants by capping Vitality Integrator adjustments at 0% after a qualifying claim. Includes the PayBack benefit (on the Classic Life Plan ), which provides a return of up to 25% of a policyholder s Discovery Life premiums every five years, depending on Vitality status and claims on the Life Plan. Clients are given the option to receive PayBacks annually for the first 10 years. Annual PayBacks are guaranteed. Guarantees of up to 18.75% are possible depending on Vitalitydrive status and DiscoveryCard spend. Sanlam has no matching benefit. Vitalitydrive Integrator Offers initial premium reductions of up to 10% and uses Vitalitydrive status to determine future premium adjustments. The Vitalitydrive Integrator can be combined with the Health or Vitality Integrator, resulting in initial premium reductions of up to 28% and 25.75% respectively. Sanlam has no equivalent benefit. Health Plan Protector Described in detail in Indemnity Benefits section. Offers reward for staying healthy through Health Dividends and Health Fund. Health Dividends: Returns a portion of excess health risk contributions over health risk claims every year. Health Fund: Returns a portion of excess health risk contributions every five years with the balance at the earlier of age 65 or a life-changing event. Sanlam has no equivalent benefit. The mechanism of returning a portion of Health Plan contributions based on Vitality status and health risk claims provides a powerful incentive for policyholders to manage their health. 9

10 BENEFITS FOR REMAINING HEALTHY AND DRIVING SAFELY (CONT.) Cover Integrator The Cover Integrator enables policyholders to increase their cover by either 20% or 40% of their Life Fund. This additional cover is known as Integrated Cover and will fluctuate on an annual basis depending on the policyholder s engagement in Vitality and Discovery Health claims (known as Integrated Cover Adjustments). At the later of age 65 and 10 years after inception of the benefit, the Cover Integrator will: - Lock-in the value of the Cover Integrator Fund, with no future Integrated Cover Adjustment into retirement; and - Pay an automatic Cash Conversion (only on Classic Life Plan) equal to 5% of the Cover Integrator Fund. This is payable as a tax-free lump sum that does not reduce the Life Fund. Policyholders can buy-up the Cash Conversion to 50%, 100% or 200% of the Cover Integrator Fund, where the options available depend on the ancillary take-up on the policy. The Buy-up Cash Conversion Benefit will provide a series of four equal benefit payments (e.g. four 50% payments will be made with the 200% option). Payments will start at age 65 and continue four-yearly until age 77 (provided the policy is still in force). The maximum entry age for the benefit is age 56 next. Sanlam has no equivalent benefit. On average, the cover provided by the Cover Integrator can be bought at 50% of the normal, premium rates. This premium efficiency has been generated through Discovery s Integrator model. Policyholders are able to increase their Cover Integrator Fund to up to 27.5% of their Life Fund on the 20% option and up to 55% of their Life Fund on the 40% option. The policyholder s Integrated Cover will boost all benefits attached to the Life Fund. Discovery has recognized the importance of having extra cashflow available during retirement. As a result, Discovery has developed an innovative solution that can give policyholders substantial tax-free liquidity into retirement, without having to sacrifice any risk cover. 10

11 BENEFITS FOR REMAINING HEALTHY AND DRIVING SAFELY (CONT.) Financial Integrator The Financial Integrator Fund enables policyholders to increase their cover by either 20% or 40%. This additional cover is known as Integrated Cover and will fluctuate on an annual basis depending on the policyholder s engagement in Vitality and Discovery Health claims (known as Integrated Cover Adjustments). Policyholders will receive default Cash Conversion(s) equal to 10% of the Financial Integrator Fund, depending on their age at benefit inception: Age next at benefit inception Ages at which default 10% Cash Conversion is paid <40 55 and >56 Age at cover inception + 15 years These Cash Conversions are payable as tax-free lump sums that do not reduce the Life Fund. At the later of age 65 and 10 years after inception of the benefit, the Financial Integrator will: - Lock in the value of the Financial Integrator Fund, with no future Integrated Cover Adjustment into retirement; and - Pay another default Cash Conversion (only on Classic Life Plan) equal to 10% of the Financial Integrator Fund. Policyholders can buy up the default Cash Conversion to 50%, 100% or 200% of the Financial Integrator Fund, where the options available depend on the ancillary take-up on the policy. The Buy-up Cash Conversion Benefit will provide a series of four equal benefit payments (e.g. four 50% payments will be made with the 200% option). Payments will start at age 65 and continue four-yearly until age 77 (provided the policy is still in force). The maximum entry age for the benefit is age 56 next. Sanlam has no equivalent benefit. The annual adjustments to the Financial Integrator Fund work in exactly the same way as the Cover Integrator adjustments. Policyholders are able to increase their Financial Integrator Fund to up to 27.5% of their Life Fund on the 20% option and to up to 55% of their Life Fund on the 40% option by leading a healthy lifestyle. The automatic Cash Conversions provide policyholders with the ability to generate long-term value from their Life Plan through health and wellness management. On death before age 65, any premiums for the Buy-up Cash Conversion benefit will be refunded. On death between ages 65 and 77, any premiums in excess of payments already received will be refunded. 11

12 BOOSTING YOUR COVER BenefitBooster Increases certain ancillary benefits by up to 40% at no additional cost. Policies will qualify if the principal life's accelerated Capital Disability Benefit is at least 70% of the Life Fund and at least R at inception. The BenefitBooster provides additional cover to the following ancillary benefits: - Principal Severe Illness Benefit - Spouse Severe Illness Benefit - Spouse Capital Disability Benefit - Spouse Life Cover Benefit. No equivalent benefit. The BenefitBooster is an innovative product that returns additional value to clients with larger policies for no extra premium. This is a key benefit aimed at reducing the insurance gap. The boosts applied are as follows: ANCILLARY BENEFIT PERCENTAGE BOOST PERCENTAGE 0-49% 0% 50-59% 10% 60-69% 15% 70-79% 20% 80-89% 30% % 40% Payouts as a result of the BenefitBooster will not impact the Life Fund. The BenefitBooster is available on Classic, Essential and Business Life Plans. 12

13 ACCESSCOVER AND ACCESSCOVER PLUS Allows policyholders to convert life cover into immediate cash on a number of life-changing events under the Medical AccessCover benefit. Clients must have an A1 life cover rating to qualify for this benefit There are numerous qualifying events under the Medical AccessCover benefit in the following major categories: - Cancer - Brain tumours - Transplants - Cardiovascular system - Respiratory system - Gastrointestinal system - Connective tissue disorders - Central nervous system - Renal system Each Medical AccessCover condition has been placed into an AccessCover Category from A to H. Cover can then be accessed according to the following conversion table: ACCESSCOVER CATEGORY A B C D E F G H Conversion rate 70c 65c 60c 50c 45c 40c 30c 20c Policyholders can access up to 100% of their cover on plans with qualifying ancillaries (50% otherwise). The maximum exercise age is 65 next birthday. Following an exercise of AccessCover or AccessCover Plus, the policyholder s life cover will be reduced by the AccessCover or AccessCover Plus amount before the conversion rate is applied. The life cover premium will be reduced proportionately in line with the reduction in life cover. A payment as a result of AccessCover or AccessCover Plus will not be deducted from the policy s PayBack Benefit and has no effect on the Financial Integrator and Cover Integrator Buy-up Cash Conversions. AccessCover Plus Policyholders can select AccessCover Plus at an additional premium of 8% to 13% of the life cover rate. Clients must have an A1 life cover rating to qualify for this benefit. No comparable benefit. No comparable benefit. AccessCover is a world first innovation that allows clients to convert their life cover into immediate cash during times of need. This provides clients with the added flexibility and certainty that they will have adequate cover. This provides financial advisers with Financial Needs Analysis (FNA) fluidity, whereby needs can be reanalysed at claim stage and a portion of life cover can be converted into cash to supplement the ancillary claim payment. 13

14 ACCESSCOVER AND ACCESSCOVER PLUS (CONT.) Includes the following benefits: 1. Medical AccessCover allows policyholders to convert their life cover for all Medical AccessCover conditions at an enhanced conversion rate: ACCESSCOVER CATEGORY A+ B+ C+ D+ E+ F+ G+ H+ Conversion rate 85c 80c 75c 65c 60c 50c 35c 25c 2. Longevity AccessCover allows policyholders to convert up to 50% of their life cover into cash on reaching certain age milestones: LONGEVITY CONVERSION RATE Reaching age 80 Reaching age 85 Reaching age 90 40c 70c 100c 3. Family Debility AccessCover allows policyholders to convert up to 5% of their life cover into cash if they, their spouse or their children are disabled as a result of an accident or violence. Only one payment will be made for each family member for each of the following: loss of speech blindness deafness major head trauma paraplegia or quadriplegia major burns permanent confinement to bed or wheelchair loss of at least one foot or hand A conversion rate of 80c per rand is applied. As people live longer into retirement, there is an increasing risk that their retirement savings will be insufficient. At the same time, their need for life cover diminishes, as they will have fewer dependants and will probably have paid off any outstanding debt. This illustrates the need for Longevity AccessCover. Discovery allows policyholders to access life cover to deal with traumatic events faced by family members and thereby ensures that sufficient funds are available to deal with such events. This benefit is available regardless of whether the spouse or child has any risk cover. 4. Spouse Accidental Death AccessCover allows policyholders to convert up to 5% of their own life cover into cash if their spouse dies because of an accident or violence. The conversion rate is 80c per rand. 14

15 DEATH BENEFITS Discovery Life only sells whole-of-life insurance. Discovery Life allows policyholders to structure their policies in three ways: 1. Separate policies for principal and spouse: - This ensures that claims made by one life do not impact the benefits of the other life. Both lives can integrate their separate policies with reduced initial premiums as long as they are members of Vitality and/or Discovery Health. 2. One policy for principal and spouse: - This ensures the correct payout where joint financial planning is done. A claim on one life will reduce the benefits of the other life. This is appropriate in cases where a payout is only required on the first life to die. The surviving spouse can continue with his/her cover free of underwriting if required. 3. One policy for principal and spouse with Minimum Protected Fund: - This allows protection of benefits on both lives irrespective of the number and amount of claims on either life. - Note: the Minimum Protected Fund reinstatements differ between the Classic and Essential Life Plan. No equivalent benefit. No equivalent benefit. Terminal illness (automatically included) Discovery Life will pay the lump sum death benefit if the insured is diagnosed with a terminal illness (i.e. life expectancy is less than 12 months). Sanlam offers whole-of-life and term assurance. Policyholders can structure their policies in two ways: 1. Death benefits on separate policies for principal and spouse: - This ensures that claims made by one life do not impact the benefits of the other life. 2. First Death of principal and spouse (one policy): - Claims made by one life will impact the benefits of the other life. - If a claim is admitted, the death and accelerator benefits will cease. However, the remaining lives linked to this benefit have the option to take out death and accelerator benefits up to the cover amount at the date of claim, without proof of health. - A claim under an accelerator benefit will reduce the First Death cover amount. The cover amount of an accelerator benefit will then be capped at the reduced First Death cover amount. Death Income Benefit Income payments equal to the cover amount will start on the life assured's death, and will continue until the selected benefit cease age (ranging from age 55 to 90 in five-yearly increments). Accidental Death Benefit Pays a lump sum on the death of the insured life, if death resulted directly and solely from a bodily injury and occurred within 12 months of injury. Terminal illness (automatically included) Sanlam will pay the lump sum death benefit if the insured is diagnosed with a terminal illness (i.e. life expectancy is less than 12 months). A lump sum death benefit is more flexible in that it can be used (in part or in full) to purchase a whole life or term annuity, or it can be used to cover immediate expenses such as capital loan repayments. 15

