As one of the largest underwriters of disability benefits in South Africa, Sanlam Group Risk provides corporate life-, disability- and credit risk benefit solutions as well as accident and illness benefits to employers. We further offer disability- and claims management and assessment, and help employers reduce absenteeism through rehabilitation monitoring.

Group Risk has more than 1 million members of group life insurance schemes, thanks to premium rates based on sound underwriting principles offering sustainable benefits, and assessments based on international best practices.

We have the financial strength and resources to offer need-specific solutions, and a sophisticated administrative system enables us to underwrite and settle claims in the shortest possible time. This leads to lower expenses and lower premiums.

 

The continuously evolving range of Sanlam Group Risk solutions consists of:

• Group Life Benefits

• Group disability benefits

• Credit insurance

• Trauma insurance

• Sanlam Customised Insurance

• Multi-national pooling

• Infinit Group Risk Solutions

• Burial Repatriation Benefit

• Assistance business and higher commission

 

Group Life Benefits

Sanlam Group Risk has achieved market leadership in underwriting risks. We limit cross-subsidisation between clients and product lines by means of expert and accurate pricing, which means that we do not have loss leaders, nor do we underquote to attract new business.

As a result, our clients pay premiums that over time accurately reflect the risks we underwrite and are sustainable into the future.

Sanlam Group Risk helps companies to cover risks with an extensive range of products that will also enhance their attractiveness as employers of choice.

Our range of products consists of:

 

• Group Life Assurance

• Spouse’s Assurance

• Terminal Illness Benefit

• Funeral Aid Scheme

• Funeral Transport Benefit

• Accident Benefit

• Mortgage Cover

• Debt Helper Package
  

Group Life Assurance

Sanlam offers Group Life Assurance (GLA) either under an independent group life scheme or under a pension/provident fund.

Sanlam Group Risk aims to tailor the benefits to meet the exact needs of the employers and employees by offering benefits in different forms including:

• Multiple of Salary:

This is the most traditional method of funding death benefits. The death benefit is equal to a fixed multiple of salary e.g. 3 times annual salary per category of members. The benefit increases as salaries escalate, therefore keeping tread with inflation.

• Fixed Amount:

Instead of a fixed multiple of salary, a fixed amount per member category can be insured. This benefit may not be related to the salary of all the members and will have to be revised periodically to keep up with inflation.

• Fixed Multiple per Age Band:

The rationale for this approach is that the need for life cover declines as a person gets older and therefore has fewer responsibilities towards beneficiaries. This benefit is normally provided for under a fund and consists of a high multiple of salary for the younger ages declining too much lower multiples close to retirement age.

• Flexible Risk Benefits:

Changes in the employee benefits industry has resulted in employees demanding greater control over their benefits.
We have responded to this need by providing flexible risk benefits. All members receive a basic level of cover (core cover) while members can choose additional cover (flexible/optional cover) to suit their unique needs.

The flexible risk benefit consists of two components, namely:

 

• Core cover & Flexible cover

The Fund / employer selects a compulsory level of cover.
This benefit level should be able to meet the member’s minimum needs.
Members can select an appropriate level of cover over and above what is provided by the core cover.
Members can increase or decrease their flexible cover as their circumstances and cover requirements change.
Any saving due to a member choosing less cover than previously enjoyed is used to supplement the member’s retirement benefit.

Advantages of moving to a flexible risk benefit approach:

• A member’s remuneration can be customised more holistically by recognising that members have different cover needs. The old “one size fits all” approach is not appropriate.

• Flexible risk benefits can counter the rising cost of life cover and thereby prevent the erosion of a member’s retirement benefit.

  
  

Spouse's Assurance

Providing cover for spouses of employees has become an important employee benefit.
In catering for this need, Sanlam Group Risk provides insurance on the life of the spouse of an employee already insured under a group policy. This may apply to all married employees or to married male employees only.

The employer or members decide in advance whether they want cover equalling once or twice the employee's annual salary.  This will be paid to the member on the death of their spouse.

Sanlam Group Risk has designed this product to cater for the requirements of our clients and has included the following features in this benefit:

• The member may insure multiple spouses/partners

• A disability benefit is available so that the life cover may be paid, as a lump sum or in instalments, if the member’s spouse becomes disabled

• A conversion option is available allowing cover to continue beyond the death of the member, the member reaching 65 or divorce.

