Do you really need severe illness cover if you already have life insurance in place? Here’s what each one has to offer you.
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.
While severe illness cover also pays out a tax-free lump sum, it does so when
you’re diagnosed with a specified serious illness. This payout can help to keep you
and your family going financially if you need to take time off work to recover, for
treatment costs not covered by medical aid, for other costs associated with a dread
disease – home care, travel expenses for specialist treatment, childcare if you are
hospitalised – or to improve your quality of life.
If you have loved ones who are dependent on you, adding severe illness
cover to your life insurance ensures that they are taken care of should you be diagnosed
with a dread disease. If you don’t have any dependents, however, you may decide to
opt for severe illness 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.
Speak to a Sanlam adviser who can help you determine the amount of severe illness
cover you need and assist you in creating 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. Severe illness 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 Severe Illness 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 your policy.
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.