16 DEATH BENEFITS (CONT.) Spouse Life Cover BenefitBooster (automatically included) The spouse on the policy can receive up to 40% additional life cover at no additional premium if the policy qualifies for BenefitBooster. The maximum cover that can be added through the Spouse Life Cover BenefitBooster is R5 million. For more information refer to the BenefitBooster section. Advances on Death Claims (automatically included) Immediate advancement of R on death (to cover funeral costs and urgent family travel). Payment is made within 24 hours without forms, via Electronic Fund Transfer. A two year waiting period applies. Available on low risk claims (e.g. natural causes and where murder is not suspected). Funeral Benefit Sold as a stand-alone whole of life benefit. Up to 15 lives including 5 children, 4 parents and 4 extended family members. Maximum Cover: R for principal and spouse, R for children and R for extended family members and parents. Automatic baby cover of up to R4 000 (payable on death within the first three months or for a stillborn child). Claims paid within 24 hours of receiving the necessary paperwork. Features automatically included: - Premium PayBack Benefit: returns up to 17.5% of premiums every year (Classic Plan). - Double payout for principal and spouse on accidental death. - Education Benefit: payment of up to R4 500 (R3 900 on the Essential Plan) on the principal or spouse's death for each child on the policy. - Grocery Benefit: payment of up to R3 600 (R3 000 on the Essential Plan on the principal and spouse's death. - Memorial Benefit: payment of R5 000 on the principal and spouse's death. - Spouse premium waiver for one year. No equivalent benefit Funeral and other immediate expenses Benefit Sold as a stand-alone benefit. Pays the benefit within 48 hours of Sanlam s requirements being met. Maximum cover is R per life assured. Whole life or term cover available. Funeral TopCover Only available for lives who do not cover for the Funeral and other immediate expenses benefit. Sold as a stand-alone whole of life benefit. Up to 22 lives including 10 children, 4 parents and 6 other dependants. Maximum Cover: R for principal and spouse and R for other insured lives. Automatic baby cover of R3 000 (payable on death within the first 6 months or for a stillborn child). Pays the benefit within 48 hours of Sanlam s requirements being met. Features automatically included: - Baby Benefit - A Funeral Transport Benefit, where transportation will be arranged for the deceased (and one relative) to a South African funeral parlous nearest to the place of burial. Optional rider benefits: - Waiver of Premium at Death Benefit 16

17 BENEFITS TO CHARITIE S The Philanthropy Fund is a non-profit initiative that allows policyholders to donate a large amount on death to up to 10 charities of their choice. Every five years, the Philanthropy PayOut donates a percentage of premiums paid for the Philanthropy Fund to the client's chosen charities, depending on Vitality status: No comparable benefit. Policyholders have communities that rely on them during their lifetime. These communities are often not provided for by the deceased s estate. No Vitality Blue Bronze Silver Gold Diamond 20% 30% 40% 50% 60% 70% Policyholders get a Section 18A tax certificate for the Philanthropy PayOut, giving them full tax deductibility for the amount given to their charity. Discovery Life s Philanthropy Fund allows a tax- and cost-efficient vehicle for charitable giving. MINIMUM PROTECTED FUND VERSUS STAND-ALONE BENEFITS Discovery allows policyholders to select the Minimum Protected Fund to ensure protection of cover for future events. This maximises the potential of multiple claims, where reinstatement of cover applies to all benefits attached to the Life Fund. If you have chosen the Classic Life Plan, the Minimum Protected Fund will reinstate the Life Fund (and all attaching ancillaries) for all future related and unrelated claims independent of their severity. If you have chosen the Essential Life Plan, the Minimum Protected Fund will also reinstate the Life Fund and all attaching ancillaries, but only related claims of a higher severity than your previous claim will be covered. The maximum payout that the Minimum Protected Fund can add to any related claim is an additional 100% of that benefit amount plus any automatic benefit increases. The Minimum Protected Fund applies to the: - Life Fund - Cover Integrator Fund - Financial Integrator Fund You can select up to a 100% Minimum Protected Fund. Sanlam allows policyholders to choose certain benefits on a nonaccelerated basis. This means that claims on these benefits have no impact on other benefit amounts. The sum assured selected on a stand-alone lump sum disability benefit is the maximum that can be paid out over the lifetime of the policy, i.e. the benefit expires once the full benefit amount has been paid out. On Sanlam s stand-alone dread disease benefits, policyholders can claim more than the original sum assured, if the subsequent claim is for an unrelated illness. A stand-alone benefit from Sanlam should always be compared to the corresponding non-accelerated benefit offered by Discovery Life. 17

18 MINIMUM PROTECTED FUND VS STAND-ALONE BENEFITS (CONT.) Discovery offers the non-accelerated Severe Illness Benefit for both the principal and spouse. Policyholders still need a Life Plan to take advantage of this benefit. The Severe Illness Benefit amount may exceed the amount of life cover on the Life Plan. This benefit automatically includes a 100% Minimum Protected Fund on the Classic Life Plan. Discovery also allows policyholders to select the Impairment Fund, which is a stand-alone Severe Illness Benefit. Claims on this benefit have no impact on the Life Fund. A Minimum Protected Fund may be added to the Impairment Fund, thereby maximizing severe illness payouts over the policyholder s lifetime. Discovery offers the non-accelerated Capital Disability Benefit for the principal life. Policyholders still need a Life Plan to take advantage of this benefit. The Capital Disability Benefit amount may exceed the amount of life cover on the Life Plan by a multiple of up to five times (depending on the policyholder s age at entry). The Minimum Protected Fund provides superior value compared to the stand-alone benefits offered by Sanlam. To show this we use a client who has R1 million Severe Illness cover: Maximum total payout Payment for subsequent nonprogressive related claims (after 14 days) Classic Plan with 100% MPF Unlimited The full claim percentage multiplied by R1 million is paid, regardless of severity Essential Plan with a 100% MPF Up to R2 million for related claims The full claim percentage multiplied by R1 million is paid, but only for higher severities Sanlam Standalone Severe Illness Benefit Up to R1 million for related claims The difference in claim severities multiplied by R1 million is paid, but only for higher severities Payment for The full claim subsequent percentage unrelated multiplied by claims (after 14 R1 million is days) paid The full claim percentage multiplied by R1 million is paid The full claim percentage multiplied by R1 million is paid The above table shows that both the Classic and Essential Life Plan with a Minimum Protected Fund of 100% have a higher maximum total payout than the equivalent Sanlam stand-alone benefit. The other reason why the Minimum Protected Fund is superior on both the Classic and Essential Life Plan is that it reinstates cover for related severe illness claims. With Sanlam's stand-alone Critical Illness Benefit, only cover for unrelated illnesses is reinstated. 18

19 LUMP SUM DISABILITY BENEFITS Discovery Life offers four lump sum disability options: 1. Core Capital Disability Benefit 2. Comprehensive Plus Capital Disability Benefit 3. LifeTime Capital Disability Benefit 4. LifeTime Plus Capital Disability Benefit Sanlam offers six lump sum disability products: 1. Disability for regular occupation* 2. Disability for regular and reasonable alternative occupation* 3. Disability plus Whole Life Impairment 4. Functional Impairment plus Disability for regular occupation 5. Functional Impairment plus Disability for regular and reasonable alternative occupation 6. Accidental Disability The table below sets out the products on the most like-for-like basis. Discovery s Essential Plan should be selected for comparison, due to the unique features of the Classic Plan which are not offered by Sanlam:* DISCOVERY Core Comprehensive Plus SANLAM Disability plus Whole Life Impairment Functional Impairment plus Disability for regular occupation* - Sanlam s occupational disability benefits can taper. For a complete like-for-like comparison, select the benefit without tapering. - Back and mental disorder exclusions can apply on the occupational underpin. For a complete like-for-like comparison, the Comprehensive benefit without exclusions for specific conditions must be selected. - The unique features of the Classic Life Plan are: Category C Disability Claims Dynamic Spend Protector Extensive multiple claims facility Claims are assessed based on: Objective medical criteria Activities of daily living Loss of income (Comprehensive Plus option on the Classic Life Plan) Ability to perform nominated occupation Objectively and clinically assessed LifeTime Impact Factors (LifeTime options) Future salary growth (LifeTime options) Covers total and partial permanent disability (partial disability covered at 50% on the Comprehensive Plus option). Claims are assessed based on: Ability to perform regular occupation or any reasonable alternative occupation (depending on option selected) Recognised disability criteria Ability to take care of body or personal interests Functional Impairment definitions (if selected) Physical impairment (if the Disability plus Whole Life Impairment benefit has been selected) Covers total and partial permanent disability (partial permanent disability covered at 25%, 50% or 75% through the Functional Impairment definitions and at 10%-60% through the Physical Impairment definitions). Unlike Sanlam s benefit, Discovery Life s benefit covers temporary disability through a unique lossof-income underpin. boosts the payout based on the long-term impact of the disability. has no survival period condition. offers cover up to age 70. offers reinstatement of cover through the Minimum Protected Fund. converts to severe illness cover for whole of life at benefit expiry, free of medical underwriting. boosts DiscoveryCard cash backs by up to 50% through the Dynamic Spend Protector. 19

20 LUMP SUM DISABILITY B ENEFITS (CONT.) No general waiting or survival period. All products can be taken out on an accelerated or nonaccelerated basis. No equivalent benefit. No equivalent benefit. 30-day survival period applies to the Functional Impairment component and a 14-day survival period applies to the Accidental Disability Benefit. All products can be taken out on an accelerated or nonaccelerated (stand-alone) basis, except for the Accidental Disability benefit, which can only be taken on a stand-alone basis. 1. Disability for regular occupation Pays 100% on the following: - Inability to perform occupational demands of occupation engaged in before disability. - The total, permanent and irrecoverable loss of: vision in two eyes, or use of two hands, or use of two feet, or use of one hand and one foot. - Disability, so that insured is totally, permanently and continuously unable to take care of body or personal interests, or unable to engage in the occupational demands the insured was engaged in immediately before the disability. Choosing Sanlam s top-of-the-range benefit (Functional Impairment plus Disability) results in a 30-day survival period (without life support) being forced on the policyholder. The probability of a claim arising from a loss of two eyes, two hands, two feet or a combination thereof is small, compared to all other causes of disability. The definition of regular occupation is similar to our "nominated occupation" definition. Products that only use the occupational disability definition lacks objectivity, which creates uncertainty for policyholders. Discovery Life s Capital Disability Benefits uses objective medical criteria spanning all body systems in the assessment of a claim, making cover more comprehensive. 2. Disability for regular or any reasonable alternative occupation Same as above, except that the definition of occupation is defined as follows: - the occupation the insured engaged in for income immediately before the disability, as well as an occupation we may reasonably expect him/her to engage in, taking into account education, training and experience. 20

