Competitive Premiums

FMI acknowledge that purchasing decisions involve cost considerations by both you and your clients. With the recent enhancements made to our BPE product offering and re-rate of our Temporary Income Protector Benefit, we are matching our products with the pocket of our market place.

This re-rate has resulted in extremely competitive premiums being offered on this benefit, particularly to middle-aged clients and the older age groups.

Re-rate has resulted in:

• An overall 8.6% reduction in TIP premiums for R25 000 cover
• An average of 11.5% reduction in TIP premiums for R50 000 cover
• For higher cover amounts the rate reduction increases

The rate reduction is not fixed across all rating points and may be more or less than the average discounts quoted above. For example, the savings are much more significant for some common life insured profiles - as illustrated below comparing the old Business Person Elect (BPE) to the new BPE Product.

Example: Life Insured Profile

• Occupation class 1
• Male Non Smoker
• Temporary Income Protector benefit of R25000 per month
• Primary waiting period
• 24 month benefit term
• Retirement age 65
• No claim's escalation
• 5% Increasing Premiums

As illustrated on the graph above: On the Old BPE this client would have paid R648 at Age 50 Now at Age 50 on the New BPE this client will pay R431 (33.5% premium decrease)  

 How has our rate decrease influenced our competitor positioning?

• As illustrated in the graph above the new rates on the new BPE product are far more competitive in the marketplace, than the previous rates were.

• Translating the difference between FMI and our competitors in numbers is where the real value lies for your clients.

The facts and figures speak for themselves. The new and improved BPE with reduced premiums and highly competitive rates ranks FMI favourably in the market.