Section A : General Information Section B : The Product ... - Sanlam

Section A : General Information 

Section B : The Product Series 

Section E : Tables and Codes 

Section G : Summaries 

March 2013

A 

GE 6/2012 1 

Page 

Aids and assurance 

: Funeral TopCover ………………………….………………. BG7 

Applicant …………………...………………………………………. AA16 

B 

Back-dating ………………………………………………………… AA8 

Beneficiary …………………………………………………………. AA18 

: Funeral TopCover ………………………………….……….. BG8 

Benefit terms 

: Investment Plans (Summary 5) ……………………….…… G6 

: Recurring premiums (Summary 1) …………………………. G2 

C 

ALPHABETICAL INDEX 

Capital Retention Option : Whole life : Plan 27 ………………. BK2 

Capital Retention Option : Chosen term : Plan 28 …………… BK6 

Cash value : General (see Illustrative values) 

: Term Annuities (Early termination/Surrendering) ………… BJ9 

Capitalising (Increasing Term Annuities) ……………………….. EC2 

Cessions …………………………………………………………… AA21 

: Funeral TopCover …………………………..………………. BG8 

Claims (admission of) : General ………………………………….. AA21 

Claims procedures: Funeral TopCover ..….………….………... BG10 

Collective investments …………………………………………… BQ1 

Conversion (total alteration) ………………………………………. AA20, AD2 

Cooling-off period …………………………………………………. AA1 

Cover levels : Funeral TopCover ……………………….………. BG4 

Cumulus Products ………………………………………………… BW 

Currency ………………………………………………….………… AA16

D 

GE 6/2012 2 

Page 

Date of payment ………………………………………….……….. AA3, AA8 

Dating of policies/plans……………………………………………. AA5 

Death Benefits: Funeral TopCover ……………………………… BG10 

Death claims: Documents Needed….……………………………. AA24 

Debit order discount (Summary 3) …………………….…………. G4 

Discount on premiums/payments………………………………… AA3 

E 

Escalating Guarantee Investment ………………………………. BL1 

Exchange control ………………………………………………….. AA16 

Ex gratia payments 

: Death before inception date ………………………………. AA22 

: Disability and Accident cover during hostile situations …. AA22 

: Claims in respect of terminally ill …………....................... AA22 

F 

Features of Stratus ……………………………………………….. BX145 

Females (rates) ……………………………………………………. AA3 

Fideicommissum ………………………………………………….. EC10 

Four-fund Dispensation …………………………………………… AD1 

Fully paid-up value (VOP) : Funeral TopCover ……………….. BG7 

Funeral TopCover ………………………………………………… BG1 

G 

Gratuity (income tax) ………………………………………………. EA7

I 

GE 6/2012 3 

Page 

Identification policy: Funeral TopCover ……………………….... BG9 

Inception ages : Investment Plans (Summary 5) ……………… G6 

: Recurring premiums (Summary 1) ………………………. G2 

Inception date (dating of policies/plans) …………….………… AA5 

: Investment Policies ………………………………………. AA5 

: Life and Term Annuities ………………………………….. 

Income Tax 

AA5 

: Deductions : Pension and Provident Funds …………… EA6 

: Retirement Annuity Funds………………… EA6 

: Funeral TopCover ………………………………………… BG7 

: General …………………………………………………….. EA1 

: Life Annuities ……………………………………………… BJ5 

: Lump sum benefits : Pension and Provident Funds ….. EA2 

: Retirement Annuities …………… EA3 

: Tables ……………………………………………………….. EA1 

: Term Annuities ……………………………………………. BJ5 

Increasing term annuities (Capitalising) ………………………… EC2 

Indexplan : Availability (Summary 4) …………………………… G5 

: Increases (Summary 4) …………………………………… G5 

Insurable interest …………………………………………………. AA17 

Interest tables ……………………………………………………… ED1 

Investment Plans (see Plans in alphabetical index) 

(Summary 5) …………………………………………………… G6, BK1

GE 6/2012 4 

Page 

L 

Lapses …………………………………………………………….. AA4 

Life Annuities : General Information (Summary 5) ..………..…. BJ1, G6 

: Calculation of monthly instalments ……………………… BJ4 

: Calculation of non-capital portion ………………………... BJ6 

: Description …………………………………………………. BJ1 

Life Annuities (continued): 

: Income Tax …………………………………………………. BJ5 

: Rates ……………………………………………………….. BJ3 

Life assured ………………………………………………………… AA16 

Life expectancy …………………………………………………… EC1 

Limited term ……………………………………………………….. AD2 

Linked Products …………………………………………………… BV 

Loan values (LW) : All policies ………………………………….. AD4 

Loyalty Bonus ……………………………………………………… BX11 

M 

Maturity ages 

: Recurring premiums (Summary 1) ……………………….. G2 

: Investment plans (Summary 5) …………………………… G6 

Minimum premiums (Summary 2) ……………………………….. G3 

Mode of payment ………………………………………………….. AA4 

Mortgage loans ……………………………………………………. EC13 

N 

Nil year certain life annuity ……………………………………….. BJ12 

Nominee (in the case of Retirement Annuities) …….………… AA19 

: Funeral TopCover …………………………………………. BG8 

Notation (revision of benefits) ……………………………………. AA20, AD2

O 

GE 6/2012 5 

Page 

One Step Cover ……………………………………………………… BR 

Options 

– After the maturity date ………………………………………… AA23 

P 

Paid-up Value (VOP) : All policies ………………………………….. AD5 

Partial withdrawal ……………………………………………………… AD3 

Pension with Capital Repayment …………………………………… BJ17 

Period of grace ……………………………………………………….. AA3 

Plan 5 ………………………………………………………………….. BJ17 

Plan 6 ………………………………………………………………….. BJ17 

Plan 27 ………………………………………………………………… BK2 

Plan 28 ………………………………………………………………… BK6 

Plans for Lesotho citizens …………………………………………… AA12 

Policy/Plan amendments …………………….……………………… AA20 

Policy fee (Summary 3) ………………………………………………. G4 

Policy loans : All policies …………………………………………….. AD4 

Policy Regulations: Restrictions (previously Section 59D) ……… AD1 

Policy terms (all policies) (see terms) 

Policy values ………………………………………………………….. AD4 

: Funeral TopCover …………………………………………….. BG7 

Premium particulars 

: Minimum premiums (Summary 2) ……………………………. G3 

Premium increases (20% rule) ……………………………………… AD2 

Premium/payment schedule (mode of payment) ………..……….. AA4 

Private Pension ……………………………………………………….. BJ16 

Projection ……………………………………………………………… ED 

: Lump Sum Investments ………………………………………. ED2 

: Annually Recurring Investments …………………………….. ED10 

: Monthly Recurring Investments ……………………………… ED18 

Proof of age (with payment of claims) ………………………………. AA21 

Proposal Forms (Summary 6) ……………………………………….. G7

R 

GE 6/2012 6 

Page 

Rates for females ………………………………………………….. AA3 

Recurring premiums (policy particulars) : General 

(Summary 1) ……………………………………………………….. G2 

Refunding of premiums/payments ………………………………… AA1 

Regulations regarding restrictions on certain policies (previously 

Section 59D) ……………………………………………………… 

AD1 

Reinstatement . …………………………………………………….. AA4 

Reinsurance . …………………………………………………….…. AA20 

Restriction period ………………………………………………….. AD2 

Retirement gratuity (income tax) …………………………………. EA5 

Revision of benefits (notation) ……………………………………. AA20, AD2 

Revisions : 

: Funeral TopCover ………………………………………….. BG10 

Stratus Rider Benefits 

• Waiver of payment at disability (OPG, OGG) ………….…. BX150 

• Waiver of payment at death (DP, DG) …….………………. BX155 

Risk products ……………………………………………………….. BZ 

RSA residents abroad ……………............................................... AA15 

RSA citizens resident in RSA …………………………………….. AA15

S 

GE 6/2012 7 

Page 

Sanlam Life Risk Products …………………………………………… BZ 

Sanlam Nimbus Investments………..…………………………………. BY1 

Sanlam Trust …………………………………………………………… BU1 

Section 1 ……………………………………………………………….. BJ5 

Section 10A (RSA) …………………………………………………….. 

Single Premiums 

BJ5 

: Minimum premium (Summary 2) ……………………………. G3 

: Policy fee (Summary 3) ………………………………………. G4 

: Policy particulars (All tables) (Summary 1)…………….. …. G2 

Stratus Composite Annuity …………………………………………… BX124 

Stratus Edufocus ………………………………………………………. BX26 

Stratus Endowment ………………………………….………………… BX4 

Stratus Endowment continuations …………………………………… BX38 

Stratus Endowment for Provident Funds ……………………………. BX105 

Stratus Continuations without life insured ……......................…….. BX48 

Stratus Guaranteed Income ………………………………………….. BX128 

Stratus Guaranteed Investment ……………………………………… BX134 

Stratus Guaranteed Return …………………………………………… BX131 

Stratus Investment Linked Pension …………………………….…… BX119 

Stratus Premier Products …………………………………………….. BX144 

Stratus with Preservation Funds ……………………………………… BX81 

Stratus with Preservation Pension Funds Continuations .…………. BX95 

Stratus Retirement Annuity …………………………………………… BX53 

Stratus Retirement Annuity Continuations ………………………….. 

Stratus Rider Benefits : 

BX69 

Waiver of payment at disability (OPG, OGG) …………………….. 

BX150 

Waiver of payment at death (DP, DG) ……………………………. BX155 

Stratus Savings Products …..................................................……… BX1 

Stratus Summaries ……………………………………………………. BX158 

Available investment funds per product according to the amount 

of the payment ………………………………………………………. BX158 

Minimum payments and product codes …………………………… BX160 

Stratus Traded Policies ……………………………………………….. BX141 

Suicide clause …………..……………………………………………… AA21 

Surrender value (see cash value) 

: General …………………………………………………….. AD2 

: Term annuities …………………………………………….. BJ9

T 

GE 6/2012 8 

Page 

20% Rule (Premium increases) ………………………………………. AD2 

Table 69: Funeral TopCover ………………………………………… BG1 

Term Annuities ………………………………………………………… BJ1 

: Calculation of monthly instalments …………………………… BJ4 

: Description ………………………………………………………. BJ1 

: General information ……………………………………………. BJ1 

: Income Tax ……………………………………………………… BJ5 

Term certain (Life and term annuities)……………………………….. BJ12 

Terms : Recurring Premiums (Summary 1) ………………………… G2 

: Investment Plans (Summary 5) ……………………………….. G6 

Total alteration (NKV)(Conversion) …………………………………. AA20, AD2 

U 

Usufructs, annuities and fideicommissum …………………………… EC10 

W 

Y 

Youths and assurance ……………………………………………….. AA18

SECTION A 

GENERAL INFORMATION 

COOLING-OFF PERIOD, PREMIUMS, DATING OF POLICIES 

AND OTHER ASPECTS OF ASSURANCE……………………………….……... 

REGULATION ON POLICY RESTRICTIONS (PREVIOUSLY SECTION 59D) 

AND POLICY VALUES………………………………………………….………….. 

GE 8/2006 A 

Section 

AA 

AD

SECTION AA 

COOLING-OFF PERIOD, PREMIUMS/PAYMENTS, DATING OF POLICIES/PLANS, ASSURANCE 

ACCORDING TO CITIZENSHIP AND OTHER ASPECTS OF ASSURANCE 

GE 3/2012 AA 

Page 

COOLING-OFF PERIOD………………………………………………….……….… AA1 

− FUNCTION…………………………………………………………….…………………… AA1 

− TECHNICAL DETAILS……………………………………………………………………. AA1 

− REFUNDING OF PREMIUMS……………………………….…………………………… AA1 

− NOTICE OF ACCEPTANCE (KVA)……………………………………………………… AA2 

− REPLACEMENT CLAUSE………………………………………………………………... AA2 

− RECOVERING OF MEDICAL COSTS INCURRED……………………………………. AA2 

− ENQUIRIES: Cooling-off period……………………………………………………….… AA2 

PREMIUMS/PAYMENTS …………………………………………………………………… 

− RATES FOR FEMALES ………………………………………………………………….. AA3 

− DISCOUNT ON PREMIUMS/PAYMENTS …………………………………………….. AA3 

− FREQUENCY…………………………………………………………………………….… AA3 

− DATES OF PAYMENT……………………………………………….…………………… AA3 

− PERIOD OF GRACE……………………………………………………………………… AA3 

− MODE OF PAYMENT…………………………………………………………………….. AA4 

− LAPSES…………………………………………………………………………………….. AA4 

− REINSTATEMENT………………………………………………………………………… AA4 

DATING OF POLICIES/PLANS …………………………………………………… AA5 

− INCEPTION DATE………………………………………………………………………… AA5 

− INCEPTION/START AND RATE DATE: Investments from death and disability 

claims ……………………………………………………………………………………… AA6 

− BACK-DATING……………………………………………………………………………… AA8 

− DATE OF PAYMENT……………………………………………………………………… AA8 

− COMMENCEMENT OF LIFE COVER…………………………………………………… AA8 

REDUCTION IN YIELD ……………………………………………………………… AA9 

− REDUCTION IN YIELD (RIY) ……………………………………………………………. AA9 

ASSURANCE ACCORDING TO CITIZENSHIP ………………………………… AA11 

− SANLAM’s POLICY IN RESPECT OF FOREIGNERS ………………………………. AA11 

− INTERNATIONAL PLANS ……………………………………………………………….. AA11 

− PLANS FOR LESOTHO CITIZENS …….………………………………………………. AA12 

LESOTHO POLICY ……………………………………………………………………….. AA12 

PRODUCTS AVAILABLE ………………………………………………………………… AA12 

WITH- AND WITHOUT-COVER PLANS ……………………………………………….. AA13 

WITH-COVER PLANS ……………………………………………………………………. AA13 

WITHOUT-COVER PLANS ……………………………………………………………… AA13 

COMPULSORY MONEY …………………………………………………………………. AA14 

PLANS FOR REFUGEES ……………………………………………………………….. AA14 

AA3 

2/…

- 2 - 

ASSURANCE ACCORDING TO CITIZENSHIP (continued) 

GE 3/2012 AA 

Page 

− POLICIES/PLANS FOR RSA CITIZENS ……..………………………………………… AA15 

RSA CITIZENS RESIDENT IN RSA …………………………………………………….. AA15 

RSA RESIDENTS ABROAD ……………………………………………………………… AA15 

− ENQUIRIES ………………………………………………………………………………… AA15 

OTHER ASPECTS OF LIFE ASSURANCE ……………………………………… AA16 

− CURRENCY…………………………………………………………………………………. AA16 

− APPLICANT…………………………………………………………………………………. AA16 

− LIFE ASSURED…………………………………………………………………………….. AA16 

− INSURABLE INTEREST…………………………………………………………………… AA17 

− YOUTHS……………………………………………………………….……………………. AA18 

− MARRIED IN COMMUNITY OF PROPERTY ………………………………………….. AA18 

− BENEFICIARY ……………………………………………………………………………… AA18 

− NOMINEE …………………………………………………………………………………… AA19 

− REINSURANCE…………………………………………………………………………….. AA20 

− POLICY/PLAN AMENDMENTS…………………………………………………………... AA20 

− CESSIONS…………………………………………………………….……………………. AA21 

− ADMISSION OF CLAIMS………………………………………………………………….. 

Proof of age………………………………………………………………………………….. 

Suicide clause………………………………………………………………………………. 

Ex Gratia Payments………………………………………………………………………… 

AA21 

AA21 

AA21 

AA22 

− OPTIONS AFTER THE MATURITY DATE…………………………………………….... AA23 

− DOCUMENTS NEEDED WHEN SUBMITTING A DEATH CLAIM……………………. AA24

Function Clients who take out new policies/plans or make changes to existing ones, have the 

right to cancel such contract documents within 30 days (the cooling-off period) of 

receipt thereof. Sanlam therefore applies 40 days from the date on the Notice of 

Acceptance (KVA). They are entitled to have premiums/payments refunded subject 

to market fluctuations (in the case of single premiums/one-off payments) - after 

deduction of the cost of any risk benefits. 

Technical 

details 

Refunding of 

premiums/ 

payments 

The cooling-off period applies to the following transactions: 

− New business 

− Notations 

− Conversions (total conversions/NKV’s) 

The cooling-off period does not apply in the following cases: 

− Provident fund policies/plans * 

− Compulsory purchases in terms of life annuities, term annuities and 

investment plans * 

− Preservation fund and retirement annuity policies/plans where it is a transfer 

from another retirement fund and such fund is not prepared to reverse the 

transfer. With a retirement annuity policy/plan a cooling-off is also not 

allowed where a member already received a contribution certificate for 

contributions he/she made. 

− Cash withdrawals 

− Surrenders 

− Making policies fully paid-up automatically or on request 

− Growth letters with regard to Indexplan/payment growth 

− Continuations 

− A notation where limits we applied in terms of the ASISA Code of Conduct in 

the case of a disability claim 

− Reissued policies/plans 

COOLING-OFF PERIOD 

− Endorsements and other contractual removals. 

Please Note: However, an insurer may implement the cooling-off period even 

on the exempted products and transactions. 

* These products may in terms of law not be surrendered. 

Single premiums/One-off payments: 

Money will be withheld only when market conditions resulted in negative growth 

during the period of issuing to the cancellation of the policy/plan, and to pay for the 

costs of any risk benefits that the insured had (if applicable). 

Recurring premiums/payments: 

Risk premiums will not be withheld on recurring-premium policies or plans with 

recurring payments at present. However, in terms of the Policyholder Protection 

Rules (PPR), Sanlam reserves the right to withhold risk premiums for the period for 

which cover was enjoyed (inception to cancellation date). 

GE 3/2012 AA1

Notice of 

Acceptance 

(KVA) 

Replacement 

clause 

Recovering of 

medical costs 

incurred 

Enquiries: 

Cooling-off 

period 

The letter of acceptance of assurance, the KVA, will in future provide the 

policyholder/planholder with the following information regarding the cooling-off 

period: 

• The policyholder/planholder has the right to cancel the contract document within 

30 days (the cooling-off period) of receipt thereof. Sanlam therefore applies 40 

days from the date appearing on the KVA letter. 

• In the case of a single-premium policy/plan with one-off payment an amount may 

be recovered to provide for a deterioration in market conditions and to pay for the 

costs of any risk benefits that the insured had (if applicable). 

• The policyholder/planholder must advise Sanlam in writing if the policy or plan 

must be cancelled. The contract document with the word “cancel” written across 

it must be sent to Sanlam together with the written notice. 

• The KVA’s of policies/plans which have been ceded are sent to both the insured/ 

applicant and the cessionary (new owner). The policyholder/planholder cannot 

cancel the policy/plan without the cessionary’s permission. 

The replacement clause and everything relating to it is also applicable to 

cancellations within the cooling-off period. This includes both internal and external 

replacement of assurance. 

In some cases the costs for the clients’ medical examinations are collected from 

intermediaries. 

The commission accounts of intermediaries will be debited by these costs in the 

following instances: 

• Cases that are handled by the Client Contact Centre 

If medical examinations are done in respect of a policy proposal/plan application, 

as is sometimes required in terms of Sanlam Life’s policy, but 

− the policy/plan is cancelled with effect from the inception date/start date; 

− no premiums were paid or payments were made; or 

− all premiums or payments have been refunded, 

the intermediary’s commission account will always be debited by the medical 

fees that have been paid for these examinations. 

However, if the policy/plan is cancelled during the cooling-off period, the medical 

costs will not be recovered from the intermediary. 

• Cases that are handled by New Business: Medical Remuneration 

The debiting of intermediaries’ commission accounts is done on the 

recommendation of the underwriters if 

− pathology tests have been arranged, but the application form has not been 

received within 21 days; 

− the insured does not keep his or her appointment with the doctor without a 

valid reason, but the doctor still expects to be remunerated; 

− the intermediary arranged for unnecessary or incorrect medical examinations; 

− an account is received and the intermediary neglects to submit the medical 

report without a valid reason; or 

− an application is cancelled or has not been finalised without a valid reason. 

Sanlam Personal Finance : Client Solutions : Product Support, Telephone number: 

(021) 916-3082 

GE 3/2012 AA2

Premiums/payments are the money paid in exchange for the insurance benefits offered. There are 

several ways of paying premiums or making payments, as well as stipulations and conditions for the 

payment thereof. 

Rates for 

females 

Discount on 

premiums/ 

payments 

The same rates are used for males and females except that a female’s age next 

birthday is reduced by seven years. To determine whether the benefit is available, 

the actual age next birthday should be used. 

• No company or intermediary may encourage a client to purchase assurance by 

granting rebates on published premiums/payments or by allowing any other 

benefit which could be regarded as such a rebate. 

• It is against the law to pay any premiums/payments on behalf of a prospective 

applicant out of your own pocket or to pay him/her to take out assurance on 

his/her life. The applicant may never be encouraged by the possibility of 

financial gain to take out assurance on his/her life. 

• In terms of the same act the person offering such payments is guilty of an 

offence. 

Frequency Recurring premiums/payments: 

Dates of 

Payment 

Period of 

grace 

PREMIUMS / PAYMENTS 

Premiums/payments can be paid in instalments monthly, quarterly, half-yearly or 

annually in advance. Premiums/payments for other premium or payment 

frequencies (life and term annuities excluded) are calculated as follows: 

Quarterly premium/payment = Monthly premium/payment x 3,00 

Half-yearly premium/payment = Monthly premium/payment x 5,85 

Annual premium/payment = Monthly premium/payment x 11,40 

Notes: 1) The full monthly contractual premium/payment is used. 

2) Policy or plan charge and premium/payment for loadings and rider 

benefits are included. 

3) The premium/payment must be rounded off to the nearest cent. Debit 

order discount is then applied. 

Single Premiums/One-off payments: 

Instead of a recurring premium/payment, a single premium/one-off payment (one 

amount) can be paid in the case of certain policies/plans. 

• The first premium/payment is payable on or before the commencement date of 

the policy/start date. 

• Further premiums are payable on the first day of the calendar month in the case 

of Legacy-policies. For Matrix and Stratus plans the payment date may be any 

day of the month, and is on the same day every month, or on the same day 

according to frequency (eg. 5 June every year for payment and inception date 

5 June for annual method of payment). 

• Premiums must be paid or payments must be made up to the benefit cessation 

date or cover cease date, or until the assured dies or the proceeds become 

payable. 

• Premiums/payments are always payable on the first day of a month in the case 

of Legacy-policies. For Matrix and Stratus plans it may be any day of the month, 

as explained in "Dates of Payment" above. 

• For premiums/payments paid after the commencement date/start date, Sanlam 

currently allows the following days of grace for the payment of 

premiums/payments: 

− Monthly premiums/payments : 15 days 

− Other frequencies.payments : 35 days 

GE 3/2012 AA3

Mode of payment 

Cash A policyholder/planholder can pay the premiums/payments in 

cash at any contracted bank (at present ABSA or First 

National Bank), an ATM or via the Internet. This mode of 

payment must be avoided as far as possible as statistics 

have shown that more lapses occur with this mode of 

payment than with other modes. 

Stop-order Some employers are willing to transfer life assurance 

premiums/payments, retained from the salaries of their 

employees, to the assurer. 

Debit Order • A policyholder/planholder may request and authorise the 

assurance company to collect premiums/payments 

regularly against his/her bank account. 