21 Discovery s Comments LUMP SUM DISABILITY BENEFITS (CONT.) 1. Core Capital Disability Benefit Pays: - 100% upon being totally and permanently unable to perform the duties of your nominated occupation due to sickness, disease, illness or injury (Category D), or - 100% upon your impairment meeting objectively defined medical criteria (Category A). 3. Disability plus Whole Life Impairment Benefit Pays: - 10% - 100% (depending on severity) on meeting the conditions of one of the defined physical impairment claim events % on disability, so that insured is totally, permanently and continuously: unable to take care of body or personal interests unable to engage in the occupational demands the insured was engaged in immediately before the disability. Discovery s Capital Disability Benefit converts to the Severe Illness Benefit for whole of life at benefit expiry age The conversion is available free of medical underwriting under both the accelerated and nonaccelerated Capital Disability Benefit. 2. Comprehensive Plus Capital Disability Benefit Pays: - 100% upon being totally and permanently unable to perform the duties of your nominated occupation due to sickness, disease, illness or injury (Category D), or - 100% or 50% (depending on severity) upon your impairment meeting objectively defined medical criteria (Category A and B), or - 2.5% of the benefit after a waiting period of four months (Category C) if: You continuously suffer from a medical impairment, injury or illness that renders you unable to fulfil material and substantial aspects of your nominated occupation for four months; and You are following the treatment regime as prescribed by your treating medical practitioner, and You are losing 80% or more of your income earned from your nominated occupation 4. Functional Impairment plus Disability for regular occupation Pays: - 100% on being totally and permanently unable to take part in the occupational demands the insured took part in immediately before the disability - 25% - 100% (depending on severity) on meeting the conditions of one of the defined functional impairment claim events. Both benefits assess disability in terms of the ability to meet occupational and medical criteria. Unlike Sanlam's benefit, Discovery Life s benefit covers temporary disability through a unique loss of income underpin offers cover up to age 70 offers reinstatement of cover through the Minimum Protected Fund converts to severe illness cover for whole of life at benefit expiry, free of medical underwriting. By including a loss-of-income underpin in the assessment, Discovery can pay out claims long before Sanlam in cases where it hasn t been confirmed if the condition is permanent. The loss-of-income underpin also covers illnesses that cause a low level of impairment, yet a high loss of income. 19% of our Capital Disability claims qualified under Category C in Examples include: knee replacement; multiple fractures (MVA), gunshot (nerve graft left foot), broken pelvis (quad bike) and 21

22 LUMP SUM DISABILITY BENEFITS (CONT.) The maximum number of Category C payments that you can receive for related conditions is 9. This underpin is not available on the Essential Life Plan. bowel resection (complications). Some policyholders made a full recovery, while others got 50% and 100% payouts when the condition was confirmed to be permanent. No equivalent benefit. 5. Functional Impairment plus Disability for regular and reasonable alternative occupation Same as above, except that the definition of occupation is defined as follows: a. the occupation the insured engaged in for income immediately before the disability, as well as an occupation we may reasonably expect him/her to engage in, taking into account education, training and experience.. 3. LifeTime Capital Disability Benefit Choice of benefit expiry age of 65 or 70. Pays: - 100% upon being totally and permanently unable to perform the duties of your nominated occupation due to sickness, disease, illness or injury (Category D), or - 100% upon your impairment meeting objectively defined medical criteria (Category A). The LifeTime Impact Booster is applied depending on the LifeTime Impact Category of the disability and the salary growth option selected at inception. The Booster provides an extra payment of 5% - 100% of the sum assured. The LifeTime Impact Category is dependent on the following: - Age at disability and expected survival period thereafter; - Invasiveness of any surgery required; - Impact of any pharmacological treatment and its associated side-effects; No equivalent benefit. Sanlam does not offer a benefit that considers the long-term impact of a disability on a person s ability to earn an income. Discovery's LifeTime benefits consider the long-term impact of a disability as well as the future expected salary growth of the claimant and boosts the Capital Disability payout accordingly. It is possible for a client to receive a payout in excess of 100% of the sum assured under the LifeTime Capital Disability benefits. Sanlam does not offer a payout greater than the sum assured. 22

23 LUMP SUM DISABILITY BENEFITS (CONT.) - Impact of any therapy and rehabilitation required and their associated discomfort; - Impact of any assisted care and devices. 4. LifeTime Plus Capital Disability Benefit: Choice of benefit expiry age of 65 or 70. Pays: - 100% upon being totally and permanently unable to perform the duties of your nominated occupation due to sickness, disease, illness or injury (Category D), or - 50% or 100% (depending on severity) upon your impairment meeting objectively defined medical criteria (Category A and B), or - 2.5% of the benefit after a waiting period of four months (Category C) if: You continuously suffer from a medical impairment, injury or illness that renders you unable to fulfil material and substantial aspects of your nominated occupation for four months; and You are following the treatment regime as prescribed by your treating medical practitioner, and You are losing 80% or more of your income earned from your nominated occupation The maximum number of Category C payments that you can receive for related conditions is 9. This underpin is not available on the Essential Life Plan. The LifeTime Impact Booster is applied depending on the LifeTime Impact Category of the disability and the salary growth option selected at inception. The Booster provides an extra payment of 5% - 100% of the sum assured to Category A, B and D claims. The LifeTime Impact Category is dependent on the following: - Age at disability and expected survival period thereafter; No equivalent benefit. Sanlam does not offer a benefit that considers the long-term impact of a disability on a person s ability to earn an income. Discovery's LifeTime benefits consider the long-term impact of a disability as well as the future expected salary growth of the claimant and boosts the Capital Disability payout accordingly. It is possible for a client to receive a payout in excess of 100% of the sum assured under the LifeTime Capital Disability benefits. Sanlam does not offer a payout greater than the sum assured. 23

24 LUMP SUM DISABILITY BENEFITS (CONT.) - Invasiveness of any surgery required; - Impact of any pharmacological treatment and its associated side-effects; - Impact of any therapy and rehabilitation required and their associated discomfort; - Impact of any assisted care and devices. No equivalent benefit. 6. Accidental disability Similar to the Disability for regular occupation benefit, but the disability must be caused directly and solely by a bodily injury and must have manifested within 12 months after the injury. Exclusions and medical criteria Chronic fatigue syndrome and fibromyalgia are excluded under Category C and D claims. Exclusions and medical criteria Sanlam provides policyholders with two options: 1. "With exclusions for specific conditions" - depression or dysthymia, whether as an episode or disorder, or as part of the symptom complex of another psychiatric diagnosis - post-traumatic stress disorder - fibromyalgia - chronic fatigue syndrome and its synonyms - a back condition, unless it is paraplegia, quadriplegia, malignant tumours of the spinal cord and vertebral column, or failed back syndrome after multiple spinal surgery - an injury or illness that directly or indirectly resulted from, or is traceable to, any of the above causes - a complication that directly or indirectly is attributable to any of the above causes, or to such an injury or illness - a side-effect of treatment for any of the above causes, or for such an injury or illness, or for such a complication. 2. "Comprehensive" - does not have the exclusions for psychological or back conditions. Given that back conditions are one of the fastest growing causes of disability worldwide, comprehensive cover in this area is a necessity. Consider how back and mental disorders, which make up about half of all disability claims, are covered by Discovery and Sanlam: Sanlam s Functional Impairment Benefit provides a maximum of 25% per region of the spine (cervical, thoracic and lumbosacral). Discovery Life covers each region at 50% to 100%. Sanlam does not cover partial mental disorders. In fact, Sanlam only covers certifiable mental conditions that result in the patient being permanently committed to an institution. Discovery Life covers mental disorders at 50% and 100%. Discovery Life s assessment includes a loss of income underpin to assess claims where it is difficult to confirm the permanency of a condition, which is especially relevant for back and mental disorders. 24

25 LUMP SUM DISABILITY BENEFITS (CONT.) Discovery has a sophisticated Activities of Daily Living (ADL) assessment to cover subjective claims. ADLs such as communication, sensory functions, social interaction and stress adaptation are particularly suitable in assessing mental disorders. Sanlam does not explicitly cover the following conditions: - Schizophrenia - Inability to comprehend and communicate language symbols - Profound short-term memory loss - Moderate to severe cognitive impairment - Persistent confusional state - Permanent hemianopia - Persistent disabling monoplegia - Complete deafness in one ear - Persistent, continuous disturbance of bowel function with evidence of organic disease - Central nervous system manifestations of hepatic insufficiency - Significant ongoing ascites which is refractory to treatment - Permanent primary sclerosing cholangitis - Awaiting liver transplantation - End-stage renal disease - Grade IV retinopathy - Advanced AIDS - Cauda equina syndrome - Severe facial disfigurement - Ongoing skin disorder affecting more than 50% body surface area - Cancer is only covered when it results in permanent functional impairment. The cancer must have been optimally treated and must have reached the stage of maximal medical improvement before functional impairment can be assessed and a claim be considered. There are many situations where the payouts under the Functional Impairment Benefit are unrelated to the financial liability that the policyholder has. For example: There is no payout for severe cognitive impairment. Only 50% is paid for severe dementia. Only 50% is paid for malignant tumours in the spinal cord. Permanent assistance with all Activities of Daily Living would only qualify for 50% under the nervous system. Inability to swallow without choking and suctioning only qualifies for 75%. Inability to control eyelid closure only qualifies for 50%. Discovery Life recognises that Stage III and IV cancer will result in an inability to work, if not immediately, then in the near future. Therefore a payment is made on diagnosis of Stage III and IV cancer where ongoing medical care is required. 25

26 LUMP SUM DISABILITY BENEFITS (CONT.) Duration of cover Expiry age of 65 or 70. After expiry age, the benefit converts to severe illness cover for whole of life, free of medical underwriting. Duration of cover Expiry age of 65, except for the Disability plus Whole Life Impairment Benefit (where the disability component expires at age 70 and the functional impairment component is for whole of life). Duration of cover Discovery allows policyholders to be covered until age 70, as it is becoming more difficult to retire at age 65 due to the issue of longevity. Benefit tapering No reduction of benefit until benefit expiry age i.e. no tapering of benefit. Benefit tapering Choice between without tapering and with tapering on the (Functional Impairment plus) Disability for regular (or any reasonable alternative) occupation benefits. If the with tapering option is select, the benefit will taper by 20% per year from age 60. Benefit tapering A policyholder with a tapered benefit will on average receive half of their sum assured after tapering starts. This is significant, considering that a 60 year old is 15.5 times more likely to become disabled than a 35-year old. The philosophy behind a tapered benefit is that as a person gets older, he needs less cover as there are fewer future years income to replace should he become disabled. Discovery believes that when taking out a policy, individuals may be unsure of their future liabilities close to retirement. They therefore need enough cover for all possible future contingencies. In addition, many people are under-funded for retirement and, with decreased earnings as a result of a disability, it becomes even more difficult to maintain their retirement savings. Tapered benefits are particularly inappropriate for buy-and-sell agreements, where it is uncertain whether the tapered sum assured will be sufficient to buy out the partner s equity. 26

