The difference between the specialist’s fee and the medical scheme tariff.
Additional 5-times medical aid tariff
A sub-limit is a limit when a medical scheme imposes a Rand limit, known as a sub-limit, on certain in-hospital medical procedures or prosthetic devices and a shortfall occurs.
R52 100 per event/condition
The excess payable upfront to the hospital before treatment or a procedure.
Unlimited cover for specified procedures
A deductible is a co-payment payable by a member on admission to hospital.
1 per family per annum (maximum R15 000)
The excess payable upfront to the hospital before treatment or a procedure.
MRI/CT Scans: Unlimited
Oncology sub-limits: Limited to statutory maximum of R165 000 per insured per annum
Emergency Casualty Benefit
The Casualty Benefit will pay for the facility fee and consultation associated with admissions into the emergency room or casualty ward of a private hospital.
Up to R15 000 per event
Hospital Cash Benefit
A cash payment you receive for every day you spend in hospital due to an accident or premature birth (6 weeks or earlier).
If you’re a Sanlam Reality member, please refer to the Sanlam Reality section for more information on your Hospital Cash Benefit.
R 380 per day: Day 1 to 13
R 750 per day: Day 14 to 20
R1 500 per day: Day 21 to 30
Maximum of R25 190 per beneficiary per annum
More than 6 weeks before due date.
R14 000 per event
A single per Insured payment if the Insured dies or is disabled and unable to work in the given profession.
Accidental: R28 000 per member
Medical Scheme and the Sanlam Gap Policy Premium Waiver
Your medical aid payments will be covered for your family for up to six months up to a maximum of R5 500 per month in the event of death or permanent disability of the principal member.
6 months – Max R5 500 per month
Dental work in the event of trauma or cancers and tumours. Cosmetic work is excluded.
Up to R48 000 per event/condition
Road Accident Fund Claims (RAF)
An end-to-end legal service is provided by the nominated service provider of Kaelo Risk to assist Insured members with legitimate claims against the Road Accident Fund.
Sanlam Smart Invest is a platform designed to help you set your goals, and reach them more easily than ever before. Our simple and easy to use online unit trust investment process helps you plan your savings journey and ensure you achieve it.
It's the smartest thing you'll do today.
I, the Primary Covered Person of the Family Funeral Plan or Accidental Death Plan indicated herein as the "Plan", am subject to the following:
A Retirement Annuity is an efficient and important way to save for retirement because:
You save tax
Your retirement annuity contributions reduce your taxable income up to certain limits: part of your contributions come from tax savings, which means that the South African Revenue Service (SARS) is actually paying a part of your retirement savings. Another big tax advantage is that the growth on your investment is tax free!
Your savings provide you with an income in your retirement years
When you retire, you may take up to one third of your accumulated savings in a cash lump sum. The rest is used to provide you with a monthly income.
Your savings are protected from your creditors
Your retirement savings are safe irrespective of any personal financial loss you may suffer. This ensures that your savings will be available when it is most needed and for what it is intended - the provision of your retirement income.
According to current tax legislation, and depending on your tax situation, retirement annuities have the following tax advantages:
You can deduct your contributions to a retirement annuity from your taxable income, up to a specified limit. This means that you pay less tax when you contribute to a retirement annuity. Contributions in excess of the limit can be carried forward and deducted from future taxable income, including a retirement lump sum or pension income.
The investment returns earned in a retirement annuity fund is not currently taxed.
At retirement, the lump sum benefit is tax-free up to a specified limit. Regular pension payments are taxed as income.
This does not only mean that tax is delayed, but because the tax rebates, rates and allowable deductions change at ages 65 and 75, less tax will be paid.
All limits referred to above are specified annually for the tax year.
The earlier you start saving, the better. If you cannot save the recommended amount, save whatever you can afford. You can also add some of your bonus payments to your retirement annuity.
The Sanlam Retirement Annuity is designed to inspire you to start saving for a comfortable retirement and to help you stay motivated to keep going and stay on track. It is one of the most cost effective savings options available, combined with investment peace of mind.
Your retirement savings are managed on your behalf
The Sanlam Retirement Annuity offers an investment facility where your savings are gradually switched as you get closer to retirement, at an extremely low cost. Therefore you do not have to study the markets yourself to make investment decisions - instead you have complete peace of mind for the duration of your investment.
Added value of the Echo Bonus
Sanlam will boost your retirement savings by adding an additional amount, called the Echo Bonus, at retirement or termination. The longer you save, the bigger the bonus.
Cost-effective savings option
The Echo Bonus makes the Sanlam Retirement Annuity one of the most cost-effective savings options in the market.
The Echo Bonus is an amount that will be added to your fund value when you retire, or end the plan. The more payments you make, the higher your Echo Bonus.
Your Echo Bonus is always a percentage of your fund value. The Echo Bonus percentage depends on the term for which payments have been made. The longer the term, the higher the Echo Bonus percentage.
The Echo Bonus percentages for the online Sanlam Retirement Annuity are indicated in the following table if you are paying recurring monthly payments.
