Comparing Discovery Life to key competitors

Transcription

1 Comparing Discovery Life to key competitors D ISCOVERY LIFE AND PPS

2 CONTENTS CHOICE OF LIFE PLAN... 3 FUNDING PATTERNS... 4 RISK POOL & BENEFITS FOR REMAINING HEALTHY... 5 RISK POOL & BENEFITS FOR REMAINING HEALTHY (CONT.)... 7 BOOSTING YOUR BENEFITS... 9 ACCESSCOVER AND ACCESSCOVER PLUS...11 A BENEFITS TO CHARITIES...13 DEATH BENEFITS...13 INCOME DISABILITY (INCAPACITY) BENEFITS AND THE OVERHEAD EXPENSES BENEFIT...15 LUMP SUM DISABILITY BENEFITS...23 DREAD DISEASE BENEFITS...31 FEMALE BENEFIT AND CHILDBIRTH BENEFIT...38 FUTURE COVER WITHOUT MEDICAL UNDERWRITING...39 COVER IN REAL CURRENCIES...40 PREMIUM WAIVERS...41 INDEMNITY BENEFITS...42 PREMIUM GUARANTEES...44 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 CHOICE OF LIFE PLAN With Discovery there are two Life Plan options available: 1. Classic Life Plan 2. Essential Life Plan. The following features are unique to the Classic Life Plan: Unlimited multiple claims Category C Capital Disability claims underpin Automatic child and parent severe illness coverage Global Treatment Benefit Default 5% Cash Conversion at the earlier of age 65 and ten years after benefit inception on the Cover Integrator Default 10% Cash Conversion on the Financial Integrator at the earlier of age 65 and ten years after benefit inception PayBack. The Discovery Life Plan has been designed to offer clients a structured solution for their individual insurance needs. Due to the unique benefits offered by the Classic Life Plan, the Essential Life Plan should be compared with PPS's benefits.

4 FUNDING PATTERNS Discovery Life has three funding patterns: 1. AcceleRater pattern The Automatic Contribution Increases (ACI) and Automatic Benefit Increases (ABI) are set out below: AGE NEXT ACI FOR ABI = 3% ACI FOR ABI = CPI < % CPI + 3.0% % CPI + 3.0% % CPI % % CPI + 6.5% % CPI + 7.5% % CPI + 8.5% % CPI + 9.0% The ACI increases linearly within age bands. 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. PPS has two funding patterns. Different funding patterns apply to different benefits. There is a choice for life cover and lump sum disability products only. PPS does not allow clients to select a yearly benefit increase. Discretionary benefit increases may be declared by PPS on 1 January each year. These increases are granted without medical underwriting and the premium for this additional cover is based on the benefit increase and the client s age at the date of benefit increase. 1. Age-related pattern Compulsory increasing premium pattern, where annual increases depend on age. The increases may vary depending on the benefit concerned, or may be a predetermined percentage increase. These increases are specified in the policy document, but are not guaranteed and can be changed at the discretion of PPS. Applies to: - Life cover (optional) - Lump sum disability cover (optional) - Professional Health Provider (severe illness benefit) and attached riders - Accidental Death Benefit Discovery Life s funding patterns are flexible and provides a cost effective solution. Discovery Life s choice of benefit increases include increases fixed at CPI, increases fixed at a flat rate (ensuring predictable premium increases) and level cover (ideal for bond assurance). 2. FlexRater pattern 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.

5 FUNDING PATTERNS (CONT.) 3. Standard pattern 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% CPI 2. Level pattern Premium remains level over the term of the contract. Applies to: - Life cover (optional) - Lump sum disability cover (optional) Level premium structures ensure affordable premium increases. PPS does not offer a level premium option for the complete product package. 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. RISK POOL & BENEFITS FOR REMAINING HEALTH Y Discovery Life uses separate risk categories for occupations exposed to different risks. A professional will be in a lower risk pool and enjoy better rates than clients in occupations considered to be more risky. Discovery Life applies different rates for smokers and nonsmokers on all benefits. PPS s risk pool is made up of professionals that qualify for cover according to their qualifications (a four-year degree) or by belonging to certain recognised professional organisations. This will include students in their final year of a four-year degree or students in a postgraduate qualification after a three-year degree. No loading for hazardous pursuits, travel or emigration. Members must use their professional qualifications in their present profession at application stage. With a change of occupation, assessments relating to the change in occupation will be done to determine if the member may still participate in some of the risk products offered by PPS. Discovery Life has separate risk pools for various occupations. Professionals fall into their own risk pool and will therefore have similar expected experience to the PPS risk pool. In addition, each client's premium is individually adjusted to reflect their true underlying risk and is also rewarded for managing this risk. Discovery Life practices sound risk-management by having separate risk pools based on smoker status, gender, hazardous pursuits and occupation. Combining risk pools results in cross subsidies.

6 RISK POOL & BENEFITS FOR REMAINING HEALTH Y (CONT.) 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). 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. No comparable benefit. No comparable 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 long-term certainty and sustainability into their PayBack.

7 RISK POOL & BENEFITS FOR REMAINING HEALTH Y (CONT.) 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. No comparable 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. No comparable 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. 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). No comparable 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.

8 RISK POOL & BENEFITS FOR REMAINING HEALTH Y (CONT.) 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. 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. No comparable 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.

9 BOOSTING YOUR BENEFITS 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 BOOST PERCENTAGE 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.