27 LUMP SUM DISABILITY BENEFITS (CONT.) Aggregation Lump sum disability benefits are not aggregated at claims stage. Aggregation The cover of all disability- and impairment-related benefits are aggregated when the maximum available cover is determined. The cover amount will not be reduced if the claim is as a result of any of the following: - Total, permanent and irrecoverable loss of: vision in two eyes, or use of two hands, or use of two feet, or use of one hand and one foot, or - disability to the extent that the life insured is totally, permanently and continuously unable to take care of body or personal interests. Additional benefits included free of charge: Spouse Capital Disability BenefitBooster The spouse on the policy can receive up to 40% additional capital disability cover at no additional premium if the policy qualifies for BenefitBooster. The maximum cover that can be added through the Spouse Capital Disability BenefitBooster is R5 million. The BenefitBooster applies to claims under Categories A, B and D (if applicable). The boost does not apply to the LifeTime benefit. For more information see the BenefitBooster section No equivalent benefit. 27

28 LUMP SUM DISABILITY BENEFITS (CONT.) Dynamic Spend Protector Automatically included on the Classic Life Plan. This benefit enhances the DiscoveryCard and Discovery Motor Card cashbacks by multiplying the total spend by a Booster percentage depending on the policyholder s Vitality status at the time of claim, as per the following table: CLAIM CATEGORY: A & D B No equivalent benefit. Discovery is able to combine its existing Card & Vitality infrastructure to offer clients further cashbacks and discounts at partner stores when a client becomes disabled. These savings can free up substantial cashflow during disability and will allow claimants to direct their lump sum disability payment towards other needs. Blue 10% 5% Bronze 15% 7.5% Vitality Status Silver 25% 15% Gold 35% 25% Term Diamond 50% 35% Up to selected benefit expiry age 10 years These payments are in addition to the usual cashbacks INCOME DISABILITY BENEFITS AND OVERHEAD EXPENSES BENEFITS Discovery offers three benefits to protect personal income: 1. Income Continuation Benefit 2. Temporary Income Continuation Benefit 3. Overhead Expenses Benefit. There are two options available under the Income Continuation Benefit: 1. Core 2. Comprehensive. Sanlam offers four disability income benefits: 1. Extended Disability Income 2. Temporary Disability Income 3. Sickness Benefit 4. Total and Permanent Disability Income Discovery's Income Continuation Benefit is unique in that it offers: An immediate upgrade to 100% of income on permanent disability. Certainty and objectivity for you and your family through a range of unique claims underpins. LifeTime Capital Disability Lump-sum Benefit Contribution Protector Retrenchment Protector Family Protector (Comprehensive option) HealthyLiving Protector (Comprehensive option) Transport Protector (Comprehensive option) (Details of these unique benefits are provided below) 28

29 INCOME DISABILITY BENEFITS AND THE OVERHEAD EXPENSES BENEFIT (CONT.) Definition The definition is based on nominated occupation throughout. Definition The definition remains regular occupation throughout. Waiting periods Waiting periods of 7 days, 1 month, 3 months, 6 months and 12 months. Seven-day waiting period pays retrospectively from day one for a comprehensive range of illnesses and injuries. For certain professionals in private practice, Discovery offers a one month waiting period with benefits paid retrospectively from day one. The waiting period is waived as soon as the claim qualifies under permanent disability. Waiting periods Waiting periods of 7 days, 1 month, 3 months, 6 months and 12 months available on the Temporary Disability Income benefit. A 24-month waiting period applies to the Extended Disability Income benefit. In the case of the seven-day waiting period the life insured can qualify for a claim from the day of the claim event Sanlam does not offer the service of a one month waiting period with benefits paid retrospectively from day one. Income definition Cost-to-company less PAYE tax for salaried employees. Gross fees for services rendered plus gross profit from trading activities less business overhead expenses less tax (as per the tax tables) for business owners The policyholder has 3 months from the date of the disability event to prove earnings before disability. Income definition Income is defined as follows: Cost-to-company for salaried employees For professionals in practice: Gross professional income for professionals who charge a fee for services is equal to the sum of professional fees and net income from trading activities, after deducting business overhead expenses. Other self-employed individuals: Income or benefits receivable on account of the life insured s employment, or any services rendered by the life insured, plus the life insured s share of profit in the business over the last 12 months The fact that a Discovery policyholder has three months to prove his earnings means that his cash flow is not interrupted, which is particularly valuable for business owners. Maximum benefit Maximum Income Continuation Benefit amount of R pm. Maximum sum assured of 75% of personal income (you can increase this to 100% using the Temporary Income Continuation Benefit). Sum of Income Continuation Benefit and Temporary Income Continuation Benefit cannot exceed R Maximum benefit Sickness benefit: up to a maximum percentage of the life insured's GPI, where the percentage depends on the client's salary and age and ranges from 51% to 90%. Subject to a maximum of R pm. Extended Disability Income, Total and Permanent Disability Income and Temporary Disability Income benefits: up to a maximum percentage of average monthly income, where the percentage depends on the client's salary and age and ranges from 51% to 90%. Subject to a maximum of R pm. 29

30 INCOME DISABILITY BENEFITS AND THE OVERHEAD EXPENSES BENEFIT (CONT.) Income Continuation Benefit Insured lives will receive their monthly insured amount (or a percentage thereof) if they qualify under any of the underpins specified below. Upgrade on permanent disability If a policyholder becomes permanently disabled (Category A or D under the Capital Disability Benefit), the benefit will be upgraded to 100% of the client s income (upgrade is 2.5 times the sum assured if the sum assured is less than 40% of the client s income). The waiting period is waived when the policyholder qualifies under permanent disability. Maximum benefit amount is R Temporary Income Continuation Benefit Allows policyholders to cover themselves for up to 100% of their income for up to 24 months when combined with the Income Continuation Benefit. The Temporary Income Continuation Benefit acts as a top up benefit for policyholders, providing additional flexibility to those who need more than 75% of salary on temporary disability. The client can select any benefit amount up to 25% of income. The benefit pays on temporary and permanent disability for up to 24 months. The waiting periods are the same as those for the Income Continuation Benefit. Extended Disability Income Benefit A benefit may be claimed if the life insured is unable to perform their occupation, resulting in a partial or complete loss of income. Certain young professionals may qualify for cover in excess of the maximums specified above. No equivalent benefit. Temporary Disability Income Benefit Provides cover for up to 24 months on occupational disability resulting in a partial or complete loss of income. Discover s automatic upgrade has the following advantages: Once a client is declared permanently disabled we will immediately increase their income to 100% of pre-disability income even if they are still in the benefit s waiting period. Sanlam, on the other hand, will only start paying the insured amount once the waiting period is over, unless the Pre-retirement Impairment Income rider is added. Sanlam will aggregate their payment with any lump sum payments a policyholder receives, Discovery will not. A policyholder earns R pm but takes out a sum assured of only R pm, as he will earn other income on temporary disability. On permanent disability, Discovery will pay him R pm. With Sanlam he will only receive R pm. If he wants maximum cover on permanent disability, he will have to take out the maximum sum assured on permanent disability with Sanlam. 30

31 INCOME DISABILITY BENEFITS AND THE OVERHEAD EXPENSES BENEFIT (CONT.) Claims Underpins In addition to the loss of income underpin, policyholders have four other underpins under which they can claim. They will always be paid under the underpin that provides the highest claim payment. Automatic Sickness Underpin Applies to all clients with the Income Continuation Benefit. The benefit is provided at no extra cost. On temporary and permanent disability, you will not be required to provide proof of loss of income for the first 24 months of your claim. Clients can simply submit a sick note and complete the Income Continuation Benefit claim form, and this will be used to evaluate the claim. By using HealthID, doctors can electronically submit a sick note during their appointment with the client. Sickness Benefit Separate benefit that must be selected. Pays when the policyholder is booked off by a doctor for a minimum of the chosen waiting period. The benefit payment period is chosen by the policyholder and could be 3 months, 6 months, 12 months or 24 months. With the seven day waiting period, payments are made retrospectively from the start date of the sick leave. Premiums are not waived while in claim. Discovery Life s approach where the claim is always assessed under the underpin which results in the highest payments, ensures that there will never be a gap in protection. The Discovery Sickness Underpin is automatically included in the Income Continuation Benefit, where the Sickness Benefit of Sanlam must be added at an additional premium. Premiums still need to be paid in claim at Sanlam, which will reduce the client's disposable income. No equivalent benefit. Total and Permanent Disability Income Benefit Provides cover for permanent disability only. Income payments will continue until the chosen retirement age. Premiums will be waived while in claim. No waiting period. Discovery's Income Continuation Benefit provides cover on both temporary and permanent disability, providing complete peace of mind. Unless a client has funds available to maintain their income during temporary disability, the Temporary Income Disability Benefit needs to be selected with the Total and Permanent Disability Income Benefit. Capital Disability Underpin Pays 50% of the benefit amount for up to 5 years on suffering a Category B Capital Disability. Pays 100% of declared earnings (or 2.5 times the benefit amount if less than 40% of earnings has been insured) until benefit expiry on suffering a Category A Capital Disability. Pre-retirement Impairment Income Available as a rider benefit to the Extended Disability Income Benefit at an additional premium. Pays 25% to 100% of the insured amount on meeting one of the defined permanent functional impairment claim events. Claims certainty is enhanced by providing a payment on partial permanent disability. Payments will be made whether or not the policyholder has returned to work. 31

32 INCOME DISABILITY BENEFITS AND THE OVERHEAD EXPENSES BENEFIT (CONT.) LifeTime Severe Illness Underpin Pays up to 215% of your Income Continuation Benefit plus Temporary Income Continuation Benefit sum assured on suffering a Severity A Severe Illness for up to six months (five months for policies with a one month waiting period). The boost percentage depends on the number of LifeTime upgrades, as well as the number of dependants at the time of claim. Waiting periods of three months or longer will not qualify for payment. No equivalent benefit. Injury and Hospitalisation Underpin 100% of Income Continuation Benefit amount paid for up to three months for a specified list of events. It provides objective criteria for fractures or medical events with wide body coverage. Waiting periods of three months or longer do not qualify. If a seven-day or one-month waiting period has been selected with the Temporary disability income benefit, a specified number of payments will be triggered if the insured suffers any of the defined (injury and hospitalisation) claim events. LifeTime Capital Disability Lump-sum Benefit Permanently disabled clients (according to Category A criteria) may qualify for an additional lump-sum payment of up to 36 times their monthly Income Continuation Benefit insured amount, where the multiple is based on the disability's LifeTime impact as per the following table: LifeTime Impact Multiple of Income Continuation Benefit amount Score Band Core option Comprehensive option No equivalent benefit. With this benefit we recognise that certain disabilities require an immediate payment to meet lifestyle expenses incurred upfront as a result of the disability. 32

