Will my monthly payments go up over time?
Yip, it’s likely that from year to year your monthly payment (also called your premium) will go up.
The good news is that when your premium goes up, we'll add more to your Wealth Bonus too 💰!
How will my underwritten life insurance premium change over time?
Everyone’s policies are reassessed every year. This is called rerating, and at Sanlam Indie, we rerate every January regardless of when you started your policy.
That means if you get a new policy in December, your premium will likely increase the following month. If you get a new policy in January, your premium and cover will remain unchanged until the following January.
We will always give you the option to reduce your cover 🌂 at that point if you'd prefer to keep your premium flat.
How will my funeral premium change over time?
It’s a different story for funeral cover. Your premium will remain level for the first 5 years. In other words - no increases.
Then, after 5 years have passed, every January we’ll apply a 5% increase. Unlike with underwritten insurance, your cover does not increase along with the premium increase. (This doesn’t include the free doubling of your cover after you’ve had a policy for 2 years.)
Confused? Let’s take a look at an example:
Let’s say in March 2020 you take R20,000 Funeral cover for yourself at R100*.
- In January 2021, nothing changes, because the policy is less than 5 years old.
- Same thing in January 2022.
- In April 2022, your cover doubles to R40,000 automatically, but your premium stays at R100.
- In June 2023, you add your spouse to your policy for R10,000 cover. Your overall premium jumps to R150.
- In March 2025, you’ve had your policy for 5 years. Your premium stays R150.
- In June 2025, your spouse’s cover doubles. Your cover is now R20,000 for yourself and R10,000 for your spouse, and your premium is R150, still.
- In January 2026, the first January since your 5-year anniversary with us, your premium will increase by 5% for the portion that applies to your own life. So your premium will be R105 (for you) + R50 (your spouse) = R155.
- In January 2029, the first January since the 5-year anniversary after you added your spouse, the premium for your spouse will increase by 5% to R52.50. The premium for your own life would have increased by 5% each year from 2026-2029, which would bring the total to R121.55 + R52.50 = R174.05.
*These amounts are for illustration only.
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