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Over R3.14 Billion Paid out to Clients This Year

By Karin Muller, 22 November 2018

Karin Muller, Chief Executive of Sanlam Individual Life, provides an overview of 2018 to date, discussing the financial support that Sanlam has provided to our clients this year – as well as the importance of keeping financial plans up to date.

As a business, our role is to minimise the financial risks that our clients are exposed to when their lives take an unexpected turn. The personal and family insurance products we provide are designed to protect our clients’ livelihoods and their families’ futures.

This year, the tepid economic climate in South Africa and the rising cost of living has put many of our clients’ finances under strain. This often makes it more challenging for them to manage their household expenses in the wake of a family tragedy, such as illness, disability or death.

Despite these circumstances, however, we are proud to say that Sanlam Individual Life has remained resilient and we’ve continued to financially support our clients in difficult times. During 2018 to date, we provided our members and their loved ones with over R3.14 billion – and counting – in total claim pay outs.

This amount includes:

  • Over R2.7 billion for death claims – paid to our clients’ loved ones to ensure their families can continue to meet their financial obligations, such as school fees and bond repayments, when they are no longer there.
  • Over R444 million for living benefit claims – including:
    • A substantial amount in income protector claims, to cover clients who are unable to work and provide for their families due to a serious illness or injury. Sanlam is now supporting these households with a steady, tax-free monthly income.
    • Over R230 million in critical illness cover – for families who are dealing with the reality of a loved one being diagnosed with a severe illness. Often, these clients are unable to work and earn a living, or they have to travel to treatment centres far from home. Fortunately, we have helped them to minimise the financial impact of these new circumstances on their families.

These statistics highlight the positive fact that our clients can count on us to take care of their families when the unexpected happens, no matter the market conditions. However, more importantly, they also point to the dedication that so many of our clients have shown to investing in a more secure financial future for their loved ones.

Assess your life insurance plan regularly

On another note, the amount of money that was required to support families after traumatic events this year shines a light on the importance of having sufficient life insurance, severe illness and disability cover in place.

Unfortunately, not all South Africans are adequately prepared – and there’s a significant insurance gap in our country. Research conducted on behalf of the Association for Savings and Investment South Africa (ASISA) shows that the average South African earner faces an insurance shortfall of R2.1 million. This is the amount required to effectively cover their financial needs in the event of death or disability.1

In this context, it’s important to ensure that you review your financial position regularly, including your current and future needs; and evaluate whether your insurance plan and other policies provide adequate cover. Much like you go to the dentist every year, it’s worthwhile making time for an annual financial health check - make an appointment with a professional financial advisor who can help you to assess whether all your family’s bases are covered, no matter what happens along the way.

1 https://www.asisa.org.za/media-release/sa-income-earners-underinsured-death-disability-r28-8-trillion/

Glacier Financial Solutions (PTY)LTD is a licensed financial services provider.
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