Download The Graduate Backpack

The Graduate Backpack
Application of the income protection
solution
2015
Insurance
Financial Planning
Retirement
Investments
Wealth
agenda
Sanlam for Graduates
•
•
•
Reminder of who qualifies
Target Markets
• Who?
• Why?
• Gaps?
Case studies- solutions to the GAPS!
SILSS Distribution Support
The Graduate Backpack
Solutions for graduates
a unique offering!
SILSS Distribution Support
The Graduate Backpack
who qualifies?
• Self-employed graduated
clients
• Employed graduated
clients
SILSS Distribution Support
The Graduate Backpack
where do we find graduates?
⧁
Government Departments
⧁ Hospitals - Nurses
⧁ Internal audit
⧁ Public Protectorate
⧁ Justice Dept.
⧁ Environmental
⧁ Water affairs
⧁ Geoscience
⧁ Forensic – SAPS
⧁ Teachers
SILSS Distribution Support
⧁
Private and semi private sector
⧁ Eskom
⧁ Telkom
⧁ Engineering – Aurecon etc.
⧁ Auditing firms
⧁ Engen – Worksite
⧁ Dimension data – Worksite
⧁ SAP Consultants – Google
⧁ Draftsman – companies
⧁ Unilever – almost all are grads
The Graduate Backpack
National focus areas …
The target
Markets
SILSS Distribution Support
The Graduate Backpack
why nurses?
⧁ Majority qualify for Sickness
Benefits
⧁ All Cities and towns have
Hospitals
⧁ Ideal for worksite marketing
⧁ Limited employee benefits
GEPF
⧁ No other life insurer offers a
“True” sickness benefit
SILSS Distribution Support
The target
Markets
The Graduate Backpack
why teachers?
⧁ Sanlam already a household name
⧁ Enormous Worksite potential
⧁ Rerated occupation class “A”
⧁ Not qualifying for SB
⧁ Very competitive rates for:
⧁ Income benefits
⧁ Temporary disability + extended + Pre and
post impairment benefit
⧁ Total and Permanent Dis income benefit
⧁ Lump-sum disability benefits
SILSS Distribution Support
Target
Markets
The Graduate Backpack
why Government employee?
⧁ Many have tertiary
qualifications
⧁ All Cities and towns have
Government Departments
⧁ Ideal for worksite marketing
⧁ Limited employee benefits
GEPF
⧁ No other life insurer offers a
“True” sickness benefit
SILSS Distribution Support
The target
Markets
The Graduate Backpack
why self-employed?
⧁ Generally, most have
ill-fitting or no financial
solution to meet the
needs of a selfemployed individual
The target
Markets
⧁ No other life insurer offers a
“True” sickness benefit
SILSS Distribution Support
The Graduate Backpack
the pitfalls for graduates…
SILSS Distribution Support
The Graduate Backpack
self employed graduate
⧁ What happens when they are unable to earn an
income?
⧁ No temporary or permanent income
benefits?
⧁ Business Pressure
SILSS Distribution Support
X
The Graduate Backpack
employed graduate (limited benefits)
⧁ What happens when they are unable to
earn an income?
⧁ There may be gaps in the
temporary and permanent
income benefits
SILSS Distribution Support
?
The Graduate Backpack
GEPF employed graduate (less than 10 years service)
⧁ What happens when they are unable to earn an
income?
⧁ No temporary or permanent
income benefits with the GEPF
(Only Lump-sum for Total and
Permanent)
GEPF employed graduate (more than 10 years service)
⧁ What happens when they are unable to earn
income
⧁ No temporary and limited
income / Lump-sum
benefits with the GEPF (Only for
Total and Permanent)
SILSS Distribution Support
The Graduate Backpack
Solutions to the GAPS!
SILSS Distribution Support
The Graduate Backpack
the solution…
SILSS Distribution Support
The Graduate Backpack
Financial planning
1. The Will
2. Settlement of the Estate
3. Care of the Family
4. Disability
5. Retirement Planning
6. Investment Planning
SILSS Distribution Support
The Graduate Backpack
Sanlam for Professionals and Graduates
⧁ Case studies
⧁ Male 40 anb with a 4 year diploma and gross income in all cases R204 000 pa
(R17 000 pm).
