THIS IS AN OPTION FOR THE OPENING TITLE SLIDE Insurance Financial Planning Retirement Investments Wealth The Graduate Backpack 2015 Application of the

Insurance Financial Planning Retirement Investments Wealth

The Graduate Backpack

2015

Application of the income protection

solution

agendaSanlam for Graduates

• Reminder of who qualifies

• Target Markets

• Who?

• Why?

• Gaps?

• Case studies- solutions to the GAPS!

The Graduate BackpackSILSS Distribution Support

Solutions for graduates

a unique offering!


who qualifies?

• Self-employed graduated clients

• Employed graduated clients


⧁ Government Departments⧁ Hospitals - Nurses⧁ Internal audit⧁ Public Protectorate⧁ Justice Dept.⧁ Environmental ⧁ Water affairs⧁ Geoscience⧁ Forensic – SAPS ⧁ Teachers

⧁ Private and semi private sector⧁ Eskom ⧁ Telkom⧁ Engineering – Aurecon etc.⧁ Auditing firms⧁ Engen – Worksite⧁ Dimension data – Worksite⧁ SAP Consultants – Google⧁ Draftsman – companies⧁ Unilever – almost all are grads

where do we find graduates?


National focus areas …

The target Markets


http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/Coat_of_arms_of_South_Africa&ei=fuhSVdLVNsT5UqLsgaAE&bvm=bv.93112503,d.ZGU&psig=AFQjCNGEMvTBRtqQiNNLoB8DlH_9mNM-rg&ust=1431583189243879

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://modifylifestyle.com/life-self-employed-yet-add-photos/&ei=1uhSVb_LL8X6UJ7VgJAM&bvm=bv.93112503,d.ZGU&psig=AFQjCNGHt5uybWwshCSV_K4hYcKDDXkgQg&ust=1431583298939915

⧁ Majority qualify for Sickness Benefits

⧁ All Cities and towns have Hospitals

⧁ Ideal for worksite marketing⧁ Limited employee benefits

GEPF⧁ No other life insurer offers a

“True” sickness benefit

why nurses?

The target Markets


⧁ Sanlam already a household name ⧁ Enormous Worksite potential⧁ Rerated occupation class “A”

⧁ Not qualifying for SB⧁ Very competitive rates for:

⧁ Income benefits⧁ Temporary disability + extended + Pre and

post impairment benefit⧁ Total and Permanent Dis income benefit

⧁ Lump-sum disability benefits

why teachers?

Target Markets


⧁ Many have tertiary qualifications

⧁ All Cities and towns have Government Departments

⧁ Ideal for worksite marketing⧁ Limited employee benefits

GEPF⧁ No other life insurer offers a

“True” sickness benefit

why Government employee?

The target Markets


http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/Coat_of_arms_of_South_Africa&ei=fuhSVdLVNsT5UqLsgaAE&bvm=bv.93112503,d.ZGU&psig=AFQjCNGEMvTBRtqQiNNLoB8DlH_9mNM-rg&ust=1431583189243879

⧁ Generally, most have ill-fitting or no financial solution to meet the needs of a self-employed individual

⧁ No other life insurer offers a “True” sickness benefit

why self-employed?

The target Markets


http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://modifylifestyle.com/life-self-employed-yet-add-photos/&ei=1uhSVb_LL8X6UJ7VgJAM&bvm=bv.93112503,d.ZGU&psig=AFQjCNGHt5uybWwshCSV_K4hYcKDDXkgQg&ust=1431583298939915

the pitfalls for graduates…


⧁ What happens when they are unable to earn an income?

⧁ No temporary or permanent income benefits?

⧁ Business Pressure

self employed graduate

X



⧁ There may be gaps in the temporary and permanent income benefits

employed graduate (limited benefits)

?The Graduate BackpackSILSS Distribution Support


⧁ No temporary or permanent

income benefits with the GEPF (Only Lump-sum for Total and Permanent)

GEPF employed graduate (less than 10 years service)

⧁ What happens when they are unable to earn income

⧁ No temporary and limited income / Lump-sum benefits with the GEPF (Only for Total and Permanent)

GEPF employed graduate (more than 10 years service)


Solutions to the GAPS!


http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://ingreto.co.za/services.php&ei=KWtcVeaBCIbD7gaTv4HoDw&bvm=bv.93756505,d.cWc&psig=AFQjCNFp8xCIWe-LNgCPTE4eYpbN3VVHHA&ust=1432206502058178

the solution…


http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=wE2T8fG2jlotUM&tbnid=3wN2TTE_PdKkoM:&ved=0CAUQjRw&url=http://www.santorini-fp.co.uk/blog/2013/07/financial-planning-v-financial-advice-is-there-a-difference/&ei=h_3yU6KTHsa90QX6joCoAw&bvm=bv.73231344,d.ZGU&psig=AFQjCNFS0HNckvh-vzPt2XGcE5txZ7pMZw&ust=1408519932087915