10 PAYBACK TM VS SURPLUS REBATE ACCOU NT The Comprehensive Health Integrator 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 Life Plan (25% with the Vitality Integrator, 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 30% are possible on the Health Integrator depending on Health Plan type, Vitalitydrive status and DiscoveryCard spend (18.75% on the Vitality Integrator depending on 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). Payouts are tax free. PPS policyholders with a PPS Provider Policy share in the operating profits and interest earned by PPS, as a mutual company. The policyholder s PPS Profit-Share Account consists of the Apportionment Account and the Special Benefit Account. At the end of each year these are credited with a share of the operating profits and investment returns earned over the year. The PPS Profit-Share Account accumulates from year to year until the policyholder reaches retirement age, or in the event of earlier death. At the end of each financial year, profits are allocated to policyholders in proportion to the level of cover and premium for the qualifying PPS Provider products they have. The investment returns are allocated in proportion to the member s Profit-Share Account. Surplus assets are returned to policyholders at age 66 or on earlier cancellation or death. On cancellation, the policyholder will forfeit some of the interest allocated to the Apportionment and Special Benefit accounts. On death the full value of the Profit-Share Account is payable to the member s estate or to the nominated beneficiary. From the age of 60, the Profit-Share Account can either be taken as a cash lump sum, or the policyholder can invest it in the Vested PPS Profit-Share Account. If the Vested PPS Profit-Share Account is selected: 1. The Profit-Share Account will be transferred to the Vested Profit-Share Account, where the client can make future withdrawals. 2. The Vested Profit-Share account will not be further increased by the distribution of Operating profits. The payout is tax free. Both companies return surplus assets to policyholders. Discovery Life policyholders need not wait until retirement, they get a guaranteed PayBack every year for the first 10 years of their policy. The PPS bonus allocations are affected by the company s investment returns as well as the mortality and morbidity of all PPS policyholders. The value of the Profit-Share Account is not guaranteed and only vests at retirement age. In any year, the allocations of operating profits and investment returns are uncertain. Allocations could even be negative, causing the client s Profit-Share Account to decrease. The option to invest in the Vested PPS Profit-Share Account exposes the Profit-Share Account to management fees and tax on the investment returns.

11 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.

12 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 Reaching age 80 RATE 40c Reaching age 85 Reaching age 90 70c 100c 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. 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. 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 life cover into cash if their spouse dies due to an accident or violence. The conversion rate is 80c per rand.

13 A BENEFITS TO CHARITIES 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 Vitality 20% 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. Blue 30% Bronze 40% Silver 50% Gold 60% Diamond 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. DEATH BENEFITS Discovery only offers whole of life cover: Minimum entry age: 16 next Maximum entry age: 75 next. Benefit maximum: unlimited subject to financial underwriting (limits apply for Integration). Life Cover Fixed term option Minimum entry age: subject to PPS eligibility criteria Maximum entry age: 61 next Maximum term to age: 67 next Can be converted to whole of life cover subject to certain conditions. Whole of life option Minimum entry age: subject to PPS eligibility criteria Maximum entry age: 75 next Benefit maximum: unlimited subject to financial underwriting.

14 DEATH BENEFITS (CONT.) Terminal Illness 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). Accidental Death Benefit Available as either a rider on the life cover benefit or as a standalone benefit. Rider benefit: Will pay up to the life cover sum assured if the policyholder's death is due to an accident. Pays out in addition to the life cover amount payable. The term of the benefit depends on the life cover to which it is attached: Whole of life translates to an expiry age of 80 next for the Accidental Death Benefit. Term life cover translates to an Accidental Death Benefit of the same term. Stand-alone benefit: Provides a lump-sum payment if the policyholder's death is due to an accident. Policy cease age: 80. This type of life cover is generally only purchased in cases where the policyholder would not qualify for normal life cover due to an existing medical condition. This is because a normal financial needs analysis would calculate how much life cover one requires irrespective of the cause of the death. Advances on Death Claims 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). Immediate Needs Benefit Cash payment of R for funeral costs and other financial obligations. Paid within two working days on submission of a valid death certificate. Spouse Life Cover BenefitBooster 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. No equivalent benefit

15 INCOME DISABILITY (INCAPACITY) BENEFITS AND THE OVERHEAD EXPENSES BENEFIT 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. PPS has one incapacity benefit relating to professional income, namely the Sickness and Permanent Incapacity Benefit (SPPI). This benefit can be split into two parts: 1. During the first two years a policyholder can claim under the Sickness Benefit. 2. If the policyholder is still incapacitated after two years, payments under the Permanent Incapacity Benefit will commence. 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) Earnings 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 Continuation Benefit The Income Continuation Benefit pays the policyholder a regular income should he satisfy the claims criteria. The payout is defined as the highest claimable amount under each of the following underpins: Temporary Income Continuation Benefit Functions as a top-up benefit to the Income Continuation Benefit. It thereby allows policyholders to protect up to 100% of their income on temporary disability. Provides a payment in addition to the Income Continuation Benefit amount when you claim under the Income Continuation Benefit. Payment period is up to 24 months less the waiting period. Must be selected in conjunction with the Income Continuation Benefit. Definition of personal income Total cost to company (including fringe / additional benefits) plus average bonuses over the past 3 years for corporate professionals. Total gross fees earned (excluding VAT) plus net income from trading activities for self-employed professionals less actual business expenses. PPS may ask for proof of income at application stage or at claim stage.