⧁ All premium calculations are based on the following:
⧁
Age related premium patterns
5 year guarantee period
100% administration RG 4 and disability class “A”
⧁
Debt of R1 000 000
⧁
⧁
1.
2.
3.
4.
5.
Graduate - Self-employed with no employee benefits
Graduate in private sector with no employee benefits
Graduate in private sector with limited employee benefits
Graduate in the Government services with less than 10 (9) years service
Graduate in the Government services with more than 10 (20) years service
SILSS Distribution Support
The Graduate Backpack
sickness benefit – sliding scale
Gross professional Income (annual): GPI
Up to and
Older than 55
including 55 anb anb
GPI ≤ R100 000
90%
77%
R100 000 < GPI ≤ R 300 000
85%
72%
R300 000 < GPI ≤ R 400 000
80%
68%
R400 000 < GPI ≤ R 700 000
75%
64%
R700 000 < GPI ≤ R 1 500 000
70%
60%
R1 500 000 < GPI ≤ R 4 000 000
65%
55%
R 4 000 000 < GPI
60%
51%
For
internal
use only Support
SILSS
Distribution
Financial
limits
The Graduate
Backpack
case study 1
⧁ A self-employed graduate
⧁ No benefits
⧁ No days sick leave (self employed)
SILSS Distribution Support
The Graduate Backpack
case study 1
Proposal
• Sickness Benefit 7– 30 day waiting period (If client qualifies) with 24 payments to
70 anb (R17 000 x 85% = R14 450 pm)
• Extended disability Income benefit with 24 months waiting period to 70 anb or W/L
(R14 450 pm)
• Maximise the Lump sum disability to settle debt R 1 000 000 (especially if there is
a contingent liability etc.)
Benefit
Benefit
amount
Sickness Benefit (SA) 7 day 24 payments (70)
R14 450 pm
Sickness Benefit (SA) 14 day 24 payments (70)
R14 450 pm
Sickness Benefit (SA) 30 day 24 payments (70)
R14 450 pm
Extended Disability Income Benefit (SA) (70)
R14 450 pm
Extended with Post-retirement impairment benefit (SA) (W/L)
R14 450 pm
Extended with Post and Pre-retirement Impairment benefit (SA) (W/L)
R14 450 pm
Regular Occupation Disability (SA) (65)
R1 000 000
Monthly
Premium
R165.97
R112.36
R 48.93
R141.41
R162.62
R174.01
R125.10
disability calculator
SILSS Distribution Support
The Graduate Backpack
case study 2
⧁ Employee in private sector with the following Employee Benefits
⧁ No employee benefits
⧁ 30 days sick leave in 3 year cycle
SILSS Distribution Support
The Graduate Backpack
case study 2
Proposal
• Sickness Benefit 30 day waiting period with 24 payments to 65 anb (R14
450 pm)
• Extended Disability Income benefit with 24 months waiting period to 65
(R14 450 pm)
• Maximise the Lump sum disability to settle debt etc. R1 000 000)
Benefit
Monthly Premium
Sickness Benefit (SA) 30 day 24 payments(65)
Extended Disability Income Benefit (SA) (65)
Benefit
amount
R14 450 pm
R14 450 pm
Extended with Pre-retirement Impairment Benefit (SA) (65)
Regular Occupation Disability (SA) (65)
R14 450 pm
R1 000 000
R130.20
R125.10
SILSS Distribution Support
R 47.95
R113.22
The Graduate Backpack
case study 3
⧁ Employee in private sector with the following Employee Benefits
⧁ Lump sum disability 4 x annual salary with 6 month waiting period (total
and permanent)
⧁ Income benefit 75% x annual income to 65 with 3 months waiting period
(total)
⧁ 30 days sick leave in 3 year cycle
Example
Lump sum calculation 4 x R204 000 = R816 000
Income calculation 75% GP (Not cost to company) x R204 000 = R12 750 pm
SILSS Distribution Support
The Graduate Backpack
case study 3
Proposal
• Sickness Benefit 30 day waiting period with 3 - 6 payments to 65 anb
(R14 450 pm)
Reason
• The client may be exposed as the Income benefit has a 3 month waiting
period and only payable at total disability (most EB use the own or similar
occupation definition)
Optional
• Boost the lump sum disability to settle debt etc. (R1 000 000 – R816 000
= R184 000)
Benefit
Sickness Benefit (SA) 30 day 6 months payments (65)
Regular Occupation Disability (SA) (65)
SILSS Distribution Support
Benefit amount
R14 450pm
R184 000
Monthly Premium
R46.55
R23.01
The Graduate Backpack
x
Underwriting are prepared to give this client
Sickness Benefit with a maximum payment
period of 6 months!