Financial planning

1. The Will

2. Settlement of the Estate

3. Care of the Family

4. Disability5. Retirement Planning

6. Investment Planning


http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=gHqyrnL5JgxnIM&tbnid=3M2lZUT3RrZ66M:&ved=0CAUQjRw&url=http://mymoneyavenues.blogspot.com/2012/04/financial-planning-vs-t20-cricket.html&ei=ljOhU7vpMYq57AbajYDgBg&bvm=bv.69137298,d.ZGU&psig=AFQjCNH40IzIy2L1pWac2soDLoNNtpEJiw&ust=1403159790678493

Sanlam for Professionals and Graduates

⧁ Case studies⧁ Male 40 anb with a 4 year diploma and gross income in all cases R204 000 pa

(R17 000 pm).⧁ All premium calculations are based on the following:

⧁ Age related premium patterns⧁ 5 year guarantee period⧁ 100% administration RG 4 and disability class “A”

⧁ Debt of R1 000 000

1. Graduate - Self-employed with no employee benefits

2. Graduate in private sector with no employee benefits

3. Graduate in private sector with limited employee benefits

4. Graduate in the Government services with less than 10 (9) years service

5. Graduate in the Government services with more than 10 (20) years serviceThe Graduate BackpackSILSS Distribution Support

sickness benefit – sliding scale

For internal use only Financial limits

Gross professional Income (annual): GPIUp to and including 55 anb

Older than 55 anb

GPI ≤ R100 000 90% 77%

R100 000 < GPI ≤ R 300 000 85% 72%

R300 000 < GPI ≤ R 400 000 80% 68%

R400 000 < GPI ≤ R 700 000 75% 64%

R700 000 < GPI ≤ R 1 500 000 70% 60%

R1 500 000 < GPI ≤ R 4 000 000 65% 55%

R 4 000 000 < GPI 60% 51%


⧁ A self-employed graduate⧁ No benefits⧁ No days sick leave (self employed)

case study 1


case study 1Proposal• Sickness Benefit 7– 30 day waiting period (If client qualifies) with 24 payments to

70 anb (R17 000 x 85% = R14 450 pm)• Extended disability Income benefit with 24 months waiting period to 70 anb or W/L

(R14 450 pm)• Maximise the Lump sum disability to settle debt R 1 000 000 (especially if there is

a contingent liability etc.)

Benefit Benefit amount

Monthly Premium

Sickness Benefit (SA) 7 day 24 payments (70) R14 450 pm R165.97Sickness Benefit (SA) 14 day 24 payments (70) R14 450 pm R112.36Sickness Benefit (SA) 30 day 24 payments (70) R14 450 pm R 48.93Extended Disability Income Benefit (SA) (70) R14 450 pm R141.41Extended with Post-retirement impairment benefit (SA) (W/L) R14 450 pm R162.62Extended with Post and Pre-retirement Impairment benefit (SA) (W/L) R14 450 pm R174.01Regular Occupation Disability (SA) (65) R1 000 000 R125.10

disability calculator


⧁ Employee in private sector with the following Employee Benefits⧁ No employee benefits⧁ 30 days sick leave in 3 year cycle

case study 2


case study 2

Proposal• Sickness Benefit 30 day waiting period with 24 payments to 65 anb (R14

450 pm)• Extended Disability Income benefit with 24 months waiting period to 65

(R14 450 pm)• Maximise the Lump sum disability to settle debt etc. R1 000 000)

Benefit Benefit amount

Monthly Premium

Sickness Benefit (SA) 30 day 24 payments(65) R14 450 pm R 47.95Extended Disability Income Benefit (SA) (65) R14 450 pm R113.22

Extended with Pre-retirement Impairment Benefit (SA) (65) R14 450 pm R130.20Regular Occupation Disability (SA) (65) R1 000 000 R125.10


⧁ Employee in private sector with the following Employee Benefits⧁ Lump sum disability 4 x annual salary with 6 month waiting period (total

and permanent)⧁ Income benefit 75% x annual income to 65 with 3 months waiting period

(total)⧁ 30 days sick leave in 3 year cycle

case study 3

Example

Lump sum calculation 4 x R204 000 = R816 000Income calculation 75% GP (Not cost to company) x R204 000 = R12 750 pm


case study 3

Proposal• Sickness Benefit 30 day waiting period with 3 - 6 payments to 65 anb

(R14 450 pm)Reason• The client may be exposed as the Income benefit has a 3 month waiting

period and only payable at total disability (most EB use the own or similar occupation definition)

Optional• Boost the lump sum disability to settle debt etc. (R1 000 000 – R816 000

= R184 000)

Benefit Benefit amount Monthly PremiumSickness Benefit (SA) 30 day 6 months payments (65) R14 450pm R46.55Regular Occupation Disability (SA) (65) R184 000 R23.01


Underwriting are prepared to give this client Sickness Benefit with a maximum payment period of 6 months!

x

employee benefit…


⧁ Sick leave⧁ Generally, most companies offer 30 days SL in a 3 year cycle.