16 INCOME DISABILITY (INCAPACITY) BENEFITS AND THE OVERHEAD EXPENSES BENEFIT (CONT.) Automatic Sickness Underpin Pays up to 100% of sum assured based the amount of time booked off work, without requiring proof of loss of income. Available for 24 months at no extra cost. 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. 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 6 months (5 months for policies with a 1-month waiting period). Waiting periods of 3 months or longer will not qualify for payment. Injury and Hospitalisation Underpin Pays 100% of your monthly Income Continuation Benefit and Temporary Income Continuation Benefit sum assured for up to three months if you fracture certain bones, or are hospitalised for longer than a week. Payments will commence once your selected waiting period has expired. This Underpin does not apply to waiting periods exceeding one month. Sickness Benefit Provides cover during the first two years of incapacity. It pays out when the policyholder is, as a consequence of sickness, totally or partially unable to carry out his/her usual professional duties for a period exceeding the selected waiting period. A total (100%) or Partial (50%) Sickness Benefit may be paid. No proof of loss of income is required. Rehabilitation benefits are provided as an additional benefit. Cover for pregnancy complications is automatically included. Permanent Incapacity Benefit As a natural progression to the Sickness benefit, PPS will pay the member a Total Permanent Incapacity Benefit (100%) or Partial Permanent Incapacity Benefit (20% or 60%) after two years if the member is totally or partially unable to attend to his/her usual professional duties. To qualify for a 100% payment, the member must be totally incapacitated even with adaptations to work methods/duties (provided realignment of professional duties within his/her specific profession is feasible). No comparable benefit. Hospital Rider Benefit Available at an additional premium. A payment equal to the Hospital Benefit amount is made if the policyholder is hospitalised for at least four consecutive days, paid pro-rata for the days of hospitalisation. This benefit is paid in addition to the Sickness benefit. A 30-day waiting period applies from inception of the benefit. The benefit is payable for a maximum combined period of 6 months in a 1 year cycle. The benefit will expire at the earlier of the Sickness Benefit expiry age and 65. Although policyholders can claim under the Automatic Sickness Underpin during temporary disability, should actual income loss be greater than the Sickness Benefit amount, they are able to submit proof of loss of income and receive the higher amount. E.g. an engineer who is booked off half days, but only earns 25% of his pre-disability income, will only trigger a 50% claim under the sickness underpin (and PPS's Sickness Benefit), but 75% if he demonstrates the loss of income to Discovery Life. This highlights the benefit of a claims assessment system which includes a loss of income underpin. PPS focuses on the insured life's ability to perform their own occupation. Using objective medical criteria provides more certainty for clients. There is no clear indication of how a policyholder would qualify for a 20% or 60% partial incapacity payout. The average length of stay in a hospital is three days, therefore the value of the Hospital Rider Benefit must be questioned. Discovery Life s Injury and Hospitalisation Underpin would also cover many conditions covered by the Hospital Rider Benefit. Although not like-for-like, many of the conditions covered by the Hospital Rider Benefit, by default, would trigger a much larger claim under Discovery Life s Severe Illness Benefit (PPS of course also offers severe illness cover, which is discussed later).

17 INCOME DISABILITY (INCAPACITY) BENEFITS AND THE OVERHEAD EXPENSES BENEFIT (CONT.) Upgrade on permanent disability Payment immediately upgraded to 100% of declared earnings (or 2.5 times the benefit amount if less than 40% of income is insured) if permanently disabled. The waiting period is waived. Permanent disability is assessed based on objective medical criteria and ability to perform nominated occupation. PPS has no similar upgrade, but the policyholder has the opportunity to insure 100% of personal income on Permanent Incapacity. The advantages of Discovery Life s approach are as follows: The policyholder is not required to wait any length of time if it is obvious that he is permanently disabled. With PPS's structure, the policyholder can only receive 100% of their income after two years. The Discovery Life upgrade could also lead to significant cost savings. 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. No equivalent benefit. Permanent Incapacity Booster Available as a rider benefit at an additional premium. On meeting the qualifying criteria for a Partial Permanent Incapacity Benefit (following the two year sickness period), the benefit amount will be upgraded to a non-reviewable 100%. A comprehensive description of the exact nature of the policyholder's nominated specific occupation will be used to determine permanent incapacity in terms of this benefit. Cover will expire on the same day as the policyholder's Permanent Incapacity cover. The policyholder will need to pay an additional premium to qualify for this upgrade. On partial incapacity, the insured is still able to earn an income from their usual occupation, which means that an upgrade to 100% of pre-disability income does not meet a readily identifiable need.