33 INCOME DISABILITY BENEFITS AND THE OVERHEAD EXPENSES BENEFIT (CONT.) Family Protector Pays 100% of the Income Continuation Benefit amount for up to six months if your spouse or children suffer a severe illness (Severity A or B). It also pays 100% of the Income Continuation Benefit amount for one month if your spouse dies. There is no waiting period for this benefit. The spouse and children do not need life cover or severe illness cover in order to qualify for the benefit and are not subject to underwriting, but pre-existing conditions are excluded. Spouse protector & Child protector Available as optional rider benefits on the Sickness and Temporary Income Disability benefits at an additional premium. Pays 100% of the insured amount for 6 months if your spouse or child is diagnosed with a SCIDEP condition or dies (the Child protector payment may be limited by legislation). Premiums will be waived while in claim. Only one claim will be admitted. Claims resulting from natural causes will not be admitted during the first 12 months of adding the benefit. After 12 months but within 24 months, only 50% of the cover amount will be available. A 96-hour survival period applies to the Child protector (48 hours for bacterial meningitis, encephalitis with permanent impairment or rabies). The Family Protector provides peace of mind that you will be able to provide support to your family when they need you most. Among full or part-time employed parents, 64% of mothers and 16% of fathers leave their job if their child is diagnosed with cancer. Discovery believes that these percentages would be very close to 100% if parents did not lose income. Contribution Protector Policyholders get an additional payment of 25% (Core option) or 100% (Comprehensive option) of their contributions for their other Discovery products for up to one year (Core option) or two years (Comprehensive option) on temporary disability, at no extra cost. Payment is capped at 33% of the sum of your Income Continuation Benefit and Temporary Income Continuation Benefit insured amounts. If the policyholder insured less than 75% of earnings (100% of earnings if you have also selected the Temporary Income Continuation Benefit), the Contribution Protector payout will be reduced in proportion. No equivalent benefit. This benefit provides full insurance and retirement savings protection on temporary disability, thereby increasing the client's disposable income. It is included automatically at no additional premium. HealthyLiving Protector Available with the Comprehensive option. Provides an additional monthly payment on permanent disability equal to three times your average HealthyLiving cashback over the six months prior to the disability event, increasing with inflation. Payment is capped at 25% of the sum of your Income Continuation Benefit and Temporary Income Continuation Benefit insured amounts. No equivalent benefit. With the HealthyLiving Protector, permanently disabled clients are able to protect up to 100% of their average HealthyFood, HealthyCare and HealthyGear spend every month until benefit expiry, when combined with the cash back received from Vitality. 33

34 INCOME DISABILITY BENEFITS AND OVERHEAD EXPENSES BENEFITS (CONT.) Transport Protector Available with the Comprehensive option. Gives disabled clients access to Uber services for 60 days to the value of R5 000 if they are booked off work for a period exceeding their waiting period of seven days or one month. Payment is capped at 20% of the sum of your Income Continuation Benefit and Temporary Income Continuation Benefit insured amounts. Retrenchment Protector Provides a payment of 25% (Core option) or 100% (Comprehensive option) of the client's contributions for their other Discovery products for up to 6 months on retrenchment, at no extra cost. Expiry age Choice of expiry age: 60, 65, 70 or whole of life. No equivalent benefit. No equivalent benefit. Expiry age Temporary Disability Income Benefit: 55, 60, 65 or 70. Extended Disability Income Benefit: Term (55, 60, 65 or 70) or Whole Life. Total and Permanent Disability Income: 55, 60, 65 or 70. Sickness Benefit: 65 or 70. With this benefit Discovery recognises that the mobility of the client and their family is a critical consideration during disability. This benefit ensures continuity of insurance and retirement benefits on retrenchment. Expiry age 55 should not be selected as a majority of illnesses happen after age 55. Whole of life cover option With this option up to 100% of a client's Income Continuation Benefit insured amount will convert to postretirement cover at age 70. The percentage converted is based on the selected waiting period, as per the following table: Waiting period Percentage of cover 7 days 100% 1 month 70% 3 months 50% 6 months 40% 12 months 30% The Contribution Protector continues for whole of life, while the other protector benefits will expire at age 70. Claims underpins include a range of severe illnesses, disabilities and assistive care criteria. There is no waiting period. Extended Disability Income with whole life cover After age 70 claims will be assessed based on functional impairment criteria. Payments of up to 50% of the client's disability income insured amount will be made for whole of life on meeting the qualifying criteria. There is no waiting period. A 30-day survival period applies. The need to receive an income on suffering an illness or impairment does not stop at retirement for clients. Many clients require protection after the age of 70 to provide for the high costs associated with being ill, disabled or frail and needing assistance or care. While Sanlam's pre-retirement impairment criteria continues for whole of life, Discovery's claims underpins convert to a range of tailored postretirement medical criteria. The Contribution Protector is particularly valuable to retired clients as it ensures they can afford their insurance contributions, which often comprise a significant portion of their expenses. 34

35 INCOME DISABILITY BENEFITS AND OVERHEAD EXPENSES BENEFITS (CONT.) A 14-day survival period applies. Payments will continue for whole of life and are guaranteed for a minimum period of six months. Premium waiver Premium is waived during claim payment. Claim escalation 0% CPI (capped at 10% p.a.) CPI+3% (capped at 13% p.a.) Premium waiver Premium is waived during claim payment for the Extended Disability Income and Temporary Disability Income benefits. Claim escalation If a claim is in payment, the benefits will continue to grow at the selected benefit growth rate. Discovery Life is the only insurer that offers an inclaim escalation rate in excess of inflation. This is very valuable for young professionals with high salary growth expectations. Aggregation The benefit payments may be reduced in the following circumstances: If the benefit amount is greater than 75% of a client s predisability income in the case of the Income Continuation Benefit and 100% of income if a client also has the Temporary Income Continuation Benefit Where you still generate earnings despite your disability, Discovery Life will not reduce your benefit payments if you meet any of the following claims definitions: - Automatic Sickness Underpin - LifeTime Severe Illness Underpin - Injury and Hospitalisation Underpin - Capital Disability Underpin. For the loss of Income underpin and claims under the Category D definition, benefit payments will only be reduced in the first 2 years to the extent that the sum of these benefit amounts, plus income still earned, exceed 130% of your earnings before disability for Category D claims and 105% for loss of income claims. Benefit payments continuing for more than two years from the date of the disability event will be reduced to the extent that the benefit amount, plus income still earned, exceed 100% (75% in the case of the loss of Income underpin) of your earnings before disability. Aggregation If the life insured's disability results in only a partial loss of income from his/her regular occupation, Sanlam will limit the benefit amount in proportion to the loss of income. If the disability directly or indirectly resulted from certain conditions, Sanlam will limit the amount of the income payment to make sure that this amount, plus any other income that the life insured receives from other disability income/sickness benefits, does not exceed 100% of average monthly income after tax during the first two years of claim, and 75% thereafter. The list of conditions include: depression or dysthymia post-traumatic stress disorder fibromyalgia chronic fatigue syndrome and its synonyms certain back conditions any orthopaedic condition based mainly on paid, discomfort, loss of sensation, loss of range of motion, or any combination thereof any decline in cognitive functioning irrespective of the cause thereof an injury or illness that directly or indirectly resulted from, or is traceable to, any of the above causes a complication that is directly or indirectly attributable to any of the above causes, or to such an injury or illness; a side-effect of treatment for any of the above causes. With Discovery s approach, where several types of objective medical criteria are used to assess a claim, no aggregation against other income earned applies in these scenarios. This means that there are several scenarios where policyholders have the certainty of receiving a full payout whether or not they have returned to work. Discovery does not combine lump sum disability payouts, where Sanlam does. 35

36 INCOME DISABILITY BENEFITS AND OVERHEAD EXPENSES BENEFITS (CONT.) Discovery Life will not reduce the benefit payments by the following earnings: Interest, rent, dividends and earnings generated before disability but only received after disability or additional payments from the Contribution Protector or Family Protector. If you receive disability income/sickness benefits from other policies and these benefits together with your Income Continuation Benefit exceed 100% of pre-disability income (75% on temporary disability after 24 months), benefits will be adjusted proportionately. Lump-sum disability payments are not aggregated against. The payments from all disability- and impairment-related benefits (including lump sum benefits) are taken into account for the purposes of aggregation. Premium guarantee Premiums are priced for the full term. If an increase in premium is needed, the premium is guaranteed not to increase by more than 25% at the end of ten years, and every ten year period afterwards. It can be reduced by engaging in Vitality as explained in the Premium Guarantee section. Guaranteed Insurability Benefit Additional benefit offered at no extra charge. Allows policyholders to increase their insured income by up to 20% every three years, without evidence of health or insurability. Maximum number of options: six The following requirement must be met: The policyholder must not have been disabled or made a claim under ICB three years prior to the option date. If the life assured tests HIV-positive, we reserve the right to modify or cancel the benefit. The life assured must be younger than 50. Premium guarantee Premiums are priced for the full term. Premiums are guaranteed for five years, with new premium guarantees every five years afterwards. At the end of the first five-year guarantee, the premium is guaranteed not to increase by more than 20%. Guaranteed Insurability Benefit Allows the policyholder to request in writing each year to increase the cover amount by more than the chosen growth rate, without additional underwriting (provided the plan has cover growth and has been accepted with standard terms). The total increase will be capped at the lower of: The actual increase in the policyholder s income over that year Twice the inflation rate 20% Can only be exercised before age 50. The following requirements must be met: The policyholder must not be disabled on the date of the cover increase. A claim must not have been admitted or submitted during the 12 months before the date of the cover increase. The life assured must be younger than 50. Discovery s Income Continuation Benefit has quantified premium guarantees until benefit expiry age. Sanlam offers no quantified premium guarantees from year five onwards. Guaranteed insurability is very valuable for policyholders on a steep income curve that overtakes inflation, which is typical with young professionals. 36

37 INCOME DISABILITY BENEFITS AND OVERHEAD EXPENSES BENEFITS (CONT.) The Overhead Expenses Benefit Provides a monthly amount to help with covering business overhead expenses on temporary or permanent disability. The automatic sickness underpin will be available to claim under for the full 24 month period. Definition based on nominated occupation. On individually owned policies, this benefit may only be selected if the Income Continuation Benefit is selected. Payable for a maximum of 24 months for a specific cause. The benefit is available on the Business Life Plan. Maximum benefit of 100% of actual overhead expenses up to R if taken on a policy with a natural owner and up to R per month on a business owned policy. Expiry age 60, 65 or 70. Choice of a seven-day or one-month waiting period. Seven-day waiting period pays retrospectively from day one for a comprehensive range of illnesses and injuries. Similarly, certain professionals in private practice also qualify for retrospective payments on the one-month waiting period. Overhead Expenses Protector Provides a monthly amount to help with covering business overhead expenses on temporary or permanent disability. Definition based on regular occupation. May be selected on individual or business owned policies. Available on the lives of business owners or key persons, depending on certain conditions. Expiry age: 55, 60, 65 or 70. Maximum benefit of 100% of actual overhead expenses up to R pm. One-month or three-month waiting periods available. Payable for a maximum of 24 months. Disability could significantly erode a policyholder s retirement funds, especially if they have huge business overheads. Discovery's structure allow clients to benefit from retrospective payments, further minimising the strain on their available funds. With Discovery's Sickness underpin clients will not be required to prove that their share of qualifying overhead expenses is not being met by any income still received by them. This is in contrast to Sanlam's product, where such proof is required. 37