⧁ Income care benefits (total)

⧁ There is no real definition of total disability.⧁ This total is usually assessed in the following manner:

1. Medical condition

2. Occupation/Job description (regular or suited)

⧁ Does the medical condition (totally) prevent the employee doing their regular occupation or a suitable alternative to that regular occupation

understanding EB


⧁ Client has 9 years service on the GEPF⧁ 36 days sick leave in 3 years cycle⧁ Less than 10 years service – only a lump sum benefit payable. (total

and permanent)

case study 4

Example

15.5% x R204 000 x 9 x 4 = R379 4403

(No income benefit is payable)

Not even 2 x annual income


case study 4

Benefit Benefit amount Monthly PremiumSickness Benefit (SA) 30 day 24 payments (65) R14 450 pm R 47.95Extended Disability Income Benefit (SA) (65) R14 450 pm R113.22Extended with Pre-retirement Impairment Benefit (SA) (65) R14 450 pm R130.20Regular Occupation Disability (SA) (65) R620 560 R 77.63

ProposalSickness Benefit 30 day waiting period with 24 payments to 65 anb (R14 450 pm)Extended Disability income benefit with a 24 month waiting period to 65 anb (R17000 x 85% = R14 450 pm)

Optional benefits• Boost the lump sum amount to settle debts etc. (R1 000 000 – R379 440 = R620 560)


⧁ Client has 20 years service to the GEPF⧁ 36 days sick leave in 3 years cycle⧁ Client has a lump sum and income benefits (total and permanent)

case study 5

Example

Lump sum calculation 6.72% x 20 x R204 000 = R274 176

Income calculation 1 x 20 x R204 000 + R360 = R 6 212 pm (R74 182 + R360 / 12)55

36.5% of annual income


case study 5

Proposal• Sickness Benefit 30 day waiting period with 24 payments to 65 anb (R14 450 pm)• Extended Disability income with a 24 month waiting period to 65 anb

(R17 000 x 85% = R14 450 – R6 212 = R8 238 pm)

Optional• Boost the Lump sum amount to settle debts etc.(R1 000 000 – R274 176 = R725

824)

Benefit Benefit amount Monthly PremiumSickness Benefit (SA) 30day 24 payments (65) R14 450 pm R 47.95Extended Disability Income Benefit (SA) (65) R 8 238 pm R 64.54Extended with Pre-retirement Impairment Benefit (SA) (65)

R 8 238 pm R 74.22

Regular Occupation Disability (SA) (65) R725 824 R 90.80


Sanlam’s philosophy


http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=TxlOBZmwqSwwgM&tbnid=7xgYQdJfGao9rM:&ved=0CAYQjRw&url=http://www.rol-ins.com/&ei=h0YoU7_3F6LW7Qam-YCQCA&bvm=bv.62922401,d.ZGU&psig=AFQjCNExBvg3jQ7B7ep2TZnvGAuvsqK2yg&ust=1395234793854783

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=uJIDgu6ENMhgXM&tbnid=04A5SNlP08vhTM:&ved=0CAYQjRw&url=http://depositphotos.com/6220815/stock-photo-Magnifying-Glass---Occupation.html&ei=AEcoU5OvI8LC7AbkuYGYCg&bvm=bv.62922401,d.ZGU&psig=AFQjCNH7tSAnj2D9nyMlJ_eA1NRAaokHNQ&ust=1395234921195172

https://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=nSH_aHYVespvlM&tbnid=bFg66c0YDE-W5M:&ved=0CAYQjRw&url=https://thimble.webmaker.org/p/lj5n/&ei=rkcoU4DjA8be7Abp74Bg&bvm=bv.62922401,d.ZGU&psig=AFQjCNG_axJohB3SvEpnskO7gMCSs0hByg&ust=1395235045006352

Sanlam’s guarantee …


thank you

Documents

THIS IS AN OPTION FOR THE OPENING TITLE SLIDE Insurance Financial Planning Retirement Investments Wealth The Graduate Backpack 2015 Application of the