18 INCOME DISABILITY (INCAPACITY) BENEFITS AND THE OVERHEAD EXPENSES BENEFIT (CONT.) Maximum benefits Maximum sum assured of 100% of earnings on temporary and permanent disability through a combination of the Income Continuation Benefit and the Temporary Income Continuation Benefit. Waiting periods 7 days, 1 month, 3 months, 6 months and 12 months. On the seven-day and one-month waiting periods, certain claims are paid retrospectively from day 1. The retrospective payment on the one-month waiting period applies to certain professionals in private practice. The waiting period is waived should the client be deemed permanently disabled. The benefit amount will be upgraded as soon as the client is deemed permanently disabled. Premium waiver Premiums are waived during claim. Expiry ages 60, 65, 70 or whole of life. Whole of life cover option With this option up to 100% of a client's Income Continuation Benefit insured amount will convert to post-retirement 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% Maximum benefits Up to 100% of Gross Professional Income can be covered. Permanent Incapacity Benefit claim amount limited to 100% of net of tax personal income. Waiting periods Sickness Benefit: 7 days or 30 days. Permanent Incapacity Benefit payments will only start once you have claimed under the Sickness Benefit for two years. Premium waiver Premiums are not waived on Sickness claims. Premiums are waived on total permanent incapacity. On partial permanent incapacity the member has a choice to stop paying premiums, but then sickness benefits for unrelated conditions cannot be claimed for. Expiry ages 60, 65, 70 or whole of working life (only available for the Sickness Benefit). Cover will only continue beyond age 66 if the member is still practicing his/her own profession. After 66: - A member can claim 182 days in a 364 day cycle. - Maximum claim period of 728 days per condition. After 71: Permanent Incapacity Benefit falls away. No partial Sickness benefits. The 7-day waiting period will be extended to 14 days, with benefits paid retrospectively from day 1. - A member can claim 90 days in a 364 day cycle. - Maximum claim period of 728 days per condition. PPS only provides retrospective payments on their seven-day waiting period. Discovery Life s flexible waiting periods also provide cost-effective solutions for salaried professionals, who will in most cases receive their salary for one month or longer through annual leave and/or sick leave. With PPS, premiums are not waived during the first two years. 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. PPS will only continue to provide cover after age 70 if the insured is still practicing their own profession (with claims assessment based on occupational disability), Discovery's claims underpins convert to a range of tailored post-retirement 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.

19 INCOME DISABILITY (INCAPACITY) BENEFITS AND THE OVERHEAD EXPENSES BENEFIT (CONT.) 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. A 14-day survival period applies. Payments will continue for whole of life and are guaranteed for a minimum period of six months. Benefit escalation 0% CPI (capped at 10% per year) CPI+3% (capped at 13% per year) Benefit escalation Benefit increases at the discretion of PPS, but CPI related. At the discretion of PPS, permanently disabled policyholders may be issued with bonus benefits annually to increase their monthly income. The policyholder will pay a premium for the additional benefits at the rate applicable to their age. Discovery Life policyholders have the certainty that their increases are fixed at CPI (if selected), rather than the increase being dependent on other factors, such as risk experience and company performance over the year (as is the case with PPS). Guaranteed Insurability Benefit Additional benefit received at no extra charge. Allows policyholders to increase income by up to 20% every three years without evidence of health or insurability. Maximum number of options: six. Available until age 50. Available if you have not been disabled or made a claim under the Income Continuation Benefit during the three year period up to and including the relevant option date. If the life assured tests HIV-positive, Discovery Life reserves the right to modify or cancel the benefit. My Future Plan Provides young professionals with the opportunity to increase their benefits in line with their actual income increases on a yearly basis. Maximum number of options: five. Available until age 35. Not available to lives who have received loadings or exclusions. The fact that the PPS option is only available to clients younger than 35 makes the benefit far less valuable than Discovery's Guaranteed Insurability Benefit.

20 INCOME DISABILITY (INCAPACITY) BENEFITS AND THE OVERHEAD EXPENSES BENEFIT (CONT.) Contribution Protector On temporary disability, Discovery Life s Contribution Protector will pay up to 25% for up to 12 months (Core option) or up to 100% for up to 24 months (Comprehensive option) of all your premiums/contributions which you were paying before disability for your Discovery products. Payment is capped at 33% of the Income Continuation Benefit plus Temporary Income Continuation Benefit insured amounts. If the policyholder insured less than 75% of their income (100% of income if the Temporary Income Continuation Benefit has also been selected) the Contribution Protector payment will be reduced proportionately. No comparable 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. Payments will increase with inflation. Payment is capped at 25% of the sum of your Income Continuation Benefit and Temporary Income Continuation Benefit insured amounts. No comparable 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. 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 selected waiting period. Only available on policies with a seven days or one month waiting period. Payment is capped at 20% of the sum of your Income Continuation Benefit and Temporary Income Continuation Benefit insured amounts. No comparable benefit. With this benefit Discovery recognises that the mobility of the client and their family is a critical consideration during disability. 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. No comparable benefit. This benefit ensures continuity of insurance and retirement benefits on retrenchment.

21 INCOME DISABILITY (INCAPACITY) BENEFITS AND THE OVERHEAD EXPENSES BENEFIT (CONT.) Family Protector Pays 100% of the Income Continuation Benefit and Temporary Income Continuation Benefit sum assured 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 and Temporary Income Continuation Benefit sum assured for one month if your spouse dies. There is no waiting period for this benefit. No underwriting is required for the spouse or children, but pre-existing medical conditions are excluded. Family Hospital Benefit Available as a rider to the Sickness Benefit at an additional premium. The Policyholder will be entitled to receive a daily benefit for each day that their spouse or child is hospitalised, provided that the hospitalisation lasts for at least 4 consecutive days. The benefit is payable for a maximum combined period of 6 months in a calendar year (3 months if not on Profmed). If multiple family members are hospitalised at the same time, the Family Hospital Benefit pays only a single benefit for the family member hospitalised the longest up to the maximum days described. Includes the Child Terminal Illness Benefit, which will pay a lump sum equal to 12 months' Family Hospital Benefit (up to R ) if the policyholder's child is diagnosed with a terminal illness and is likely to die within 12 months. Includes the Child Death Benefit, which pays one month's Family Hospital Benefit on the death of the policyholder's child, provided no benefit has been paid under the Child Terminal Illness Benefit. A 14-day survival period applies. 12-month waiting period from inception of the benefit. Benefit expiry age: 65. 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 Life believes that these percentages would be extremely close to 100% if parents did not lose income. 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. No aggregation of other earnings or insurance benefits. Where other earnings or insurance benefits are not aggregated, a policyholder could get more income after becoming disabled than before, resulting in over-insurance. However, since PPS ignores loss of income, the client could also get less, resulting in a gap in protection. This will especially be the case with conditions that are deemed to be a partial permanent incapacitation but which nevertheless result in a high loss of income. Discovery Life s approach where the claims are always assessed under the underpin which results in the highest payments, ensures that there will never be a gap in protection.