Premium-/ 

Payment 

schedule 

Lapses Legacy 

GE 3/2012 AA4 

• A debit order discount of 1% to 3% on the contractual 

premium (policy fee included) of Legacy policies (Funeral 

TopCover, One Step Cover and One Step Retirement 

Plan excluded) are granted. The premium is rounded off 

to the nearest cent. (Consult Section G, in respect of 

debit order discount.) 

• If the first premium is collected in cash and submitted 

with a debit order, the debit order discount also applies to 

this premium. The reduced premium in the case of 

payment by debit order, applies only for as long as 

Sanlam’s policy regarding debit order discount remains 

unchanged. 

• This mode of payment is available only to employers with 

a registered scheme consisting of recurring-premium 

policies or plans with recurring payments for their 

employees, i.e. Central Provident Fund and Retirement 

funds (the latter is a retirement annuity scheme for groups 

of at least 5 members). The employer sends a cheque 

monthly in advance together with a schedule of all policies 

covered by the cheque. The registration number of the 

employer must be quoted on the schedule. 

• The employer is granted a collection commission of 

2½% per premium/payment. The employer has the option 

of using it to the credit of the employee’s policies/plans or 

deducting it from the premiums/payments (i.e. to the 

benefit of the employer). 

A policy shall lapse and contractually provide no further assurance benefits, if 

− the premiums are not paid within the required days of grace, and the 

policy does not have a cash value (where applicable), or 

− the debt against the policy exceeds the cash value (where applicable). 

Lamda 

Reinstatement Legacy 

As soon as the plan’s fund value has dropped below the prevailing minimum 

for the relevant product, the plan will lapse. 

A policy which has lapsed or has been converted into a fully paid-up policy, 

may be reinstated on conditions set by Sanlam Life. This may include proof 

of assurability.

Inception date 

– For Legacy 

policies 

Start date 

– For Stratus / 

Cobalt for 

Professionals 

Savings products 

and Matrix / Cobalt 

for Professionals / 

Glacier Risk Cover 

plans: 

Recurring-premium policies 

• Policies are always dated the first day of the month. 

• The client chooses the inception date. With Legacy policies this may not 

be before the first day of the month following the later of: 

− Sanlam’s acceptance of the application, or 

− receipt of the first premium. 

Single-premium policies 

Escalating Guaranteed Investment 

The inception date is determined according to the date on which the single 

premium is paid in at the bank: 

GE 3/2012 AA5 

− If the money has been paid in from the first up to and including to the 

25 th of a month, the inception date is the first day of the following 

month. 

− If the money has been paid in after the 25 th of a month, the inception 

date is the first of the month which follows the next month (see note in 

respect of interest below). 

Life and term annuities (part of an investment plan or on its own) 

The inception date is determined by the date on which the capital amount is 

paid in at any contracted bank (at present ABSA or First National Bank), an 

ATM or via the Internet: 

− On or before the 15 th of a month: 

First day of the month on which the capital amount was received. 

− After the 15 th of a month: 

First day of the month following the month in which the capital amount 

was received. 

Investment Plans 

DATING OF POLICIES / PLANS 

For Capital Protection Option : Whole life (Plan 27) and Capital 

Protection Option : Chosen term (Plan 28), the inception date of the wholelife 

policy is always one month later than that of the life annuity. 

Note in respect of interest: 

In the case of Escalating Guaranteed Investment, Sanlam Life will add any 

interest on the premium from the payment date to the inception date as 

growth to the policy. 

In the case of Life Annuities, Term Annuities and Investment plans no interest 

is payable. 

The determination of the start date in the case of Stratus/ Cobalt for 

Professionals Savings Products and Matrix / Cobalt for Professionals / Glacier 

Risk Cover plans are shown per product in Section BX, BV and BZ.

INCEPTION/START AND RATE DATE: Death, disability and maturity claims 

(For investments where the capital amount is derived from a Sanlam policy/fund/plan) 

The policy set out below applies to an investment derived from a Sanlam policy/fund/plan and the 

money was not paid already, but in Sanlam's possession until the decision about its allocation was 

made. The origin of the purchase sum determines the way in which the inception date/start date and 

applicable rates are determined. 

Death claim 

derived from a 

legacy policy 

Disability claim 

derived from a 

non-RA policy 

Disability claim 

derived from an 

RA policy/plan 

Stratus Plans 

(non RA) 

Inception 

date 

GE 3/2012 AA6 

The inception date of the life annuity is the 1 st of the month that 

follows on the date of death. If the date of death is the 1 st of a 

month, the inception date of the life annuity will be on the same 

date. 

Rate date The date used to determine the life annuity rate is the date of 

death. 

Inception 

date/Start 

date 

The date on which the disability claim becomes operative (also in 

the case of claims admitted retroactively). 

Rate date The date used to determine the life annuity/ term annuity rate is the 

date on which the disability claim was admitted. 

Inception 

date 

The date on which the disability claim becomes operative (also in 

the case of claims admitted retroactively). 

Rate date The date used to determine the life annuity rate is the date on 

which the disability claim was admitted. 

Start date The date on which Sanlam life receives notice of the death of the 

life assured. 

Benefit at 

death 

− The benefit payable at death is equal to the fund value on the 

date on which Sanlam Life receives notice of the death of the 

life assured. 

− If a death guarantee is chosen (it was a choice with Stratus 

policies issued on legacy), the death benefit will never be less 

than the initial amount, provided no loans or cash withdrawals 

was made.

Sanlam policy/ 

plan that 

matures and 

where the 

maturity value is 

available for 

investment in 

Sanlam’s 

Investment 

Plans, Life 

Annuity or Term 

Annuity 

Transfers from 

a Pension or 

Provident Fund 

Earliest 

application 

date 

Inception 

date/Start date 

GE 3/2012 AA7 

When client receives the maturity letter for the Sanlam policy 

that is maturing. 

The first day of the month following the month in which the 

Sanlam policy/plan matures. 

Rate date Approximately 8 weeks before a Sanlam policy/plan reaches 

maturity, the policyholder / planholder is informed of his/her 

various options by letter. 

• If the client accepts a quotation in respect of the application 

of the maturity amount any time from 8 weeks before 

maturity date, Sanlam guarantees the prevailing rates 

until the maturity date of the policy/plan. 

• It applies to policies/plans in any investment fund(s). In the 

case of a market-related policy which matures, it must be 

remembered that it is only the guarantee rate and/or rate for 

the particular product in which the money is reinvested that 

is guaranteed, and not the maturity value of the marketrelated 

policy. 

• The requirements to qualify for the above guarantee, are as 

follows: 

− The money must come from a maturity claim (or 

advancement) – it must therefore be an internal Sanlam 

Life transfer. 

− A fully completed and signed application form must be 

submitted. 

− A valid computer quotation must be provided. (On the 

quotation, the inception date/start date of the new 

policy/plan must be entered as the payment date). 

The purchase sum in the case of market related policies, 

is equal tot the illustrative maturity value quoted in the 

maturity claim letter. When the actual maturity value of 

the maturing policy is known, the quotation is 

recalculated using the actual maturity value as the 

purchase sum. 

− The application documents (application form, quotation, 

etc.) must be handed in and stamped at a Sanlam office 

within the validity period of the quotation – three working 

days. 

Approximately 8 weeks before an RA policy/plan attains 

maturity, the member is informed by letter of his or her various 

options: 

• The policy applies as for non-RA policies/plans. 

• If the option letter reaches Sanlam Life after the given date, 

the life annuity rates are determined according to the date 

on which the signed application form is received at Sanlam 

Life (the stamp date). If the Sanlam stamp date is later than 

the inception/start date, the inception/start date is used to 

determine the rates. 

Inception date • If the purchase sum (optional or compulsory money) comes 

from Sanlam’s Employee Benefits Sector, the date of 

payment is regarded as the date on which the money is 

transferred to Sanlam Life. 

• The date on which Sanlam Life receives the money (interest 

included, if applicable), determines the inception date/start 

date. 

Rate date The date on which Sanlam Life receives the money.

Back-dating Recurring-premium policies/plans with recurring premium payments 

Recurring-premium policies and plans with recurring payments may be backdated 

at the request of the applicant for the following periods (refer to notes 

regarding back-dating): 

• Ordinary assurance: 

− Policy term/Initial term 5 years: No back-dating is permissible. 

− Policy term/Initial term 6 years or longer: For a maximum of one year. 

• Retirement annuities: Up to the start of the member’s tax year. 

Notes regarding back-dating: 

1) In the case of terms of more than 15 years, no interest is charged on 

outstanding premiums/payments. 

2) In the case of terms of 15 years or less, interest is, however, charged on 

outstanding premiums/payments, except where back-dating is not more than 

GE 3/2012 AA8 

− 3 months in the case of policies/plans without life cover, and 

− 6 months in the case of policies/plans with life cover. 

Single-premium policies/plans with one-off payment 

Back-dating is not permissible. 

Date of payment The payment date is always the date on which the first premium/payment or the 

capital amount or one-off payment has been paid in at any contracted bank (at 

present ABSA or First National Bank), an ATM or via the Internet. 

Commencement 

of life cover 

Life cover usually commences on: 

• Sanlam’s acceptance of the application, 

• the receipt of the first premium/payment, or 

• the inception date/start date of the policy/plan, 

whichever happens to be last.

REDUCTION IN YIELD (RIY) 

WHAT IS "REDUCTION IN YIELD"? 

The RIY reflects the extent to which the investment return on the policy will be reduced by charges 

against the policy until the option date. This does not include the effect of taxation on the investment 

return. The lower the RIY, the cheaper the plan. 

CHARGES TAKEN INTO ACCOUNT 

The following charges are taken into account in determining the RIY: 

• Initial marketing charge (if applicable) 

• Monthly plan charge 

• Yearly administration charge (fixed and variable) 

• Asset management charge 

• Performance charge 

• Yearly guarantee charge (if applicable) 

TEST WITH QUOTATIONS 

SanQuote determines according to the RIY whether an endowment, retirement annuity, linked 

investment or linked retirement annuity quotation is available or not. If the RIY does not meet the 

requirements in the tables below, the quotation will be declined. 

RIY LIMITS 

REDUCTION IN YIELD 

The following limits apply to endowment, retirement annuity and linked retirement annuity plans: 

Initial term RIY limit 

5 years 5,50% 

10 years 5,00% 

15 years 4,50% 

20 years 4,00% 

25 years 3,75% 

30 years 3,50% 

35 years and longer 3,25% 

Because planholders of linked endowment plans are taxed on the proceeds in their own capacity, the 

following limits apply to linked endowment: 

Initial term RIY limit 

5 years 6,00% 

10 years 5,50% 

15 years 5,00% 

20 years 4,50% 

For terms between those mentioned above, interpolation is done to determine the RIY limits. 

GE 3/2012 AA9

The RIY is calculated according to the chosen investment funds and tested against the limits for the 

chosen term. If the RIY exceeds the limit above by 0,5% or more, a quotation will not be provided. 

If the RIY exceeds the applicable RIY limit by less than 0,5%, a quotation can be obtained, but a 

warning to this effect will be indicated on the quotation. 

FREQUENCY OF PAYMENTS 

The limit tests apply to recurring as well as one-off payments, the combination products included. 

However, it does not apply to continuations and conversions. 

SUGGESTIONS TO OBTAIN A BETTER RIY 

• Choose investment funds with lower fund management charges. Sanlam's own investment funds 

are usually cheaper than most external investment funds. 

• Increase the payment. 

• Add payment growth. 

• Choose a longer initial term. 

• Amend the method of payment from stop order to debit order. The 3,5% payment charge on stop 

orders, increases the RIY. 

GE 3/2012 AA10

ASSURANCE ACCORDING TO CITIZENSHIP 

SANLAM'S POLICY IN RESPECT OF FOREIGNERS 

Foreigners can apply only for Stratus/ Cobalt for Professionals Savings products, Matrix / Cobalt for 

Professionals Risk Cover plans, One Step Cover, One Step Retirement Plan and Funeral TopCover. 

No other insurance will be considered for these persons. 

A valid visa to work in the RSA is required. For risk products, a "Foreigner Client Questionnaire" 

completed in full is also required. The following special clause is applicable to these clients and is 

placed on all new with risk plans. 

"At the time of application, the life insured was living in South Africa as a foreigner with either a valid 

temporary residence permit or official exemption from it. Because of this limited residence status, the 

benefits of this plan will be restricted to claim events in South Africa only. 

This limitation will no longer apply if the life insured at any stage obtains 

• an identity document issued by the South African government for foreigners with permanent 

residence, or; 

• South African citizenship. 

If the life insured leaves South Africa, it is the planholder's responsibility to request us in writing to end 

the plan, or to remove the life insured from the plan (if more than one life insured applies to the plan). 

We will not refund any payments the planholder fails to notify us. 

INTERNATIONAL PLANS 

Conditions to qualify for Stratus International Endowment 

RSA citizens • Must reside in the RSA, and therefore have an RSA address and a bank 

account in the RSA, from which the payments can be made. 

• Must be 18 years or older. 

• Must be able to obtain a tax clearance certificate. 

• Must be able to obtain exchange control permission. 

Non-RSA citizens Stratus International Endowment is not available to a non-RSA citizen if he/she 

does not have an RSA identity number. 

• The 11th digit from left in the identity number indicates a person's citizenship, 

namely: 

0 = RSA citizen 

1 = Non-RSA citizen 

2 = Refugee 

• If the applicant has an RSA ID document with an RSA ID number (1 in 11th 

position) he/she qualifies for any products for which RSA citizens qualify. 

NB: The rest of this chapter (AA) deals mainly with policies and plans other than the 

International Endowment. See section BX. Also where indicated, it only applies to 

Stratus / Cobalt for Professionals Savings products and Matrix / Cobalt for Professionals 

Risk Cover plans. 

GE 3/2012 AA11

PLANS FOR LESOTHO CITIZENS 

LESOTHO POLICY 

All conditions described in this section are according to current Lesotho policy. 

PRODUCTS AVAILABLE 

The following products are available for Lesotho citizens: 

• Stratus / Cobalt for Professionals Savings products 

− Stratus Endowment (with or without waiver of payment at disability) 

− Stratus Retirement Annuity (with or without waiver of payment at disability) 

− Stratus Edufocus (with or without waiver of payment at disability and/or death) 

− Stratus Preservation Funds (Stratus Pension Preserver and Stratus Provident Preserver) 

− Stratus Guaranteed Income 

− Stratus Guaranteed Return 

− Stratus Guaranteed Investment 

− Stratus Traded Policies 

− Stratus Endowment for Provident Funds 

• Matrix Risk Cover 

Matrix Topcover and Matrix Termcover with the following benefits (normal permissible combinations 

apply) 

− Death 

− First Death 

− Final Expenses 

− Accidental injury 

− Accidental death 

− Accidental disability 

− Disability for regular occupation 

− Disability for regular and reasonable alternative occupation 

− Functional impairment 

− Physical impairment 

− Whole life physical impairment 

− Functional impairment plus disability for regular occupation 

− Functional impairment plus disability for regular and reasonable alternative occupation 

− Core Dread Disease 

− Comprehensive Dread Disease 

− Whole life Core Dread Disease 

− Whole life Comprehensive Dread Disease 

− Waiver of payment at disability 

− Waiver of payment at death 

− FutureCover 

− Sickness 

− Income protector products 

GE 3/2012 AA12

• One Step Cover 

• One Step Retirement Plan 

• Funeral TopCover 

WITH- AND WITHOUT-COVER PLANS 

• The business must be written on RSA territory and will be subject to Sanlam Life's normal 

underwriting and administrative rules and policy. 

• "LESOTHO" must be written clearly on the front of the application form for identification purposes. 

• Recurring payments may only 

− be paid per debit order, and 

− be paid through a South African bank that has a branch office in Lesotho. 

• The current policy regarding money laundering must be followed. In the case of one-of payments 

the origin or source of the money must be declared in writing and included with the application, 

regardless of the normal rules for money laundering (FICA). 

WITH-COVER PLANS 

(At present only Stratus / Cobalt for Professionals savings plans with waiver of payment benefits and 

Matrix / Cobalt for Professionals Risk Cover plans, One Step Cover, One Step Retirement Plan and 

Funeral TopCover) 

The following additional rules apply: 

• Rate classes permissible: 

− Rate Group 5 



• The following documents must be submitted with the application: 

− A copy of the passport 

− A original letter from the Department of Home Affairs of Lesotho in which the following are 

confirmed: 

• That the passport is valid. 

• That the passport number corresponds with their records. 

• The letter must be verified by a stamp from the Department. 

− One of the following proofs of income, dated and signed by the client: 

• Salary statement 

• Letter of appointment 

• Other documentary proof 

Exception: Persons who qualify for rate group 5 does not have to supply this proof. 

• Medical examinations must be done on RSA territory, unless specifically requested otherwise by 

Sanlam Life. 

− Blood for blood tests may be drawn at Dr Voight's surgery in Maseru. 

− The ASISA protocol must be strictly observed. 

WITHOUT-COVER PLANS 

The following additional rules apply: 

• No proof of income is necessary. 

• A copy of the passport must be attached to the application. 

GE 3/2012 AA13

COMPULSORY MONEY 

• The following policy applies when a Lesotho citizen wants to invest compulsory money with Sanlam 

Life: 

If pension or preservation fund money 

is received from a … 

GE 3/2012 AA14 

Then the money must be 

transferred to a … 

RSA fund as a result of resignation Stratus / Cobalt for Professionals RA 

RSA fund as a result of reduction in staff 

numbers 

RSA fund as a result of retirement Non-Stratus investment 

RSA RA plan (Stratus) (Plans 2, 3, 5, 6, 27, 28, and 

Guaranteed CPI Life Annuity (only 

from Sanlam RA)) 

• The client must always provide the following: 

− Passport 

− Application form, signed on RSA territory 

− RSA bank information, for an investment with an income, so that the income can be credited. 

NB: Only non-Stratus life annuities are currently available with Sanlam Life. Until Stratus life 

annuities become available, non-Stratus life annuities are available to Lesotho citizens for 

compulsory money. 

PLANS FOR REFUGEES 

Refugees living in South Africa may apply for the following plans: 

• All Stratus / Cobalt for Professionals savings products 

• Risk cover products (Matrix and Cobalt for Professionals risk products, One Step Cover, One 

Step Retirement Plan and Funeral TopCover). 

Recurring as well as one-off payments are allowed for Stratus / Cobalt for Professionals savings 

products. 

The life insured must have a valid RSA refugee identity document. A risk cover application is further 

subject to a fully completed Foreign Client Questionnaire (AE4006). 

Applications are also subject to the normal new business requirements applying at the time of the 

application. 

All Risk cover products are going to be issued with a foreign clause which will limit cover to RSA 

territory. 

Normal FICA rules apply.

POLICIES/PLANS FOR RSA CITIZENS 

RSA CITIZENS RESIDENT IN RSA 

• An RSA identity number is compulsory in the case of new and existing assurance for persons 18 

years and older. One of the following original documents is required as proof of identity: 

− an RSA identity document, or 

− a valid RSA passport. 

The new card-type driver’s licence issued by the Department of Transport in the RSA, is not 

accepted. 

If one of the above cannot be provided, the assured will have to submit the following: 

− a valid temporary identity document issued by the Department of Home Affairs. 

• The policy is applicable to all Sanlam Life products. This includes pure savings plans. 

• The policy is also applicable to applicants, assureds, co-assureds, stop order payer, person as debit 

order payer, cessionary, beneficiary in the case of ordinary insurance, nominee in the case of RA 

insurance and funeral benefit beneficiary in the case of rate group 1 applications. 

• If an exception to the policy is requested, it must be referred to the relevant Production Manager: 

New Business. 

RSA CITIZENS ABROAD 

• Existing policyholders/planholders enjoy full cover during their stay abroad – provided the policy or 

plan does not contain a specific restriction in this regard (Sanlam’s policies/plans usually do not 

contain such restrictions). 

• Prospective clients can in certain circumstances obtain cover while they intend being abroad for long 

periods. 

• The prospective client must indicate on the application form (existing question in health declaration) 

whether he/she currently resides outside the borders of the RSA and whether he/she intends living 

outside the borders of the RSA for more than 6 months. If the answer is “Yes”, and the application is 

for a risk cover policy or plan, a specific form (EV107) has to be filled in to prevent a delay in the 

issuing of policies/plans. (This form is obtainable from your nearest Sanlam Office.) 

• The outcome of the application will depend on the country/countries involved. The proposed 

assured could be accepted immediately, or the application could be deferred until he/she has 

returned to the RSA. 

• When an RSA citizen who is living and working overseas, proposes for a Sanlam policy/plan, the 

application may be signed overseas. The client must then sign each page of the application form 

before faxing or sending it by e-mail. 

• If, however, Sanlam requires an HIV test in the case of risk cover policies/plans, the HIV test must 

be done in the RSA. 

Notes: 1) From the point of view of assurance risk the conditions in foreign countries must be taken 

into account in the underwriting process. 

2) It would therefore be advisable first to discuss such cases with your underwriter. 

ENQUIRIES 

Direct all enquiries to the Chief Underwriter at the respective Client Services Offices. 

GE 3/2012 AA15

Currency RSA policies All amounts owed to and by Sanlam, will be paid in the RSA 

(regardless of where the applicant may reside) in the currency of 

the Republic of South Africa. 

Exchange 

control 

OTHER ASPECTS OF LIFE ASSURANCE 

GE 3/2012 AA16 

Should the policyholder/planholder want to have the policy/plan 

benefits transferred to another country, he/she will have to 

arrange for this to be done in accordance with the normal 

exchange control regulations. 

Applicant • Any person proposing a policy/plan on his own life or on the life of somebody 

else is called the applicant. 

• If the policy/plan is issued on his own life, he is at the same time the life 

insured. 

• The applicant is the policyholder/planholder. 

• The applicant (policyholder/planholder) can deal with the policy/plan without the 

consent of the life insured. 

• The applicant is responsible for making payments or the payment of premiums. 

However, the premium payer or person making payments can be someone other 

than the applicant. 

• The proceeds of the policy/plan are payable to the applicant 

(policyholder/planholder). 

• The rights of the policyholder/planholder can be transferred to another person 

(the cessionary) by means of a cession. See “Cessions” further in this section. 

• Sanlam only corresponds with the policyholder/planholder regarding policy/plan 

matters. 

• The policy/plan is not terminated at the death of the applicant in cases where the 

applicant is not the insured. If the applicant was the premium payer/person 

making payments, another person should continue to pay the premiums or to 

make payments. 

Life assured • The life insured is the person whose life is insured and who has been medically 

underwritten if a policy/plan offers cover. 

• When the life insured dies the policy/plan is always terminated if he/she was the 

only life insured.

Insurable 

interest 

Insurable interest can generally be defined as the right to insure. This means that 

the applicant must be in a legally recognised relationship with the person to be 

insured and in terms of which he or she will suffer a monetary loss when an event 

takes place against which he or she is insured. 

The important concepts in this definition are: 

• Legally recognised relationship 

• Monetary loss 

• Claim event 

What is a recognised relationship? 

Each case must be dealt with on the basis of the facts and circumstances. NB: A 

recognised relationship without a potential financial loss is not a recognised 

insurable interest. Relationships deemed acceptable and which already have been 

established over the years in the insurance industry, are: 

• Individuals on their own lives; 

• Husband and wife; 

• Parent-child relationship: Although it is a recognised relationship, in this case a 

distinction must be made between dependent and non-dependent children. 

Sanlam Life will not accept applications where the child is not a dependant, 

except if it can be proven that the one party is dependent on the other; 

• Partners on each other’s lives; 

• Company on the life of an employee; and 

• Creditor on the life of the debtor. 

How is the value of the monetary loss determined? 

