Rerating is when an insurer reassesses your premiums. Many insurers recalculate your premiums on the anniversary of your policy start date, but at Sanlam Indie, we recalculate policies automatically in January each year.
How is Life Cover rerated?
If you get a new policy in January, your premium and cover will remain unchanged until the following January. If you take out a new policy in December, your premium will likely increase the following month.
Your premium is rerated to adjust for expense inflation and for clients who want their cover amounts to grow. When you first get a Sanlam Indie quote, your premiums and payout amounts are based on “today’s money”. But because of inflation, the same amount of money will be worth less in future, which means most clients would opt to increase their payout as the years go by to make sure they always have enough cover. And that means we also have to increase premiums.
We also rerate your premium according to your age. This is because, as you get older, the likelihood that you’ll make a claim increases. Because your life insurance premiums are based on risk, we need to increase your premiums as you get older to stay in line with this increased risk.
If you take out Disability Cover, factors such as your age, gender, smoking habits, education, income, marital status, occupation and whether or not you're into extreme sports may affect your premium.
If you want to opt out of your next automatic increase for whatever reason, you can contact us at email@example.com and let us know. In that case, we’ll keep your premiums level but we’ll reduce your cover instead. If we don’t hear from you, we’ll automatically deduct the new, increased premium amount in January on your usual payment date.
How is Funeral Cover rerated?
Funeral Cover works slightly differently. Your premium and cover will remain the same for the first year. After a year has passed, the following January we’ll increase your premium by 5% and your cover remains the same. (We’ll do this every January going forward).
The good news? Once you’ve had your same cover for 3 years, we’ll double it, but we won’t increase your premium. (If however, you increase your cover or add any family members to your policy at a later stage, your new cover will only double from the date it becomes active.*)
*This applies to new Funeral Cover policies taken out from 27 June 2022.
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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