22 INCOME DISABILITY (INCAPACITY) BENEFITS AND THE OVERHEAD EXPENSES BENEFIT (CONT.) 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. 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. Overhead Expenses Benefit Provides a monthly amount to assist in covering business overhead expenses on temporary or permanent disability. On individually owned policies, this benefit may only be selected if the Income Continuation Benefit is selected. Choice of a seven-day or one-month waiting period. Potential retrospective payment from day one (same conditions apply as for the Income Continuation Benefit). Payable for a maximum of 24 months for a specific cause. Actual Business Expense Benefit Covers the actual business expenses incurred by self-employed professionals during the Sickness claim period. Can cover up to 100% of actual expenses on a monthly basis for a maximum of 2 years. The waiting period and expiry age are the same as for the Sickness Benefit.

23 LUMP SUM DISABILITY BENEFITS Discovery offers four lump sum disability products, namely 1. Core Capital Disability Benefit 2. Comprehensive Plus Capital Disability Benefit 3. LifeTime Capital Disability Benefit 4. LifeTime Plus Capital Disability Benefit All products can be taken out on an accelerated or nonaccelerated basis. Expiry age 65 or 70. PPS offers one lump sum disability benefit onto which you can add the Occupation Specific Rider Benefit. Available as: - an accelerated benefit benefit (Accelerated Professional Disability Benefit) - a stand-alone benefit (Professional Disability Provider). Expiry age Accelerated benefit: - Expires at age 66 if the benefit is attached to whole of life cover. - If term life cover is selected, the expiry age of the disability cover will be the same as the life cover to which it is attached, subject to a maximum age of 66. Stand-alone benefit: - Between 59 and 66. 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 PPS:* DISCOVERY LIFE Core PPS Disability Cover with OSRB *The unique features of the Classic Life Plan are: - Category C Disability Claims - Dynamic Spend Protector - Extensive multiple claims facility Waiting period No general waiting period, but in some cases a length of time is specified to determine whether a condition is chronic or acute. Any treatment that the policyholder had before the claim would count towards the period. Waiting periods, on the other hand, are prospective, i.e. it only starts when the policyholder submits the claim. Waiting period There is no general waiting period, but the sum assured will only be paid once the disability criteria are met and the condition is seen as irrefutably and unquestionably permanent.

24 LUMP SUM DISABILITY BENEFITS (CONT.) Conversion option 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 non-accelerated Capital Disability Benefit. Should the policyholder elect not to convert his cover, his premium for this Capital Disability Benefit will cease, with no implications to the premiums and guarantees on the remainder of the plan. Life-changing events and related illnesses that occur before the conversion will not be covered after conversion to the Severe Illness Benefit; irrespective of whether the illness progresses to a higher severity after conversion. Up to 95% (depending on benefit type, expiry age and salary growth option) of your Capital Disability sum assured will be converted into the Severe Illness Benefit. The Severe Illness Benefit covers all Severity A and B illnesses covered under the normal Severe Illness Benefit. The premium payable after conversion is the same as the premium payable before conversion. Multiple claims are allowed as per the multiple claims section in the Dread Disease Benefit section. Not available on the Business Life Plan. Conversion option The stand-alone disability benefit automatically converts to the Whole Life Severe Illness Benefit including CatchAll Cover. Conversion occurs at the earliest of the retirement of the policyholder (after age 59), the maturity of the benefit (after age 59) and the policyholder turning 66. This conversion is free of underwriting. The Disability cover must be in force at the conversion date and the lump sum benefit must not have been paid out from a claim. The Occupation Specific Rider Benefit stops when the benefit converts. The converted Severe Illness Benefit will be equal to the Professional Disability Provider cover, subject to the maximum cover allowed. The Severe Illness Benefit does not cover all conditions available under the Professional Health Provider. Payments are all at 100% of the benefit amount. The premiums will remain unchanged after conversion. The Severe Illness cover will cease once a claim has been paid. PPS's converted Severe Illness Benefit covers less conditions than PPS's standard Professional Health Provider, which already covers far fewer conditions than Discovery s Comprehensive Severe Illness Benefit. It should be noted that PPS s premiums are not guaranteed. Thus, premium uncertainty still remains both before and after conversion. In contrast, Discovery Life is the only insurer in the market to provide whole of life premium certainty.

25 LUMP SUM DISABILITY BENEFITS (CONT.) Claims assessment Claims are assessed based on: Objective medical criteria (all body systems are covered) Ability to perform Activities of Daily Living Loss of income (under the Plus options on the Classic Life Plan) Inability to perform nominated occupation. Claims assessment A payment will be made if: The life insured is, in the opinion of PPS, significantly unable to use his/her professional training and knowledge to carry out his/her own profession as well as any other profession that could be carried out by persons with similar or comparable qualifications as a result of disease, injury and accident. Disability is in the opinion of PPS permanent, significant and severe. An all or nothing approach results in many partially debilitating conditions not being covered. These conditions could have a significant impact on a policyholder s ability to earn an income. Assessments based on the ability to perform your own professional duties or any other professional duties you might reasonably perform are subjective and lead to uncertainty for the client. Discovery Life believes that to achieve transparency and benefit certainty, disability assessments should be based on objective criteria, such as medical definitions, Activities of Daily Living and loss of income. Only 19 medical conditions are specifically covered by PPS regardless of the effect on the insured's ability to work. The below table compares how many conditions are covered by each company: SYSTEM DISCOVERY PPS Cardiovascular 9 1 Respiratory 4 1 Mental and 2 1 behavioural Nervous 13 6 Digestive 10 1 Renal 5 0 Endocrine 3 0 Other 3 1 Advanced AIDS 1 1 Cancer 3 2 Musculoskeletal 13 5 This clearly illustrates that PPS's benefit does not provide comprehensive coverage of medical conditions.

