The benefit statement is a summary document that consist of plan information of a client’s investment(s).
The benefit statement is distributed to clients annually, together with tax certificates.

Tax information (when applicable to a product may include):

Any reference to ‘plan’ in this statement means

It is the premium amount that you contribute to a plan. In the case of a long-term policy it is known as a premium.

Information is available on the Sanlam website at Sanlam’s Fund Fact Sheet Centre.

Yes, we calculate plan values, benefits and charges and manage a plan according to actuarial rules, as required by the Long-term Insurance Act, 1998.

The fund value gives an indication of the value of your plan. The full fund value is not necessarily available if the plan is terminated before the maturity or option date.

If your contributions are invested in a plan which is linked to the financial markets, your fund value will increase or decrease as market conditions change.

You will receive a termination value. This value may be less than the fund value, as it is not guaranteed and may change over time.

This is a portfolio where investment returns are smoothed by way of annual bonus declarations. Bonuses consist of a vesting part and a non-vesting part. Vested bonuses cannot be reduced or taken away. Non-vested bonuses may be reduced or taken away if financial market conditions deteriorate to the extent that the insurer deems this necessary.

If you make withdrawals before the maturity or option date, Sanlam will levy an early termination charge, and the fund value may also be adjusted to allow for the underlying market conditions and to be fair to the remaining members of the fund.

This is a fund where investment returns are smoothed by way of monthly bonus declarations. The fund value is available at maturity or the death of the insured and any bonuses added to the plan cannot be taken away, even if financial markets deteriorate. For withdrawals at any other time, the fund value is limited to the market value of the underlying assets, and may therefore be lower.

An investment guarantee on a plan guarantees a certain return on the investment. For example, it may guarantee a minimum return over a certain period or a minimum maturity amount. Where an investment guarantee was added to a plan, the terms of the investment guarantee are fully explained in the plan contract.

With this unique option, the unit price is guaranteed. The fund invests fully in the underlying unit trust and for an explicit fee the guarantee is provided. The guarantee level depends on the fund category (cautious, moderate or moderate aggressive).

For funds in the cautious category, the guarantee provides that the unit price used to determine the value of the investment will, at the end of the investment period, not be less than 95% of the highest unit price reached since the start of the investor’s specific investment period.

For funds in the moderate risk category, that guarantee level will be 90% and for the moderate aggressive funds, it will be 80%. For the cautious and moderate categories, the guarantee will additionally ensure that the unit price used to determine the value of the investment will, at the end of the period, be at least equal to 100% of the unit price from the third working day the investment guarantee option was added, regardless of the performance of the investment fund.

At the end of the guarantee term, the fund value will be determined as the number of units multiplied by the guaranteed unit price, should this be higher than the actual unit price for the fund with the guarantee.

The Echo Bonus that comes with the Cumulus Echo Retirement Plan and the Loyalty Bonus that comes with a Wealth Edge Endowment Plan will be renamed Wealth Bonus. It will work the same way it always has and you don’t need to take action.

The plan document originally provided to you has all the details about how the plan works and what benefits you are entitled to.

It is the value that is available if you retire from the fund before the planned retirement date shown on your Benefit Statement. You may only withdraw these funds after age 55.

It is the value that is available if you want to transfer your fund benefits to another approved retirement fund.

It is the value you will receive if you become permanently disabled before age 55.

When you resign from the service of your employer you will receive the available resignation benefit of the plan at that specific date. The resignation benefit of qualifying fund plans includes demutualisation shares.

We recommend that you get professional advice about the different options which are available on the payment of your benefits and the tax implications thereof. If you are entitled to a retirement benefit from a retirement annuity fund, provident fund, preservation provident fund or preservation pension fund, you may take a portion of the retirement benefit in cash and the rest must be used to purchase a lifelong pension.

The benefits will be distributed amongst your dependants or nominees, or both. This is why it is very important that you nominate persons to receive the benefits and that you keep this updated. The Board of Trustees of the fund is bound by legislation (Section 37 C of the Pension Funds Act) to ensure that all your dependants are considered.

We will communicate with you on the relevant date. If we determine that you are not reacting because your contact details have changed, we will continue the policy with the maturity proceeds in a stable investment fund with no equity exposure and the income will remain in an interest bearing cash fund.

Furthermore, we will take all steps that may be fairly expected to locate you, according to the Standard on Unclaimed Assets prescribed by the Association for Savings and Investment South Africa (ASISA), as available on the website. We will take these steps during the first three years after the maturity date. Any administrative and locating costs will be deducted from the benefit amount and these costs will be disclosed if a payment occurs.

We will communicate with the claimant once we have been notified of the death event.

If the claimant does not respond to our correspondence, we will take all steps that may be fairly expected to locate the claimant, according to the Standard on Unclaimed Assets prescribed by the Association for Savings and Investment South Africa (ASISA), as available on the website. We will take these steps during the first three years after the notification of the death event. Any administrative and locating costs will be deducted from the benefit amount and these costs will be disclosed if a payment occurs.

If a savings and investment amount is payable, it will earn interest from the date on which the claim is registered. The interest is equal to the growth of an interest bearing cash fund.

If a risk amount is payable, it will earn interest from the date on which the claim is admitted. The interest is equal to the growth of an interest bearing cash fund.

If the plan is still active when you turn 80 we will communicate with you to enquire whether you need financial advice for the plan.

If we do not hear from you we will assume that your contact details have changed and will take all steps that may be fairly expected to locate you, according to the Standard on Unclaimed Assets prescribed by the Association for Savings and Investment South Africa (ASISA), as available on the website. We will take these steps during the first three years after establishing that we no longer have the correct contact details for you. During this period the plan will continue unchanged.

If the policy holder did not make contact with Sanlam for the last five years after the plan was made automatically paid up (due to unpaid premiums) we will take all steps that may be fairly expected to locate you, according to the Standard on Unclaimed Assets prescribed by the Association for Savings and Investment South Africa (ASISA), as available on the website.