The Echo Bonus percentages for the online Sanlam Retirement Annuity are indicated in the following table if you are investing with a one-off payment.
To receive retirement annuity benefits, you must be a member of a Retirement Annuity Fund. For the Sanlam Retirement Annuity, this is the Central Retirement Annuity Fund. You automatically become a member of the Central Retirement Annuity Fund when you take out a Sanlam Retirement Annuity.
The Central Retirement Annuity Fund takes out a plan with Sanlam Life Insurance Limited on the member’s life, in order to provide the retirement benefits. The Fund, and not the member, is the plan holder.
The current charges for the Sanlam Retirement Annuity:
Marketing and administration charge
The charge is calculated on a monthly basis, which means the percentage is divided by 12 to calculate the monthly amount. This charge is subject to a minimum rand amount that will be increased gradually over 24 months from R0 per month on the start date of the plan to R50.50 per month. This current minimum rand amount will be increased from time to time to allow for inflation.
The marketing and administration charge changes as the fund value increases to higher fund value bands. The following marketing and administration charge is applicable:
If you prefer to select your own funds and will be investing recurring monthly payments, the following marketing and administration charge is applicable:
Investment Management Charges
An asset manager charges fees for investment research and selecting the underlying assets for a specific investment fund. These fees are taken into account in the calculation of the daily unit price of the investment fund. The published performance figures of the investment fund are therefor net of these fees.
If you select your own funds, the Investment Management Charge is the weighted average of the selected investment funds. The value of the Investment Management Charge for each of the available investment funds is shown on the fund selection table and in the fund fact sheet for that fund.
A transaction charge is applicable for each of the changes below. The charge is currently the smaller of R300 and 1% of the fund value.
This transaction charge will not be taken for changes made after the planned retirement date.
If you are invested in the default fund and want to add the ability to select your own funds, you will be charged R300.
As soon as your application has been processed, you will have 30 days in which to examine the contract documents, and decide whether you wish to continue with the plan.
If the plan does not meet your requirements, and if you have not made any changes to it, you can cancel it by notifying us in writing during this period. We will then refund any payments you have already made. If the assets in which the payments were invested have decreased in value, or if you have already received benefits from the plan, we will reduce the amount to be refunded to you accordingly.
If you require further information on your Sanlam Retirement Annuity please phone our Client Care Centre on (021) 916-5000 or 0860 SANLAM (0860 726 526), or send us an e-mail at email@example.com. Our compliance department can be contacted at the same number
If a recurring payment is applicable, the plan starts on the date that the first payment is collected. If we cannot collect the first payment on your preferred start date, we will collect the first payment one month later and move the start date accordingly.
If a one-off payment is applicable, the plan starts on the date that the payment is collected from your bank account. If we cannot collect the payment on your preferred collection date, we will collect the payment on the first possible date thereafter and move the start date in line with this.
Yes, the recurring payment will increase with the Sanlam inflation rate one year after the plan's start date, and on every plan anniversary thereafter.
The Sanlam inflation rate is determined taking into account the change in the consumer price index, or any other commonly accepted method of measuring inflation that may apply at the time. The Sanlam inflation rate may differ from published inflation rates, due to differences in calculation methods. A minimum rate applies, which may change from time to time.
Yes, you can add one-off contributions at any time after your plan has been issued. Please call the Sanlam Client Care Centre at 021 916 5000 or 0860 726 526 (SANLAM), or send an email to firstname.lastname@example.org to arrange.
In your application, you need to indicate the date that you want the first payment to be deducted. If it is not possible to deduct the first payment on this date, we will deduct it one month later.
All payments are due on the same day of the month as the date selected for the first payment, or the first working day thereafter if the due date is not a working day.
Select the date for the first deduction to fall on or just after your salary payment date, to ensure that you have sufficient funds available.
The recurring payment can be increased, reduced or stopped. Contact the Sanlam Client Care Centre on (021)916-5000 or 0860 726 526(SANLAM) or send an e-mail to email@example.com.
If you select the default option, your money is invested in the Satrix Life Time Investment Option.
This option initially invests in a passively managed fund, tracking a basket of indices at a very low investment fee. This fund is moderately aggressive and can have a fair amount of fluctuations in short-term returns, in anticipation of higher real return over the long-term. Six years before your retirement date, your investments are phased into the Wealth Protector fund to protect your savings against the possibility of capital loss at your planned retirement date. It is important that you adjust the planned retirement date on your Sanlam Retirement Annuity should your retirement plans change.
If you prefer to select your own funds, we offer a range of quality investment funds. You can choose up to five funds at first, and can switch between the available funds at any time. The first four switches in any plan year are free.
We invest your full payment in the respective investment funds by buying units in each of these funds. The unit prices of the investment funds are not guaranteed, and may increase or decrease over time.
The total fund value of the plan is equal to the sum of the values of the underlying investment funds. The fund value for each investment fund is equal to the number of units you have in the fund multiplied by the unit price at the calculation date.
In the event of a claim, please inform us as soon as possible. To obtain the necessary claim forms and to ensure that all the required information is supplied, contact the Sanlam Life Claims Call Centre at 021 916 1710.