 

Funeral Aid Scheme

Sanlam provides the Funeral Aid Scheme to meet the high costs of South African funerals.

This benefit has been efficiently designed to be flexible, transparent and has the following characteristics:

• Competitive premiums

• Cover from R3 000 to R30 000

• Benefits are usually paid within 2 working days of the claim being submitted

• Cover may be provided to the main member, spouse, additional spouses, children, parents, parents in law and extended family

• There is a variety of paid up benefit options to suit your needs

• You have guaranteed insurability regardless of your health
  

Funeral Transport Benefit

Often, large numbers of family members and friends want to attend the funeral of a loved one and need transport but the cost of the funeral itself may have already exhausted any Funeral Aid benefit that may have been paid.
The family may then face significant costs in providing transportation to the funeral.
Sanlam’s Funeral Transport Benefit is intended to contribute R3 000 towards the costs of hiring a bus or alternative means to convey the bereaved to and from the funeral and, in doing so, provide a practical benefit to the family of the deceased.

Accident Benefit

Employers can arrange for an accident benefit to be paid at the death of a member resulting from an accident before retirement and before the normal retirement age, and while the member is still in service.

The Accident Benefit has incorporates the following design elements:

• The cover may be an additional amount equal to a certain percentage of the member's life assurance is paid
• This may vary from 25% to 100%

• The level of cover may vary between different member categories
  
  

Mortgage Cover

Mortgage cover is basically the same as ordinary group life insurance, except that at the member's death, his or her cover is equal to the outstanding mortgage as at the scheme's anniversary, or it can remain the same as the outstanding mortgage during the year.

Debt Helper Package

Families often find themselves faced with a myriad of small debts that need to be repaid when the head of the household or their partner passes away.

The Debt Helper Package is designed to greatly mitigate this need and consists of:

• R10 000 Family Funeral Aid

• R20 000 Debt Helper Benefit

The Family Funeral Aid will pay a lump sum in the event of the death of the main member, spouse or any of their minor children to help defray the costs of a funeral.

The Debt Helper Benefit is designed to assist the family to pay off some of their other debts at a time when the breadwinner or his/her spouse has passed away.

Sanlam wants to provide these practical benefits to the insured’s family in their time of need, therefore, both of these valuable benefits are payable within 48 hours of a claim being lodged.

Terminal Illness Benefit

Sanlam Group Risk offers an acceleration of the unapproved Group Life Assurance benefit paid out on the diagnosis of a member's terminal illness.  This is done provided that the insured has less than 6 months to live.
This benefit aims to cover the medical cost associated with terminal illness.

Considering that the Life Assurance benefit would in any event be paid out within 6 months, accelerating the payment provides the terminally ill member and the member's family with funding to alleviate the financial strain during their last time together.

Group disability benefits

Providing for all risk events is a costly exercise, unless effectively managed.

This management consists of:

• Proper disability assessment

• The use of valuable yet inexpensive products to control costs

Sanlam has excelled in both these aspects due to its significant expertise and  as one of the largest underwriters of disability benefits in South Africa, we have gained invaluable experience in the assessment of disability management.
Moreover, our disability products do more than just take care of the financial needs of disabled employees. Our proactive healthcare intervention capability reduces claims and lost hours, and thus enhances productivity.

The product range consists of:

• IncomeCare – disability benefits, rehabilitation and cost control

• Group Income Insurance – affordable cover against loss of income

• Disability Income Ownership Benefit - empowers the claimant with the full control of their disability income

• Salary Refund – refunds employers contributions during the waiting period for a successful PHI claim back to the employer

• Accelerated payment of Group Life Insurance – a lump sum payment

• Waiver of Contribution Benefit – maintaining a member's insurance when disabled

• Group Risk Services – disability claims management and rehabilitation

IncomeCare

IncomeCare provides disability management that complies with the strict stipulations of the Labour Relations Act and controls costs by reducing the likelihood and the severity of disability claims.
IncomeCare provides qualifying disabled staff with a healthcare and rehabilitation programme so that they may return to work.

It not only provides a benefit in the case of total disability, but also in the case of partial disability.