Sometimes it is an obvious amount, eg a loan, while in cases where the business, for 

example wishes to insure an employee's life, the amount that would be regarded as 

a fair amount is debatable. Different calculation methods have been developed over 

the years and each has its advantages and disadvantages. However, it is important 

to Sanlam Life that future risks be managed on an acceptable level, and that is why 

Sanlam Life is not necessarily prepared to accept all the methods used. Guidelines 

have been drawn up for acceptable procedures and if cases are received where 

these guidelines are not followed, said cases will be considered on their merit. 

Sanlam Life, however, reserves the right to limit applications’ cover amounts to 

acceptable levels. 

If there is uncertainty about whether an insurable interest exists or not, contact your 

nearest market specialist / legal consultant or underwriting office. 

What are acceptable claim events? 

The circumstances and the needs that have been exposed, will determine the 

solution. Sanlam Life is not prescriptive about this, but a solution must make sense. 

Must the insurable interest still exist at the claim stage? 

No, the law requires that insurable interest must be proven on the application date. 

Should it disappear during the life of the policy/plan, this does not affect the 

policy’s/plan's legal validity. From a risk perspective, Sanlam Life can contractually 

require at the application stage that a policy’s/plan's term be restricted if it is already 

clear then that the need for cover will exist for a limited period only. It will, for 

example not make sense to propose a whole-life policy/plan if a loan must be paid 

back over a chosen term. 

GE 3/2012 AA17

Youths • Up to the day before a person's 18 th birthday, he/she must be assisted by his/her 

parent or guardian when he/she wishes to take out assurance on his/her own life. 

The parent / guardian must therefore countersign in the relevant space on the 

application form. 

Married in 

community of 

property 

Beneficiary 

(Ordinary 

assurance – Non- 

RA) 

• As soon as a person reaches 18, he/she may take out an insurance policy 

(including any contract) without the assistance of a parent or guardian. Such 

person may also sign an application as a life insured without any assistance. 

A policyholder/planholder married in community of property, may not deal with his/ 

her policy/plan without the written permission of his/ her spouse. “Deal with” refers, 

inter alia, to surrendering, taking out a loan, ceding or converting the policy or 

exercise options at maturity. 

• In the case of ordinary assurance (non-RA), the policyholder/planholder may 

appoint a beneficiary to receive the benefits payable under a death claim. 

• This appointment can be revoked up until the death of the life insured. 

• The nomination must be in writing, and have been signed by the policyholder 

/planholder prior to the death of the life insured. Such a nomination will be valid 

only when it is received at Sanlam Life's head office at Bellville. 

• Should there be a collateral cession on the policy/plan, the nomination of a 

beneficiary will not lapse, but the rights of the cessionary will have preference 

over any rights that the beneficiary/beneficiaries may acquire in respect of the 

death benefit. 

GE 3/2012 AA18

Nominee 

(Retirement 

Annuity 

Assurance – RA) 

• In the case of Retirement Annuity Assurance (RA), the assured may nominate a 

dependant or another person as nominee to receive the death benefit. 

• There is no restriction on the number of nominees that may be appointed. 

• As required by the Pension Funds Act, any amount payable as a result of death 

must be paid 

− to any or all of the dependants of the life insured, or 

− if the life insured has appointed nominees who are not dependants, then to 

any or all of the dependants and nominees. 

The trustees of the Fund will decide whether the needs of dependants have been 

adequately provided for. They will therefore decide each dependant's share of 

an amount payable. If a nominee is not a dependant, the trustees will also 

decide to what extent the nominee will share with the dependants in an amount 

payable. 

Dependants are: 

− The spouse (permanent life partner, civil union partner and customary 

marriages included) of the life insured. 

− A child of the life insured, including an adopted or illegitimate child. 

− A person who, in law or in fact, depends on the life insured for financial 

support. 

− A person who, in law or in fact, would have depended on the life insured for 

financial support had the life insured not died. For example, a child of the life 

insured who is born after the life insured's death. 

It is advisable that the life insured appoints someone to receive the benefit 

available at death, or a part of it. Sanlam Life, and the trustees of the Fund, will 

then know what the wishes of the life insured are. A nominee may only accept or 

reject the appointment after the death of the life insured. 

An appointment may be added, cancelled or changed at any time. It must be in 

writing and signed by the life insured, and must reach Sanlam Life's head office 

before the life insured's death. 

• If there are no dependants, and the life insured has not appointed any nominee, 

the benefit will be deposited in the estate after at least 12 months have expired. 

• If a non-dependant has been nominated to receive the benefit and there is also a 

dependant, the Fund must pay the benefit to the dependant and/or the nominee 

in the proportion deemed equitable by the Trustees within 12 months. This 

applies only to nominations made on or after 30 June 1989, with the proviso that 

the above does not preclude the Fund from paying the benefit to either the 

dependant, or the designated nominee, or should there be more than one 

dependant or nominee, proportionally to any or all such dependants and 

nominees. If there are no dependants and the aggregate amount of the debts in 

the estate of the life insured exceeds the aggregate amount of the assets of his 

estate, a sum equal to the difference between his assets and liabilities is paid into 

his estate. The balance, or the balance of such portion of the benefit as 

stipulated by the life insured, is to be paid to the designated nominee. 

GE 3/2012 AA19

Reinsurance Reinsurance is a mechanism that enables the insurance company to share a portion 

of the risk of that policy/plan with another assurer (the reinsurer). 

Policy/plan 

amendments 

Policies/plans are reinsured for, inter alia the following reasons: 

• The added mortality risk (greater risk of death than the normal risk) is greater 

than the amount the assurer is prepared to accept himself. 

• The sum assured is greater than the amount the assurer is prepared to carry on 

one life (we call this above-retention reinsurance). 

Sanlam mainly reinsures with the following reinsurance companies: 

− Swiss RE Life & Health 

− Hannover Life Reinsurance 

− Munich Reinsurance 

− GenRe 

− RGA Reinsurance 

Most policies on Legacy, after they have been in effect for some time, can be 

changed (converted) into another type of plan (Lamda). Additional benefits may 

also be added to a policy/plan later, or be removed from it. If the policy/plan benefits 

are extended or increased in this way, the life insured must provide proof of 

assurability. 

Sanlam policy/plan amendments may be done in the following two ways: 

− a conversion (total alteration) or 

− a revision of benefits (notation). 

Conversion (total alteration/NKV) 

In the case of a conversion, a new contract document is always issued to replace 

the previous one with 

− a new plan number and 

− a new start date. 

The policy document contains a clause that indicates that the new contract 

document is regarded as a continuation of the existing plan. 

Please see Section AD for particulars about restricted period (Policy Regulations). 

• Values of old policy 

Although a new contract document is provided, the values of the old policy are 

incorporated when the old policy is converted into the new plan. 

• Cancellation of debt 

Any debt on the policy (for example outstanding premiums, or a loan on the 

policy in the case of a Legacy policy) is cancelled when an NKV is done. 

Please Note: There are costs involved when a conversion is carried out and it 

must therefore be done only when really necessary. 

Revision of benefits (notation) 

• The benefits offered by the existing policy/plan, can be revised. The existing 

policy/plan is, therefore, only amended and is not replaced. 

• Although in some cases with The One Policy (see archive for more information 

about The One Policy) a new contract document is issued in the case of a 

notation, the old policy number and date of commencement are retained; it is 

a continuation of the original policy document. 

• In some cases where, for example, only the rider benefits are amended, a new 

contract document is not issued, but only an endorsement/endorsement type 

KVA (notice of acceptance) with the new benefits that the client can attach to his 

existing contract document. 

See Section AD for full particulars about restricted period (Policy Regulations). 

GE 3/2012 AA20

Cessions • A policyholder/planholder may cede his policy/plan to any other person. 

Admission of 

claims 

• The other person procures the full or partial right of ownership of the policy/plan. 

• The person ceding the policy/plan is called the cedent and the person to whom 

the policy/plan is ceded, is called the cessionary. 

• The restricted period of 5 years is not influenced by the change in ownership of 

the policy/plan. 

Two types of cessions are available: 

• Collateral security cession 

A partial transfer to the cessionary usually occurs when a policy/plan is used as 

security for a loan. In the event of death, the creditor may claim only the sum 

owing to him; the balance goes to the estate of the deceased or to the beneficiary 

in respect of the death benefit. 

The cessionary may exercise his rights in terms of the policy/plan only if the debt 

is not paid, and may negotiate a loan or surrender only to the extent of the 

amount of the debt. 

• Outright cessions 

The cessionary obtains full right of ownership and has a right to the full proceeds 

of the policy/plan in the event of a claim. 

He may 

− terminate it early, 

− borrow against it, or 

− cede it to somebody else, etc. 

If more than one cessionary is involved, the permission of each of them is 

required for any dealings. 

Proof of age • Claims in respect of policies/plans with life cover are admitted 

only after proof of age has been supplied, unless proof was 

submitted at the time assurance was proposed for (in case of the 

latter, policy/plan slips indicate an “E” after the date of birth). 

• An identity document is compulsory. 

Suicide 

clause 

GE 3/2012 AA21 

• Recurring-premium policies/ plans with recurring payments 

In the case of recurring-premium policies and plans with recurring 

payments, a death claim as a result of suicide (during insanity or 

otherwise) within 24 months of acceptance (NOA date) of a 

policy/plan, is not recognized. This is a condition included in the 

contract document (suicide clause). The responsibility to proof 

that the insured did not commit suicide rests with the claimant. 

Exception: Funeral TopCover (see Section BG) 

• Single-premium policies/Investment plans 

With single-premium policies and investment plans (with cover) 

the death benefits shall be limited in the case of suicide, to the 

cash value of the policy, as determined by Sanlam.

Admission of 

claims 

(continued) 

Ex Gratia 

Payments 

(death before 

inception date of 

Legacy policy) 

Matrix / Cobalt 

for Professionals 

Risk Cover 

plans 

Ex Gratia 

Payments 

(claims in 

respect of the 

terminally ill) 

Ex Gratia 

Payments 

(Disability and 

Accident cover 

during hostile 

situations) 

GE 3/2012 AA22 

Although Sanlam Life is not obliged to make payments on claims 

resulting from deaths which occurred before the life cover 

became effective, an ex gratia payment is considered in those 

cases where the life insured had done everything required to gain 

cover as soon as possible. 

The ex gratia payment will, however, only be considered if: 

• all relevant documents were in Sanlam Life’s possession and 

the risk was acceptable at ordinary rates; 

• a premium was submitted together with the application and 

there was no request for the inception date to be later than 

the first day of the next month; 

• Premiums would have been paid by debit order or stop-order 

and the applicant’s ability to pay the first premium on the date 

of payment was without reasonable doubt. In such a case the 

death must have occurred within the 14-day period preceding 

the date of cover. 

Consideration of ex gratia payments will be permitted on an ad 

hoc basis and there will be no obligation regarding any future 

claims. There should also be no other factors in respect of the 

application which could have delayed or prevented the issuing of 

the policy. 

See Section BZ for information about "Free cover". 

Policyholders/planholders with terminal illnesses can now apply 

for immediate payment of their life cover to help enhance their 

quality of life and cover the associated high costs or other 

liabilities. Such applications for payment to clients with terminal 

illnesses such as cancer or advanced Aids in instances where 

medical evidence suggests a life expectancy of less than one 

year, will be considered. 

How to apply: 

• Policyholders/planholders in this position must request 

Sanlam Life to consider the advanced payment of their life 

cover. 

• The policyholder/planholder is responsible for providing 

Sanlam Life with all available medical information. 

• Each case will be considered on its own merits. 

The amount payable will be 100% of the cover amount, reduced 

by any outstanding loans and the premiums (in the case of 

Legacy policies) due for the following year. 

Policies or plans providing disability and accident benefits contain 

a clause which in general excludes payment of benefits if 

disablement results from war, hostile, or terrorist activities. This 

clause is applicable to both civilians and members of the armed 

forces. 

In addition, where an accidental death benefit is provided, there 

is an exclusion in the case of an accident occurring while serving 

in any military or police organisation. 

Sanlam Life may decide to make an ex gratia payment if, as a 

result of the exclusion clause, a claim for benefits does not arise. 

However, Sanlam Life is in no way under any obligation to make 

such a payment.

Options after 

the maturity 

date 

• In the case of Legacy policies, all endowment policies may be continued after the 

maturity date, wholly or partially (with or without further premium payments). 

• If the policy is continued without further premium payments, the policyholder has 

the option to make cash withdrawals. 

Stratus Continuations are discussed in detail in Section BX. 

GE 3/2012 AA23

DOCUMENTS NEEDED WHEN SUBMITTING A DEATH CLAIM 

PRODUCT NAME DOCUMENTS NEEDED 

The One Policy for 

Endowment/Whole-life 

(TAB 303/ 403/ 503) 

Central Retirement Annuity Fund 

(CRAF – Legacy and Stratus) 

Including One Step Retirement Plan 

Accident Cover 

(TAB 84N) 

Stratus 

(TAB 411/ 511) 

• Death certificate 

GE 3/2012 AA24 

• Letter of executorship (if payable to estate) 

• Proof of bank account (estate or beneficiary) 

• Medical certificate (if applicable) 

• SAPS declaration (if cause of death unnatural or 

unknown) 

• Judicial inquiry and postmortem (autopsy) report (if 

applicable) 

• Name of guardian/trust and birth certificate (required if the 

beneficiary is a minor) 


• Details of Dependants form (completed in full and signed 

by a Commissioner of Oaths) 

• Will or affidavit stating it of no will 

• Divorce order and deed of settlement (if the insured was 

divorced at the time of death) 

• Tax details of deceased (personal income tax number 

compulsory) 


unknown) 

• Judicial inquiry and postmortem report (if applicable) 

• Proof of age of dependant(s) 




• SAPS declaration (if cause of death is unnatural or 

unknown) 

• Judicial inquiry and postmortem report 

• Blood alcohol test (if done / taken) 

• Identification of corpse 

• Road traffic report (if cause of death was a car accident) 



• Proof of bank account (estate or beneficiary)

Term Annuity 



(TAB FCA/ FC2/ FC3/ FC4/ FC0N/ 

PLAN 25/ 26/ 35/ 36/ 30/ 31/ 

Five-year Investment Plans) 

Life Annuities 

(PLAN 21/ 22/ 23) 

Capital Protection Plan 

(PLAN 24/27/28) 


(TAB FA0N/ FAA/ FA3 – Fund policies 

- 10 years certain) 

(TAB FA2/FA3 – 10 years certain) 

Life Annuities (0-year term) 

(TAB FA0N/ FAB/ FA1/ FA3) 


(FA5 

(10 years certain)) 


(PLAN 55 - (TAB FA5N en FB5N)) 


GE 3/2012 AA25 

• Letter of executorship (if payable to the estate) 

• Notice of cession completed by executor (if the 

instalments are ceded) 

• Personal income tax number of deceased 

• Form for personal and bank particulars. Including income 

tax number of person who continues with the instalments 

(if applicable) 

Note: Only a death certificate is required for the 

compulsory term annuities. 










• Will or affidavit stating it of no will 


divorced at the time of death). 



unknown) 

• Proof of age of dependant(s) 

• Form for personal and bank particulars 



• Letter of executorship 

• Notice of Cession by Executor (if no nominee) 



tax number of person who continues with the instalments 

(if applicable) 

• Death certificate


(FB tables) 



The One FamilySupporter 

(TAB 67/ 68/ 367/ 368/ 467/ 468/ 567/ 

568) 

The Funeral Help Plans A, B and C 

(TAB 69 (PLAN A)/ TAB 65 (PLAN B)/ 

TAB 69 (PLAN C)) 

Optional Group Scheme for Individual 

Life 

(TAB 63A/63B/63C/64A/64B/64C) 

Funeral TopCover 

(TAB69) 

The One Medical Plan 

(TAB 371/ 471/ 571/ 372/ 472/ 572/ 

382/ 482/ 582/ 373/ 473/ 573) 


GE 3/2012 AA26 



tax number of spouse who continues with the instalments 


• BI-1663 issued by the doctor who certified the death 

• ID document of claimant and deceased 


• SAPS declaration (only in the case of unnatural cause of 

death) 

• Birth certificate (in the case of uninsured children, death 

within 6 months of birth) 

• Written proof that the child was a full-time student (for 

uninsured child or insured child older than 21 but 

under 25) – only Table 63B and 64B 

• Notice from doctor of stillborn baby (proof of number of 

months pregnant) and identity document of mother of 

stillborn infant. 

• Letter from funeral director who confirms the body 

• Written proof that the child was disabled (for 

uninsured/insured child older than 21 and fully dependant 

on the principal assured) 


The One Medical Benefit Fund • Death certificate 

The Central Provident Fund 

(TAB 359F/ 459F/ 559F/ 

303F/ 403F/ 503F) 

• Letter of executorship (if proceed payable to estate) 

• Proof of bank account (beneficiary/estate) 

• Letter of executorship (if proceeds are payable to the 

estate) 


• Notice of cession (if principal member is deceased) 




• Will or affidavit stating it if no will 




compulsory) 


unknown)



Group Credit Assurance 

(TAB 303K/ 403K) 

The Income Protector 

(TAB 46/ 47/ 48) 

Funeral Benefit 

(BGF benefit TAB303) 

Family Policy 

(TAB D7SW/ D8SW/ D78/ D7RB/ D7N) 

Multiple Life Assurance 

(“L” after table code) 

Packard Group Pension Fund 

(TAB 301B) 

Continuation option 

(TAB 303I/ 303V) 

The One Policy for Two 

(Stable Bonus Fund, Balanced Fund, 

Sanlam Equity Fund, Offshore Equity 

Fund and Fund of Funds) 

Hospital Policy 

(TAB 70N/ 70I) 


GE 3/2012 AA27 

• Letter of executorship (if proceeds payable to estate) 

• Proof of bank account of estate or beneficiary if cession 

was cancelled before date of death 



• ID document of deceased 

• Proof that person requests payment is one of the 

following: 

− appointed beneficiary (ID is required) or 

− institution to whom policy was ceded. 


• Proof of age (of the second assured) 

• Letter of executorship (when last insured dies and there is 

no beneficiary) 


• Letter of executorship (when last insured dies and there is 

no beneficiary) 







• Letters of executorship (if payable to estate) 

• Proof of bank account (remaining insured/ beneficiary/ 

estate) 

• Death certificate



Sanlam Preservation Pension Fund/ 

Sanlam Preservation Provident 

Fund 

(TAB 360/ 460/ 560/ 361/ 461/ 561) 

Provident Fund for other companies 

(TAB 359F/ 459F/ 559F/ 

303F/ 403F/ 503F) 

Venda Pension Fund 

(TAB 301Z) 

Offshore Funds 

(TAB 3049) 

The Guaranteed Plan from Sanlam/ 

Rolling Guaranteed Equity Growth 

(TAB 3049/ 5049) 

Deferred Compensation 

(TAB 49/ 449/ 349/ 359/ 459/ 559) 

The Bond Partner 

(TAB 303H/ 403H/ 503H/ 

308H/ 408H/ 508H) 


GE 3/2012 AA28 







compulsory) 


unknown) 



• Letter from the Department of Justice/ Letter of 

executorship 

• Proof of age (deceased) 

• Proof of bank account (estate / beneficiary) 


• Letter of executorship (if no nominee on the policy) 

• Notice of cession by executor (if only a proposer-owner on 

the policy and if there is no nominee on the policy) 


• Letter of executorship (if no nominee on the policy) 

• Notice of cession by executor (if no nominee on the policy) 




• Letter of executorship (if proceeds payable to estate) 

• Proof of bank account of estate or beneficiary if cession 

was cancelled before date of death

Sinking Funds 



(TAB 304/ 404/ 504) 

Death Income Benefit 

(TAB 45GRB/ 145GRB/ 2JRB/ 2EB) 

Waiver of Premium Benefit 

(Indicated by a “P” ) 

Assets in the Estate 

(death of an 85 status) 

Professional Provident Society 

Retirement Annuity Fund 

(PPS – Legacy and Stratus) 

Sanlam Namibia Retirement 

Annuity Fund 


GE 3/2012 AA29 

• Letter of executorship (if no nominee for ownership) 

• Notice of cession by executor (if no nominee on the policy) 

No documents are required for the death income benefit. The 

documents are required depending on the specific policy on 

which the benefit is available. 




unknown) 

• Judicial inquiry (only in the case of unnatural deaths). 



• Notice of cession by executor 



compulsory) 

• SAPS declaration (in the case of death unnatural or 

unknown) 

• Judicial inquiry and postmortem report (in the case of 

unnatural deaths) 

• Name and address of dependant (information provided by 

PPS) 

• Proof of age of dependant (information provided by PPS) 

• Form for personal and bank particulars (information 

provided by PPS) 


• Details of Dependants form 


• Divorce order and deed of settlement (if the assured was 

divorced at the time of death). 

• Income tax particulars (Form C still applies for Namibia) 


• SAPS declaration (in the case of unnatural deaths) 

• Judicial inquiry and postmortem report (in the case of 

unnatural deaths) 

• Proof of age of dependant(s)



Matrix / Topaz / Cobalt for 

Professionals / Cobalt (Risk Cover) 

(TAB 02/02W/03W) 

ALSI40 Highest Level Investment 

(TAB 514) 

Increasing Guarantee Investment 

(TAB 514H) 

Iconic Endowment Policy 

(TAB 514) 

International Guaranteed Equity 

Investment: Protection / Aggressive 

(TAB 514) 


GE 3/2012 AA30 

• Letter of executorship (if no beneficiary on record) 



unknown) 

• Judicial inquiry and postmortem report (if applicable) 

• Blood alcohol test (if done) 

• Identification of corpse 

• Road accident report (if the assured was only a passenger 

in a car accident) 


• Name of guardian or Trust and birth certificate (if 

beneficiary is a minor) 

• DSF1 benefit – Above mentioned documents and the 

BI 1663 issued by the doctor who certified the death 



• Notice of Cession by executor (if no nominee on policy) 








Lead Hedge Fund • Death certificate 

Octane Hedge Fund Investment 

(TAB 514) 







• Notice of Cession by executor (if no nominee on policy)



Stratus International Endowment 

policy 

(E17) 

Safrican Savings Plan 

(TAB E13) 

Sanlam Trust +++ (Triple plus) 

(TAB 86T) 


GE 3/2012 AA31 


• Form for personal and bank particulars 



• Proof of bank account (estate/beneficiary) 


• A medical certificate stating the cause of death (Bl 1663), 

completed by the doctor who certified the death. 

• Certified copy of beneficiary's Identity document. 

• Proof of bank account (estate and beneficiary – if 

applicable) 


Stratus Composite Annuity • Death certificate 

Stratus savings plans • Death certificate 

Stratus LISP Topaz • Death certificate 

Topaz Immediate Expense Provider 

(T86D) 

• Declaration by the SAPS (for unnatural causes of death) 



• Proof of bank account (estate of beneficiary) 

• Notice of cession (if no nominee – only ONE new plan 

holder) 

• Letter of executorship (if no nominee) 


• A medical certificate stating the cause of death (BI 1663), 

completed by the doctor who certified the death 

• Certified copy of beneficiary's Identity document 


applicable) 


• Declaration by die SAPS (for unnatural causes of death)



Topaz Personal Cover Provider 

(T86R) 

One Step Term Cover 

(T86M) 


GE 3/2012 AA32 




applicable) 


• Declaration by die SAPS (for unnatural causes of death) 


unknown) 





applicable) 



unknown) 

Please Note: If the beneficiary on the policy is a minor, we require the name of the guardian or 

trust as well as the birth certificate in all instances.

