Not sure whether you should opt for life insurance or disability cover or both? Here’s a look at what each one has to offer.
Life Insurance is designed to provide financial support for your family should you pass away unexpectedly by paying out a tax-free lump sum that can be used to cover immediate and future expenses.
Disability cover, on the other hand, provides for you and your family while you are still alive by paying out a tax-free lump sum should you become temporarily or permanently injured or disabled.
If you have loved ones who are dependent on you, adding disability cover to your life insurance ensures that they are also taken care of should you become permanently impaired or disabled and not only should you pass away unexpectedly. It also ensures that you are financially secure should your impairment or disability prevent you from earning an income. If you don’t have any dependants, however, you may decide to opt for disability cover only and relook your decision should your circumstances change in the future.
We’ve created two valuable benefits that reward you for keeping your cover in place.
As a Sanlam Matrix client, you have the option of adding our Cashback benefit to any qualifying new or existing risk plan. If you do so, your monthly payment will increase by 35% until you reach the 15-year mark, when 100% of your contributions will be made available to you to spend as
you like – put the payout towards your children’s education, home renovations, unexpected expenses or even your retirement. Alternatively, you can choose to leave your lump sum to grow until you need it.
You can also look forward to benefiting from Wealth Bonus – a portion of your contribution that’s invested in a Money Market fund until you turn 70, ensuring that your money keeps making money. With every 60 premiums you pay, a portion of your Wealth Bonus is made available to you to withdraw or leave invested.
Sanlam has been protecting the financial futures of South Africans for over 100
years and our comprehensive Sanlam Matrix disability offering includes several first-
of-their-kind add-ons, depending on the benefit you choose, that help to provide total
peace of mind:
Extended Occupational Disability Cover continues your cover for up to 12
months if you decide to take a sabbatical or time off to look after your kids, or you
find yourself between jobs due to retrenchment.
- Built-in Future Cover for Young Lives provides disability cover for young
adults who are without debt or dependants and gives you the option of applying for an equivalent amount of life insurance before you turn 35 (with little or no medical
underwriting) should your circumstances change.
- Temporary Incapacity for Accidental and Non-Accidental Causes helps to
provide protection against the risk of health events that are not necessarily
permanent, but may mean that you’re unable to work for an extended period.
Other optional benefits include:
- Prosthesis Booster acknowledges how expensive prosthetic devices can be
and gives you additional cover up to 250% of your cover amount, limited to R10
million, for certain claim events to help you regain as much of your independence
- Built-in Child Cover helps to protect your income by paying a percentage
of your cover if your child suffers a serious illness or injury and you need to take
time off work.
- Boosted Payouts provides a payout boost up to 100% for various less
severe impairment events.
How much disability cover do you need? Most of our clients opt to be covered for at
least R350 000 or choose cover equal to six months’ worth of their net income –
whichever is higher. If you need help figuring out your ideal cover amount, ask a
Sanlam adviser to call you back and help you create a personalised solution.
Because we understand that claims are submitted under very difficult and distressing circumstances, we’ve kept the process as simple and straightforward as possible. All claims can be submitted online in a few easy steps, and we’re here to help you every step of the way.
We strive to offer our clients a claims experience that sets the standard in the industry at all times, and follow a consistent, fair and objective assessment approach to ensure payment of valid claims. Disability claims will only be considered if the policyholder meets the definition of the claim event in question as it is explained in the policy, as well as any other contractual requirements.
Your cover can be automatically adjusted every year for inflation. Doing so ensures
that should you need to submit a claim against your policy several years from now,
your cover will still carry the same relative value as it does the day you took it out.
We understand that life can throw you curveballs from time to time, which is why we
have several options in place to help you maintain your cover while you get things
back on track.
As a Sanlam Matrix client, you may request a three-month payment holiday, during
which time you’ll still benefit from limited cover.
If you’re an Indie client, we allow you to skip a specified number of premiums while
ensuring that your cover continues uninterrupted. What’s more, once you’ve been
with Indie for three years, you qualify for additional premium skips for every year
your policy remains in place. However, given that your cover amount depends on the
number of premiums you’ve paid in the last six months, if you do miss one or more
premiums, your cover will decrease accordingly.
Sanlam Reality is a lifestyle and rewards programme available to all Sanlam and Santam clients as well as members of Bonitas Medical Fund, Fedhealth Medical Aid, Barloworld Medical Scheme and Nedgroup Medical Aid Scheme. As a member, you qualify for special offers on selected Sanlam products, including Sanlam Disability Cover, where you could save as much as 30% on the cost of your monthly premium.
You’ll also save money on wellness, travel and entertainment, and earn tier points for financially responsible behaviour. The more points you earn, the better your status and the bigger your discounts on certain benefits. Plus, if you apply for a Sanlam Money Saver credit card and use it at any of our national partners, which include Adidas, Incredible Connection, Jet and Edgars, up to 5% of your spend goes towards your Cashback bonus.
It may sound complicated, but underwriting is essentially the process your insurance
provider uses to determine your risk status. This in turn affects your cover amount
and monthly premiums, and establishes whether any terms and conditions apply to
To help our underwriters calculate your status, you’ll be asked to supply information
relating to your health, medical history, occupation and financial situation as well as
details about where you’ve travelled or plan to travel and any potentially dangerous
activities you participate in. You may also be required to complete a medical test.
Our underwriting process is designed to ensure that you pay a fair premium for the
full term of your cover and that your beneficiaries are able to claim confidently when
the time comes. As carrying more risk for our clients forms part of our underwriting
philosophy, your policy will remain unaffected should you change your occupation or
smoking habits or take up risky activities after it has been issued.
As a Licensed Financial Services and Registered Credit Provider, we’re prevented
by law from paying out a claim to any client who has lost their legal capacity to act.
So, to ensure that we’re still able to take care of you if you’re unable to take care of
yourself, we’ve put the Sanlam Protector Umbrella Trust in place. By giving your
consent upfront, we’re able, should you lose your legal capacity to act, to pay your
tax-free lump sum to the Trust, where it will be managed on your behalf – this
protects against a delay in payment at a time when you and your family need
financial support the most.