employee benefit…
SILSS Distribution Support
The Graduate Backpack
understanding EB
⧁ Sick leave
⧁ Generally, most companies offer 30 days SL in a 3 year cycle.
⧁ Income care benefits (total)
⧁ There is no real definition of total disability.
⧁ This total is usually assessed in the following manner:
1. Medical condition
2. Occupation/Job description (regular or suited)
⧁ Does the medical condition (totally) prevent the employee doing
their regular occupation or a suitable alternative to that regular
occupation
SILSS Distribution Support
The Graduate Backpack
case study 4
⧁ Client has 9 years service on the GEPF
⧁ 36 days sick leave in 3 years cycle
⧁ Less than 10 years service – only a lump sum benefit payable. (total
and permanent)
Not even 2 x
annual income
Example
15.5% x R204 000 x 9 x 4 = R379 440
3
SILSS Distribution Support
(No income benefit is payable)
The Graduate Backpack
case study 4
Proposal
Sickness Benefit 30 day waiting period with 24 payments to 65 anb (R14 450 pm)
Extended Disability income benefit with a 24 month waiting period to 65 anb
(R17000 x 85% = R14 450 pm)
Optional benefits
• Boost the lump sum amount to settle debts etc. (R1 000 000 – R379 440 = R620 560)
Benefit
Sickness Benefit (SA) 30 day 24 payments (65)
Extended Disability Income Benefit (SA) (65)
Extended with Pre-retirement Impairment Benefit (SA) (65)
Regular Occupation Disability (SA) (65)
SILSS Distribution Support
Benefit amount
R14 450 pm
R14 450 pm
R14 450 pm
R620 560
Monthly Premium
R 47.95
R113.22
R130.20
R 77.63
The Graduate Backpack
case study 5
⧁ Client has 20 years service to the GEPF
⧁ 36 days sick leave in 3 years cycle
⧁ Client has a lump sum and income benefits (total and permanent)
Example
Lump sum calculation 6.72% x 20 x R204 000 = R274 176
Income calculation 1 x 20 x R204 000 + R360
55
= R 6 212 pm (R74 182 + R360 / 12)
36.5% of annual
income
SILSS Distribution Support
The Graduate Backpack
case study 5
Proposal
• Sickness Benefit 30 day waiting period with 24 payments to 65 anb (R14 450 pm)
• Extended Disability income with a 24 month waiting period to 65 anb
(R17 000 x 85% = R14 450 – R6 212 = R8 238 pm)
Optional
• Boost the Lump sum amount to settle debts etc.(R1 000 000 – R274 176 = R725
824)
Benefit
Sickness Benefit (SA) 30day 24 payments (65)
Extended Disability Income Benefit (SA) (65)
Extended with Pre-retirement Impairment Benefit (SA) (65)
Regular Occupation Disability (SA) (65)
SILSS Distribution Support
Benefit amount
R14 450 pm
R 8 238 pm
R 8 238 pm
R725 824
Monthly Premium
R 47.95
R 64.54
R 74.22
R 90.80
The Graduate Backpack
Sanlam’s philosophy
SILSS Distribution Support
The Graduate Backpack
Sanlam’s guarantee …
SILSS Distribution Support
The Graduate Backpack
thank you