This proactive healthcare intervention helps to:

• Decrease claims

• Trim down lost hours

• Boost productivity

While a lower rate of claims helps to contain premiums and costs.
Furthermore, it helps partially disabled staff members to continue in employment, ensuring continued income.
Employers frequently find the biggest benefit in IncomeCare's proactive health management and rehabilitation programme. This is designed for employees who are absent from work for more than fourteen days, because of injury or illness.

 

Group Income Insurance (PHI)

This essential product provides an income to the claimant whilst they are disabled.
The claimant would receive this income until he or she recovers, retires, dies or reaches 65.
The assured income of every member is determined by the rules of the scheme in proportion to his/her income before disability.

Sanlam offers the Group Income insurance with the following attractive features:

• Flexible cover:
  The insured income available may vary from 100% first 24 months and 75% thereafter to  75% or any other percentage below 75%

• Flexible waiting periods:
  Waiting periods of 1, 3, 6, 12 or 24 months are available

• Conversion option:
  A member may be able to purchase individual insurance with Sanlam without proof of good health when leaving service before their retirement age.
  

Disability Income Ownership Benefit

Many disabled employees find themselves disempowered by the traditional structure of disability income benefits as they have little control over the allocation of their overall benefit into income, savings, life insurance or medical aid contributions.

This decision is often made for them by outsiders with little consideration of the unique personal circumstances of the claimant.

The Disability Income Ownership Benefit places the management of the overall disability income firmly in the hands of the claimant and empowers them to make appropriate financial decisions that are based on their own particular needs.

They have full ownership and responsibility for their financial affairs under this product and may, with the aid of their financial advisor, allocate this income as best meets their needs.

Salary Refund Benefit

Many employers make contributions towards disabled employees during the waiting period for disability income insurance claims.  These include:

• The full salary of the claimant

• Group risk premiums

• Medical aid contributions, etc…

The employer is out of pocket for these costs incurred during the waiting period and this money is not recouped even if the disability income insurance claim is successful.

The Salary Refund is a rider on the disability income insurance and would pay the employer the full amount of the salaries paid to the employee during the waiting period for a successful disability income insurance claim.
The employer may elect to have an additional 10% or 20% over and above the salary insured to allow for any other contributions made during the waiting period.

Accelerated payment of Group Life Assurance

Sanlam will pay a benefit if a member is declared totally and permanently disabled. The payment will be made at the end of the waiting period.
Benefits are payable as a lump sum, via instalments or a combination of the two.  This flexibility directly addresses the needs of the insured.

There is no additional proof of good health required it unless purchased as a freestanding benefit, providing greater convenience, improved time-saving and more streamlined administration.

Waiver of Contribution Benefit

This benefit ensures that the disabled member will still enjoy life cover for as long as they are a member of the scheme.

Increases to the amount of life cover, in line with CPI, may be granted to the disabled member.

Group Risk Services

Sanlam Group Risk’s assessment team is a specialist group handling the assessment of rehabilitation potential, as well as the assessment of disability claims on behalf of our clients.

Their tasks include:

• Disability and claims management

• Rehabilitation, claims assessment

• Management of admitted claims by a panel of medical doctors, occupational therapists and full-time claim assessors assisted by legal consultants.

In addition, we supply full HIV/Aids counselling and supply employers with management data to help project prevalence trends within their workforce.

Disability & Claims Management

Sanlam Group Risk utilises a consistent, managed and efficient approach to managing disability claims.

Drawing on years of experience in the field and by benchmarking our service against best practices in the world, Sanlam has built up an infrastructure, which includes:

• Proactive absenteeism monitoring and rehabilitation

• Highly qualified experts as consultants to assess claims

• Securing networks of specialists in various fields to ensure fair and objective medical assessment

• Ensuring periodic revision of the level of impairment and disablement.

• This tried and tested system helps our clients to ensure maximum productivity and a measure of controlling costs.

• It has also placed Sanlam in an ideal position to offer fund trustees a fee-based service in assessing ill-health retirements.

Rehabilitation Process

Sanlam's rehabilitation centre is well established and it draws on a competent network of physiotherapists, occupational therapists and psychologists to facilitate the process.

This helps our clients to:

• Monitor absenteeism through sick-leave reporting

• Assess the rehabilitation potential through a primary selection process including cost-benefit analysis

• Monitor the progress of the rehabilitation programme.