38 DREAD DISEASE BENEFITS Discovery offers four severe illness products: 1. Comprehensive Severe Illness Benefit 2. Comprehensive Plus Severe Illness Benefit 3. LifeTime Severe Illness Benefit 4. LifeTime Plus Severe Illness Benefit Expiry age 65 or whole of life. All products can be taken out on an accelerated, nonaccelerated or stand-alone (Impairment Fund) basis. Provides cover for all body systems. The policyholder may select cover for an individual body category in cases where the complete benefit is declined due to ill health. Sanlam offers two severe illness products: 1. Core Dread Disease Benefit 2. Comprehensive Dread Disease Benefit 3. Accidental Injury Benefit Expiry age 65 or whole of life. The Core and Comprehensive Dread Disease Benefits can be taken out on an accelerated or stand-alone basis, while the Accidental Injury Benefit can only be taken on a stand-alone basis. The table below sets out the products on the most like-for-like basis. Discovery s Essential Plan should be selected for comparison, due to the unique features of the Classic Plan that are not offered by Sanlam.* DISCOVERY SANLAM LifeTime Max 100% Comprehensive *The unique features of the Classic Life Plan are: - Unlimited multiple claims - Automatic child and parent cover - Global Treatment Benefit Unlike Sanlam s benefit, Discovery s benefit: - is in proportion to the financial impact that an illness has on a policyholder s lifestyle - considers the long-term impact of an illness on the policyholder s lifestyle - considers the family composition of the claimant and dynamically adjusts the payment to meet the policyholder s needs - reinstates cover for the same, related and unrelated illnesses through the Minimum Protected Fund - provides extra funding for overseas medical treatment - provides automatic cover for children and parents. 38

39 DREAD DISEASE BENEFITS (CONT.) Tiered severities Benefit payments are based on the severity of the illness. Tiered severities Benefit payments do not always depend on the severity of the illness. Discovery and Sanlam have fundamentally different approaches to dread disease cover. Although the payout may be higher than Discovery s in some cases, the benefit does not provide certainty of cover. There are a number of cases where no payment will be made, but where the policyholder s lifestyle has been severely impacted. Discovery philosophy centres around the following: Benefit payments should be commensurate with the financial effect that an illness has on a client s life. For example, a major heart attack warrants a higher payout than a minor one. The entire body should be covered. The lifestyle impact of having your bowel removed and having to wear an external bag is as bad as having a heart attack these types of illnesses are often not covered by Sanlam. By paying lower amounts for less severe events, Discovery is able to have wider definitions for each illness, and still charge an affordable price. No equivalent benefit. Core Dread Disease Covers the following conditions: Cancer (100%) Cancer in situ of the breast or fibrocystic disease of the breasts in the presence of strong family history, that according to best medical practice at the time requires a total unilateral or bilateral mastectomy (30%) Heart attack (100%) Stroke resulting in permanent impairment (100%) Stroke with full recovery (25%) Coronary artery bypass graft (100%) This benefit covers cancer, heart attack, stroke and bypass only. There are many diseases that would have at least the same lifestyle impact as these four diseases for which the policyholder would not be covered, therefore this benefit would only be bought where a policyholder is unable to afford full lifestyle protection. 39

40 DREAD DISEASE BENEFITS (CONT.) Comprehensive Severe Illness Benefit Pays 25% - 100% (depending on severity) on meeting the conditions of one of the defined severe illnesses. Comprehensive Plus Severe Illness Benefit Pays 5% - 100% (depending on severity) on meeting the conditions of one of the defined severe illnesses No equivalent benefit. No equivalent benefit. Sanlam s payouts do not always match the financial impact of an illness, for example: Skin cancer at an early stage (< Stage II) is excluded. This is the stage that about 70% of all malignant melanoma sufferers are at. Parkinson s and muscular dystrophy are only covered when the disease has progressed to an advanced stage. This often only happens after many years and the impact on lifestyle in the earlier stages of these diseases are ignored. Discovery pays 50% on diagnosis and 75% when lifestyle is severely impacted but the condition is not yet completely hindering. loss of speech due to other reasons than stroke. AIDS is only covered by Sanlam if contracted through accidental means i.e. blood transfusion, rape, needle stick injury. Sanlam does not offer a benefit that covers the less severe critical illnesses, while Discovery covers almost 100 conditions at severities E, F and G. This is a significant shortfall, since these lower severity illnesses can still have a significant impact on a policyholder s lifestyle. The importance of covering lower severity illnesses can be seen from Discovery Life s 2014 claims experience, where 24% of Severe Illness claims were for severities E, F and G. A few examples of less severe conditions not covered by Sanlam are: Prostate cancer T1N0M0 with a Gleason score 6 Acute heart failure with more than 5 days ICU stay Depressed skull fracture Bacterial meningitis Loss of use of more than 1/3 of the tongue Suture of a major nerve to restore function to part of a limb or a full limb Bronchiectasis. 40

41 DREAD DISEASE BENEFITS (CONT.) LifeTime Max 100% Severe Illness Benefit Provides a base payout of 25% - 100% upon meeting the requirements of one of the defined severe illnesses, depending on severity. The base payout is then increased by the applicable number of LifeTime Upgrades, which depends on the LifeTime impact score for the illness. The LifeTime Impact score is dependent on the following factors: - Expected duration of the severe illness - Invasiveness of surgery - Impact of any therapy and rehabilitation required and its associated discomfort; and - Impact of any assisted care and devices. Each LifeTime Upgrade adds 25% to the base payout percentage, subject to a maximum boosted payout of 100%. Discovery Life will pay an additional 5% per dependant (up to a maximum of 15%). This boost is not subject to the Max selected. Payouts for SCIDEP illnesses are guaranteed at 100%. Boosts will also be applied to non-scidep conditions. LifeTime Plus Max 100% Severe Illness Benefit Same as the LifeTime Max 100% described above, but extends coverage to Severity E, F and G conditions (at 5%, 10% and 15% respectively). The LifeTime Upgrades are only applicable to Severities A - D. Comprehensive Dread Disease Pays 25% -100% of the sum assured on meeting the conditions of one of the defined severe illnesses. No equivalent benefit. The following are examples of conditions not covered under any of Sanlam s severe illness benefits: cardiac failure unless related to Cardiomyopathy or Ischemic Heart Disease dementia (apart from Alzheimer s) all connective tissue diseases, except rheumatoid arthritis the entire gastro-intestinal tract, except for liver failure the entire respiratory system except end-stage lung disease and pulmonary embolism urogenital tract and kidney (except for end-stage renal failure and peritoneal dialysis) endocrine and metabolic diseases Discovery's LifeTime benefit considers the long-term impact of an illness, as well as the policyholder's family composition at claim stage, to ensure that the claim payout matches the financial impact of the severe illness on a client s lifestyle. The average LifeTime boost was 129% in The LifeTime benefit offers an efficient solution for extensive severe illness cover, as the charge for this benefit is only 26.5% more than the Comprehensive option. LifeTime (Plus) Severe Illness Benefit with a Max of 125%, 150% or 200% Works the same as the Max 100% Benefit, except that the boosted payout (excluding the dependant boost) is subject to the higher Max, as selected. No equivalent benefit. The LifeTime benefits offer the potential to receive up to 215% of the sum assured, whereas Sanlam will never pay more than the sum assured. The expected increase, for the LifeTime Max of 200%, is 170% of the original sum assured (plus an extra amount up to 15% for financial dependants). 41

42 DREAD DISEASE BENEFITS (CONT.) By choosing a LifeTime Max of 125%, 150% or 200%, a client can receive the highest payment in the market for a severe illness claim. Discovery Life recognises that a payment in excess of the selected sum assured is required in certain circumstances. The LifeTime benefits thus offer a unique, efficient solution that allows the payout to flex such that more than the sum assured can be paid when necessary. Severe Illness Extender Benefit Can be added to each of the Severe Illness Benefits at an additional premium. Increases the payout for Severities A, B, C and D by an additional 25%. The additional 25% payment will not accelerate the Life Fund or Impairment Fund. The 25% increase is not boosted further by any LifeTime Impact boosters. No equivalent benefit. The Severe Illness Extender benefit does not reduce the client s Life Fund or attaching ancillary benefits. This benefit is very powerful when it is combined with Discovery s multiple claims facility on the Classic Life Plan. For example, if a client has a 100% accelerated Severe Illness Benefit and suffers two Severity B illnesses, he will receive 125% of the sum assured in total with the Extender Benefit and 93.75% without it. No equivalent benefit. Accidental Injury Benefit Pays 5% -100% of the sum assured on meeting the conditions of one of the defined claim events. Severe Illness BenefitBooster Both the principal and spouse can receive up to 40% additional severe illness cover at no additional premium if the policy qualifies for BenefitBooster. The maximum cover that can be added for each of the principal and spouse is R1.5 million. The BenefitBooster applies to Severity A and B claims. The boost does not apply to LifeTime and Extender benefits. For more information see the BenefitBooster section. No equivalent benefit. 42

43 DREAD DISEASE BENEFITS (CONT.) Multiple claims Classic Life Plan: Multiple claims are permitted whether the severity of the subsequent related claim is of a higher, lower or same severity as the first claim. A subsequent claim for the same or related illness is regarded as independent of the first claim (i.e. the full applicable severity level is paid), unless it is a progressive disease such as cancer. Maximum payouts: - Accelerated: no maximum, you can claim provided you have Life Fund available. - Non-accelerated: No maximum. Essential Life Plan: Subsequent related claims will only be paid where the severity level of the subsequent claim is higher than the previous claim. Maximum payouts: - Accelerated without Minimum Protected Fund = sum assured. - Accelerated with Minimum Protected Fund = 2 times sum assured for related claims. - Non-accelerated = sum assured for related claims. Multiple claims A subsequent claim for the same event will only be allowed if it is one of the following: - arrhythmia - valvotomy by endoscopic procedures - stroke with full recovery - angioplasty - pulmonary embolism - mastectomy for cancer in situ of the breast; - mastectomy for fibrocystic disease of the breasts in the presence of a strong family history. A maximum of two claims will be allowed for each of these, excluding arrhytmia. The accelerated benefit will cease once the full cover amount has been paid. With the stand-alone benefit, Sanlam will not reduce the benefit amount by the claim amount. However, the benefit will cease once the full cover amount has been paid for any one organ, system or body part, or related group of organs, systems or body parts, except if the causes for the claims are totally unrelated according to the opinion of Sanlam's Chief Medical Officer. For example, if you claim for a heart attack, stroke or coronary artery bypass graft, then claims involving the cardiovascular system will be refused for future claims. Multiple claims With Sanlam's accelerator benefit, the client cannot claim more than the sum assured. With Sanlam's stand-alone benefit, claims involving any one organ, system or body part or related group of organs, systems or body parts cannot exceed 100% of the cover amount, except if the causes are completely unrelated. There is no limit to the amount that you may claim on the Classic Life Plan. The non-accelerated benefit on the Classic Life Plan reinstates cover for related claims and the full percentage is paid for non-progressive claims. Because of the multiple claims definitions outlined above, Sanlam's benefit should be compared to the Severe Illness Benefit on the Essential Life Plan. Discovery s Minimum Protected Fund reinstates cover for the same, related and unrelated illnesses, allowing the policyholder to claim more than the sum assured on both the Classic and Essential Life Plan. The importance of multiple claims can be seen from Discovery s 2014 claims experience, where we found that a significant number of subsequent claims fell in the same body system. For example, if your first claim was in the heart and artery body system, the chances of you having a subsequent claim in this body system is 75%. We also found that 48% of subsequent claims in the same body system are of the same or lower severity than the previous claims. These two statistics illustrate the importance of not having a cap on the maximum amount you can receive for claims in the same body system and in paying multiple claims regardless of their severity. 43