SECTION AD 

FOUR-FUND DISPENSATION, POLICY REGULATIONS (PREVIOUSLY 

SECTION 59D) AND POLICY VALUES 

FOUR-FUND DISPENSATION ...……………………………………………………. 

Page 

AD1 

REGULATIONS REGARDING RESTRICTIONS ON CERTAIN POLICIES …… AD1 

– THE RESTRICTED PERIOD ……………………………………………………………... AD2 

CASH VALUE (Cash withdrawals) ………………………………………………... AD2 

– TOTAL WITHDRAWAL (Surrender) …………………………………………………….… AD3 

– PARTIAL WITHDRAWAL …………………………………………………………………... AD3 

– REGULAR CASH WITHDRAWALS ………………………..……………………………... AD4 

– POLICIES WITHOUT A SURRENDER VALUE ………………………………………….. AD4 

LOAN VALUE (LW) …………………………………………………………………... AD4 

FULLY PAID-UP VALUE (VOP) …………………………………………………..… AD5 

ILLUSTRATIVE VALUES ……………………………………………………………. AD5 

GE 10/2009 AD

In terms of the four-fund dispensation, the assets of a long-term assurer is divided into four separate 

funds, in order to give effect to the trustee principle in accordance with which an assurer manages its 

assets. The funds which form the tax basis on which the assurer will be taxed, are the following: 

(i) The untaxed policy-holder fund for policies / plans* owned by Provident, Pension, 

Preservation, RA and Benefit Funds and institutions exempt from tax. 

(ii) The individual policy-holder fund for policies / plans 

− owned by individuals; or 

− owned by trusts of which all the beneficiaries are natural persons. 

− owned by a curatorship estate (in the name of the individual for whose benefit it is held in 

terms of a court order). 

(iii) The company policy-holder's fund for policies / plans* owned by companies, closed 

corporations and similar organisations (also trusts of which one or more of the beneficiaries are 

non-natural persons). 

(iv) The corporate fund, which is not a policyholders' fund, as it represents the balance of an 

insurer’s assets. 

* The word "plan" refers to a long-term policy in terms of the Long-term Insurance Act, 1998. 

Please note, where "plan" is used for the personal investment plan (of SanLink) it is not a 

policy and that the four fund dispensation and policy regulations do not apply to it. 

The basis upon which premiums / payments for certain types of policies / plans are calculated, makes it 

possible for the company to build up reserves in respect of these policies / plans. These reserves 

create a monetary value for the policy / plan (apart from certain exceptions) whilst the assured is still 

alive. We refer to these as policy values, and they are discussed below. (The abbreviations coupled to 

these values are derived from the Afrikaans terminology.) 

The minimum requirements to be met by the products of long-term insurers are contained in Part 4 of 

the Regulations regarding the Restrictions on certain policies / plans in terms of Section 54 of the Longterm 

Insurance Act. It came into effect on 1 January 1999 and in content, is the same as the old Section 

59D of the previous Insurance Act that applied from 1 January 1994. 

The Regulations apply to all 

• life policies 

• endowment policies / plans 

• annuity policies and optional life annuities 

FOUR-FUND DISPENSATION 

POLICY REGULATIONS (PREVIOUSLY SECTION 59D) AND POLICY VALUES 

REGULATIONS REGARDING RESTRICTIONS ON CERTAIN POLICIES / PLANS 

The following products are not affected by the Regulations. 

− Retirement annuities which are not ceded to an individual 

− Pension funds 

− Provident fund and Preservation Fund plans which are not ceded to individuals 

− Medical schemes 

− Medical and funeral assurance without additional savings 

− Income Protector 

− Term assurance 

− Namibian policies 

− Compulsory life annuities or annuities which are purchased from retirement fund benefits 

− Linked products of SanLink. 

GE 5/2010 AD1

THE RESTRICTED PERIOD 

In terms of the Regulations a restricted period of 5 years applies to policies / plans in the following 

cases: 

• New policies / plans 

The first 5 years of the policy or plan term constitute a restricted period. This restricted period 

begins on the later of 

− the start date or 

− the first day of the month in which the date of proposal falls. 

In the case of back-dating the restricted period therefore begins later than the start date. 

• 20% Rule (Payment increases) 

Payments may be increased annually by up to 20% of the previous year’s payments (20% rule). If 

the payment in any given year is more than 20% higher than the largest payment in the preceding 

2 years, the plan must continue for at least another 5 years after such an increase. A new 

restricted period begins on this date. 

• Total alteration (NKV) (Conversion) 

If the restricted period of the old policy has not expired yet, that part will be transferred to the new 

plan. A new restricted period will commence only if premium is increased by more than 20% (20% 

rule). 

• Revision of benefits (Notation) 

The same stipulations that apply to total alterations (NKV’s) in respect of the restricted period are 

applicable to a revision of benefits (notation). If a notation involves a loading, whether medical, 

occupational or for part-time activities, and this loading leads to a transgression of the 20% rule, the 

policy / plan will enter a restricted period. 

Note: During the last five years of a policy or plan term, a notation will not be permitted if it leads 

to transgression of the 20% rule. 

Limitations in terms of the Regulations 

During a restricted period of 5 years the following limitations apply: 

• The cash value (surrender value) or loan value is limited. 

• Only one partial withdrawal and one loan are allowed. 

• If a cash withdrawal has been made, the policy / plan may not be terminated during the same 

restricted period. 

CASH VALUE (Cash withdrawals) 

The cash value (if any) of all policies / plans is determined by Sanlam and will depend on, inter alia, 

one or more of the following: 

− the balance of the investment account / fund value; 

− the market value of the underlying assets; 

− the unamortised costs and 

− the restrictions of the Regulations 

at the time the client wishes to take the cash value. 

NB: It is important to note that early withdrawals generally result in the client’s receiving less value for 

money. 

GE 10/2009 AD2

TOTAL WITHDRAWAL (SURRENDER) 

In terms of the Regulations to the Long-term Insurance Act, the maximum available cash value is 

limited as follows: 

(i) First 5 years: 

The cash value (surrender value) may not be more than the restricted amount, namely 

− the premiums / payments paid 

plus 

− 5% interest compounded annually. 

(ii) 20% Rule: 

If the premium / payment of a policy / plan is increased by more than 20% the restricted amount 

(cash value) during the new restricted period of 5 years is determined as follows: 

− the cash value on the date before the premium / payment increase plus 5% interest 

compounded annually 

plus 

− the premiums / payments paid from the date of premium / payment increase plus 5% interest 

compounded annually. 

(iii) If the restricted amount is exceeded: 

When the cash value determined by Sanlam exceeds the limited amount by less than R2 500, 

the full amount will be paid. If the cash value is more, this implies a partial withdrawal and the 

limited amount only will then be paid. Any balance together with further bonuses (Stable Bonus 

Fund) or growth (other funds, e.g. Balanced Fund) will be paid out once the policy’s / plan's 

restricted period of 5 years has expired. 

Please Note: The restricted cash value is the maximum value that may be paid in terms of the 

Regulations. If the actual value determined by Sanlam is lower, the lower value will be 

paid. 

PARTIAL WITHDRAWAL 

The minimum and maximum amount that can be withdrawn from a Legacy policy at a specific time is 

determined by Sanlam Life. When a client makes such a cash withdrawal, it always results in a 

reduction of the life, disability and trauma cover (if applicable). 

With Stratus plans (without cover) Sanlam Life will sell the required number of units to pay for the 

withdrawal amount and for the alteration and transaction charges, if applicable. The fund value will 

reduce by the value of the units sold. 

Limitation during a restricted period 

In terms of the Regulations a withdrawal is allowed only once during a restricted period. After the 

restricted period has lapsed partial withdrawals can be made more than once. 

GE 10/2009 AD3

TOTAL WITHDRAWAL (SURRENDER)(continued) 

Other (Sanlam) Limits 

• The minimum partial withdrawals are as follows: 

− Preservation funds: R2 500 

− Other policies: R1 750 

• The maximum partial withdrawal is as follows: 

The smaller of (i) and (ii) where 

(i) = larger of loan value or 

(surrender value - R10 000) 

and 

(ii) = (surrender value − R3 000) in the case of single-premium policies) 

(including VOP policies) 

or 

(surrender value − R1 500) for premium-paying policies. 

The minimum surrender value that a premium-paying policy must have before a partial cash 

withdrawal will be allowed, is R2 500. 

REGULAR CASH WITHDRAWALS 

No regular cash withdrawals may be paid out during a restricted period. 

POLICIES WITHOUT A SURRENDER VALUE 

The following policies cannot be surrendered: 

− Retirement Annuities 

− Benefit Fund policies 

− Matrix / Cobalt for Professionals Risk Cover plans 

− Funeral TopCover policies 

LOAN VALUE (LW) 

The policyholder / planholder may, depending on the type of assurance, borrow against his policy / plan 

as soon as it has a loan value. The policy value (cash value) on the Legacy policy is used as security 

against any loan. The loan plus interest shall be debt against the policy. 

With Stratus Savings Products where loans are permitted, the planholder may apply for a loan against 

the plan two months after the start date, provided that Sanlam Life's conditions at the time are met. The 

day on which Sanlam Life receives the request for a loan Sanlam Life will switch a number of units, 

equivalent in value to the approved loan amount, to units in the Stratus Loan Fund for planholders. This 

fund does not participate in any growth. 

Limitations in terms of the Regulations to the Long-term Insurance Act 

− Only one loan may be granted by the assurer during a restricted period. 

− During a restricted period the loan value will be restricted as described under “Cash value (Cash 

withdrawals)”. 

GE 8/2010 AD4

LOAN VALUE (LW) (continued) 

Sanlam limitations 

The minimum and maximum loan against a policy at a specific time is also determined by Sanlam. 

The maximum loan amount is 75% of the cash value. 

Policies without a loan value 

Loans are not permissible in the case of the following policies: 

− Benefit Fund policies 

− Funeral TopCover 

− Preservation Fund policies 

− Provident Fund policies 

− Retirement Annuities 

− Matrix / Cobalt for Professionals Risk Cover plans 

FULLY PAID-UP VALUE (VOP) 

Legacy policies 

If premiums are discontinued, the policy (with reduced benefits) can be made fully paid-up only if: 

• the waiting period has expired and 

• the reserve (built up at that stage and determined by Sanlam) is sufficient to maintain the policy for 

the duration of the remaining policy term. 

The fully paid-up value (reduced value) of the policy is determined by Sanlam on the date on which the 

policy is made fully paid-up. 

With endowment policies this value leads to a revision of the maturity value. 

All rider benefits (if any) lapse when the policy is made fully paid-up. 

Stratus / Cobalt for Professionals plans 

The recurring payment may be stopped on request, provided that Sanlam Life's conditions at the time 

are met. Sanlam Life will levy a transaction charge when the recurring payment is stopped before the 

option date. Sanlam Life will also levy an alteration charge if this happens before the alteration charge 

date. 

One of the conditions for stopping the recurring payment is a minimum fund value after the alteration 

and transaction charges, if applicable, have been deducted. If recurring payments are stopped despite 

this condition not being met, the plan will be terminated. If no termination value is available, the plan will 

lapse. The minimum fund value is indicated in the planholder's / member's statement. 

Policies without a fully paid-up value 

The following policies cannot be made fully paid-up: 

− Funeral TopCover 

− Medical assurance (Benefit Funds excluded) 

− Provident Fund policies 

ILLUSTRATIVE VALUES (CASH VALUES) 

Illustrative values are calculated according to the ASISA’s Code for Policy Quotations, which may 

change from time to time. Values are illustrated at two rates to show how the actual growth/bonus rates 

can influence the values that will be paid eventually. 

GE 8/2010 AD5

SECTION B 

PRODUCT SERIES OF SANLAM 

(in alphabetical order) 

COLLECTIVE INVESTMENTS …………………………………...……………………... 

CUMULUS PRODUCTS …………………………………………………………………. 

ESCALATING GUARANTEE INVESTMENT …………………………………………. 

FUNERAL TOPCOVER ……………………………….....…….................................... 

INVESTMENT PLANS ………………………………………………………………….... 

LIFE ANNUITIES ………………………………………………………………………..... 

LINKED PRODUCTS ………………………………………………….…………………. 

ONE STEP COVER………………………………………………………………………… 

SANLAM LIFE RISK PRODUCTS ……………………………………………………… 

SANLAM NIMBUS INVESTMENTS……………………….……………………………... 

SANLAM TRUST ………………………………………………………………………..... 

STRATUS SAVINGS PRODUCTS ……………………………………………………… 

TERM ANNUITIES ………………………………………………………………………... 

THE ONE POLICY FOR LIFE COVER ……………………………………………….... 

THE ONE POLICY FOR SPECIAL RISKS ............................................................... 

GE 3/2013 B 


BQ 

BW 

BL1 

BG 

BK 

BJ 

BV 

BR 

BZ 

BY 

BU 

BX 

BJ 

BA 

BD

SECTION BA 

THE ONE POLICY FOR LIFE COVER 

GE 10/2004 BA 

Page 

THE ONE POLICY FOR LIFE COVER ……………………………………………... BA1 

RIDER BENEFITS ……………………………………………..……………………… BA1 

THE ONE POLICY FOR LIFE COVER AT A GLANCE ……………………….…. BA2

The One Policy for Life Cover is available only as part of a Capital Rentention Plan : Plan 24. 

Features • This product exclusively offers cover at a low rate. (Cash values are not the most 

important consideration.) 

• The cover amount is high in proportion to the premium, therefore the cash values 

are relatively low and it takes a long time for the breakthrough point to be reached. 

• Cover is guaranteed for the duration of the guarantee term. 

• The (most) policies reach a point where the cash value starts decreasing. A 

revision may be necessary. 

• Benefits are payable only at the death of the life assured. 

• It is a universal policy. 

Term For Life 

THE ONE POLICY FOR LIFE COVER 

RIDER BENEFITS 

The One Policy for Life Cover is available only as part of a Capital Retention Plan : Plan 24 for new 

business. No rider benefits are available. 

GE 8/2006 BA1

THE ONE POLICY FOR LIFE COVER AT A GLANCE 

The One policy for life cover : Stable Bonus Fund, Balanced Fund, Sanlam Equity 

Fund, 

Offshore Equity Fund and Multi-Manager Balanced Fund (High Equity) 

Minimum premium and 

policy fee 

Age at inception Minimum : 15 anb 

Cover levels available Maximum 

Waiting period One month 

Death benefit is the larger 

of 

Policy/benefit term For life 

GE 2/2005 BA2 

Minimum premiums/policy fees are revised annually 

and indicated in Section G (Summaries) only. 

Maximum : 80 anb 

– Single Premium 

– Balance of the investment account 

– Cover amount 

Note: Only available as part of a Capital Retention Plan : Plan 24.

SECTION BD 

THE ONE POLICY FOR SPECIAL RISKS 

GE 5/2010 BD 

Page 

DESCRIPTION .................................................................................................... BD1 

INVESTMENT FUND ........................................................................................... BD1 

REMUNERATION ................................................................................................ BD1 

TERM ................................................................................................................... BD1 

GUARANTEES .................................................................................................... BD1 

LIFE INSURED .................................................................................................... BD1 

POLICYHOLDER ................................................................................................. BD1 

PREMIUMS .......................................................................................................... BD1 

PREMIUM GROWTH ........................................................................................... BD2 

COVER GROWTH .............................................................................................. BD2 

DEATH BENEFITS ............................................................................................. BD2 

RIDER BENEFITS ............................................................................................... BD2 

AGE AT INCEPTION ........................................................................................... BD2 

WAITING PERIOD ............................................................................................... BD2 

SURRENDERS .................................................................................................... BD2 

LOANS ................................................................................................................ BD2 

SWITCHES .......................................................................................................... BD2 

ALTERATIONS .................................................................................................... BD2 

UNDERWRITING ................................................................................................. BD3 

CLAIMS PROCEDURE ........................................................................................ BD3 

SESSIONS ........................................................................................................... BD3 

BENEFICIARIES ................................................................................................. BD3 

NOMINEE FOR POLICY-OWNERSHIP .............................................................. BD3 

ADMINISTRATIVE INFORMATION ..................................................................... BD3

DESCRIPTION 

The One Policy for Special Risks is an endowment with life cover, designed for persons who do not 

qualify for life cover in terms of ordinary policies. This usually includes those who have an uninsurable 

disease, including HIV. 

Sanlam Life will rate each life individually, taking into account the relevant insured's life expectancy. 

INVESTMENT FUND 

This product is available only in the Stable Bonus Fund. 

REMUNERATION 

Twenty five percent of normal broker scale commission, paid up front over two years and clawed back in 

line with the Insurance Act. 

TERM 

The term is always 10 years. 

GUARANTEES 

The guarantee term is always equal to the policy term of 10 years. However, there is no guaranteed 

amount at maturity. 

LIFE INSURED 

Only one life insured is permitted. 

POLICYHOLDER 

Only an individual may be the policyholder. 

PREMIUMS 

THE ONE POLICY FOR SPECIAL RISKS 

• Only recurring premiums are available. 

• Level premiums must be paid throughout the policy term. 

• Minimum premium : R100,00 p.m. 

• Frequency : Monthly, quarterly, half-yearly and annually. 

• Mode of payment : Debit order only. Debit order discount applies. 

• Premiums are determined by 

− the life insured's age at entry 

− the cover required 

− individual underwriting of risk. 

GE 5/2010 BD1

PREMIUM GROWTH 

No premium growth will be allowed. 

COVER GROWTH 

Cover growth will not be available. 

DEATH BENEFITS 

Minimum : R10 000 

Maximum : R100 000 


No rider benefits (including Indexplan) are available with this product. 

AGE AT INCEPTION 

Minimum : 15 next birthday 

Maximum : 60 next birthday 

WAITING PERIOD 

The waiting period for surrenders is 18 months. 

SURRENDERS 

Surrender values will be available after the waiting period has expired. The normal restricted period of 

five years applies. 

LOANS 

The policyholder may borrow against his policy after the waiting period has expired and if the policy has 

a sufficient cash value. 

SWITCHES 

No switches will be allowed as only the Stable Bonus Fund is available. 

ALTERATIONS 

• The policy can be made paid-up if it has a positive cash value. 

• The death benefit amount may be reduced or increased within the minimum and maximum amounts 

allowed. 

• Cash withdrawals may take place. (The premium and cover will be reduced accordingly.) 

GE 5/2010 BD2

UNDERWRITING 

Full medical underwriting takes place, so that Sanlam Life can be sure that the premiums make 

provision for the risk. Normal underwriting for occupation, part-time activities, etc. also takes place. 

CLAIMS PROCEDURE 

The usual procedure is followed in the case of a death claim. Standard exclusions (for example suicide 

within 24 months) apply. 

The normal procedure should also be followed for maturity claims. 

CESSIONS 

These policies can be ceded to individuals or institutions. 

BENEFICIARIES 

The policyholder may appoint any number of beneficiaries to receive the death benefit at the death of 

the life insured. 

NOMINEE FOR POLICY-OWNERSHIP 

If the policyholder and the life insured are two different people, the policyholder may nominate one 

person to become the new policyholder at his or her death. 

ADMINISTRATIVE INFORMATION 

NB: This special product must be handled separately from the normal BPR or ANB -process. 

For full details of the process, consult the NUB Legacy Administrative Guide on Notes. 

Proposal form AEB40 

Product name code J002 

Table Code T303 

Quotations No SanQuote quotations are available. 

Underwriters: Fax (021) 947-4806 

Enquiries 

Product enquiries Sanlam Personal Finance : Client Solutions : Product 

Support - tel. (021) 916-3082 

Commission 

enquiries 

GE 5/2010 BD3 

Distribution: 

Commission Support 

(021) 947-5002

SECTION BG 

FUNERAL TOPCOVER 

GE 3/2013 BG 

Page 

PRODUCT NAME ……………….…………............……………………..………….. BG1 

TABEL CODE …………………………..…………………………………………….. BG1 

PRODUCT NAME CODE …………………………………………………………….. BG1 

LIVES INSURED ………....…..……………………………………………………….. BG1 

– PRINCIPAL LIFE INSURED ……….…..………………………...……………….. BG1 

– SPOUSE ……………………………………………………………………………………. BG1 

– PARENTS AND PARENTS-IN-LAW ………………..………………………………….. BG1 

– CHILDREN ………………….……………………………………………………………... BG2 

– OTHER DEPENDANTS ………………………………………………………………….. BG2 

AGES AT INCEPTION ………………...………………….…….………...…………. BG2 

BENEFIT TERMS …………………….…………………….………………………… BG2 

MINIMUM PREMIUM …………………………………………………………………. BG2 

PREMIUM AND COVER GROWTH ………………..………………………………. BG3 

PROCESS FOLLOWED WHEN THE PRINCIPAL LIFE INSURED DIES ......... BG3 

– POLICIES WITH THE WAIVER OF PREMIUM BENEFIT ….…………..……………. BG3 

– POLICIES WITHOUT THE WAIVER OF PREMIUM BENEFIT ..…...………..……… BG3 

BABY BENEFIT .................................................................................................. BG3 

DEATH BENEFIT COVER AMOUNTS................................................................ BG4 

CLAIM AMOUNTS PAYABLE AT DEATH ..................................................... BG5 

COVER COMES INTO EFFECT ......................................................................... BG5 

PREMIUM DECREASE ....................................................................................... BG5 

WAIVER OF PREMIUM AT DEATH BENEFIT (PB) …....................................... BG6 

AT THE END OF WAIVER OF PREMIUM AT DEATH BENEFIT ………………. BG6 

FUNERAL TRANSPORT BENEFIT ................................ BG6 

UNDERWRITING ................................................................................................ BG6 

– MEDICAL UNDERWRITING ……………………………………………….……………. BG6 

– FINANCIAL AND OCCUPATIONAL UNDERWRITING …………………..………….. BG6 

AMENDMENTS ................................................................................................... BG7 

2/...

- 2 - 

GE 3/2013 BG 

Page 

HIV / AIDS COVER …………..…………………………………………………..…... BG7 

POLICY VALUES ……………………………………………………………………... BG7 

TAX ………………………………………………...…………………………………… BG7 

POLICY OWNERSHIP ……………………………………………………………….. BG7 

PREMIUM PAYER ……………………………………………………………………. BG7 

NOMINATION OF BENEFICIARY(IES) AND NOMINEE(S) ............................ BG8 

– BENEFICIARIES ……………...…………................................................................... BG8 

– NOMINEES …………………………………………………………………...…………… BG8 

CESSIONS …………………………………….....………….......................…….….. BG8 

IDENTIFICATION POLICY .................................................................................. BG8 

CLAIM PROCEDURE ........................................................................................ BG10 

– DEATH BENEFIT ………...………….......................................................................... BG10 

– TO SUBMIT A CLAIM ............................................................................................... BG10 

REVISIONS ........................................................................................................ BG10 

ADMINISTRATIVE INFORMATION .................................................................... BG10

Funeral TopCover offers cover in the event of the death of an insured family member or other 

dependant and aims to insure lives in the general middle market, with minimal medical underwriting. 

Funeral TopCover is a whole-life policy (except for children) and offers life cover that increases annually 

in terms of a compulsory premium and cover growth. 

PRODUCT NAME 


TABLE CODE 

Table 69 

PRODUCT NAME CODE 

H023 for rate group 1 


LIVES INSURED 

PRINCIPAL LIFE INSURED 

• The principal life insured and the policyholder (applicant) must be the same person. 

• All additional insured lives, excluding the parents and parents-in-law, must be financially dependant 

on the principal life insured. 