Claims Assessment Process

Sanlam has established a disability claims assessment process with the help of a full expert panel including Sanlam's medical panel, claim assessors, legal consultants and occupational therapists.

As part of client communication, teams visit clients to proactively explain Sanlam's methods of assessing claims, which, for objective assessment, draws heavily on a network of:

• Psychiatrists for the assessment of, for example, depression and anxiety claims

• Orthopaedic surgeons/neurosurgeons for the assessment of back and neck problems in particular

• Specialist physicians for the assessment of, for example, heart and lung problems.

This team would obtain second opinions by other specialists where necessary, and also arrange independent opinions by reinsurers.

For on-site assessments, the team arranges visits by occupational therapists to the employer, workplace and claimant, as well as observation by private assessors.

 

 

Management of Admitted Claims

Admitted monthly income claims are actively managed at least once a year, depending inter alia on the nature of the impairment/disablement.

Sanlam follows the same philosophy and processes as in the case of new claims.
Approximately 10% of claimants admitted subsequently recover and return to work.

 

Credit insurance

Sanlam Group Risk is excited to offer you our specialist expertise in designing Credit Insurance risk solutions that meet the demands of your clients.

What types of credit  does Sanlam Group Risk insure?

We underwrite the risks for a wide variety of loans including:

• Pension backed loans

• Loans from employers to employees

• Micro-loans

• Loans granted to farmers by agricultural co-operatives

• Mortgages

• Motor vehicle loans

What is covered?

Sanlam provides a range of cover options including:

• The outstanding balance of the loan

• Fixed amounts

• The loan amount less the member’s share of their retirement  fund in the case of a pension backed loan

Please approach us with your specifications of what needs to be insured and we will strive to deliver a custom made Credit Insurance package to you.

 

When will the benefit be paid?

Sanlam may pay a benefit on the

• Death, or

• Disability of the insured.

Benefits

The benefits of Sanlam Group Life’s Credit Insurance can be summarised as follows:

Losses from the creditor’s perspective due to outstanding loans occurring on the death and/or personal disability of clients can be reduced.

• The dependants of the deceased are protected against this liability from the deceased’ estate.

• A built-in credit insurance scheme provides additional marketing value for the institution granting the credit.

• An existing client of Sanlam Employee Benefits with risk and/or retirement benefits may in addition insure any mortgage bonds, car or other loans extended to his employees.

Transport of mortal remains

Sanlam will transport the deceased to the funeral home closest to their place of burial in South Africa, free of charge.
Sanlam also provides transportation arrangements for one relative to accompany the mortal remains during this journey.  If required, a single night’s overnight accommodation will be provided at no additional cost if death occurs in South Africa.

Debt Helper Package

Families often find themselves faced with a myriad of small debts that need to be repaid when the head of the household or their partner passes away.

The Debt Helper Package is designed to greatly mitigate this need and consists of:

• R10 000 Family Funeral Aid

• R20 000 Debt Helper Benefit

The Family Funeral Aid will pay a lump sum in the event of the death of the main member, spouse or any of their minor children to help defray the costs of a funeral.

The Debt Helper Benefit is designed to assist the family to pay off some of their other debts at a time when the breadwinner or his/her spouse has passed away.

Sanlam wants to provide these practical benefits to the insured’s family in their time of need, therefore, both of these valuable benefits are payable within 48 hours of a claim being lodged.
 
Unique solutions for unique challenges
Our team is eager to investigate your specific requirements and is committed to engineering a practical and affordable solution to meet your needs.

 

 

Trauma insurance

Major traumas could inflict devastating financial burdens on employees and their affected family members. This burden is best shared under a group scheme such as Sanlam Group Risk's Trauma Assurance, which pays out as soon as Sanlam is satisfied with the diagnosis of a traumatic disease.

There are two options available

• Trauma Insurance - Standard Cover

• Trauma Insurance - Comprehensive Cover

Both options have only a seven-day waiting period in order to pay the benefit with great speed.
The Standard Cover scheme covers cancer, paraplegia, chronic renal failure, coronary artery bypass surgery, myocardial infarction, stroke, blindness, organ transplant, major burns and deep coma.