Depending on the nature of the claim, documentary proof (e.g. a death certificate or medical report) will be required.
You can retire from your Sanlam Retirement Annuity at any time from age 55, or earlier in the event of ill-health.
The retirement benefit of the Sanlam Retirement Annuity is equal to the fund value of the plan less the transaction charge, if applicable. If you retire early, the Echo Bonus that is added to the fund value will be lower than it would have been if you had invested until your planned retirement date.
According to current legislation, up to one-third of the retirement benefit may be taken as a lump sum. The balance must be used to provide regular pension payments.
The fund value plus the Echo Bonus calculated to the date of death will be paid either as a lump sum or used to provide regular pension payments.
As required by the Pension Funds Act, the death benefit must be paid to the dependants and the nominees (if appointed) of the life insured. The trustees of the Sanlam Retirement Fund are responsible for allocating the benefit to the dependants and nominees.
Saving in a tax-free savings account gives you flexibility as you don’t have to commit to any future contributions. You can withdraw from your investment at any time. Withdrawing funds, however, may prevent you from reaching your savings goals, and will use up part of your lifetime limit for tax-free savings.
Contributions to a tax-free savings account are made from post-tax income.
A Tax-free Investment Account is therefore an effective way to save for your goals, because any interest, dividends or capital gains from your tax-free savings account will be free of tax.
No tax is payable on withdrawals.
National Treasury has put limits on the amount you can save in a tax-free savings account. The total annual contribution in a tax year may not exceed the annual contribution limit, which is currently R33 000 per tax year. The total lifetime contribution may not exceed R500 000. Make sure you keep track of how much you've paid so that you don't exceed your limit across all approved tax-free savings accounts (at Sanlam or other providers).
Yes. There is no limit on the number of tax-free savings accounts you can have. Make sure your annual payments across all approved tax-free savings accounts (at Sanlam or other provider) do not exceed the annual contribution limit.
The effect of compound interest, or earning investment return on investment return, is increased in a tax-free savings account due to the tax relief on the investment return. The longer you invest the more benefit you will get.
If you invest more than the annual contribution limit stipulated by National Treasury, SARS will impose a tax penalty of 40% on excess contributions. To avoid penalties, make sure that your annual payments across all approved tax-free savings account (at Sanlam or other providers) stay below the limits.
It is compulsory to disclose the investment information when submitting your annual tax return. You will need to submit the IT3(s) statements provided by Sanlam or other providers to SARS when requested. Sanlam will also submit the information to SARS electronically.
The South African tax year runs from 1 March to 28 February of the next year.
Yes, you can apply for a Tax-free Investment on behalf of your child or other family member, but keep in mind that you will be using part of their tax-free allowance, which may limit their ability to save for themselves via this type of product later. Money withdrawn can only be paid out into a bank account which is in the family member’s name. Be careful of donations tax, if applicable.
A tax-free savings account can only be opened for an individual. You can open one for each individual in a family, but cannot open one in the name of a trust or a company.
The Sanlam Tax-free Investment offers low fees and discounted investment management fees making it a competitive and cost-effective savings choice. As Wealthsmiths, we are dedicated to improving the savings culture in the country.
You can make monthly or one-off payments into a Sanlam Tax-free Investment. The payments in any tax year are limited to the annual contribution limit in that year. As of 1 March 2017, this is currently R33 000 per year. The total lifetime contribution limit is R500 000. If you go above these limits you will incur tax penalties.
You can add additional one-off payments of between R2 750 and R33 000 in future, as long as your total payment in the tax year does not exceed the annual contribution limit.
The maximums above will be adjusted if the annual contribution limit is changed.
No, but you should decide upfront how long you plan to invest, as your fund allocation needs to be appropriate for your expected investment term.
If you used the default Satrix Life Time Investment Option, we use the expected investment term to manage the investment. Therefore, to ensure that we invest your funds appropriately, you need to inform us of any changes in the expected investment term.
If you select your own funds, you should review the underlying funds if your expected investment term changes.
The effect of compound interest, or earning investment return on investment return, is increased in a Tax Free Investment Account due to the tax relief on the investment return. The longer you invest, the more benefit you will get. The Sanlam Tax-free investment has a minimum investment term of 5 years, so that you benefit from the tax relief and get value for money.
FICA is only applicable of you make recurring payments of R25 000 or more per year, which is R2 083 or more per month.
If FICA is required, you will need to provide proof of identify and your residential address. One of our call centre agents will call you to make the necessary arrangements.
The current charges for the Sanlam Tax-free Investment consist of the administration charge plus the Investment Management Charges. The current charges are:
This fee is a percentage of the fund value. The charge is calculated on a monthly basis, which means the percentage is divided by 12 to calculate the monthly amount. This charge is subject to a minimum rand amount that will be increased gradually over 24 months from R0 per month on the start date of the plan to R42.00 per month if you invest in the default fund or R50.50 if you add the ability to select your own funds. This current minimum rand amount will be increased from time to time to allow for inflation.