SPOUSE 

• A spouse can be added to or removed from the policy at any time, or be replaced by a new spouse. 

• A spouse is a person 

− to whom the principal life insured is legally married, or 

− with whom the principal life insured has a relationship regarded as a marriage in terms of any law 

or custom, provided the principal life insured can satisfactorily convince Sanlam Life that he or 

she is living with the other party as if they are legally married. 

A spouse may be of the same gender as the principal life insured. 

• Only one spouse is allowed per policy. Any additional spouses (up to a maximum of six) may be 

added to the policy as "other dependent person(s)". 

PARENTS AND PARENTS-IN-LAW 

FUNERAL TOPCOVER 

A parent is a natural parent, foster parent or step-parent who was responsible for bringing up the 

principal life insured. A parent-in-law is a natural parent, foster parent or step-parent who was 

responsible for bringing up the spouse. A maximum of two parents and two parents-in-law may be 

covered per policy. Parents and/or parents-in-law may be of the same gender. 

GE 3/2013 BG 1

CHILDREN 

"Children" include natural children, adopted children, step children and illegitimate children, who on the 

date that they are added to the policy are financially dependent on the principal life insured for support 

(including where the obligation for support was determined in accordance with a custom, indigenous 

law, or court of law). 

A maximum of ten children may be insured per policy. 

Children of a female principal life insured or female spouse (NB: not an "other dependant") will have free 

cover for the first six months after birth (also see "Baby benefit" later in this section). This applies 

irrespective of whether the child was added to the policy as an insured. 

OTHER DEPENDANTS 

Other dependants are people (maximum six per policy), such as brothers, sisters, second wives, aunts, 

uncles, etc., who are financially dependent on the principal life insured. Other dependants need not, 

however, be directly related to the principal life insured. 

NB: A maximum of 22 lives may be insured per policy. 

AGES AT INCEPTION 

Minimum age next 

birthday 

GE 6/2012 BG 2 

Maximum age next 

birthday 

Principal life insured 18 65 

Spouse 18 65 

Parents and parents-in-law 25 75 

Children 1 24 

Other dependants 1 70 

Principal life insured (with 

regard to PB) 18 55 

BENEFIT TERMS 

The funeral benefit term is whole life for all lives insured, except children. Cover for children falls away 

on the policy anniversary before they turn 25. 

The benefit term for waiver of premium benefit is up to the policy anniversary before the principal life 

insured turns 65. 

MINIMUM PREMIUM 

R75 per month 

There is no debit order discount.

PREMIUM AND COVER GROWTH 

The premium will increase at the Sanlam inflation rate (subject to a maximum of 20% per year and a 

minimum of 4% per year) every year, and the cover at 60% of the Sanlam inflation rate. 

Premium and cover growth is compulsory. If a premium increase is skipped, then the cover amounts for 

all lives will be reduced by 30% of the Sanlam inflation rate. 

There is no minimum (Rand / cent) premium growth amount. 

PROCESS FOLLOWED WHEN THE PRINCIPAL LIFE INSURED DIES 

If the principal life insured dies, the following will apply: 

POLICIES WITH THE WAIVER OF PREMIUM BENEFIT 

• Future premiums are waived until policy anniversary immediately before the date on which the 

principal life insured would have turned 65. 

• No new lives may be added to the policy, including a new principal life insured. 

• Cover growth stops, and cover levels remain fixed until the premium waiver ends. 

POLICIES WITHOUT THE WAIVER OF PREMIUM BENEFIT 

A new principal life insured may be added. 

If a new principal life insured is added: 

• The policyholder (applicant) may add any natural person who qualifies as a principal life insured 

(based on his/her income and education level) to the policy as a principal life insured, regardless of 

whether he or she is related to any of the existing lives on the policy. 

• All new lives added thereafter, must be financially dependant on the new principal life insured. 

If no new principal life insured is added: 

• The spouse automatically becomes the new principal life insured. 

• All new lives added thereafter, must be financially dependant on the spouse. 

• If there is no principal life insured or spouse, no new lives may be added until a new principal life 

insured is added. 

BABY BENEFIT 

This benefit provides free cover for natural children of female principal lives insured or female spouses 

for the first six months after birth, payable even if the child is not added to the policy. 

The baby benefit amount is R3 000. 

The benefit is payable if a baby dies after the 28 th week of pregnancy, or before turning six months old. 

If the baby has already been born and been added to the policy, the baby benefit amount, plus 50% of 

the chosen cover amount for children will be payable, subject to the legal maximum amount for children 

younger than six years. This maximum is currently R10 000. 

GE 6/2012 BG 3

DEATH BENEFIT COVER AMOUNTS 

The policyholder chooses a cover amount for each category of lives insured. 

The following conditions apply when the cover amounts for any category of lives insured are chosen: 

• The cover amount of any life insured may not be more than the total of the funeral and final 

expenses cover amounts that the principal life insured has with Sanlam Life and other insurers. 

• The cover amount of the principal life insured must be as follows: 

− It may be any available amount from zero up to the cover limits as indicated in the table below. 

− It may only be less than the cover amount of any of the other lives insured, if the total of the 

funeral and final expenses cover amounts that the principal life insured has with Sanlam Life and 

other insurers is equal to or more than the maximum cover amount of any of the other lives 

insured. 

• All “Parents and parents-in-law” must have the same cover amounts. 

• All “Children” must have the same cover amounts. 

• All “Other dependants” must have the same cover amounts. 

• The cover amounts of all lives insured will increase on each policy anniversary when cover growth 

takes place. 

The cover amount limits on the inception date of a new policy are indicated in the table below. 

Category 

GE 6/2012 BG 4 

Cover amount 

Minimum Maximum 

Maximum total 

cover amount with 

Sanlam Life 

Principal life insured R10 000 R50 000 R50 000 

Spouse R10 000 R50 000 R50 000 

Parents and parents-in-law R5 000 R30 000 R30 000 

Children R5 000 R30 000* R30 000* 

Other dependants R5 000 R30 000* R30 000* 

* Current legislation requires that the claim amount payable at the death of a child younger than 14 

years, must be limited to a maximum as follows: 

• If the child is younger than six years, the claim amount payable must be limited to R10 000. 

• If the child is six years or older, but younger than 14 years, the claim amount payable must be 

limited to R30 000.

CLAIM AMOUNTS PAYABLE AT DEATH 

The claim amounts payable at death are indicated below. 

Stillborn children up to the 28th week of pregnancy R0 

Stillborn children after the 28th week of pregnancy R3 000 

Children younger than six months and not registered as 

lives insured 

Children younger than six months, and registered as 

lives insured 

Children six months and older, but younger than six 

years 

GE 6/2012 BG 5 

R3 000 

Claim amount 

50% of the cover amount plus R3 000, up to 

a maximum of R10 000* 

50% of the cover amount, up to a maximum 

of R10 000* 

Children six years and older, but younger than 14 years Cover amount, up to a maximum of 

R30 000* 

Lives insured 14 years or older Cover amount 

* Current legislation requires that the claim amount payable at the death of a child younger than 14 

years, must be limited to a maximum as follows: 

• If the child is younger than six years, the claim amount payable must be limited to R10 000. 

• If the child is six years or older, but younger than 14 years, the claim amount payable must be 

limited to R30 000. 

COVER COMES INTO EFFECT 

The first premium is payable on inception date. Cover is only effective once the first premium has been 

paid. 

The waiting period for natural deaths is as follows: 

• Children: None 

• Additional dependants: 12 months 

• All other lives: 6 months 

If the cover is increased after the inception date (except for compulsory annual cover growth), the same 

waiting periods will apply to the amount by which the cover is increased. 

If a life is added to the policy, the same waiting periods will apply. 

PREMIUM DECREASE 

If any of the lives die, or are removed from the policy (including children turning 25), the premium will be 

decreased by that specific insured's premium and the policy will continue. 

Premiums are payable until a maximum premium payment age, which depends on the type of insured 

as follows: 

• Parents and parents-in-law: 85 

• Principal life insured, spouse and other dependants: 80 

• Children: 25 

The total premium reduces by the premium amount applicable to the relevant insured at the end of the 

month in which he/she reaches the maximum premium payment age. The life remains on the policy and 

his/her cover amount remains fixed until death.

The premium also reduces by the waiver of premium benefit premium (if applicable) at the end of the 

policy year in which the principal life insured turns 64. 

WAIVER OF PREMIUM AT DEATH BENEFIT (PB) 

No additional medical underwriting is required for this benefit. 

This benefit is optional. 

The maximum age at inception for PB is 55 age next birthday. 

A waiting period of 24 months applies for suicide and natural causes. (The waiting period for suicide for 

the funeral benefit is six months.) 

No lives can be added to the policy while the waiver benefit is being paid. 

Only the original principal life insured (i.e. the principal life insured at inception) qualifies for this benefit. 

AT THE END OF WAIVER OF PREMIUM AT DEATH BENEFIT 

• If the waiver of premium is in payment when age 65 is reached, the policyholder will be given the 

option to continue the policy, or to take out a new policy. A new principal life insured or new 

policyholder has to resume premiums to keep the policy in force. 

• If the principal life insured to whose life the waiver of premium benefit applies, is still alive at the 

time, the policy will continue as usual, but without the waiver benefits. 

FUNERAL TRANSPORT BENEFIT 

At the death of a life assured, FMS Marketing Solutions (FMS) will arrange for the transportation of the 

deceased to a South African funeral home nearest to the place of burial, as long as the place of death is 

in the Republic of South Africa, Namibia, Zimbabwe, Botswana, Swaziland, Lesotho or Mozambique, 

south of the 22-degree parallel. One relative may accompany the deceased and, if necessary, overnight 

accommodation will be arranged by FMS. If their normal requirements are met, FMS will provide the 

service free of charge while the policy is in force. 

To make use of this service, FMS must be contacted at telephone 086 000 4072. 

UNDERWRITING 

MEDICAL UNDERWRITING 

The three medical questions on the application form must be completed for all lives on the application 

form. 

No medical examinations are required and no loadings are levied. This also applies to the waiver of 

premium benefit. Sanlam Life does, however, have the right to decline cover for any life on the 


FINANCIAL AND OCCUPATIONAL UNDERWRITING 

The product is exclusively available to clients whose income and education levels meet the following 

requirements in one of the two qualifying rate groups: 

Rate Group 2 

• a household income of R10 000 per month, or 

• a personal income of R6 000 per month, plus matric, or 

• a three-year diploma or higher qualification, regardless of income. 

GE 3/2013 BG 6

Rate Group 1 * 

• a household income of R5 000 per month up to R9 999 per month, or 

• a personal income of R3 000 per month up to R5 999 per month, plus matric. 

* For lives insured who qualify for rate group 1, the product is currently available only on a 

temporary basis. 

The following subsidies may be taken into account when determining the monthly income: 

• Housing benefit – A rent amount or bond repayment amount paid for by the employer up to a 

maximum of 15% of the gross monthly income. 

• Vehicle benefit – An amount linked to the monthly repayment for the car paid for by the employer up 

to a maximum of 10% of gross monthly income. 

• Utility benefit – An amount to reflect utility usage paid for by the employer up to a maximum of 5% of 

gross monthly income. 

No underwriting is performed based on occupation or part-time activities. This also applies to the waiver 

of premium benefit. The principal life insured's occupation is required for statistical purposes only. 

AMENDMENTS 

Amendments (adding or removing members and changing cover amounts) are allowed. 

Voluntary removal of the principal life insured is not allowed. 

HIV / AIDS COVER 

The policy pays funeral and premium waiver claims for deaths resulting from HIV / AIDS. The funeral 

benefit is paid and the waiver of premium benefit becomes effective if a life dies because of HIV / AIDS. 

POLICY VALUES 

The policy has no cash values and no loans are allowed. The policy can not be made paid-up (VOP) 

voluntarily – benefits for individual lives insured become paid-up automatically when they reach their 

maximum premium paying ages. 

TAX 

If an employer pays the premiums on behalf of one of its employees, it must be paid from the 

employee's after-tax salary, otherwise any employer premium will be a taxable fringe benefit for the 

employee. 

POLICY OWNERSHIP 

Only natural persons may be policyholders. The policyholder must always be the principal life insured 

under the policy. 

The policyholder is entitled to all benefits under the policy. 

PREMIUM PAYER 

Premiums may be paid by an institution. However, the institution may not be the policy owner, but only 

the premium payer. 

GE 3/2013 BG 7

NOMINATION OF BENEFICIARY(IES) AND NOMINEE(S) 

At inception (or any time thereafter while the policy is in-force), the policyholder may nominate or 

remove beneficiaries or nominees. Nominations must be done in writing and will be valid only once 

confirmed in writing by Sanlam Life. 

BENEFICIARIES 

The policyholder can nominate a person or persons (maximum two beneficiaries) to whom Sanlam Life 

must pay the funeral benefits. If the deceased is someone other than the policyholder, payment will, 

however, be made to the policyholder. 

If the policyholder is also an insured and he or she dies, the funeral benefit of that policyholder will be 

paid to: 

• a beneficiary (if beneficiaries were nominated), or 

• the new policyholder (if no beneficiaries were nominated). 

NOMINEES 

The policyholder may nominate up to two nominees for ownership who will become the new policyholder 

when the first policyholder dies. If two nominees are nominated, the order must be indicated. 

In the absence of any nominees for ownership, one of the surviving insureds will automatically become 

the new policyholder, in the following order: 

• principal life insured 

• spouse 

• parents 

• children 

• parents-in-law 

• other dependant 

Every new policyholder can nominate new nominees for ownership, and beneficiaries to receive the 

benefits. 

CESSIONS 

The policy cannot be pledged or ceded as collateral security. Ownership can, however, change by 

means of a cession between individuals. Partial cessions are not allowed. 

IDENTIFICATION POLICY 

Identification is required for each life insured, nominee for policy-ownership, beneficiary for death 

benefit, premium payer and cessionary under a policy. 

SOUTH AFRICAN CITIZENS 

A valid RSA identity document is required for persons 18 years or older. 

The following identification is required for persons younger than 18 years: 

• a valid RSA identity document, or 

• full first names, surname and date of birth, for a person who does not have a valid RSA identity 

document. 

GE 3/2013 BG 8

FOREIGNERS 

The following identification is required for persons 18 years or older: 

• a valid RSA identity number, or 

• a valid passport, for foreigners who have a valid RSA permanent residence permit, but who does not 

have a valid RSA identity document. 

The following identification is required for persons younger than 18 years: 

• a valid RSA identity number, or 

• full first names, surname and date of birth, for a person who does not have a valid RSA identity 

document. 

If at the time of application, any of the lives insured was living in South Africa as a foreigner without a 

permanent residence permit, the benefits of this policy will be restricted to claim events in South Africa 

only. 

This limitation will no longer apply if the life insured at any stage obtains any of the following: 

• an identity document issued by the South African government for foreigners with permanent 

residence permits, or 

• South African citizenship. 

If any of the lives insured, living as a foreigner in South Africa, leaves the country, it is the policyholder's 

responsibility to request Sanlam Life in writing to end the policy, or, where there is more than one life 

insured on the policy, to remove the applicable life insured. Sanlam Life will not refund any payments if 

the policyholder fails to notify Sanlam Life. 

ENSURE THAT INFORMATION IS COMPLETE AND CORRECT 

• The full first names, surname and date of birth of each life insured is always required on the 


• Where possible copies of the RSA identity documents of the principal life insured, spouse, parents, 

parents-in-law and other dependants must be obtained. It is in the clients' interest to ensure that 

there are as few problems as possible at claims stage. If it is not practically possible to obtain these 

copies, Sanlam Life requires the RSA identity numbers of all lives insured 18 years or older. 

CLAIMS NOT ADMITTED 

If the RSA identity number, full first names, surname and date of birth on any life insured's death 

certificate does not agree with the information on the application form, the claim will not be admitted. 

DECLARATION BY APPLICANT/PRINCIPAL LIFE INSURED 

The applicant/principal life insured must declare on the application form that, if an RSA identity number 

has not been given in respect of any life insured under the age of 18 years, that person does not 

possess an RSA identity document. The applicant/principal life insured must also declare that the dates 

of birth of the relevant persons are correct. 

DECLARATION BY INTERMEDIARY 

The intermediary must declare on the application form that he or she has seen the available RSA 

identity documents of all the lives insured and has checked that the information in them agrees with the 

information on the application form. 

ENQUIRIES 

Product Support at telephone 021 916 3082 or e-mail product.support@sanlam.co.za. 

GE 3/2013 BG 9

CLAIM PROCEDURE 

DEATH BENEFIT 

• When a life dies, the benefit amount will be paid out within 48 hours after the receipt of the 

necessary documents. 

• The death benefit will always be paid to the policyholder. At the death of the policyholder who is also 

an insured, the death benefit will be paid to a beneficiary and not to the new policyholder. All existing 

beneficiaries on the policy will be retained, until the new policyholder revokes their appointment in 

writing. If there is no beneficiary, the death benefit will be paid to the new policyholder. Payment to 

either the policyholder or his beneficiary will relieve Sanlam Life of any obligation to pay any other 

person. 

Please Note: In the case of policies which have been reinstated after lapsing as a result of the 

non-payment of premiums, no claims will be paid in respect of insureds who died 

during the period in which premiums were outstanding. 

TO SUBMIT A CLAIM 

A claim form (AE2642) can be completed when a death claim is submitted (not compulsory). 

The following must be supplied when a claim is submitted: 

Of the deceased 

• A death certificate (BI-5 or BI-20) issued by the Department of Home Affairs. A medical doctor 

must certify the death in the case of a stillborn child. 

• The identity number of the deceased, with the following concessions: 

− If the deceased is a child, parent or parent-in-law, the date of birth is sufficient. This information 

does not have to be verified by any documents. 

− If the deceased is a baby younger than 6 months who has not yet been added to the policy, a 

copy of the birth certificate/identity document or a copy of the application for registration, will be 

required to prove that such a child was in fact born. 

• If the death was due to unnatural causes, a police statement must be submitted. 

Of the person who requests payment 

• Proof of identity of the person requesting payment. 

A claim must be submitted within one year of the date of death of the life insured. For claims submitted 

later than a year after date of death, premiums paid since the death of a life insured will be forfeited. 

REVISIONS 

Sanlam Life retains the right to revise the premium, benefits and conditions annually on the policy 

anniversary, if necessary. If a revision of premiums is done after a PB claim has been admitted, the 

benefits will be amended instead of the premium. 


Quotation No quotations are available. 

The application form contains tables with premiums for different cover amounts for 

the various insureds. Intermediaries must fill in the premiums for the various 

insureds in the spaces indicated, as well as the total premium. 

Amendment quotations can be obtained using Megkwot. 

Application New business : AEB44 

form 

Amendments : AEB2 

Enquiries SPF Client Solutions: Product Support on 021 916 3082 

GE 3/2013 BG 10

SECTION BJ 

LIFE AND TERM ANNUITIES 

GE 10/2009 BJ 

Page 

GENERAL INFORMATION: Life and Term Annuities ……………………………… BJ1 

Source of consideration ..…………………………………………………………….. BJ1 

– Optional purchases ……………………………………………………………. BJ1 

– Compulsory purchases ……………………………………………………….. BJ1 

Products available ……………………………………………………………………. BJ1 

Comparison between life and term annuities ……………………………………... BJ2 

Minimum consideration ………………………………………………………………. BJ3 

Inception date …………………………………………………………………………. BJ3 

Rates …………………………………………………………………………………… BJ3 

Instalments ……………………………………………………………………………. BJ3 

– Mode of payment of instalments …………………………………………….. BJ3 

– Minimum instalment …………………………………………………………… BJ4 

– Issuing fee ……………………………………………………………………… BJ4 

– Policy fee ………………………………………………………………………. BJ4 

– Calculation of monthly life annuities instalments ………………………….. BJ4 

TAX ASPECTS: Life and Term Annuities ……………………………………………. BJ5 

Compulsory purchases ………………………………………………………………. BJ5 

Optional purchases …………………………………………………………………… BJ5 

Life and term annuity instalments: Section 1 ……………………………………… BJ5 

Exemption of capital element: Section 10A ……………………………………….. BJ5 

– Section 10A certificate ………………………………………………………… BJ5 

Calculation of the non-capital portion: Optional Term annuities ………………… BJ5 

Calculation of non-capital portion: Optional Life annuities ……………………… BJ6 

Tax deduction …………………………………………………………………………. BJ6 

– Fourth Schedule of the Income Tax Act ……………………………………. BJ6 

– Request to change tax rate ………………………………………………….. BJ6 

– IRP5 certificate ………………………………………………………………… BJ6 

Life and term annuity quotations ……………….…………………………………… BJ7 

Change of legislation or measures ………………………………………………….. BJ7 

TERM ANNUITIES ………………………………………………………………………… BJ8 

Special features ………………………………………………………………………. BJ8 

General information …………………………………………………………………… BJ8 

– Plan code ………………………………………………………………………. BJ8 

– Term …………………………………………………………………………….. BJ8 

– Size of term annuity instalment ……………………………………………… BJ8 

– Investment guarantee ………………………………………………………… BJ8 

2/…

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Page 

TERM ANNUITIES (continued) 

How a term annuity works …………………………………………………………… BJ8 

Tax: Term Annuities ………………………………………………………………… BJ9 

Early termination/Surrendering ……………………………………………………… BJ9 

Growth ………………………………………………………………………………… BJ9 

A term annuity with a Sanlam unit trust ……………………………………………. BJ9 

– Procedure for proposal ……………………………………………………….. BJ10 

LIFE ANNUITIES …………………………………………………………………………... BJ11 

Special features …………………………………………………………………..…… BJ11 

General information …………………………………………………………………… BJ11 

– Plan code ………………………………………………………………………. BJ11 

– Term ……………………………………………………………………………. BJ11 

Size of life annuity instalments ………………………………………………………. BJ11 

– Rates ……………………………………………………………………………. BJ11 

– Effect of interest rates ………………………………………………………… BJ11 

– Effect of period of payment …………………………………………………… BJ11 

Options in the case of life annuities .…...…………………………………………... BJ12 

– Single-life annuity without a term certain …………………………………… BJ12 

– Single-life annuity with a term certain ………………………………………. BJ12 

– Joint-life annuity (survivor’s) ………………………………………………….. BJ12 

– Growth life annuity (single-life or joint life) ………………………………….. BJ13 

Comparative examples ………………………………………………………………. BJ13 

Tax: Life Annuities …………………………………………………………………… BJ14 

Relationship with second life insured ………………………………………………. BJ14 

An annuity combined with a whole-life policy ……………………………………… BJ15 

PRIVATE PENSION ………………………………………………………………………. BJ16 

GE 10/2009 BJ 

3/…

- 3 - 

GE 10/2009 BJ 

Page 

PENSION WITH CAPITAL REPAYMENT ……………………………………………... BJ17 

AT A GLANCE …………………………………………………………………………. BJ17 

FURTHER ASPECTS …………………………………………………………………. BJ17 

How the product works ………………………………………………………….. BJ17 

Tax …………………………………………………………………………………. BJ18 

Investment limits ………………………………………………………………….. BJ18 

Age at inception ………………………………………………………………….. BJ18 

Type of pension ………………………………………………………………….. BJ18 

Double life annuity ……………………………………………………………….. BJ18 

Commission and trail fee ………………………………………………………… BJ18 

Amendments to the policy ………………………………………………………. BJ19 

Cessions ………………………………………………………………………….. BJ19 

Primary and secondary pension ………………………………………………... 