The Comprehensive Cover scheme covers the same conditions as the Standard Cover scheme with the addition of accidental HIV infection, Alzheimer's disease, angioplasty, aortic artery surgery, aplastic anaemia, arrhythmia, benign brain tumour with malignant behaviour, blindness in one or both eyes, cardiomyopathy, chronic liver failure, end stage lung disease, heart valve surgery, loss of hearing, loss of limb function due to medical causes, major burns, motor neuron disease, multiple sclerosis, muscular dystrophy, Parkinson's disease, pulmonary embolism and sero-positive rheumatoid arthritis.

Sanlam Group Risk also offers a Trauma Conversion option that allows members to convert their group trauma cover to individual critical illness cover with Sanlam Life.

 

Sanlam Customised Insurance

Are you looking for more flexibility when it comes to the management of your insurance premiums and the benefits offered to your employees?

Sanlam Customised Insurance now offers you these benefits and more through an innovative cell insurance scheme.

• What is Sanlam Customised Insurance?

• How does the scheme work?

• How are premiums invested?

• How are claims processed?

• Managing the risk

• What about cell surpluses and deficits?

• What risk products are available?

• What services does Sanlam Customised Insurance provide?

• What are the benefits for cell owners?

What is Sanlam Customised Insurance?

Sanlam Customised Insurance is a life cell insurer, and a subsidiary of Sanlam Life. Corporate clients can buy an equity stake (or cell) in Sanlam Customised Insurance, which undertakes the professional management of the cell including underwriting, reinsurance, claims management, actuarial services, investments and accounting.
The cell becomes the client's own self-insurance company, while using Sanlam Customised Insurance's licence and expertise.

How does the scheme work?

In order to do business via a cell, the cell needs capital. This is obtained by issuing non-voting shares in Sanlam Customised Insurance to the client. Dividends on these shares depend on the performance of the cell, and not of Sanlam Customised Insurance as a whole.

The amount of capital required is determined by Sanlam Customised Insurance and will depend on the type and volume of business being conducted as well as reinsurance arrangements.

In addition to the capital, each cell owner pays an actuarially determined life insurance premium each month. This premium is based on the risk profile of the members and, as with traditional life insurance, all premiums are tax-deductible.

How are premiums invested?

Both the share premium and the life insurance premium are invested in an investment portfolio, which is selected by each cell owner. Sanlam Customised Insurance offers an extensive range of superior investment vehicles, providing each cell owner with considerable latitude to develop an appropriate investment strategy.

All cell owners must comply with the investment regulations prescribed by the Longterm Insurance Act as well as consider the impact that the investment strategy could have on the capital required.

How are claims processed?

All claims will be submitted and assessed on a basis agreed to with the cell owner. All claims are assessed by Sanlam Customised Insurance and, once approved, are paid by the cell.

Managing the risk

Each cell is responsible for its total risk liability, to the extent of the capital provided. Cell owners with entrenched corporate social responsibility programmes may be able to contain this risk more effectively through education programmes, resulting in a lower risk profile and lower premiums.

Where companies need to protect themselves against some risk, re-insurance through Sanlam Life is available.

What about cell surpluses and deficits?

At the end of each financial year, Sanlam Customised Insurance will carry out an actuarial valuation on each participating cell's portfolio, resulting in a deficit or surplus. In the event of a deficit, the cell owner will be required to make additional capital available to cover the loss.

This is done by purchasing additional shares. Any surplus can be distributed as a dividend to the cell owner, subject to FSB regulations and the shareholder's agreement.

What risk products are available?

Cell owners have access to an extensive range of group life and disability benefits, including:

• Group life assurance

• Spouse's assurance

• Funeral aid scheme

• Funeral transport benefit

• Accident benefit

• Trauma insurance

• Group income insurance

• Salary refund

• Disability income ownership benefit

• Accelerated payment of group life assurance

• Waiver of contribution benefit

• Income care

• Credit insurance

• Debt helper package

Customised Insurance is responsible for ensuring that each cell:

Is adequately capitalised

Is managed in accordance with the Long-term Insurance Act

Enters into a shareholders agreement

Is adequately funded and/or protected by re-insurance

In addition, Sanlam Customised Insurance, provides the following administrative services

• Actuarial

• Claims assessments

• Consulting

• Accounting

• Administration

What are the benefits for cell owners?