26 LUMP SUM DISABILITY BENEFITS (CONT.) Multiple Claims On the Classic Life Plan: - Subsequent related and unrelated disability claims are permitted, whether the severity is higher, lower or the same severity as the first claim. - The subsequent claim is regarded as independent of the first claim (and paid at the full severity), unless it is a progressive disease. On the Essential Life Plan: - Subsequent related claims are only paid for higher severities. The payout is calculated as the full claim percentage multiplied by the reduced Capital Disability sum assured. - Subsequent unrelated disability claims are permitted whether the severity is higher, lower or the same severity as the first claim. Multiple Claims All claims are payable at 100% of the benefit amount and the benefit falls away thereafter. The implication of a benefit that falls away after one claim is that the policyholder is not protected against more than one life changing event. Where the Minimum Protected Fund has been selected with the accelerated Capital Disability Benefit, you can claim an unlimited amount for unrelated disability claims and up to 200% for related disability claims on the Classic Life Plan, and up to 200% on the Essential Life Plan. No reinstatement option. Discovery Life policyholders can claim multiple times if the accelerated Capital Disability amount is less than the Life Fund amount or the Minimum Protected Fund has been selected. This allows them to receive more than their sum assured in total. With PPS the disability benefit ceases after a claim. 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). Disability Cover with OSRB The Occupation Specific Rider Benefit (OSRB) can be added to the Disability Cover which converts the assessment to nominated occupation at claims stage rather than own or reasonable other profession. An additional premium is payable for selecting this benefit. Discovery Life s Capital Disability Benefit should be compared to PPS's Disability Benefit with the Occupation Specific Rider Benefit.

27 LUMP SUM DISABILITY BENEFITS (CONT.) 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. The maximum number of Category C payments that you can receive for related conditions is 9. No equivalent benefit. The importance of covering partial disability claims can be seen from our 2014 claims experience, where 21% of Capital Disability claims qualified under the Category B (50%) definition. The Classic Life Plan also covers temporary disability through a unique loss of income underpin. - By including a loss-of-income underpin, Discovery can pay out claims long before PPS in cases where permanence is not yet established. - Discovery s loss-of-income underpin also caters for illnesses which cause a low level of impairment yet high loss of income. 3. LifeTime 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). No comparable benefit. PPS offers no benefit that considers the long-term impact of a disability on a person s ability to generate 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. Under conventional disability benefits, a sum assured consistent with the maximum impact disability condition must be selected. This ensures that the client is fully insured against the lifestyle impact of all disability conditions. However, this would be inefficient since the policyholder will not need this full amount for lower impact disability conditions. As a result, cover can be bought more efficiently with the LifeTime option.

28 LUMP SUM DISABILITY BENEFITS (CONT.) 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; - Impact of any therapy and rehabilitation required and their associated discomfort; - Impact of any assisted care and devices. 4. LifeTime 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 - 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 No equivalent benefit. PPS does not offer a benefit that considers the longterm impact of a disability on a person s ability to generate an income. Discovery Life s LifeTime benefits consider the longterm impact of a disability as well as the future expected salary growth of the claimant and boosts the Capital Disability payout accordingly. Cover can be bought more efficiently with the LifeTime option: Without it, to be fully insured against the lifestyle impact of all disability conditions, a sum assured must be selected consistent with the disability which has the largest impact on a client lifestyle with the disability condition. However, this would be inefficient since the policyholder will not need this full amount for lower impact disability conditions.

29 LUMP SUM DISABILITY BENEFITS (CONT.) 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; - 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. 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.

30 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 Vitality Status Term Blue 10% 5% Bronze 15% 7.5% Silver 25% 15% Gold 35% 25% Diamond 50% 35% Up to selected benefit expiry age 10 years Note: these payments are in addition to the usual cashbacks No comparable 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. The following table shows the present value of the benefits provided by the Dynamic Spend Protector as a percentage of the Capital Disability lump sum for various Vitality statuses and inflation levels, i.e. it represents the effective boost to the lump sum payment: Inflation VITALITY STATUS Blue Bronze Silver Gold Diamond Low 10% 18% 29% 41% 58% High 18% 27% 45% 63% 89% Assumptions: Client aged 40 next suffers paraplegia; average DiscoveryCard partner spend at partners before disability = R4,000 p.m.; Capital disability benefit = R750,000; Discount rate = 9% p.a.; Low inflation = 6% p.a.; High inflation = 10% p.a.

