Wealth Bonus. The best thing to happen to insurance, since insurance.
When you become a Sanlam Indie client, we do something crazy - we match up to 100% of your monthly premium in an investment, just for you, at no extra cost. Here’s what that’s all about.
Every time you pay a premium, we invest up to 100% of that premium back into you. When you skip a premium (and by the way, we’re totally cool with that), we don’t invest that month. It’s a simple (and yes, we think motivating) reason for you to pay your monthly premiums.
It’s our solution to a common problem - “If I’m spending my money on stuff like life insurance, how am I supposed to save for the future?” The Wealth Bonus is Sanlam Indie’s answer to that question. Now you don’t have to choose between protecting your wealth and creating wealth, because we let you do both by matching up to 100% of your premium into a Wealth Bonus, every month.
You may think getting your premiums back is awesome, but true story: it’s not. Remember how your grandparents could buy a car for 5 bucks or something equally ridiculous? Money loses value over time – CashBacks short change you.
It’s an insurance benefit that grows with the market just like a traditional investment. It tracks the Money Market Index - keeping up with inflation to ensure real growth over your lifetime. Start young enough with Sanlam Indie and your Wealth Bonus will eclipse your insurance premiums in the end.
The difference is the way in which you're allowed to access it. Your full Wealth Bonus (plus years of growth) unlocks when you turn 70. It's your reward for staying alive. And every 5 years, you'll be able to access 10% of it. If you die before 70 or cancel your policy, you’ll lose the portion of the investment that has not yet been unlocked.
Your premium pays for your insurance – world-class and fully-underwritten (meaning quality and guaranteed.) Sanlam Indie will invest an additional amount, with every premium - matching anywhere from 50-100%, based on your age.
If you’re under 30, we'll match your premium Rand for Rand. If you’re 55, we'll match 50c for every R1 of your premium. Point is, like any form of investing, the younger you start, the better.
You can find a full table of how much of your premium Sanlam Indie matches, right here.
Your full Wealth Bonus unlocks at age 70, as a retirement boost with years of growth. But you can access 10% of your Wealth Bonus (called a CashDrop), along with the growth every few years.
Full Wealth Bonus: Age 70 = 100% of invested amount + growth
CashDrop: 60 premiums (5 years) = 10% of invested amount + growth
Simply put, we use smarter technology than other insurers to calculate your premiums more accurately. And we cut out many of the middlemen. Usually, it’s really expensive to sell life insurance. About 30% of an average premium goes towards covering the costs of a financial advisor and the supporting staff who have assisted you. Because we're mostly digital, we don't have to pay all the extra costs and we can pass the savings to you as a Wealth Bonus.
Best case scenario: you’ll never have to claim and, if you keep your cover and keep paying your premiums until your 70th, your full Wealth Bonus will be yours just in time for that rocking(chair) party.
Worst case scenario: you may need to claim, which’ll probably mean you’re either disabled, have a very serious illness, or…um…you’re dead (sorry).
The impact your claim will have on your Wealth Bonus is going to depend on the type of claim. The Wealth Bonus is your reward for living, so if you’re worm food, it’s no longer for you.
But CashDrops that you didn’t cash out, will be paid out to your beneficiaries or your estate, along with the claim payout.
The locked part of the Wealth Bonus that you would’ve received at 70 does not get paid because, if we did that for everyone who died, we’d have to make premiums a lot higher from the start.
If you become disabled, or seriously ill, you’ll keep your Wealth Bonus as long as you stick with Sanlam Indie and continue paying your premiums until you reach age 70.