There is greater flexibility with regard to:

• Providing benefits not usually available from traditional assurers, e.g. disability benefits without limits

• Benefit increases can be granted

• lnvestment strategy

• Providing benefits without proof of good health

• Claims assessment and payment

• Any surplus can be distributed to the cell owner

• The cell owner controls his own risk management/risk financing strategy

• Strong risk management through an alignment of interest between the insured, assurer and reinsurer 

Multi-national pooling

Sanlam Group Risk has aligned with three international network partners of life insurance companies to provide world-class multinational pooling to eligible South African companies.

Many multinational companies choose insurance as a method of financing employee benefit plans. Multinational pooling allows such companies to benefit from favourable world-wide insured claims experience and thus reduce employee benefit overheads.

A multinational pool brings together insured risk plans (death and disability) which have been set up locally for two or more countries. Subsidiaries pay local premiums, and local insurers settle claims.
At the end of each experience year, the local insurers involved in a given multinational pooling account will submit the results of the local plans to the multinational pool showing amounts held, received and paid in respect of those plans.

A multinational account is then drawn up showing premiums paid minus claims, minus the insurer’s risk retention and administration charges. This amount also takes into consideration other items such as reserves, interest, non-rated premiums, local dividends and commissions.

 

What are the benefits?

• Free cover limits may be based on the total size of the multi-national group included in the pool rather than the number of domestically based employees.

• The free cover limits under the pool are then likely to be rather higher than not.

• If the experience of the insured group is favourable, then there will be a surplus in the multinational account, payable to the client as a multinational dividend.

• Estimates by advisors on multinational pooling suggest that over a period of years an 8% to 15% reduction of local costs can be achieved.

In years of good experience dividend percentages can be substantial. 

Infinit Group Risk Solutions

Infinit Group Risk Solutions is a specialist group risk distribution company that is a joint venture between Sanlam Group Risk and two industry leaders, Alan Robertson and Jennifer Masterson.

In a market dominated by commodity products, Infinit introduced a refreshing ‘private banking’ styled service and consulting ethos to selected brokers in October, 2007.

This exciting partnership immediately extends Sanlam’s reach and access to new markets without internal re-engineering.  With the widest product range in the South African group risk market combined with exceptional service and consulting, Infinit provides a compelling value proposition spanning both the traditional and differentiated markets.

In addition to marketing traditional Sanlam Group Risk products, Infinit has the exclusive right to market the following new age covers:

Universal Educator

This powerful benefit is effectively a rider on unapproved group life assurance that covers the cost of educating eligible children in the event of the death of a principal life.  The children are covered from pre-primary school right through to the attainment of an undergraduate degree.  Private schools are covered where children are already enrolled and in addition to South African universities, the top 20 universities in the world, including Cambridge, Oxford, Harvard, Stanford, and Yale are covered.

After tragically losing 180 staff in the 9/11 World Trade Center disaster, Aon, a multinational with 50,000 employees, sought to meaningfully redress the loss of their friends and colleagues.  Within weeks of the tragedy they launched the ‘Aon Memorial Education Fund’ – a program that set out to educate the children of their fallen colleagues.  Chairman Patrick Ryan said that “we honour the memory of our colleagues in a manner well befitting their legacy with this fine program.”  The Universal Education reflects the same sentiments and successfully protects the lives of tens of thousands of South African families.

Medical Aid Premium Waiver

Whilst a 75% income replacement is a sound benefit it nevertheless causes financial strain for the disabled employee in that it results in at least a 25% reduction in income.

The Medical Aid Premium Waiver addresses this by funding the disabled employee’s medical aid premiums for up to 24 months.  In effect this increases the replacement ratio to well in excess of 75% and consequently reduces the financial impact at a time when the employee is most vulnerable.

In the event that an employee is permanently disabled, they then have two full years to prepare for their disability income benefit to be reduced to 75%.

Through innovative thinking, entrepreneurial flair, and committed professionalism, Infinit Group Risk Solutions has already made a tremendous impact in an otherwise staid market.

Infinit Group Risk has offices in Sandton and Cape Town.  Visit www.infinit.co.za
 for more information.

Real solutions.  Real expertise.

Burial Repatriation Benefit

The loss of a loved one will always remain one of the most traumatic events in our lives. The very last thing you should worry about is how to transport the deceased back home if the death occurred far from his or her home base. In addition, you would like your cultural preferences to be honoured during a time like this.