31 DREAD DISEASE BENEFITS Discovery Life offers four severe illness options, namely 1. Comprehensive Severe Illness Benefit 2. Comprehensive Plus Severe Illness Benefit 3. LifeTime Severe Illness Benefit 4. LifeTime Plus Severe Illness Benefit All benefits may be taken out on an accelerated, standalone (Impairment Fund) or non-accelerated basis. Expiry age 65 or whole of life. 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. 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. Comprehensive Severe Illness Benefit Pays 25% to 100% (depending on severity) upon meeting the requirements of one of the defined severe illnesses. Offers one core product with 3 optional rider benefits: 1. Core 100% Cover 2. CatchAll Cover 3. Maternity Cover PPS offers the Professional Health Provider (PHP), which is a stand-alone dread disease benefit. The Professional Health Provider can also be selected to accelerate the Professional Life Provider. Available as term (up to age 66) or whole of life cover. PPS has no comparable benefit. Professional Health Provider Pays 25% to 100% (depending on severity) upon meeting the requirements of one of the defined severe illnesses. PPS limits the payout for some conditions regardless of the sum assured: 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 PPS.* DISCOVERY LIFE Comprehensive LifeTime 100% Max PPS Professional Health Provider with CatchAll Cover Professional Health Provider with CatchAll and Core 100% Cover *The unique features of the Classic Life Plan are: - Unlimited multiple claims - Automatic child cover - Automatic parent cover - Global Treatment 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. Discovery s Severe Illness covers a wide range of events in all major anatomical and physiological body systems. This is offered to ensure comprehensive protection for all Discovery clients. In contrast, PPS covers a limited range of life changing events within each of the various body systems. This could result in a client having insufficient coverage for a number of key illnesses. The table below highlights the number of conditions covered by Discovery and PPS under a number of key body systems:

32 DREAD DISEASE BENEFITS (CONT.) BODY SYSTEM DISCOVERY PPS Gastrointestinal 19 5 Connective tissue 11 3 Urogenital tract and kidney 19 2 Respiratory 23 5 Musculoskeletal Eye 12 3 Ear, nose and throat 11 1 Endocrine and metabolic 16 0 Total conditions Comprehensive Plus Severe Illness Benefit Pays 5% - 100% upon meeting the requirements of one of the defined severe illnesses, depending on severity. No equivalent benefit. The Plus benefit of both companies covers additional severity levels E, F and G with payouts at 5%, 10% and 15% respectively. Discovery Life's objective medical criteria will already cover the majority of these conditions. Professional Health Provider with CatchAll Cover Covers claims that do not fall under the Professional Health Provider, Core 100% rider or the Maternity Cover benefits. Conditions must meet the following criteria: - At least a Class 4 rating in the AMA Guidelines to the Evaluation of Permanent Impairment. - 35% Whole Person Impairment. - Results in confinement to a bed or wheelchair for lives older than Is permanent and unlikely to change in spite of further medical or surgical treatment. Once a CatchAll Cover payment has been made, the benefit ceases. The benefit pays 100% of the sum assured, except for subsequent related claims - in this case 100% minus the percentage already claimed will be paid. PPS s CatchAll benefit requires that the policyholder s condition must result in at least 35% Whole Person Impairment, which is equivalent to a Severity A, Discovery Life payout (100%). CatchAll cover is an optional rider that is available at an additional premium. Once a payment is made under the CatchAll benefit, regardless of the percentage payout, the benefit ceases.

33 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. Professional Health Provider with Catchall Cover and Core 100% Cover Tiered severity structure, with payouts ranging from 25% to 100%. The Core 100% Cover provides a 100% payment for illnesses in the following categories: - Heart Attack - Cardiac Surgery and Procedures (excluding Severity D claims) - Stroke - Cancer (excluding prophylactic total mastectomy not for cosmetic purposes). 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. PPS does not offer a benefit that considers the longterm impact of an illness on a person s lifestyle. Payouts for SCIDEP illnesses are guaranteed at 100%. with the LifeTime Benefit. Boosts will also be applied to non-scidep conditions. 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. The average LifeTime boost was 129% in 2014.

34 DREAD DISEASE BENEFITS (CONT.) LifeTime (Plus) Severe Illness Benefit Provides a base payout of 5% (25% without Plus) to 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%, 125%, 150% or 200%, as selected. 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. The LifeTime Upgrades are applicable to Severities A - D. No equivalent benefit. 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. PPS does not offer a benefit that considers the longterm impact of an illness on a person s lifestyle. The LifeTime benefits offer the potential to receive up to 215% of the sum assured, whereas PPS 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). 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.

35 DREAD DISEASE BENEFITS (CONT.) Multiple claims Multiple claims are allowed on the Classic and Essential Life Plans as follows. 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 Related claims will only be paid if the subsequent claim is of a higher severity than that of the previous claim. With the stand-alone benefit, cover reinstates for unrelated conditions. Maximum payouts: - Stand-alone benefit: sum assured for related claims. - Accelerated benefit: sum assured. The impact of the different definitions is that PPS should be compared to the Essential Life Plan, as Discovery will pay far more for multiple claims on the Classic Life Plan. On the Classic Life Plan, the non-accelerated benefit reinstates cover for related claims and the full percentage is paid for non-progressive claims. There is no limit to the amount that you may claim on the Classic 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. PPS s dread disease benefit does not reinstate for subsequent related claims. Examples where PPS will not reinstate cover (i.e. where the policyholder will never be able to claim more than 100% of the sum assured) include the following: - Subsequent claim for a stroke - Heart attack leading to a stroke - Kidney failure as a result of paraplegia - Blindness as a result of multiple sclerosis The following table illustrates how important coverage for a recurrence of the same illness or a related illness is: Incidence of recurrence / Illness related claim Heart attack 30% 1 Stroke 25% 2 Paraplegia leading to 20% 3 kidney complications 1Post Graduate Medicine 2National Stroke Association 3Neurology Report, Finley et al 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%.

