What happens if I have to skip a premium?
At Sanlam Indie, we don’t treat skipped premiums like traditional insurers 👴🏽 because we know "adulting" is hard and we want to help you guys deal with those occasional cashflow issues. So we've kept it really simple: the amount of cover you have depends on how many premiums you’ve paid in the last 6 months.
Let’s break it down with an example:
Say you’ve been insured with Sanlam Indie for a few months now with R600,000 Sanlam Indie Life Insurance Cover. In January you realise that all those extra presents you bought and parties you went to over December have added up. By the time your Sanlam Indie premium has to be paid on your billing date of 15th January, there is not enough money left 🤢.
If you're with Sanlam Indie, you don’t need to freak out and you don't have to start borrowing from the neighbours or scratching through all your bags and pockets for spare change to pay that January premium. All that happens is that your cover amount is temporarily adjusted. After the premium has been missed in January, we’ll confirm that you paid all your premiums except the last 1. So, out of the last 6 that were due, you paid 5. Your cover amount is therefore 5/6 x R600,000 = R500,000.
In February, we won’t try to debit two premiums 👎🏽 …just the one 👍🏽 (unless you’d like to make it up). If you’d rather skip February's premium too (because... school fees, uniforms, new gym contract, etc.) we’ll also allow that. It would mean you'll have paid 4 out of the last 6 premiums, so your cover is 4/6 x R600,000 = R400,000.
📌 Of course this can't go on forever because eventually, your cover will go right down to R0, and at that point, sadly, your policy will lapse (i.e. no more cover).
But... in this case, March rolls round and things are finally back on track 🤑 and you pay your normal premiums in March, April, May, June, July and August. By the end of August, we’ll look back and confirm that you paid all 6 of the previous premiums that were due and, just like that, your cover is back at R600,000. 🕺🏾
It’s a feature we quite like, which is why it’s part of all Sanlam Indie policies.
So, how do most insurers handle skipped premiums?
You’ve heard the story… the one your dad tells directly after yet another rendition of how he had to walk 25 km in the snow, up-hill, with one arm tied behind his back to get to school? It goes something like this…
Once upon a time your Oupa got life insurance and paid his premium for many years so there’d be cash for you guys if something happened to him. One month, your Oupa's brother-in-law got into some trouble and was struggling to cover his bills, so your Oupa gave him some cash to help out. Thing is, this meant your oupa was a bit short on cash himself and couldn’t afford to pay that month’s insurance premium. His insurer at the time (let’s call 'em Old-School-Insurance) made sure they got that missed premium the very next month by debiting DOUBLE the premium amount from his bank account. But, your Oupa didn’t have money enough to cover TWICE the premium, so the debit order bounced and, just like that, his policy was cancelled and he (and also you guys) was no longer covered.
Talk about kicking a guy when he’s down. 😩