44 DREAD DISEASE BENEFITS (CONT.) Survival period No general survival period. In certain cases a waiting period is specified to establish severity. Automatic severe illness cover for children On the Classic Plan, the Severe Illness Benefit selected by the principal and spouse will automatically include severe illness cover for their children. The amount of automatic cover is limited to 10% of the main Severe Illness Benefit sum assured, limited to a maximum of R per child per claim event. A claim against the automatic cover for children will not accelerate the Life Fund or reduce the Severe Illness Benefit of the principal or spouse. ParentCare On the Classic Life Plan, the Severe Illness Benefit of the principal and/or spouse will automatically include frail care cover for their parents, objectively defined by self-care Activities of Daily Living criteria. The benefit amount is 5% of Severe Illness Benefit per parent, subject to a maximum of R per parent. Benefit payouts will not impact the Life Fund. Survival period A 14-day survival period applies for the Core and Comprehensive Dread Disease Benefit. A 30-day survival period applies for the Accidental Injury Benefit. Sanlam has no equivalent benefit. Sanlam has no equivalent benefit. The survival period is especially relevant for Sanlam's stand-alone benefit. No Severe Illness benefit will be paid if the policyholder dies within the stated survival period. Discovery does not apply a general survival period. There is only a 14 day survival period for the Minimum Protected Fund to reinstate a client s cover. Discovery Life was the first insurance company to recognise that the illness of a child has an effect on the parents financial situation and lifestyle. Discovery Life policyholders can insure their children for up to R1.435 million by combining the automatic Severe Illness cover for children and the Child Severe Illness Benefit (refer to relevant section for details). Discovery has recognized that the severe illness of a parent can place a significant financial burden on the policyholder. Additional buy-up cover on the parents lives are also available (covered below). Global Treatment Benefit The Global Treatment Benefit is automatically included with the Severe Illness Benefit on the Classic Life Plan. The benefit offers the policyholder a choice of either: - Having the treatment performed in South Africa and receiving the normal Severe Illness Benefit amount, depending on the severity of the illness. - Having the treatment performed in the USA and receiving 80% of what they would have received from the first option, plus the actual cost of treatment at the overseas facility subject to a maximum of the benefit amount that would have been payable under the first option. Sanlam has no equivalent benefit. Rapid advances in healthcare technology and the emergence of global specialist centres of excellence have prompted Discovery to offer the Global Treatment Benefit. The benefit ensures that policyholders have access to the best medical treatment for a given illness. The benefit empowers claiming policyholders to choose whether they want their illness treated locally or in the USA through the Discovery Network. 44

45 COMBINING BENEFITS Capital Disability Benefit Combines permanent and temporary disability cover (Category C loss of income underpin) in one benefit. It also includes an automatic conversion to severe illness cover at benefit expiry, free of medical underwriting. Additional severe illness cover can be purchased through the Severe Illness Benefit. On the Classic Life Plan, the Severe Illness Benefit of the principal and/or spouse will automatically include severe illness cover for their children. The Capital Disability Benefit will pay: - 100% upon being totally and permanently unable to perform the duties of your nominated occupation due to sickness, disease, illness or injury (up to age 65 or 70) - 50% 100% upon meeting the objectively defined medical criteria (up to age 65 or 70) 2.5% of the benefit every four months if you continuously suffer from a medical impairment, injury or illness that renders you unable to fulfill material and substantial aspects of your nominated occupation, resulting in a loss of more than 80% of income. Living Protector Benefit Sanlam's Living Protector Benefit includes cover for: - dread disease, - physical impairment, - disability, - loss of income, and - retrenchment. Claims will be assessed under the definitions of all the above benefits and the highest severity qualified under will be paid. The benefit will pay: - 10%-30% on meeting the conditions of one of the defined severe illness claim events, or - 10% - 100% on meeting the conditions of one of the defined physical impairment claim events, or - 100% upon being totally, permanently and continuously: unable to take care of body or personal interests, or unable to engage in the occupational demands engaged in immediately before the disability, or - 2% on losing in excess of 80% (70% for self-employed lives) of income generated from your regular occupation due to being continuously disabled for three months (payments will cease once the insured qualifies for a claim under disability), or - 4% on retrenchment as a result of or in anticipation of business conditions, or of any other business decision of the employer resulting in a staff reduction. Combining capital disability and severe illness cover in one benefit does not make sense from a financial planning point of view. Capital disability cover represents the present value of future lost income, which has no relationship to the sum assured of severe illness cover, which caters for the cost of lifestyle changes, such as: - modifying a house or car - private nursing - hiring a driver or au pair - access to medical technology, etc. With Discovery, the policyholder can select the appropriate amount of capital disability and severe illness cover to suit his needs. At benefit expiry, the Capital Disability Benefit automatically converts to severe illness cover, free of medical underwriting. The policyholder s severe illness cover is thereby increased at a time when the incidence of severe illnesses is highest. Sanlam's Physical Impairment benefit covers a very limited amount of causes of disability and does not cover chronic illnesses at all. Only 32 severe illness conditions are covered under the Living Protector Benefit, whereas Discovery's Severe Illness Benefit covers substantially more conditions. The dread disease payments under the Living Protector benefit are limited to 30%. Multiple claims resulting from the same claim event are only allowed in a small number of cases. For example, a client who suffered from a stroke, but recovered fully, would receive a 10% payment. He would be allowed to claim one more time for a stroke will full recovery, leading to another 10% payout. However, a client's first heart attack will lead to a payment of only 30%, and no payments will be made for subsequent heart attacks. 45

46 COMBINING BENEFITS (CONT.) Term: age 65 or 70, with automatic conversion to whole of life severe illness cover. Benefit maximum: R40 million (including the Cover and Financial Integrator). Can be selected on an accelerated or non-accelerated basis. The Minimum Protected Fund is available to reinstate cover after an accelerated claim. Subsequent related claims are paid at the full severity level, irrespective of the severity of the subsequent claim. No general waiting period or survival period. Term: the earlier of age 70 and retirement for disability, loss of income and retrenchment cover. Whole of life for dread disease and physical impairment cover. Benefit maximum: R12 million The Living Protector Benefit can be selected as an accelerator or stand-alone benefit. A claim for dread disease will only be admitted if Sanlam has not previously admitted a claim for the same event, except in certain specified cases (same as for the Dread Disease Benefit). Consecutive claims under more than one type of cover will only be paid if the consecutive claim qualifies for a higher payout percentage. A claim may only be paid once under the Retrenchment benefit. The benefit will expire once the full cover amount has been paid. 3-month waiting period for loss of income and 1-month waiting period for retrenchment. 30-day survival period for physical impairment and 14-day survival period for dread disease. The Living Protector Benefit ceases once 100% of the sum assured has been claimed. Through the Minimum Protected Fund, nonaccelerated benefits, LifeTime benefits and the Severe Illness Extender Benefit, a Discovery policyholder can receive much more than his sum assured. Discovery s Classic Life Plan offers a superior multiple claims facility, as subsequent related claims are paid irrespective of the severity of the subsequent claim. Imposing a waiting period and survival period results in less claims being paid. Income Continuation Benefit This benefit not only provides income protection on temporary or permanent disability, but also on: - a Severity A Severe Illness (LifeTime Severe Illness Underpin) - a life-changing event happening to your family (Family Protector) - retrenchment (Retrenchment Protector) - frail care (Whole of life cover option) In addition, it combines income and lump sum disability protection through the LifeTime Capital Disability Lumpsum Benefit. Refer to the relevant section for more details. 46

47 FEMALE SEVERE ILLNES S BENEFIT AND CHILDB IRTH BENEFIT Discovery Life covers illnesses that females are most exposed to through the Female Severe Illness Benefit and the Childbirth Benefit. Conditions covered by the Female Severe Illness Benefit include: - Cancers specific to females - Pregnancy complications - Complications of osteoporosis Conditions covered by the Childbirth Benefit include: - Congenital birth defects - Multiple births There is no waiting period. There is no survival period for claims. This is an accelerated benefit. Female Severe Illness Benefit may be selected to age 65 or whole of life. Childbirth benefit expires at age 40. Sanlam has no equivalent benefit. There are many conditions that only affect females and where cover is required, such as female-specific cancers, complications of pregnancy and osteoporosis. CHILD SEVERE ILLNESS COVER Child Severe Illness Benefit Covers all body systems and conditions covered under the main Severe Illness Benefit. Also includes conditions that are more relevant to children. The payout varies by the severity of the illness. Multiple claims are allowed. No survival period. No requirement for the parent to have the Severe Illness Benefit. Maximum benefit of R1.3 million per child. Automatically includes the Global Treatment Benefit. Cover is available from birth. Cover ceases when the child turns 18. Child: Illness and Injury Benefit Sold as a stand-alone benefit. Provides cover for dread disease, injury, impairment and infection-type claim events. Benefit payments do not always depend on the severity of the illness. Multiple claims are allowed. A 96-hour survival period applies (48 hours for certain conditions). Maximum benefit of R0.5 million or R1 million per child (depending on rate group). Minimum age: 2. Cover ceases when the child turns 20. Sanlam's benefit has a minimum entry age of two. The incidence of illness is highest in the first two years of life, when Sanlam does not offer cover. Discovery Life does not specify a survival period to qualify for a payout. This is significant, since mortality rates for procedures like heart surgery and organ transplants are high, especially for children. 47

48 FAMILY TRAUMA COVER Family Trauma Benefit Covers each family member involved in a traumatic event. Covers major burns, paraplegia, quadriplegia, reconstructive surgery, snakebites and emergency cardiac pacing. A unique feature is cover for trauma resulting from participation in a hazardous activity. Accidental Injury Benefit Pays out for events such as total vision or hearing loss, burns, coma, amputations, paraplegia, quadriplegia, gunshot- or penetrating stab wounds, etc. Limited amounts of cover are available for dependants. The Family Trauma Benefit provides cover for any major trauma that needs intensive care treatment and ventilation or emergency medical treatment. PARENT SEVERE ILLNES S BENEFIT Under the Parent Severe Illness Benefit, the parent is covered for all illnesses covered by the Comprehensive Severe Illness Benefit. Claims don t accelerate the Life Fund but accelerate the cover provided to that parent. The Minimum Protected Fund does not apply and the benefit will cease once 100% of the sum assured has been paid out. Maximum benefit: R per parent plus R under the ParentCare Benefit. Global Treatment Benefit automatically included. The benefit is available for whole of life. Sanlam has no equivalent benefit. Discovery Life recognises that clients could incur a large financial burden if any one of their parents becomes severely ill. For this reason, the principal life and spouse can purchase severe illness cover for each of their parents, provided that they have the Severe Illness Benefit. 48