Beneficiaries to receive the benefits at death of the life/lives insured and 

BJ19 

appointment of nominees for policy-ownership at death of life/lives insured BJ20 

Table and plan codes ……………………………………………………………. BJ21 

Payment of instalments at the death of the secondary pension life 

insured(s) ………………………………………………………………………….. BJ21 

Internal transfers (“other transfers”) to other policies and unit trusts ……….. BJ21 

Administrative information ………………………………………………………. BJ22 

GUARANTEED CPI ANNUITY ……………..…………………………………………... BJ23 

Term certain …………………………...……………..…………………………… BJ23 

Payments …………………………………………………………………………. BJ23 

Start date ………………………………………………………………………….. BJ23 

Age at entry ………………………………………………………………………. BJ23 

Single and joint life annuity ……………………………………………………… BJ23 

Table and product name codes …………………………………………………. BJ23 

Income payable …………………………………………………………………… BJ24 

Guaranteed pension ……………………………………………………………… BJ25 

Particular provisions ……………………………………………………………… BJ25 

Legal restrictions on the plan ………………….………………………………… BJ25 

Benefit at death …………………………………………………………………… BJ25 

Cessions …………………………………………………………………………... BJ26 

Tax …………………………………………………………………………………. BJ26 

Private pension ………………………………………..……………………........ BJ26 

Administrative information ………………………………………………………. BJ26

• Life and Term annuities are meant for the client who wants to invest an amount (the consideration) 

with a view to receiving regular instalments (a pension). 

• A life annuity is linked to a person’s life whereas a term annuity is linked to a fixed term. 

SOURCE OF CONSIDERATION 

The source of the consideration used to purchase a life or term annuity with which a life or term annuity 

can be bought, determines the rates applicable and the type of product which may be bought. 

− Optional purchases: 

In which case the client uses his own funds for this purpose. 

− Compulsory purchases: 

It is required by law that at least two-thirds of the proceeds of a retirement annuity (except 

where the retirement annuity is very small), or a part of the proceeds from certain pension funds 

be used by the member to purchase an income for life. 

PRODUCTS AVAILABLE 

GENERAL INFORMATION : LIFE AND TERM ANNUITIES 

• Term annuities (compulsory and optional purchases) 

The instalment (constant or increasing) is pre-determined and is guaranteed. 

NB: Compulsory term annuities are available only for investment where the purchase sum 

originates from a death claim from a retirement or retirement annuity fund. The relevant 

retirement or retirement annuity fund may be from either Sanlam or any other insurer. 

The aim of a compulsory term annuity is not to replace the compulsory lifelong pension 

that usually has to be paid in the case of this type of business. Compulsory term 

annuities may only be paid if provisions in the rules of the Fund (from which the money 

originates) prescribe a term for which an income must be paid; for example up to a 

child's eighteenth birthday. 

• Life annuities (compulsory and optional purchases) 

The instalment (constant or increasing) is pre-determined and is guaranteed. With the Guaranteed 

CPI Annuity, however, the instalment may decrease in times of deflation. 

GE 10/2009 BJ1

COMPARISON BETWEEN LIFE AND TERM ANNUITIES 

GE 10/2009 BJ2 

Term annuities Life annuities 

Definition Income (pension) is pay- 

able for a pre-selected 

term (irrespective of 

whether the annuitant is 

still alive or not). 

Income (pension) is payable 

up to the death of the life 

annuitant or to the end of the 

chosen term certain (should 

the life annuitant die before 

the term certain expires). 

Term 5 to 15 years Whole-life. The proposer 

chooses one of the following 

terms certain: 

0-years (terminates at death) 

5-years 

10-years 

Plan codes Plan 1 Plan 2 : Single-life annuity 

Plan 3 : Joint-life annuity 

Age at 

inception 

Instalments 

payable to 

Not applicable 20 to 86 anb 

(Proof of age must be given 

at the time of proposal) 

Annuitant Life annuitant 

Rates The same rates apply for 

males and females (rates 

according to the term). 

Proposal 

form 

Use form AEB42 

Separate rates apply for 

males and females as well 

as for constant and 

increasing instalments. With 

the Guaranteed CPI Annuity 

growth can't be chosen, 

instalments increase at CPI.

GENERAL INFORMATION: LIFE AND TERM ANNUITIES (continued) 

MINIMUM CONSIDERATION 

There is no specific minimum lump sum. The only requirement is that it should be sufficient to provide 

the minimum life or term annuity instalments. 

INCEPTION DATE 

The inception date is determined by the date on which the consideration is paid in at a contracted bank 

branch: 

• On or before the 15 th of a month: 

First day of the month in which the consideration was received. 

• After the 15 th of a month: 

First day of the month following the month in which the consideration was received. 

With the Guaranteed CPI Annuity, the inception date (start date) is always one day after the proceeds 

from the originating retirement annuity becomes available. 

INCEPTION DATE AND BASIS OF RATES 

See Section AA for the policy in respect of investments where the consideration is derived from a 

Sanlam policy or fund. 

RATES 

Sanlam manages a separate investment portfolio specifically for life annuities and term annuities to 

make our rates as competitive as possible. 

The life/term annuity rates are different for each day of a month, because they depend on the specific 

day on which the consideration is paid in at a contracted bank branch. 

A base rate applies for a payment made on the 1 st day of a month. The rates for considerations made 

on dates other than the 1 st are adjusted as follows: 

(i) For a payment made on the 2 nd day up to and including the 15 th day of a month: 

The base rate applying on the 1 st day of the same month is reduced by the interest for the number 

of days from the 1 st day up to and including date of payment. 

(ii) For a payment made on the 16 th day up to and including the last day of a month: 

The base rate applying on the 1 st day of the next month is increased by interest for the number of 

days from date of payment up to and including the 1 st day of the next month 

The base rates are revised on a weekly basis. 

INSTALMENTS 

MODE OF PAYMENT OF INSTALMENTS 

• Instalments may be paid monthly, quarterly, half-yearly or annually in arrears/advance according to 

the client’s need. 

Income is usually paid monthly in arrears. If the monthly income is very small, Sanlam will pay out 

the income in quarterly, half-yearly or annual instalments. This way we keep administrative 

expenses as low as possible – to the benefit of our client. 

For the Guaranteed CPI Annuity, however, the instalments are always paid monthly in arrears. 

• For your client’s convenience Sanlam prefers to pay the income directly into a bank account. 

GE 10/2009 BJ3

MINIMUM INSTALMENT (payable to the client) 

Monthly : R100,00 Quarterly : R200,00 

Half-yearly : R300,00 Yearly : R600,00 

ISSUING FEE 

An issuing fee of R350,00 is payable once only for all life annuities and term annuities, except for 

Guaranteed CPI Annuity. For the latter the issuing fee is R500,00. 

POLICY FEE 

Life Annuities (Guaranteed CPI Annuity excluded): 



Guaranteed CPI Annuity: 



Term Annuities: 



CALCULATION OF MONTHLY INSTALMENTS: Life annuities 

Instalment = 

(C – I) x R 

10 000 

– P (rounded off to nearest cent) 

Where: C = Consideration 

P = Policy fee 

R = Rate per R10 000 consideration 

I = Issuing fee (once only) 

Example: 

Assume: Annuitant : male 60 anb 

Optional Life Annuity : 10 year guarantee 

Consideration : R50 000 

Rate : 152,22 

Monthly instalment = 

(50 000 – 350) x 152,22 

10 000 

= R740,77 per month 

GE 10/2009 BJ4 

– 15,00

COMPULSORY PURCHASES 

The total life or term annuity instalment is taxable, (e.g. in the case of an RA). 

OPTIONAL PURCHASES 

Usually only the non-capital portion (interest earned on investment) of every instalment is taxable. The 

taxable portion does not qualify for the R18 000 (R26 000 for persons 65 years and older) exemption. 

See the stipulations of Section 1 and Section 10A below. 

LIFE AND TERM ANNUITY INSTALMENTS: Section 1 

In terms of Section 1 of the Income Tax Act, the full instalment from a life or term annuity is deemed to 

be gross taxable income for the annuitant or life annuitant. This means that the annuitant’s/life 

annuitant’s income is increased by the amount of the life or term annuity instalment, but with the 

following exemption taken into account 

EXEMPTION OF CAPITAL ELEMENT: Section 10A 

In terms of Section 10A of the Income Tax Act, the capital element of the purchased life or term annuity 

is exempted from tax if: 

• The life or term annuity is payable to the proposer of the life annuity or to his or her spouse; 

• The proposer is a natural person (i.e. not an institution e.g. a trust). 

A Section 10A exemption therefore will not apply in the following cases: 

• where a trust is the policyholder and a child is the annuitant 

• where a trust is the policyholder and the annuitant (annuity is taxed as a trust) 

• if the annuity is ceded outright. 

NB: The exemption does apply where a trust is the policyholder and annuitant if the trust was 

created solely for the benefit of a person where the court has declared the person to be of 

unsound mind and incapable of managing his own affairs. 

Section 10A certificate 

In the case of optional purchases, Sanlam will send, together with the contracts, a Section 10A 

certificate (in duplicate) indicating the tax-free portion of the life annuity or term annuity instalment. One 

of these certificates must be sent to the South African Revenue Service (SARS) together with the initial 

tax return. 

CALCULATION OF THE NON-CAPITAL PORTION: Optional Term annuities 

Non-capital portion = I – 

C 

12 x n 

Where: I = Instalment per month 

C = Consideration 

n = Term of term annuity 

TAX ASPECTS: LIFE AND TERM ANNUITIES 

Example: 

Assume: Term Annuity for 10 years 


Instalment : R805,00 p.m. 

50 000 

Non-capital portion = 805 – 12 x 10 

= 805 – 416,67 

= R388,33 

GE 10/2009 BJ5

CALCULATION OF NON-CAPITAL PORTION: Optional life annuities 

C 

Non-capital portion = I – 12 x E 

Where: I = Instalment per month 

C = Consideration 

E = Life expectancy in years 

TAX DEDUCTION 

GE 10/2009 BJ6 

(rounded off to lower second decimal) 

Example: 

Assume: Annuitant : male 60 anb 

Optional Life Annuity : 10 year guarantee 


Life expectancy : 14 years 

Monthly instalments = R740,77 

50 000 

Non-capital portion = 740,77 – 

12 x 14 

= 740,77 – 297,62 

= R443,15 

Fourth Schedule of the Income Tax Act 

In terms of the Fourth Schedule of the Income Tax Act the following is applicable when a life annuity 

contract is concluded: 

• Paragraph 1: 

− The assurer is regarded as an employer. 

− The recipient of a term or a life annuity (annuitant) is regarded as an employee of the 

assurer. 

• Paragraph 2: 

− If no PAYE rate is indicated Sanlam is obliged to withhold income tax according to PAYE 

scales from every instalment and to remit it to the SARS. 

− The taxable element of the term or life annuity is deemed to be the annuitant’s only income. 

Request to change tax rate 

If the application of the Fourth Schedule results in too much or insufficient tax being recovered from the 

annuitant or life annuitant during the year of assessment, the proposer may request that 

• a percentage higher than the PAYE rate (applicable only to the instalment) be withheld for tax; or 

• the proposer can arrange for a directive from the SARS, on the basis of which Sanlam will withhold a 

percentage lower than the PAYE rate (or even no tax at all). 

IRP5 certificate 

At the end of each tax year, Sanlam provides an IRP5 certificate to each client indicating the taxable 

income as well as the tax that has been paid over. The client must submit the certificate together with 

his/her tax return.

LIFE AND TERM ANNUITY QUOTATIONS 

The quotation is calculated at the specified tax rate. If no tax rate is specified, the PAYE rate will be 

used. 

If the specified tax rate is less than the PAYE rate, the following message is printed on the quotation: 

“NB: Since the requested tax rate is less than PAYE, the above quotation will only be accepted 

as valid if it is accompanied by a tax directive from the South African Revenue Service 

(SARS).” 

CHANGE OF LEGISLATION OR MEASURES 

Should an authority at any time effect legislation or measures which, with regard to the fund that Sanlam 

keeps for life annuity, term life annuity and term annuity policies, 

− alter a tax rate or fee; and/or 

− require that underlying assets be invested in another way, 

Sanlam may recalculate and alter the policy benefits to an extent which is reasonable. 

GE 10/2009 BJ7

SPECIAL FEATURES 

• A term annuity is a fixed interest investment. 

• In the case of optional purchases the non-capital and the capital portions are paid in equal 

instalments over a selected term. 

• A term annuity is linked to the selected term only. It is not linked to a life(risk) like a life annuity. The 

age of the assured, therefore, plays no part in determining the instalment (income). 


See pages BJ1 to BJ4. 

• Plan code: Plan 1 

• Term: 5 years up to 15 years 

• Size of term annuity instalment 

The size of the term annuity instalment is determined by the term annuity rates valid on date of 

purchase. 

• Investment guarantee 

The term annuity instalment is guaranteed for the full term and is not influenced in any way by 

changes in interest rates. 

HOW A TERM ANNUITY WORKS 

The following example illustrates the operation of a term annuity: 

Assume: • Capital amount: R1 million 

• Term: 5 years 

• Term annuity instalment: R286 699 per annum 

• Effective rate of return: 13,34% per annum 

The effective rate of return is the actual rate which the investor earns on the 

capital not paid out yet. No reinvestment assumption is therefore involved and 

direct comparison with the effective annual rate of return of any other investment 

is possible. 

Composition of each instalment (optional purchases) 

Year 

TERM ANNUITIES 

Capital at beginning 

Composition of the instalment 

of year (a) Non-capital portion (b) Capital redemption (c) 

1 R1 000 000 R133 432 R153 267 

2 R 846 733 R112 981 R173 718 

3 R 673 015 R 89 802 R196 897 

4 R 476 118 R 63 529 R223 170 

5 R 252 948 R 33 751 R252 948 

(a) The capital at the beginning of each year is the capital at the beginning of the previous year less 

the capital redemption. 

(b) The non-capital portion is 13,3432% p.a. (to be exact) calculated on the outstanding capital at 

the beginning of the year. 

(c) The capital redemption is the difference between the total instalment of R286 699 and the noncapital 

portion for the year. 

GE 10/2009 BJ8

TAX: TERM ANNUITIES 

See page BJ5 for full particulars regarding tax. 

EARLY TERMINATION/SURRENDERING 

According to contract, a term annuity cannot be commuted to a cash sum. However, in the case of 

optional purchases, Sanlam is prepared to let the remaining instalments be surrendered for a cash sum 

for as long as it remains company practice to do so. 

The size of the cash sum is influenced by the following factors: 

• It will be decreased by the instalments already paid out. 

• The level of interest rates prevailing at the time of surrender (e.g. cash value will drop if interest rates 

rise – see the example below). 

• Part of the cash sum may be subject to income tax. The capital portion of this amount will be taxfree 

in terms of section 10A. 

The principle is illustrated by the following example: 

Example: 

Suppose Sanlam purchases units at R100 per unit earning interest at 15% p.a. at inception date. If 

these units are sold at a later stage and market interest rates have risen to 20% p.a. in the 

meantime, the prospective buyer of the units will not be willing to pay R100 per unit, but a price 

which is such that will earn him ± 20% per annum is more likely. As the annual amount of interest 

per unit will remain unchanged, the price will most probably be less than R100 per unit. There will 

therefore be a capital loss if a term annuity is surrendered after an increase in interest rates. Should 

interest rates drop, the opposite will apply. 

A compulsory term annuity cannot be surrendered at all. 

GROWTH 

The client has the option of increasing the annuity instalments by a certain percentage annually. He or 

she may select the growth percentage, up to the maximum allowed. The higher the growth rate, the 

lower the initial annuity instalment will be. The growth rate may be chosen to one decimal percentage 

point, e.g. 5,2% (not 5,25%), up to the current maximum of 10% per annum. 

A TERM ANNUITY WITH A SANLAM UNIT TRUST 

Investment on the stock market will always contain the elements of uncertainty and risk. Nevertheless, 

highly profitable investments can be made with a distribution of these elements by using an annuity 

(minimum term 5 years) in combination with any of Sanlam’s unit trusts. The annuity instalment is used 

to buy units in the chosen unit trust. 

Such a combination offers the investor 

− guaranteed monthly instalments at competitive rates; 

− guaranteed annuity for the full term – whether interest rates rise or fall; 

− a convenient and effective way of funding a regular investment in a unit trust; 

− an annuity instalment of which only the non-capital portion is taxable (optional purchases); and 

− an investment in a unit trust with tax-free capital growth. 

GE 10/2009 BJ9

PROCEDURE FOR PROPOSAL: A term annuity with a unit trust 

Fill in the following forms and hand it in at your New Business input point: 

1. TE7: Sanlam Unit Trusts registration form 

• Unit trust 

Indicate the investor’s choice of unit trust(s) by marking the applicable block. See Section BQ for 

a description of Sanlam’s various unit trusts. 

• Investment plans 

− Systematic saving (capital building scheme) for regular monthly investment – no initial 

amount is required. 

− Fill in the total monthly amount to be transferred to Sanlam Unit Trusts. If the amount is to be 

divided between more than one unit trust, please indicate clearly the amount to be invested in 

each one. 

− State that the monthly instalment derives from an annuity and provide the policy number. 

• Income 

Reinvestment of income is recommended to give impetus to the growth 

• Registration 

Fill in the investor’s personal details and have the investor sign the registration form. 

2. AEB42 : Term annuity proposal form 

Details regarding the payment of monthly instalments to Sanlam Unit Trusts must be filled in under 

the heading: 

“Details of account(s) for crediting of income.” 

GE 10/2009 BJ10

The information below does not apply to Pension with Capital Repayment and 

Guaranteed CPI Annuity. These two products are described separately later in this 

section. 

SPECIAL FEATURES 

• The client is assured of a guaranteed income. 

• If the client chooses a growth life annuity, the growth rate is fixed and guaranteed. 


See pages BJ1 to BJ3. 

• Plan code: Plan 2: Single-life annuity 

Plan 3: Joint-life annuity 

• Term : Whole-life 

SIZE OF LIFE ANNUITY INSTALMENTS 

• Rates 

For information on different rates for each day of the month, see “Rates” under General Information 

earlier in this section. 

− The size of the income is determined by the life annuity rates applying at the time the life annuity 

is bought. 

− Different rates apply for optional and compulsory life annuities. 

− Subsequent changes in rates have no effect on the income. 

− The life annuity rates used mainly depend on 2 factors, i.e.: 

(i) prevailing interest rates and 

(ii) the expected term of payment of the income (i.e. the age of the assured). 

• Effect of interest rates 

The higher long-term interest rates are on the date of purchase, the greater the income and vice 

versa. 

• Effect of period of payment 

LIFE ANNUITIES 

The shorter the expected period of payment of the income being purchased, the bigger the income 

will be and vice versa. 

Life expectancy, and therefore the expected period of payment, differs for males and females of the 

same age. 

Factors which entail a longer expected period of payment, such as a guarantee term or survivor’s 

income, will mean a lower monthly income. 

GE 10/2009 BJ11

OPTIONS IN THE CASE OF LIFE ANNUITIES 

There are several options as to the nature of the income. It is, however, important to realise that the 

choice is permanent and that your client will not be able to change his mind later on. The choice 

involves the following: 

• Must the income be payable only as long as the client is alive (nil year term certain)? 

• Must it be a survivor’s income, i.e. payable until the death of the survivor of the client and his/her 

spouse? 

• Must payments be guaranteed for a minimum period even if the client dies prior to the end of term 

(5- or 10-year term certain)? 

• Must the income remain constant or grow annually? 

• Must the income be paid monthly, quarterly, half-yearly or annually in arrears/in advance? 

Single-life annuity without a term certain (Nil year certain life annuities) 

The biggest initial income that a client can buy is a single-life annuity without any guarantee term and 

without growth after purchase. 

The life annuity is payable until the death of the annuitant in all cases (monthly and non-monthly 

frequencies). If the annuitant dies prior to date of payment, no further annuity or proportion thereof shall 

be paid out. All instalments paid after death will be reclaimed by Sanlam. 

We recommend that you advise your client rather to choose one of the other options. It may mean a 

slightly lower income, but could bring about better value for money for your client in the long run. 

Single-life annuity with a term certain 

If your client chooses a single-life annuity we recommend a guarantee term to protect his/her 

dependants in the case of prior death. If he/she dies within the guarantee term his/her dependants will 

receive the income for the remainder of the guarantee term. This applies to all frequencies. 

Joint-life annuity (survivor’s) 

Instead of a single-life annuity, your client can select a slightly lower income on his/her life and that of a 

dependant (e.g. a spouse). 

The following conditions apply: 

• The younger the dependant, the smaller the income (a longer term of payment is expected). 

• If a term certain is not selected, the following apply: 

− The income is payable only until the death of the survivor, and 

− if both the annuitants die before a date on which the annuity is payable, no further life annuities 

or proportionate part thereof is payable. 

GE 10/2009 BJ12

The following possibilities may be considered by the client: 

(i) A joint-life annuity payable up to the death of the survivor. 

(ii) A joint-life annuity which is reduced by a selected percentage at the death of either of the two 

life insureds. 

(iii) A joint-life annuity which is reduced by a selected percentage at the death of the first life insured 

(applicant). 

(iv) A joint-life annuity with a term certain. If both life insureds die within the term certain, their 

dependants will receive the income for the rest of the term certain. 

If a double-life annuity with a term certain and a percentage reduction at death was selected, and the life 

insured at whose death the life annuity must be reduced dies, the full life annuity instalment will be paid 

till the end of the term certain. After that, the reduced life annuity instalment will be paid. 

See relationship with second life insured later in this section. 

Growth life annuity (single-life or joint-life) 

A growth life annuity (whether single or joint-life) can be selected. It grows at a certain percentage per 

year to protect your client’s income against inflation. 

Your client selects the growth percentage up to the maximum permitted. The higher the growth rate, the 

lower the initial income. However, your client is ensured of better care if he/she lives for a long time 

after the life annuity has been purchased. The growth rate may be chosen to one decimal percentage 

point, e.g. 5,2% (not 5,25%), up to the current maximum of 7% per annum. 

COMPARATIVE EXAMPLES 

The following examples can serve as a guide to assist you and your client to decide on the most 

appropriate choice. An income of R100 per month in the first example serves as the basis with which all 

the other income can be compared. It shows the extent to which the initial income decreases as the 

features of the life annuity changes. 

Example 1: 

The calculations apply to a male who is 65 when he buys the life annuity. Figures for other ages 

will display the same pattern. 

Choice Income per month 

• Constant income payable for as long as the male is alive (no 

guarantee term). 

• Constant income payable for as long as the male is alive, but 

guaranteed for at least 5 years even if he dies earlier. 

• Constant income payable for as long as the male is alive, but 

guaranteed for at least 10 years even if he dies earlier. 

• Constant income payable until the death of the survivor in the 

case of a husband and wife, who is 3 years younger than him (no 

guarantee term). 

• Income which grows at 5% per year, payable for as long as the 

male lives (no guarantee term). 

• Income which grows at 7% per year, payable for as long as the 

male is alive (no guarantee term): 

GE 10/2009 BJ13 

R100 

R 98 

R 94 

R 79 

initially: 

after 5 years: 



initially: 




R42 

R54 

R68 

R87 

R31 

R43 

R61 

R85

At Sanlam, clients are free to select any combination of features. For a married couple, an income 

which grows at 5% or 7% per year, payable until the death of the surviving spouse, could be most 

convenient. At the death of the first deceased (after the end of the term certain – if applicable), the 

income can be reduced by a third or a quarter. Thereafter the pension grows again at the chosen rate. 