At Sanlam Group Risk, we recognise the importance of assisting family members during a time of loss. We constantly seek opportunities to offer you a comprehensive range of financial solutions for your unique circumstances and expectations. That is why we can now offer you a Burial Repatriation Benefit.
Special cultural preferences

We have taken into account that the surviving family may have special cultural preferences regarding the transportation of the deceased and we will ensure that special care is taken to meet these preferences.
Reduction in funeral expenses

Sanlam Group Risk's Burial Repatriation Benefit will pay for the costs of transporting the deceased back home if the death occurred far from his or her home. This is a free service for members of Sanlam's life assurance or funeral aid schemes. This will decrease the costs of the burial for the family.
Free service – no additional costs involved

Sanlam Group Risk's Burial Repatriation Benefit is a free service that is available to the principal member or family members covered by Sanlam Group Life Assurance or Group Funeral Aid Scheme – at no additional cost.

What does the Burial Repatriation Benefit offer you?

Transport of the deceased

This benefit includes transport of the deceased by road or air:

• From anywhere in South Africa, Lesotho, Swaziland, Zimbabwe, Botswana, Namibia or Mozambique (south of the 22° latitude)

• To a funeral home close to the place of burial in South Africa.

• Accompanying the deceased

The benefit also provides transportation arrangements for one relative to accompany the mortal remains to the nearest funeral home of choice closest to the place of burial. If required, overnight accommodation (one night) will be provided at no additional cost if death occurs in South Africa.

How to make use of the service:
Family members of the deceased or the member's employer need to call Sanlam's 24-hour specialised call centre on 0860 004 080 to claim the benefit or ask for more information. Calls can be answered in all official South African languages.

The information required to process the claim:

• Name and ID number of the deceased

• Name and code of fund or employer scheme

• Place where death occurred
  
  

Sanlam Employee Benefits will always be committed to providing you with practical and real benefits. 

 

Assistance business and higher commission

Assistance business is a class of Long-term insurance business defined in the Long-term Insurance Act.
The regulatory requirements for assistance business are less than for normal life business, and the sum assured is limited to R18 000 (previously R10 000).

There is no maximum statutory commission on this business.
Most of our competitors have a license for assistance business, and use it to write funeral cover of maximum R18 000. They pay higher commission on this business than what is possible under a life license. This commission typically amounts to 10% of premiums.

Sanlam Life Insurance Limited does not have an assistance business license.

Doing business through SCIL
To enable Sanlam Group Risk to sell Assistance Business and, if required, to pay higher commission than what is possible under a life insurance license, Sanlam Group Risk (through Sanlam Life) will buy a cell in Sanlam Customised Insurance Limited (SCIL). This will give Sanlam Group Risk access to SCIL’s assistance business license.

This development will put Sanlam Group Risk on par with other assistance business insurers in the industry.
Sanlam Group Risk will not channel all its funeral cover through SCIL. This will only be done if the services rendered should justify payment of more than the statutory maximum commission and if the sum assured does not exceed R18 000. Therefore, in cases where it is necessary to pay more than maximum statutory commission, the business will be provided through SCIL. Intermediaries and registration in terms of the Financial Advisory and Intermediary Services Act (FAIS)

Intermediaries who market assistance business must:

• be licenced as an authorised financial services provider (FSP) in terms of FAIS;
  in terms of their FSP license, be registered to sell the category of product known as Long-term Insurance Category A.

• Long-term Insurance Category A refers to assistance policies as defined in the Long-term Insurance Act.
  Remuneration structure

Commission for assistance business normally ranges from 10% to 15% of premiums.
The level of commission will be decided on an ad hoc basis from case to case depending on the services rendered. A front-office fee may also be payable in certain cases.

More about SGR’s Assistance Business

• Fees and charges: SGR’s normal rates for funeral cover will apply, with a loading for the commission payable and for front-office fees (if applicable).

• Premiums and contributions: Normal minimums and maximums for funeral cover will apply, except that the maximum sum assured is R18 000.

• Underwriting conditions: The same as for normal funeral cover.
  Quotations (NUB): Quotations will be as normal, except that the insurer will be SCIL and that commission could be higher than statutory maximums.

• Policies and documents: The policies and other documentation such as tender documents and acceptance forms will be exactly the same as our normal policies and documents, except that Sanlam Life will be replaced with Sanlam Customised Insurance Limited.