Premium-back promises often sound better than they are.
For example, "you will get R100,000 in 15 years’ time" may be technically true, but R100,000 in 15 years’ time is much less than it sounds, considering inflation and other economic factors. This is because inflation over time means that R100,000 then is worth much less than R100,000 now. In fact, if inflation runs at 6% per year, then R100,000 in 15 years’ time will buy you more or less what R40,000 will buy you today.
Also, premium-back benefits are usually an optional extra that you pay for. This means that people have to choose to have the premium back, often for a higher premium.
Today's Sanlam Indie Wealth Bonus amount is today's money.
And if it's invested well, we expect your Sanlam Indie Wealth Bonus to keep up with, if not surpass, inflation.
Sanlam Indie Wealth Bonus is not optional because we think that everyone should get money back, rather than the select few who can afford it. So Sanlam Indie Wealth Bonus is just the way we do things. It's automatic, free and available to all our policyholders.
We don't want to restrict people to just "premium back". If someone is with Sanlam Indie for long enough, they might get MORE than their premiums back.
Say a 30-year-old gets herself a Sanlam Indie policy at a monthly premium of R1,000, which comes with a monthly Sanlam Indie Wealth Bonus contribution of R1,000 (because at this age we fully match your premium value).
If we assume her cover grows over time, we’d also expect her premium to increase by an average of 10% each year. In year 2, her premium would be R1,100, in year 3 it would be R1,210, and so on. When she turns 70, she’ll have paid a total of R5.8 million in premiums. In exchange, she would have had world-class insurance for 40 years.
The big plus that Sanlam Indie Wealth Bonus offers is that you get paid even if you don’t claim. In this case, when she turns 70, her Sanlam Indie Wealth Bonus will be worth R7.6 million (if we assume that her investment grew at 7.5% each year and that she kept her unlocked money in the benefit instead of withdrawing it). At 70, she’ll get this as cash to do whatever she wants with.
Finally, Sanlam Indie is all about financial wellness. We want you to be financially free, and we’ll help you in any way we can. We think Sanlam Indie Wealth Bonus is a great way for you to get a feel for investing. We hope Sanlam Indie Wealth Bonus will give you the confidence to think about saving and investing, so you'll feel comfortable to do that in a big way one day.
*This example is used for illustration only. Projected future value is based on average assumptions and not guaranteed. Be wary of buying any financial product based on a forecast or illustration.
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Copyright © Sanlam Indie 2022. All Rights Reserved. Sanlam Indie's product offering is underwritten by Sanlam Life Insurance Limited, a licensed life insurer & financial services provider. Sanlam Indie is a division of Sanlam Life Insurance Limited - Reg No. 1998/021121/06. Sanlam Life Insurance Limited is an authorised FSP (No. 2759). Address: 1st Floor Glacier Place, 1 Sportica Crescent, Tygervalley, Cape Town, 7530