If my premium changes, how does it affect my Wealth Bonus?
Our contributions to your growing investment always match your premium with a proportionate payment: for example, we pay 100% if you’re 20-30 years old. So if your premium gets bigger or smaller, our monthly contribution will grow or shrink proportionately. The Wealth Bonus you’ve already earned remains untouched and continues to grow.
What happens if my premium increases?
As the years go by, your premium will likely increase. There are a number of reasons why.
In January each year, we calculate a new premium for your underwritten life insurance policy based on inflation and your age at that point.
Funeral premiums remain level for 5 years, but after that, we will increase your premium by 5% every January.
Another reason might be that you purposefully added more cover.
Because the amount we contribute to your Wealth Bonus is a percentage of your premium, when your premium value increases, so does the amount of Wealth Bonus we’ll contribute monthly (assuming everything else stays the same).
That said, the percentage of Wealth Bonus we match will get smaller after age 30.
What happens to my Wealth Bonus if my premium reduces?
When you reduce your premium, nothing happens to the Wealth Bonus you’ve earned so far, but the monthly Wealth Bonus contribution we add into your growing investment will drop because this is calculated as a percentage of your premium.
For example, say you were a 28-year-old paying R200 a month for your Sanlam Indie policy. At that age, we’d be matching 100% of your premium – so we’d contribute R200 a month into your investment account. If you decided to reduce your cover and started paying R150 a month, the existing Wealth Bonus would remain untouched and would continue growing. But we’d start putting R150 a month into your investment from that point on, to match your reduced premium.
Whenever you reach a CashDrop milestone, you’ll be able to draw 10% of whatever your total Wealth Bonus amount is at that point, no matter how much your contributions to the fund changed over the years.
What happens to my Wealth Bonus if I skip/miss a premium?
Skipping or missing a premium doesn’t affect your accumulated Wealth Bonus in any way. The next premium you pay, you’ll earn Wealth Bonus again. Just be sure to double check how many premiums you can skip before your policy lapses.
Your CashDrop value will also stay the same 🤙), but you'll have to wait a month longer to get it 😬 because your CashDrop becomes available after 60 premiums have been paid.
What happens to my Wealth Bonus if I cancel my policy?
If you cancel your policy or you skip too many premiums and your policy lapses, you will no longer have life insurance cover and you’ll lose any locked portions of your Wealth Bonus.
...or it lapses because I skipped too many premiums?
Same thing. Your locked Wealth Bonus is lost forever.