49 FUTURE COVER WITHOUT MEDICAL UNDERWRITING (CONT.) Future Fund Discovery offers the Future Fund Benefit, which allows policyholders to increase the Life Fund and all ancillary benefits linked to it without evidence of health (except for a negative HIV test) or insurability. Policyholders can exercise between 7.5% and 15% of their nominated Future Fund on the following events: - every year until the benefit expiry age - marriage - birth or adoption of a child - increase in interest in partnership - increase in bond cover. An option must be exercised at least once every three years to retain the benefit. The amount that can be exercised is increased automatically each year. An option for severe illness or disability cover cannot be exercised if the insured had any claim on these benefits in the past at Severities A-D on the Severe Illness Benefit and Categories A, B and D on the Capital Disability Benefit (or Category C within the three years prior to the option date). Maximum benefit amount is R7 million. The Future Fund Benefit is only available to lives who have health loadings of less than or equal to 25%. FutureCover Sanlam offers the following benefits: - FutureCover: Death - FutureCover: Comprehensive These benefits allow policyholders to increase their life cover and/or disability and impairment benefits on pre-defined events without evidence of health, but depending on financial, occupational and lifestyle underwriting. Policyholders can exercise a percentage of the FutureCover amount on the following events: Every third plan anniversary (25%) Marriage (25%) Birth or adoption of a child (25%) Purchasing a home (smaller of 50% and the bond amount) Employment after completing tertiary education (25%) Child s tertiary education (smaller of 25% and first year's fees multiplied by the number of years of attendance) Increase in personal liability as a result of business activities (smaller of 50% and increase in liability) Increase in interest in a partnership (smaller of 50% and increase in interest in the partnership) Increase in value to the company as a key individual (smaller of 50% and value to the company) Plan anniversary at benefit expiry (remaining percentage of cover, limited by minimum requirements at that time) Policyholders may not exercise options for a benefit if a claim has been submitted for that benefit or if a waiver of payment claim is being paid on the plan. Maximum benefit amount is R10 million. Discovery performs financial underwriting only when the Future Fund Benefit is purchased. Sanlam applies financial underwriting each time an option is exercised, which may result in instances where the policyholder will not be able to use the available FutureCover amount. Restricting the exercise dates to specific events and only every third policy anniversary greatly limits the value of Sanlam s Future Cover benefit. Business Future Fund Discovery Life will allow the rest of the parties to a buy-andsell agreement to take up an amount equal to the amount that was claimed on the life of the deceased or disabled party, for the purposes of the agreement, without evidence of health or insurability. No equivalent benefit. Discovery Life recognises the importance for parties to a buy- and-sell agreement to be able to increase their cover following the death or disability of a party to the agreement. 49

50 PREMIUM WAIVERS Discovery offers three premium waiver benefits: 1. Premium waiver on Death (expiry age 75) 2. Premium waiver on Disability (expiry age 65) 3. Premium waiver on Severe Illness (expiry age 65) The Premium Waivers cover annual contribution increases up to 20% per year. The disability waiver is triggered on Category A or D disability. The severe illness waiver is triggered on a Severity A illness. All premiums on the Life Plan are waived, including Vitality premiums. There are no waiting periods for the waiver benefits. The normal premium guarantees apply to the Premium Waivers. The Premium Waiver Benefit is only available to the principal life. Sanlam has two premium waiver benefits: 1. Waiver of payment at death (expiry age 80) 2. Waiver of payment at disability (expiry age 65) Policyholders can choose whether the waivers cover future cover growth on the plan. If a waiver claim is allowed and the policyholder has cover increases linked exchange rate movements, future cover increases will be linked to CPI. Waiver on disability claims are assessed based on: - Ability to perform regular occupation - Ability to take care of body or personal interests - Other recognised disability criteria The disability waiver has a six-month waiting period. During the first three years after cover for the benefit has started, Sanlam will not admit a claim in the case of the following: - depression or dysthymia - post-traumatic stress disorder - fibromyalgia - chronic fatigue syndrome - certain back conditions Sanlam does not offer a premium waiver on severe illness. Sanlam applies a six-month waiting period for the waiver on disability. Discovery applies no waiting period. 50

51 COVER IN REAL CURR ENCIES Dollar Life Plan Offers risk protection in dollars, which is insured and paid internationally. Ancillary benefits available on the Dollar Life Fund include: - AccessCover Benefit (automatically included). - Accelerated Core or Comprehensive Plus Capital DisabilityBenefit (excluding the Category C underpin). - Minimum Protected Fund. - Dollar Discovery Retirement Optimiser - These benefits are discussed in the relevant sections. Benefits will increase annually in line with US inflation. Premiums will increase in line with the AcceleRater pattern and will be denominated in dollars. Provides significant financial benefits for managing your health and wellness, to supplement and diversify your retirement savings. This is achieved through two mechanisms: Dollar PayBack Fund - Automatically included on Integrated policies where the sum of the Cover and Financial Integrator equals 60%. - The initial fund value is equal to 250 (Core Integrator) or 500 (Comprehensive Integrator) times the monthly life cover premium. - The fund grows in line with US inflation plus an adjustment based on Vitality status and Health claims (if Health Integrated) % of the Dollar PayBack Fund is paid at age 65 or 20 years after fund inception, whichever is later. Buy-up Cash Conversion Benefit - Available at an additional premium. - Option to receive 25% or 50% of the Cover and/or Financial Integrator Fund as a tax-free lump sum at age This payment will not reduce your risk cover. Sanlam offers an ACI/ABI combination based on the Dollar/Rand, Pound/Rand or Euro/Rand exchange rate. The minimum increase is CPI, and the maximum increase is 35%. Discovery s Dollar Life Plan is a market first. By taking out an offshore life insurance policy denominated in the most widely used currency, clients are protected against the financial impact of a life-changing event - no matter where they may find themselves in future. A significant number of clients either have or could in future have offshore liabilities. Risk protection in dollars is therefore critical to ensure that a client's liabilities are fully matched. The Dollar Life Plan provides an efficient vehicle for clients to supplement and diversify their retirement savings into offshore markets. 51

52 INDEMNITY BENEFITS Discovery provides three indemnity benefits: 1. Global Health Protector Provides cover for procedures that cannot be performed in South Africa or where the prognosis is significantly better if the procedure is performed in the USA. A maximum of $1 million may be claimed over the insured's lifetime. The benefit covers the costs of transporting the insured and, if medically necessary, a family member, organ donor, doctor and/or nurse to the US, as well as accommodation and other daily costs. 2. Health Plan Protector Available to policyholders who are members of Discovery Health and Vitality (or KeyClub in the case of KeyCare members). Waives Discovery Health Plan contributions for 5 or 10 years on the death, disability or severe illness of the principal life. Returns a portion of your excess Discovery Health Plan risk contributions over Discovery Health risk claims as follows: - Every year through the Health Dividend option, or - Every 5-years with the PayBack option, with the balance at age 65 or an earlier life-changing event. May be selected as an ancillary on the Life Plan or on a stand-alone basis. The Health Plan Protector converts at expiry to provide additional life, disability and severe illness cover depending on the contingencies covered on the Medical Premium Waiver. Sanlam has no equivalent benefit. Sanlam has no equivalent benefit. Given the rapid advancements in medical technology, this benefit provides essential cover at top medical facilities in the USA. The Health Plan Protector offers unique indemnity protection for the entire family, thereby ensuring that medical expenses are covered in the event of death, disability or severe illness. Discovery s Health Plan Protector provides a powerful incentive for policyholders to manage their health by returning a portion of their excess Health Plan contributions to them, depending on their Vitality status. 52

53 INDEMNITY BENEFITS (CONT.) 3. Global Education Protector Pays for the child's education on the happening of a life-changing event. The benefit covers the following years of education: - Pre-school: 1 year - Primary school: 7 years - High school: 5 years - Tertiary education: duration of undergraduate degree/diploma/certificate The child has the option to upgrade to private education and to study at one of several top overseas universities. It pays the following additional amounts: - Up to 30% of actual fees for university residences - Up to 10% of actual fees for books. The amount paid is subject to the limits set by Discovery Life. At expiry, the Global Education Benefit converts to provide additional life, disability and severe illness cover depending on the contingencies covered on the Global Education Benefit. Sanlam has no equivalent benefit. The Global Education Protector offers unique protection, ensuring that a child's education costs are covered in the event of death, disability or severe illness. The benefit allows for full private schooling and covers the cost of 19 overseas universities (including Harvard, Yale, Oxford and Cambridge) should the child gain enrolment to these facilities. 53

54 GENERAL EXCLUSIONS Discovery Life may refuse claims if: Your death or death of any of your dependants is due to suicide and occurs within two years of cover commencing or reinstatement of your policy. Your disability, severe illness or family illness or that of any of your dependants was deliberately self-inflicted. You fail to disclose information about physical disabilities or medical conditions that affect you or any of your dependants at the time that cover commences. You fail to notify Discovery Life of your correct occupation at policy inception, or of a change in occupation from that nominated at policy inception, where the new occupation is classified by Discovery Life as falling into a risk category for which the relevant benefit would not have been granted. Discovery Life is unable to obtain sufficient medical or financial (if applicable) evidence from the assured lives, your dependants or treating medical practitioner to fulfill our criteria for making a benefit payment. The disability, severe illness or family illness claim was a result of: - Willful and deliberate breaking of any law or willful involvement in any riot, insurrection, usurpation of power, martial law or war. - Regular participation in any hazardous sport or pursuit which was not disclosed to Discovery Life at any point in time prior to the claim. - Intentional and negligent consumption of poisons, drugs and narcotics, unless prescribed by a registered medical practitioner (neither you nor your dependants may perform the role of registered medical practitioner in such a case). Additional exclusions on income protection benefits: - Treatment/rehabilitation for alcohol or narcotic abuse. - Routine pregnancy, including maternity leave. Sanlam may refuse claims if: Death is caused by suicide committed within 24 months from the cover start date, or from the date of reinstatement (also during insanity). We will not admit a claim if the condition can be substantially removed or improved by surgery or other medical treatment, which we can reasonably expect him or her to undergo, taking into account the risks involved and the chances of success of such surgery or treatment. If the life insured at any time engages in sport as an occupation, or works as a pilot, and becomes continuously unable to fulfil the occupational demands of that occupation, we will not admit a claim as a result of such inability. the claim resulted directly or indirectly from any of the following, whereby the life insured: - participates in riot, insurrection, civil commotion, military or hostile action, or an act of terrorism; - commits or attempts to commit a crime of murder, assault, housebreaking, theft, robbery, kidnapping, a crime - involving a sexual act, or a crime of a similar nature to any of the aforesaid crimes; - deliberately inflicts an injury on himself or herself; - takes drugs or medicine not in accordance with medical prescription, or drives any form of motorised vehicle on a - public road whilst his or her blood alcohol level exceeds the legal limit; - is exposed to a nuclear explosion or radio-activity; - participates in cave diving, commercial diving, or the exploration of underwater wrecks for financial gain; - participates in motorised racing, speed contests or acrobatic flights; - recurrently participates in microlight flights, hang-gliding, paragliding, parasailing, sky-diving, parachuting or skysurfing; - participates in professional boxing, professional kick-boxing or professional wrestling. Additional exclusions on income protection benefits: - normal pregnancy. - normal childbirth The exclusions have been taken directly from the policy documents of the relevant companies. 54

55 - a rehabilitation or detoxification program to treat (conditions related to) alcohol or drug dependency or abuse.

56 This document compares the most comparable benefits available from Discovery Life and its competitors. There are however differences in features between the comparable benefits which cannot be in these one pagers. For more details please consult the full product comparison which are available on the Discovery website. Disclaimer: While every care has been taken before opinions and views are given, no representation, warranty or understanding (expressed or implied) is given and no responsibility or liability is accepted by Discovery Life as to the accuracy of the information contained herein. Any recommendations made must take into account your clients specific needs and personal circumstances. Any legal, technical or product information contained in this document is not to be construed as advice by Discovery Life. Discovery Life is an authorised financial services provider. Registration number 1966/003901/06 Discovery Life 155 West Street Sandton PO Box 3888, Rivonia 2128 Contact centre Fax