Example 2: 

The 65-year old male (from the previous example) and his wife aged 62 choose an income with a 

growth rate of 5%. The income decreases by one-third at the death of the first deceased. Whilst 

both are still alive, the payments compared to the income in the previous example will be as follows: 

initially: R 50 

after 5 years: R 64 

after 10 years: R 81 

after 15 years: R104 

The various incomes are all calculated on the same principles, according to the expected periods of 

payment. On average one is not better than the other. Your client should choose the one that best suits 

his needs. 

The relative values may vary slightly form time to time as life annuity rates change. Nevertheless, they 

should remain a good guide to help with selection. 

TAX: Life annuities 

See page BJ5 for full particulars regarding tax. 

RELATIONSHIP WITH SECOND LIFE INSURED 

Only the following persons qualify as second life insured with a joint-life life annuity (survivor life 

annuity): 

Compulsory money 

• Private pension 

− The spouse, including a civil agreement of 

• male and female 

• male and male 

• female and female 

− Life-long partner 

− Parents, children, grandparents, grandchildren, brothers or sisters 

• Fund policy (not private pension) 

− spouse (as defined above) 

− parents and children 

Optional money 

Any person qualifies. If a section 10A exemption is required, the second life insured must qualify as a 

"spouse". 

GE 10/2009 BJ14

AN ANNUITY COMBINED WITH A WHOLE-LIFE POLICY 

Instead of your client protecting his dependants by means of a guarantee term or a survivor’s life 

annuity, he can select a life annuity without a guarantee term. At the same time he takes out The One 

Policy with life cover equal to the consideration of his pension. No proof of assurability is needed. The 

premium of the life policy (single-premium policy) is then simply withheld from the purchase sum. The 

initial purchase sum is paid out to the heirs at the client's death within the guarantee term of The One 

Policy. The remainder of the purchase sum is used to provide a regular income to the client. 

This option, known as Plan 24, is available only for optional purchase sums and will be discussed in full 

in Section BK. 

For compulsory money, Plan 27 and Plan 28 can be considered. A nil year certain life annuity is 

purchased to fund the premium of a whole-life policy, and the balance is used for a guaranteed income 

for life. Plan 27 and Plan 28 is fully discussed in Section BK. 

GE 10/2009 BJ15

BACKGROUND 

It is a compulsory life annuity that the fund purchases with an insurer on the member’s life, with the 

member as owner. A compulsory term annuity is also available as a private pension. 

FEATURES 

• The Fund is not the owner of the policy. The member himself is the owner. 

• The member or his dependants can propose for a private pension as soon as they become entitled 

to a pension in terms of the rules of the fund in question (pension, provident or RA fund). 

• The fund in question authorises Sanlam Life on the proposal form to make the member (life insured) 

the owner of the policy (life annuity/term annuity). 

• Purchase sums for private pensions arise from death, disability and maturity claims from the Central 

and PPS Retirement Annuity Funds. The Sanlam Preservation Provident Fund, Sanlam 

Preservation Pension Fund, the Central Provident Fund and "compulsory money" derived from 

outside Sanlam also provide purchase sums. 

NOMINEE 

PRIVATE PENSION 

It is compulsory for a nominee to be appointed in the case of a private pension (the policy will not be 

issued without one). 

GUARANTEED CPI ANNUITY 

The Guaranteed CPI Annuity is not available as a private pension. 

GE 10/2009 BJ16

AT A GLANCE 

• A lifelong, guaranteed income is provided. This income can be level, or it can increase annually at a 

chosen percentage. 

• The life annuity is only available for compulsory purchases for money from pension, provident, 

preservation pension, preservation provident and RA funds. This product is available only if the 

origin of the purchase sum is a death claim, a disability claim or retirement. 

• The life annuity is available as a single (Plan 5) as well as double life annuity (Plan 6). 

• At the death of the life insured (or even survivor in case of Plan 6), an amount equal to the initial 

purchase sum is paid to his or her dependants in 60 monthly instalments payable in arrears. 

• Aside from the commission payable on the lump sum, the intermediary can agree to a service fee 

(trail fee) with the client. 

FURTHER ASPECTS * 

HOW THE PRODUCT WORKS 

• The income can be level, or it can increase annually at any rate between 0% and 7% per year. The 

growth rate may be chosen to one decimal, e.g. 5,2% (not 5,25%). An increase at the inflation rate 

is not available. 

• The Pension with Capital Repayment will always have a nil year certain term. The fund’s underlying 

assets are fixed-interest investments (as in the case of normal life annuities). 

• At the death of the life annuitant, the payments cease. The purchase sum invested originally is then 

paid out to the dependants/beneficiaries/ nominees (the “claimants”) or the life annuitant’s estate 

over a period of five years. The 60 instalments are fully taxable and can be commuted on request on 

our terms. 

• Sanlam Life insists at inception date that a person always be indicated on the application form to 

receive any further life annuity instalments that may at the death of the annuitant be payable in terms 

of the policy. That nominated person will become the new policyholder and annuitant after the death 

of the policyholder/annuitant, and will then receive any further life annuity instalments that may be 

payable. Because that nominated person becomes the new policyholder (with Plan 5 a new policy 

document is issued to him/her), he/she is referred to as the nominee for policy-ownership. See 

"Primary and Secondary Pension" later in this section. 

• With Plan 6 the second life assured is automatically indicated at issuing as the nominee for policyownership 

at the death of the policyholder/first life assured (annuitant), except if the policyholder 

nominates somebody else for ownership. See "Primary and Secondary Pension" later in this 

section. 

* Read together with “AT A GLANCE” 

PENSION WITH CAPITAL REPAYMENT 

GE 10/2009 BJ17

FURTHER ASPECTS * (continued) 

TAX 

• The life annuity instalments are fully taxable. 

• The 60 instalments, which pay out an amount equal to the initial purchase sum to the claimant(s) 

after the death of the policyholder, are fully taxable. 

• No pay-outs will be done for lump-sum commutations before an IRP3 is obtained. If a commutation 

is done at death before the payment of an annuity to the new annuitant the tax will be in the hands of 

the deceased estate. If an annuity has already been paid to a new annuitant and commutations at 

that stage are allowed by the SARS the tax will be in the hands of the new annuitant. 

INVESTMENT LIMITS 

• There is no minimum purchase sum, but the minimum permissible new business limit for life annuity 

instalments must always be adhered to. 

• There is no maximum. 

AGE AT INCEPTION 

Minimum : 20 and 


TYPE OF PENSION 

• A member or his or her dependants becomes entitled to a pension according to the rules of a 

particular pension, provident or RA fund. This normally happens at retirement as a result of old age 

or disability, and at an early death. Under any of these conditions, the Pension with Capital 

Repayment can be offered as an option. 

• The Pension with Capital Repayment is also available as a Private Pension. 

DOUBLE LIFE ANNUITY (PLAN 6) 

• The Pension with Capital Repayment is also available as a double life annuity, and the life annuity 

instalments are payable until the death of the survivor. Thereafter the 60 instalments are paid as is 

the case with the single life (Plan 5). 

• The instalment is not decreased on the death of the first deceased. 

• See "Relationship with second life insured" earlier in this section. 

COMMISSION AND TRAIL FEE 

Commission 

• The normal commission scales, as for other compulsory life annuities, are applicable to the full lump 

sum. 

• Commission will not be reversed, as the policyholder cannot claim his or her lump sum. 

Service fee 

• The service fee ("trail fee") can be determined between 0% and 0,6% per year, and is based on the 

original purchase sum. 

• The fee is paid monthly in arrears. 

• The policyholder can cancel or amend the service fee. The policy benefits (life annuity instalment) 

will be adjusted in such a case. This fee is not regulated by legislation, and is an exclusive contract 

between client and intermediary. It is also possible for the client to choose another intermediary. 

• As the service fee is a percentage of the purchase sum, it remains unaltered for as long as it is 

payable, and would not increase as a result of any growth in the life annuity instalments. 


GE 10/2009 BJ18


Service fee (continued) 

• The net instalment is calculated by deducting tax and the service fee from the gross instalment. 

Aside from the chosen growth in the life annuity instalments (if applicable), any change in the service 

fee would therefore result in an adjustment of the net instalment. 

• The service fee is calculated as follows: 

Original purchase sum x chosen % = monthly service fee 

12 

• Payment of service fee 

− The service fee is paid to the intermediary monthly in arrears. 

− The fee will be paid to only one intermediary. 

AMENDMENTS TO THE POLICY 

• An option is offered whereby the client can switch the Pension with Capital Repayment to another 

guaranteed life annuity, such as, for example, a life annuity with another certain term etc. 

• This option only applies if the new life annuity is placed with Sanlam. 

• The switch will be done at the market value of the assets of the Pension with Capital Repayment. 

This will be done by “surrendering” the Pension with Capital Repayment and buying a new pension – 

no notation will be done. 

• Switches to the Pension with Capital Repayment will initially not be accepted, except for switches 

from ILLA products. This will also be a surrender, and a transfer of the surrender value to the new 

life annuity. 

• No other amendments (notations) and surrenders, or partial surrenders on the policy will be allowed. 

• No growth rate adjustments are permitted after the policy has been issued. 

CESSIONS 

• Cessions are not permitted on any of these policies. 

• This applies to the initial life annuity policy, as well as any policy issued at the death of the 

(surviving) life annuitant. Consequently cessions are also not permitted on a policy which is paid out 

in 60 instalments, or on the alternative new life annuity for life. 

PRIMARY AND SECONDARY PENSION 

Non Private Pension 

• Plan 5 (single life) 

− A Primary pension is payable up to the death of the life insured. 

− A Secondary pension is payable for 5 years after the death of the life insured to the nominees 

and/or dependants of the pensioner, or to the estate of the life insured. The outstanding 

instalments can be commuted on request in accordance with Sanlam Life's conditions. 


GE 10/2009 BJ19


• Plan 6 (joint life) 

− A Primary pension is payable up to the death of the surviving life insured. 

− If the second life insured survives the pensioner, the second life insured and/or the pensioner's 

dependants receive the primary pension. 

− A Secondary pension is payable for 5 years after the death of the surviving life insured to the 

nominees and/or dependants of the pensioner, or estate of the surviving life insured. The 

outstanding instalments can be commuted on request in accordance with Sanlam Life's 

conditions. 

Private Pension 

• Plan 5 (single life) 

− A Primary pension is payable up to the death of the life insured. 

− A Secondary pension is payable for 5 years after the death of the life insured to the nominees of 

the pensioner, or to the estate of the life insured. The outstanding instalments can be commuted 

on request according to Sanlam Life's conditions. 

• Plan 6 (joint life) 

− A Primary pension is payable up to the death of the surviving life insured. 

− If the second life insured survives the pensioner, the second life insured becomes the owner of 

the policy, and the second life insured receives this pension. 

− A Secondary pension is payable for 5 years after the death of the surviving life insured, to the 

nominees for policy-ownership of the surviving life insured, or to the estate of the surviving life 

insured. The outstanding instalments can be commuted on request in accordance with Sanlam 

Life's conditions. 

BENEFICIARIES TO RECEIVE THE BENEFITS AT DEATH OF THE LIFE/LIVES INSURED 

AND APPOINTMENT OF NOMINEES FOR POLICY-OWNERSHIP AT DEATH OF 

LIFE/LIVES INSURED 

Plan 5 (single life) 

• No beneficiary for death benefits can be appointed on the policy. 

• However, nominee for ownership is compulsory at issuing. However, the appointment may be 

revoked or changed at any time before the death of the policyholder (life insured). 

Plan 6 (joint life) 

• Private Pension 

− If the pensioner after issuing of the policy no longer wants the second life insured to benefit at 

his/her death, he/she may appoint a different beneficiary or beneficiaries to receive the primary 

pension. This primary pension is then payable to the nominated beneficiary(ies). 

− The primary pension is payable up to the death of the surviving life insured. 

− Should the second life insured still be alive at the death of the beneficiary(ies) for the primary 

pension, the second life insured will then receive the primary pension. 


GE 10/2009 BJ20


• Non Private Pension 

− A beneficiary or beneficiaries may be appointed to – together with the dependants – receive the 

primary pension, which may be payable in terms of the policy after the death of the first life 

insured, should the second life insured still be alive. 

− The primary pension is payable until the death of the surviving life insured. 

− Should the second life insured still be alive at the death of the dependants and beneficiary(ies) 

for the primary pension, the second life insured will receive the primary pension thereafter. 

TABLE AND PLAN CODES 

• The same table codes as are used today for other life annuities, are used for this product. The 

relevant table code is derived from the source of the money with which the life annuity is bought. 

• The plan codes are Plan 5 (single life annuity) and Plan 6 (double life annuity). 

PAYMENT OF INSTALMENTS AT THE DEATH OF THE SECONDARY PENSION LIFE 

INSURED(S) 

• Payment of the 60 instalments 

− The payment of the 60 instalments at the death of the life insured(s) are handled according to the 

same principle as in the case of lump-sum disability benefits (OEP), with the difference that the 

instalments are taxable in the hands of the annuitant. 

− For the payments to be made, a term annuity policy with a 5-year term is issued. 

Please Note: 

− The instalments are payable monthly in arrears. 

− If the new policyholder dies within five years, the instalments do not cease. A new 

owner must be appointed. 

• Payment if a lifelong income is required 

The dependant/nominee can, at the death of the life insured(s), request that a lifelong life annuity be 

purchased on his/her life, instead of taking the money in 60 instalments. The amount that will then 

be available for this will, however, not be the initial purchase sum, but will be equal to the discounted 

value of the 60 instalments. The prevailing 5-year annual term annuity rate will be used for 

discounting the instalments. 

INTERNAL TRANSFERS ("OTHER TRANSFERS") TO OTHER POLICIES AND UNIT 

TRUSTS 

Internal funding from a Legacy- to a Lamda policy is available on the following conditions: 

• The income instalment of any Legacy Life Annuity or Term Annuity policies can pay the premiums of 

a recurring-premium Lamda policy. 

• Only one Legacy Life Annuity or Term Annuity instalment may fund the Lamda policy. Two or more 

Legacy policies may not be used. 

• The Lamda policy must be in force and the premium position must be in order. 

In the case of a new proposal the inception date must therefore be the same as the payment date of 

the income policy. 

• The frequency of the Lamda policy must 

− be monthly, and also 

− correspond with the monthly frequency of the Legacy policy's income. 

• The Life Annuity or Term Annuity's net income instalment, after the premium for the new proposal 

and other deductions have been done, may not be less than R25,00 (if the money must be paid by 

cheque) or R10,00 (if the money must be paid into a bank account). 

It is not cost-effective to administrate amounts smaller than the above-mentioned in the respective 

ways. 

• The money value of both policies must be the same. 


GE 10/2009 BJ21


INTERNAL TRANSFERS ("OTHER TRANSFERS") TO OTHER POLICIES AND UNIT 

TRUSTS (vervolg) 

Should there be transfers to recurring premium policies on the old administration system, no debit order 

discount will apply in respect of the policies funded in this way. Cash premiums will apply to these 

policies. 

The income instalments of the Pension with Capital Repayment can also be transferred to unit trusts. 


Frequencies • Only monthly frequency, payable in arrears are available. 

• For the payment of the 60 instalments in the case of death, the frequency is 

also always monthly in arrears. 

Issuing fee R350,00 

Policy fee Life Annuities 

Term Annuities 


GE 10/2009 BJ22 

: R15,00 per month 

: R11,50 per month 

Product name Pension with Capital Repayment 

Product name code D121 

Quotations MegKwot and OfficeQuote 

* Read together with “AT A GLANCE”

The Guaranteed CPI Annuity is a compulsory, real life annuity. With this annuity the pension payments 

increase with the inflation rate annually on plan anniversary. There is no maximum increase, and in 

times of deflation the pension instalment will decrease. 

TERM CERTAIN 

The client chooses a term certain of 0, 5, or 10 years, during which the annuity instalment is guaranteed, 

regardless of whether the annuitant is still alive. 

PAYMENTS 

The one-off payment for these annuities will always be compulsory money, and will derive from an 

approved Sanlam fund. 

START DATE 

The start date will always be one day after the day on which the proceeds of the retirement annuity or 

other approved fund from which the money derives, become available and are in the possession of 

Sanlam Life. 

AGE AT ENTRY 

Minimum : 20 age next birthday 

Maximum : 86 age next birthday 

SINGLE AND JOINT LIFE ANNUITY 

The annuitant may choose a single or joint life annuity. If a joint life annuity is chosen, the annuitant 

may also choose that the pension should decrease at a chosen percentage at the death of one of the 

lives insured. 

TABLE AND PRODUCT NAME CODES 

The following codes apply: 

GUARANTEED CPI ANNUITY 

GE 10/2009 BJ23 

Table code 

Product name 

code 

CRAF single life annuity from a retirement or death claim FA0 F040 

CRAF joint life annuity from a retirement or death claim FB0 F041 

CRAF single life annuity from a disability claim FAA F042 

CRAF joint life annuity from a disability claim FBB F043

INCOME PAYABLE 

Frequency 

Payments will always be paid monthly in arrears. 

Sanlam Life will pay the monthly income after each month. This payment is not necessarily at the end 

of a calendar month. For example, should the start date of the life annuity be 6 December 2009, the first 

payment will be on 5 January 2010, and on the 5 th day of each month thereafter. 

Regular pension payments 

− Single life annuity 

If a nil years certain term was chosen, pension payments will be discontinued at the death of the life 

annuitant. 

If a minimum term was chosen, Sanlam Life will pay the amount of the monthly pension to the life 

annuitant the same day of every month (the same day of the month as the start date) up to his or her 

death. Payment will be made for a period no less than the minimum term. 

If the life annuitant dies after the minimum term has lapsed, no further pension payments will be 

payable and a proportional part of the pension payment cannot be claimed. 

If no minimum term was chosen (nil years certain), Sanlam Life will make the pension payments up 

to the death of the life annuitant. If the life annuitant dies before a date on which a pension payment 

would have been payable, no further pension payments will be payable and a proportional part of 

that pension payment cannot be claimed. 

Income tax will be deducted from each pension payment. 

− Joint life annuity 

If a nil years term certain was chosen and the life annuitant dies and is survived by a life insured, 

payment will be made to that life insured and/or a nominee and/or a dependant until the death of the 

life insured. If the surviving life insured dies before a date on which a pension payment would have 

been made, no further pension payments will be payable and a proportional part of the pension 

payment cannot be claimed. 

If the pension was chosen with a decrease at the death of one of the lives insured, the amount of the 

life annuity to be paid after the death of a life insured will decrease by the chosen percentage. 

If a minimum term was chosen, Sanlam Life will pay the amount of the monthly pension to the life 

annuitant the same day of every month (the same day of the month as the start date) up to his or her 

death. If the life annuitant is survived by a life insured, payments will be made up to the latter's 

death. Payment will be made for a period no less than the minimum term. If the minimum term of 

the plan has lapsed and the surviving life insured dies, no further pension payments will be payable 

and a part of the pension payment cannot be claimed. 

If only one of the lives insured is still alive at the end of the minimum term, any amount still paid after 

that will decrease by the chosen percentage. If both lives insured are still alive at the end of the 

minimum term, payment of the life annuity amount will continue until one of them dies, after which 

the life annuity amount still to be paid will be decreased by the chosen percentage. 

Income tax will be deducted from each pension instalment. 

GE 10/2009 BJ24

Growth in income 

The pension will be amended every year at the South African headline inflation rate for the 12 months 

up to the date four months before the annual increase is made. The annual pension increase will take 

place on the plan anniversary. 

The headline inflation rate is described as the percentage change in the South African consumer price 

index for the historical metropolitan areas, for all expenditure groups, for the applicable period as 

calculated by Statistics South Africa. If this index is not available, another index as determined by 

Sanlam Life will be used. 

Please note that if there is deflation over any such 12-month period, the pension payment will decrease 

from the level of the previous year. (Deflation is when the change in the Consumer Price Index rate 

drops below 0%.) 

Minimum income 

The minimum initial income is R100,00 per month. 

GUARANTEED PENSION 

Sanlam Life guarantees the pension payments as mentioned above for the full period they are payable. 

This guarantee is subject to the "Particular provisions" explained below. Future changes in interest 

rates will have no effect on the amount of these pension payments. Future changes in inflation will, 

however, have an effect on the amount of the pension payments (see explanation of deflation above). 

PARTICULAR PROVISIONS 

Sanlam Life may recalculate and change the provisions of the plan (including the pension amount) if 

• the annuitant’s tax status changes; 

• a government or authority changes or institutes 

− tax or similar levies, or 

− prescribed requirements about the underlying assets in the fund that Sanlam Life holds for this 

plan and other similar plans; 

• Sanlam Life, because of the impact of an event or circumstance, changes its interpretation or 

understanding of 


− prescribed requirements regarding the underlying assets in the fund that Sanlam Life holds for 

this plan and other similar plans. 

LEGAL RESTRICTIONS ON THE PLAN 

These plans may not be surrendered, pledged or ceded, and the pension payments may not be 

commuted. No loans are allowed. 

BENEFIT AT DEATH 

In case of a single life annuity where a term certain was chosen and where the life annuitant dies before 

the end of the minimum term, payment will be made to the dependants and/or nominees of the life 

annuitant until the end of the minimum term. Or if the life annuitant dies without any dependants and/or 

nominees, payment will be made to the deceased's estate. 

In case of a joint life annuity where a term certain was chosen and the life annuitant dies before the end 

of the minimum term without being survived by a life insured, or if the life insured who survived the life 

annuitant dies before the end of that term, payment will be made to the end of the term. The payment 

will be either to the dependants and/or the nominees of that life annuitant or to the dependants and/or 

nominees of that life insured, as the case may be. If that life annuitant or that life insured, as the case 

may be, should die without any dependants and/or nominees, payment will be made to the deceased's 

estate. 

GE 10/2009 BJ25

BENEFIT AT DEATH (continued) 

If the life annuitant is survived by a life insured, payments will be made to that life insured and/or the life 

annuitant's nominees and/or dependants up to the death of the life insured. 

In case of a joint life annuity with a nil year term certain, payment will stop if the life annuitant is not 

survived by a life insured. If the life annuitant is survived by a life insured, payment will be made to that 

life insured and/or the nominees and/or dependants of the life annuitant up to the death of the life 

insured. 

In all cases the trustees of the Fund will decide whether sufficient provision has been made for the 

needs of dependants. They will therefore decide what each dependant's share, if any, of any amount 

payable will be. 

If a nominee is not a dependant, the trustees will also decide whether the nominee qualifies for the 

pension payments, and if so, to what extent the nominee will share an amount payable with the 

dependants. 


• the spouse of the life annuitant (including permanent life partners, partners in a civil union and 

common law marriages) 

• a child of the life annuitant, including an adopted or illegitimate child 

• a person who is dependent on the life annuitant for financial support, whether legally or in fact 

• a person who would have been dependent on the life annuitant for financial support had the life 

insured not died, whether legally or in fact. An example would be a child of the life annuitant born 

after the death of the life insured. 

A nominee is someone the life annuitant nominates to receive the benefit available at death, or part of it. 

Sanlam Life and the trustees of the Fund will then know what the wishes of the life annuitant were. A 

nominee may accept or reject such a nomination only after the death of the life insured. 

A nomination may at any time be added, cancelled or changed. This must be in writing and signed by 

the life annuitant and must reach the Sanlam Life head office before the death of the life insured. 

CESSIONS 

Not allowed. 

TAX 

The pension will be taxed as income in the hands of the annuitant. 


The pension is not available as a private pension. The Fund is always the owner of the pension. 