36 DREAD DISEASE BENEFITS (CONT.) 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. 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. Simultaneous claims arising from a single cause The claim event resulting in the highest payment is admitted first. The second claim is admitted if the second condition is still present after six months. Simultaneous claims Only the higher claim will be paid, not both amounts. PPS may at their discretion elect to make both payments. Discovery's treatment of multiple claims arising from a single event means that a substantially higher payout may be made compared to PPS. Survival period There is no general survival period required to get a benefit payment. In certain cases a period is specified to establish severity. A 14-day survival period applies to the Minimum Protected Fund. Survival period PPS has a survival period of 14 days. In certain cases a longer period is specified to establish severity. The survival period is especially relevant for PPS's stand-alone benefit. No Severe Illness benefit will be paid if the policyholder dies within 14 days after qualifying for a claim. 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. The same 14-day reinstatement period applies to the non-accelerated Severe Illness Benefit.

37 DREAD DISEASE BENEFITS (CONT.) 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 equal to 10% of the main Severe Illness Benefit sum assured, limited to a maximum of R per child per claim event. The benefit payout varies by severity of illness. Covers all body systems covered under the main Severe Illness Benefit, as well as a list of conditions affecting children. 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. Covers all the conditions covered by the Comprehensive Severe Illness Benefit. A claim against the automatic cover for parents will not accelerate the Life Fund or reduce the Severe Illness Benefit of the principal or spouse. 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. No comparable benefit. No comparable benefit. No comparable benefit. 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 Discovery has recognized that the severe illness of a parent can place a significant financial burden on the policyholder. Discovery policyholders can insure their parents for up to R1 million through the combination of the ParentCare Benefit and the additional Parent Severe Illness 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.

38 FEMALE BENEFIT AND C HILDBIRTH 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. The Sickness and Permanent Incapacity Benefit includes cover for 17 listed pregnancy complications at no addition premium. PPS offers a Maternity Benefit (Female Add-on Benefit) as a rider to the Professional Health Provider (Professional Health Preserver), which adds additional benefit categories related to pregnancy complications. 25%, 50%, 75% or 100% of the insured amount is paid as a lumpsum based on the severity level of the condition. Claims will not affect the Professional Health Provider sum assured. The Maternity Benefit is only available at policy inception. A 12-month waiting period applies from the start date of the benefit. A 14-day survival period applies at claim stage. The benefit expires at age 44 or at the expiry age of the Professional Health Provider. The benefit ceases once 100% has been paid. No reinstatement of cover for unrelated claims. Discovery Life s Female Benefit can be selected for whole of life, providing cover when claim incidence is highest. PPS does not offer a benefit that covers congenital birth defects or multiple births.

39 FUTURE COVER WITHOUT MEDICAL UNDERWRITING Discovery Life allows young professionals to buy extra life cover up to the non-accelerated capital disability amount without medical underwriting on the following events: - The registration of a bond - Marriage - Birth or adoption of a child Establishing a new practice as a professional.this option expires when the client turns 30. Discovery Life reserves the right to request an HIV test before granting the cover. PPS has no comparable benefits. Discovery Life protects a policyholder s insurability in respect of all his benefits. Guaranteed insurability is particularly valuable for policyholders on a steep income curve that outstrips inflation, which is typical with young professionals. Future Fund Benefit 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 every year until the benefit expiry age. 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%. Guaranteed Insurability Benefit The Income Continuation Benefit automatically includes the Guaranteed Insurability Benefit. This benefit is discussed in the income disability section. Business Future Fund Discovery Life will allow the rest of the parties to a buyand-sell 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. 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.

40 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: PPS has no comparable product or benefit. 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. 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.

41 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. No premium waiver offered on death, as the PPS policy only provides cover for the principal life, rather than the whole family (as is the case with Discovery). No premium waiver on disability or severe illness. With Discovery Life, future affordability of cover upon the happening of a life-changing event is addressed with the Premium Waiver Benefits. This result in benefits being kept when needed most. No comparable benefit. At the discretion of PPS, a policyholder may temporarily cease payment of premiums if he/she ceases to practice his/her profession due to temporary financial difficulty, maternity leave, full time study or overseas travel. Available on Sickness and Permanent Incapacity Benefit, Professional Health Provider and Professional Disability Provider. Premiums can cease for up to 12 months at a time, except for temporary financial difficulty where a maximum of 6 months is allowed. In aggregate, a maximum of 36 months is allowed, except for financial difficulty where a maximum of 12 months is allowed. No benefits are payable during cession and for three months thereafter. There is no underwriting when the policyholder resumes payment of premiums after the period applied for has expired. Should the policyholder wish to resume payment of premiums on an earlier date than applied for, he will be subject to full medical underwriting.

42 INDEMNITY BENEFITS Discovery Life 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. No comparable benefits. No comparable benefits. Given the rapid advance in medical technology, this benefit provides essential cover at top medical facilities in the USA, for procedures that cannot be performed in South Africa or where the prospect of survival is significantly higher if performed in the USA. The Health Plan Protector and Global Education Benefit offers unique protection against rising local health and education cost in the event of death, disability or severe illness.

43 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. No comparable 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.

44 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% PPS offers no premium guarantees. Discovery Life provides certainty for whole of life in terms of future premiums. Where premiums are not guaranteed, policyholders do not have the peace of mind that their premiums will remain affordable - regardless of changes in mortality rates, interest rates or lapse experience. 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.

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46 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