3 months ago
RETIREMENT POLICY 'PAID WELL'
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THE FACTS

THOMAS Mahwayi from Katlehong, Ekurhuleni, said he took out a retirement policy with Old Mutual. When his policy matured he submitted his claim for payment, but the payment was not made for a long time. When the payment was finally made, he was not happy with the amount he received.

WHAT I DID

I spoke to Old Mutual to assist in providing an explanation as to how the payment was calculated.

SOLUTION

Vuyani Ntantiso from Old Mutual said their records reflect that he bought a retirement annuity policy in January 1998 for a period of 20 years. The investment portfolio selected was Smoothed Bonus, which guaranteed a minimum payment by 1 January 2018.

On receipt of the claim, a maturity benefit was deposited into his bank account which was more than the minimum guaranteed in his policy contract. This indicates that the policy performed well during the term.

As reflected in a fund statement sent to Thomas, his investment achieved an internal growth rate of 10,93% from inception date until maturity. After the payment, a complaint about the maturity value was received from the ombudsman for long-term insurance.

An email was sent on 25 January upholding Old Mutual’s response, that the benefit paid was more than what his contract guaranteed, and the matter was closed. Old Mutual said it understands this is not the outcome Thomas wanted, but they are satisfied the matter was investigated thoroughly.

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