Issuing fee : R500 

Policy fee : R12,50 per month 

Proposal form : AEB42 and AEB2056 

Quotations : OfficeQuote 

GE 10/2009 BJ26

SECTION BK 

INVESTMENT PLANS 

GE 3/2012 BK 

Page 

CAPITAL PROTECTION PLAN AT A GLANCE .................................................……. BK1 

GENERAL INFORMATION ................................................................................…….. BK1 

− MINIMUM LUMP SUM ...............................................................................................……… BK1 

− INFORMATION IN OTHER SECTIONS .....................................................................……… BK1 

CAPITAL PROTECTION OPTION : WHOLE LIFE (PLAN 27) ……………………….. BK2 

PLAN 27 AT A GLANCE …………………….…………………………………………………….. BK2 

FURTHER ASPECTS ……………………………….……………………………………………… BK2 

− ALLOCATION OF LIFE ANNUITY INSTALMENTS ………………………..………………….. BK2 

− CALCULATIONS ……………………….…………………………………….…………………… BK3 

− REVISION ……………………………………………………….…………….…………………… BK3 

− FREQUENCIES ……………………………………………………………..…………………….. BK3 

− AGE AT ENTRY ………………………………………………………..………………………….. BK3 

− INCEPTION DATES …………………………………………………………..………………….. BK4 

− EX GRATIA CLAIM ……………………………………………………….…………………….…. BK4 

− MINIMUM WHOLE-LIFE POLICY PREMIUM AND LIFE ANNUITY INSTALMENT ..……… BK4 

− TYPE OF COMPULSORY MONEY SUITABLE AS PURCHASE SUM ………..……………. BK4 

− PRIVATE PENSION …………………………………….………………………………………… BK4 

− COMPULSORY AND OPTIONAL MONEY ………………………………………..…………… BK4 

− COMMISSION …………………………………………..…………………………………………. BK4 

− AMENDMENTS …………………………………………….………………………………………. BK5 

− SURRENDER VALUE ...............................................................................................……… BK5 

− CESSIONS ...............................................................................................................……… BK5 

− TRANSFERS TO OTHER POLICIES (“OTHER TRANSFERS”) ………..…………………… BK5 

− TABLE AND PLAN CODES ……………………………..……………………………………….. BK5 

− ADMINISTRATIVE INFORMATION ………………………………….………………………….. BK5 

2/…

- 2 - 

GE 3/2012 BK 

Page 

CAPITAL PROTECTION OPTION : CHOSEN TERM (PLAN 28) ..……………...……… BK6 

PLAN 28 AT A GLANCE ………………….………………………………………………… BK6 

FURTHER ASPECTS ……………………………………………………………………….. BK6 

− ALLOCATION OF THE LIFE ANNUITY INSTALMENTS …………………………………..…… BK6 

− CALCULATIONS …………………..…………………………………………………….………….. BK7 

− REDUCTION OF THE DEATH BENEFIT ………………………………………………………… BK7 

− LEVEL COVER TERMS AVAILABLE …………………………………….………………….……. BK7 

− FREQUENCIES ……………………………………………………..…………………………....…. BK7 

− AGE AT ENTRY ………………………………………………………………………………..……. BK7 

− INCEPTION DATES …………………………………………………………………………………. BK7 

− EX GRATIA CLAIM …………………………………………..……………………………………… BK7 

− MINIMUM POLICY PREMIUM AND LIFE ANNUITY INSTALMENT ……………………..……. BK8 

− TYPE OF COMPULSORY MONEY SUITABLE FOR PURCHASE SUM ……………………… BK8 

− PRIVATE PENSION ……………………………………………………..…………….……………. BK8 

− COMPULSORY AND OPTIONAL MONEY …………………………………..…………………… BK8 

− COMMISSION …………………………………………………………………………………….…. BK8 

− AMENDMENTS ………………………………………………………………………………….…… BK8 

− COOLING-OFF PERIOD ……………………………………………………………………………. BK8 

− SURRENDER VALUE .....................................................................................................…… BK9 

− CESSIONS .....................................................................................................................……. BK9 

− TRANSFERS TO OTHER POLICIES (“OTHER TRANSFERS“) .………………………………. BK9 

− TABLE AND PLAN CODES ……………………………………………….……………………….. BK9 

− ADMINISTRATIVE INFORMATION ……………………………………………………….…....…. BK9

Choices 

available 

Inception 

date 

Age at 

entry 

Benefit 

term 

Origin of 

purchase 

price 

Maturity 

age 

Proposal 

form 

CAPITAL PROTECTION PLANS AT A GLANCE 

• Plan 27 : Capital Protection Option : Whole life (the client is provided with a 

guaranteed, level income for life, cover is guaranteed for life) 

• Plan 28 : Capital Protection Option : Chosen Term (guaranteed lifelong income is 

provided to the client, cover is guaranteed for the level cover term and 

is reduced thereafter annually, but never below 25% of the original 

cover amount) 

Please see Section AA for full particulars. 

Plan 27 (compulsory) 

Plan 28 (compulsory) 

Plan 27 

Plan 28 

MINIMUM LUMP SUM 

PLAN 27 AND PLAN 28 

: 1 to 80 anb 

: 15 to 70 anb 

: Lifelong 

: Lifelong 

Available only for compulsory money, that is if the origin of the purchase sum is a death 

claim, a disability claim or retirement. 

There is no limit on the age at maturity, only on the term. 

Plans 27 and 28 : Form AEB42 

R20 000 (for both level and increasing income plans) 

No minimum initial policy premium or minimum life annuity payments apply to Plans 27 and 28. 

• Income tax : Section BJ 

GE 3/2012 BK1 

(in alphabetical order) 

• Inception date and rate date : investments emanating from death and disability claims - Section AA 

• Instalments (calculation) : Section BJ 

• Rates for each day of a month : Section BJ 

• Advanced guarantee of rates : Section AA 


INVESTMENT PLANS: GENERAL INFORMATION 

INFORMATION IN OTHER SECTIONS

CAPITAL PROTECTION OPTION : WHOLE LIFE (PLAN 27) 

• The client is provided with a guaranteed income for life. The income can be level or it can increase 

by a chosen percentage on the policy anniversary each year. 

• The original purchase sum is guaranteed at death. 

• The life cover is guaranteed for life. 

PLAN 27 AT A GLANCE 

• Only one nil-year-certain life annuity is purchased which funds the premium on a whole-life policy, 

with the balance being used to provide a guaranteed income for life. 

• The premiums of whole-life policies are equal to the risk premiums. As cover becomes more 

expensive, the premium of the policy increases. The life annuity component by means of which this 

premium is funded, will provide the increasing life annuity which funds this premium. Because only 

risk premiums are recovered, the initial premium is considerably cheaper than with other policies. 

The premium is level for the first five years, after which it increases annually on the policy 

anniversary. 

• Commission is paid on the first year’s annual premium. 

• The product is available only for compulsory money, that is if the origin of the purchase sum is a 

death claim, a disability claim or retirement. 

FURTHER ASPECTS 

ALLOCATION OF LIFE ANNUITY INSTALMENTS 

• The life annuity always has a nil-year certain term and is always a single-life life annuity. 

• The full gross instalment is taxed before being split between a premium for the life policy and 

income to the life annuitant. The premium and income are therefore paid from after-tax money. 

The life annuitant receives a tax certificate in respect of the full gross instalment. 

• With the whole-life policy, the premium is equal to the risk premium only. No other costs are 

deducted from this part of the life annuity. 

• A portion of the life annuity provides an increasing instalment with which the premiums of the wholelife 

policy are paid. 

• The balance provides an instalment that is paid each month as a monthly income to the life 

annuitant. The instalment can be level or it can increase at a chosen growth rate between 0% and 

7% per annum. The growth rate may be chosen to one decimal percentage point, e.g. 5,2% (not 

5,25%). 

• If the whole-life policy is terminated, it has no surrender value. However, the full increasing income 

of the life annuity installment is payable to the policyholder. 

GE 3/2012 BK2

CALCULATIONS 

PREMIUM ON WHOLE-LIFE POLICY 

• No fees are taken into account in calculating the part of the purchase sum required for the policy 

premium. 

• Once provision has been made for tax each month, the available premium is equal to the cost of the 

death benefits. 

CALCULATION OF THE NET INCOME 

Once the policy premium – and therefore the part of the purchase sum needed for this – has been 

calculated, the balance of the purchase sum is used to calculate the income instalment. 

CALCULATION OF TAX 

• The client’s attention must be drawn to the fact that the taxable amount increases every year owing 

to the increasing life annuity portion which generates the premium, as well as the increasing income 

(if applicable). 

• The calculation of the tax always takes into account that the life annuity in any case starts 

increasing after a certain period (to pay for the policy premiums). 

DEBIT ORDER DISCOUNT 

None. 

FEES 

• There is an initial fee of R350,00 on the part of the purchase sum that is used to calculate the 

monthly income. 

• A policy fee of R15,00 p.m. is used when calculating the monthly income. 

• There are no fees on that part which is used for the whole-life policy premium. 

REVISION 

No revision is applicable to the life policy. 

FREQUENCIES 

Only monthly frequencies for both the whole-life policy premium and the income. 

AGE AT ENTRY 



GE 3/2012 BK3

INCEPTION DATES 

• The date of payment of the purchase sum determines the inception date of the life annuity. The life 

annuity must always be payable monthly in arrear. 

• The inception date of the life policy is one month later than the inception date of the life annuity. 

The first instalment payable monthly in arrear therefore funds the life policy and provides the first 

income. 

EX GRATIA CLAIM 

If a claim arises in the period between the date on which the purchase sum was paid and the inception 

date of the life policy, we pay the policyholder an ex gratia claim for an amount equal to the full 

purchase sum. 

MINIMUM WHOLE-LIFE POLICY PREMIUM AND LIFE ANNUITY INSTALMENT 

• The minimum purchase sum is R20 000 for both a level and an increasing income. 

• There is no minimum initial policy premium or minimum life annuity instalment for this product. 

TYPE OF COMPULSORY MONEY SUITABLE AS PURCHASE SUM 

A member or his dependants become entitled to a pension in terms of the rules of a pension, provident 

or RA fund. This normally happens at retirement as a result of age, or at disability or prior death. If any 

of these conditions applies, a Plan 27 can be offered as an option. 


Plan 27 is also available as a Private Pension. 

COMPULSORY AND OPTIONAL MONEY 

Plan 27 is available only for compulsory money. 

COMMISSION 

COMMISSION ON THE WHOLE-LIFE POLICY PREMIUM 

• Regulation commission is paid up front as usual, as first-year and second-year commission. Both 

first- and second-year commission are calculated on the first year’s annual premium, and 

commission is calculated as for a whole-life policy. 

• No commission is paid on the contractual premium increases. 

COMMISSION ON THE LIFE ANNUITY POLICY 

Normal commission is paid on the life annuity. 

GE 3/2012 BK4

AMENDMENTS 

CHANGE IN TAX RATE 

• If the policy has already been issued and the life annuitant should request that the tax rate be 

changed, this can be done, but the net income will change. 

• Any change in the tax rate, or changes to tax rebates, for example, will bring about an associated 

change in the net income. 


No amendments (notations) are allowed on the policies. 

SURRENDER VALUE 

None 

CESSIONS 

• Plan 27 may not be ceded as a unit. The life policy (table 51N) may be ceded, but the life annuity 

(that is purchased with compulsory money) may not be ceded. 

• Collateral and outright cessions of the life policy are permissible. 

TRANSFERS TO OTHER POLICIES (“OTHER TRANSFERS”) 

The income instalments from the Plan 27 can be used to fund other recurring premium policies, or be 

transferred to unit trusts. 


The plan code is a Plan 27 and the table codes are as follows: 

• the table code of the life policy: table 51N 

• the table code of the life annuity can be any of the following : FA0, FA1, FA2, FA3 or FA4. The table 

code depends on the source of the funds (e.g. a retirement annuity or a pension). 


Proposal form 

Product name code 

AEB42 

F100 

Quotations • MegKwot and SanQuote 

Surrender value 

• No special quotations 

None 

GE 3/2012 BK5

CAPITAL PROTECTION OPTION : CHOSEN TERM (PLAN 28) 

PLAN 28 AT A GLANCE 

• The client is provided with a guaranteed, lifelong income. This income can be level, or can increase 

by a chosen percentage annually on policy anniversary. 

• The death benefit is equal to the purchase sum and is guaranteed for the duration of the chosen 

level cover term. At the end of the level cover term, the death benefit will decrease annually by 

10%, but never below 25% of the initial death benefit. 

• Only one nil years certain life annuity is purchased which funds the policy premium of a whole-life 

policy, and the balance is used for a guaranteed lifelong income. 

• The premiums of the whole-life policy will remain level for life. 

• The product is available for compulsory money only; that is, if the origin of the purchase sum is a 

death claim, disability claim or retirement from a retirement fund. 

FURTHER ASPECTS 

ALLOCATION OF THE LIFE ANNUITY INSTALMENTS 

• The life annuity always has a nil years term certain and is always a single-life life annuity. 

• The full gross instalment is taxed before it is divided between a premium for the whole-life policy 

and income to the life annuitant. The life annuitant receives a tax certificate in respect of the full 

gross instalment. 

• A portion of the life annuity provides a level instalment with which the premiums of the whole-life 

policy are paid. 

• The balance provides an instalment that is paid as a monthly income to the life annuitant. This 

instalment could be level, or it could increase by a chosen growth rate of between 0% and 7% a 

year. The growth rate may be chosen up to one decimal percentage, e.g. 5,2% (not 5,25%). 

• The whole-life policy will have no surrender value. 

GE 3/2012 BK6

CALCULATIONS 

CALCULATION OF THE NET INCOME 

After the policy premium – and thus the portion of the purchase needed for this – has been calculated, 

the balance of the purchase sum will be used to calculate the income instalment. 


None. 

FEES 

• There is an initial fee R350,00 on the portion of the purchase sum that is used to calculate the 

monthly income. 

• A policy fee of R15,00 a month is used with the calculation of the monthly income. 

• There are no other fees on the portion that is utilised for the whole-life policy premium. 

REDUCTION OF THE DEATH BENEFIT 

The death benefit amount will remain unchanged for the duration of the chosen level cover term. At the 

end of the level cover term, and on each policy anniversary after that, this amount will be reduced 

annually by 10%. However, the death benefit will never decrease to an amount of less than 25% of the 

initial death benefit. 

LEVEL COVER TERMS AVAILABLE 

Any term from 10 up to and including 20 years may be chosen. 

FREQUENCIES 

Only monthly frequencies for both the whole-life policy premium and the income. 

AGE AT ENTRY 



INCEPTION DATES 

• The date of payment of the purchase sum determines the inception date of the life annuity. The life 

annuity must always be payable monthly in arrear. 

• The inception date of the whole-life policy is one month later than the inception date of the life 

annuity policy. The first monthly instalment payable in arrear will then fund the whole-life policy, and 

will also provide the first income. 

EX GRATIA CLAIM 

Should a claim arise in the period between the date on which the purchase sum has been paid and the 

inception date of the whole-life policy, we will pay out an ex gratia claim to the policyholder for an 

amount equal to the full purchase sum. 

GE 3/2012 BK7

MINIMUM POLICY PREMIUM AND LIFE ANNUITY INSTALMENT 

• The minimum purchase sum for both a level and an escalating income is R20 000. 

• There is no minimum initial policy premium or minimum life annuity instalment for this product. 

TYPE OF COMPULSORY MONEY SUITABLE FOR PURCHASE SUM 

A member or his dependants will become entitled to a pension in term of the rules of a relevant 

pension, provident or RA fund. This normally happens at retirement owing to age, or at disability, and at 

early death. In the case of any of these events, a Plan 28 can be offered as option. 


Plan 28 is also available as a Private Pension. 

COMPULSORY AND OPTIONAL MONEY 

Plan 28 is available for compulsory money only. 

COMMISSION 

COMMISSION ON THE WHOLE-LIFE POLICY PREMIUM 

As usual, regulation commission is paid as first- and second-year commission at commencement (up 

front). Both first- and second-year commission are calculated on the annual premium, and commission 

is calculated as for a whole-life policy. 

COMMISSION ON THE LIFE ANNUITY POLICY 

Normal commission is paid on the life annuity. 

AMENDMENTS 

CHANGE IN TAX RATE 

• Should the policy already have been issued and the life annuitant requests that the tax rate must be 

changed, this can be done, but the net income will change. 

• Any change in the tax rate, or amendments to, for instance, the tax rebates, will cause an 

accompanying change in the net income. 


No amendments (notations) are allowed on the policy. 


With Plans 27 and Plan 28 there are no cooling-off period. 

GE 3/2012 BK8

SURRENDER VALUE 

None. 

CESSIONS 

• Plan 28 may not be ceded as a unit. The life policy (table 51AN) may be ceded, but the life annuity 

(purchased with compulsory money) may not be ceded. 

• Collateral and outright cessions of the life policy are permissible. 

TRANSFERS TO OTHER POLICIES ("OTHER TRANSFERS") 

The income instalments of the Plan 28 can be used to fund other recurring premium policies, or to be 

transferred to unit trusts. 


The plan code is a Plan 28, and the table codes are as follows: 

• The table code of the life policy: table 51AN. 

• The table codes of the life annuities can be any one of the following: FA0, FA1, FA2, FA3 of FA4. 

The table code depends on the source of the money (e.g. a retirement annuity or a pension). 


Proposal form 

Product name code 

AEB42 

F101 

Quotations • MegKwot and SanQuote 

Surrender value 

• No special quotations 

None 

GE 3/2012 BK9

CHAPTER 1 

ESCALATING GUARANTEE INVESTMENT 

GE 6/2005 BL1 

Page 

FEATURES OF THE PRODUCT ………………………………………………….. BL1/1 

REMUNERATION OF INTERMEDIARY …………………………………………. BL1/1 

NO INCOME PLAN …………………………………….…………………………… BL1/1 

AVAILABILITY OF PRODUCT ………………………………………….………… BL1/1 

MINIMUM SINGLE PREMIUM ………………………………………………..…… BL1/1 

MINIMUM GUARANTEED MATURITY VALUE …………………………………. BL1/2 

TERM ………………………………………………………………………….……… BL1/2 

MODE OF PAYMENT AND FREQUENCY ………………………………….…... BL1/2 

INCEPTION DATE ……………………………………………………..…………… BL1/2 

POLICY CHARGES …………………………………………………………………. BL1/2 

DEATH BENEFIT ………………………….………………………………………… BL1/2 

INVESTMENT GUARANTEE ………………………………………………………. BL1/3 

CAP ………………………………………………………………………...…………. BL1/3 

NOMINEE FOR POLICY-OWNERSHIP …………………………..……………… BL1/3 

CESSIONS …………………………………………………………………………… BL1/3 

COOLING-OFF PERIOD ………………………………………….……………….. BL1/3 

CASH WITHDRAWALS ……………………………………………………………. BL1/3 

LOANS ……………………………………………………………………………….. BL1/4 

CONTINUATIONS ………………………………………………………………….. BL1/4 

ADMINISTRATIVE INFORMATION ……………………………………….……… BL1/4

The Escalating Guarantee Investment offers clients the opportunity to invest on the JSE Securities 

Exchange without the risks that are usually associated with equity investments. This is a safe product 

with the potential to provide good returns too – it is therefore extremely suitable for today's volatile 

markets. 

FEATURES OF THE PRODUCT 

The Escalating Guarantee Investment is a five-year single-premium sinking fund policy. The policy's 

proceeds are linked directly to the Top40 Index of the JSE Securities Exchange and are subject to the 

following: 

• The growth vests each year on the policy anniversary and – subject to the policy charges that are 

deducted – will not be less than nil in any policy year, even if the Top40 index drops over the policy 

year. 

• The growth over any policy year is limited to a contractual cap that is determined when the policy is 

taken out. This rate will be adjusted from time to time (usually on the 26 th of each month) for new 

business. 

• If the value of the index at the end of a policy year is lower than that at the beginning of the policy 

year, the fund value of the policy will be reinstated so that the value is again equal to the value as at 

the beginning of the year, less the fund charge. The policy will then immediately share again in any 

market recovery. 

REMUNERATION OF INTERMEDIARY 

Commission is equal to 3% of the single premium. If the commission is cut, the allocation percentage 

will increase by the same percentage as that by which the commission is cut. If no commission 

percentage is indicated on the proposal form the proposal will be issued according to the commission 

percentage that appears on the quotation. 

NO INCOME PLAN 

The Escalating Guarantee Investment is available only for capital growth. No income plan is available. 

If income is required, a five-year term annuity can be purchased to provide the required income. The 

rest of the capital is then invested in the Escalating Guarantee Investment. 

AVAILABILITY OF PRODUCT 

The product is available for: 

• Individuals 

• Tax-exempt institutions 

• Trusts, where all the beneficiaries are natural persons and/or tax-exempt institutions. 

The product is not available to tax-paying institutions. 

MINIMUM SINGLE PREMIUM 

R1 000 000 

CHAPTER 1 

ESCALATING GUARANTEE INVESTMENT 

Ad hoc single premiums cannot be added after the policy has been issued. 

GE '3/2013 BL1/1

MINIMUM GUARANTEED MATURITY VALUE 

The maturity value is guaranteed not to be less than the single premium. 

TERM 

Only a five-year term is available. 

MODE OF PAYMENT AND FREQUENCY 

Only single premiums (optional money) are permitted. Compulsory money cannot be used for the 

investment. 

INCEPTION DATE 

The inception date is always the first day of a month. 

The inception date is determined according to the date on which the lump sum has been paid in at the 

bank: 

• If the money has been paid in from the first up to and including the 25 th of a month, the inception 

date is the first of the next month. 

• If the money has been paid in after the 25 th of a month, the inception date is the first of the month 

following the next month. 

After the policy has been issued, Sanlam Life will add, as growth to the policy, any interest on the 

premium from the payment date to the inception date. 

POLICY CHARGES 

No initial charges are deducted from the single premium. At least 100% of the single premium is 

invested for the client. 

The following charges are deducted from the policy: 

• A fund charge is deducted annually from the value of the fund. The fund charge is 1% per annum for 

single premiums of R1 million or more. 

• Capital gains tax, at present 7,5% of the investment growth, is deducted at maturity or when the 

policy is surrendered. This only applies to individuals or trusts where all the eventual beneficiaries 

are natural persons. 

DEATH BENEFIT 

No death benefit or death guarantee is involved. Because it is a sinking fund policy, no life insured is 

involved. When taking out the policy, the policyholder (if an individual) must appoint a nominee for 

policy-ownership. If the policyholder dies before the end of the policy term and the nominee accepts the 

appointment, he or she becomes the new policyholder. The nominee can then decide to continue with 

the policy until the end of the term, or to surrender the policy (full cash withdrawal). 

GE '3/2013 BL1/2

INVESTMENT GUARANTEE 

The investment guarantee involves the following: 

• The growth vests each year and (subject to the policy charges that are deducted) will never be less 

than nil. 

• The original single premium is guaranteed at the end of the policy term. 

CAP 

It is the maximum growth (before policy charges) that can be earned on the policy in any policy year. 

The cap is set contractually and applies for the full term of the policy. This rate can be adjusted from 

time to time for new business and depends on interest rates and market conditions. 

The cap could also fluctuate in relation to the payment date. Therefore, if a quotation has been obtained 

and the money is not paid in on the date entered on the computer, a new quotation with the correct 

payment date must be obtained. 

NOMINEE FOR POLICY-OWNERSHIP 

If the policyholder is an individual, he or she must appoint a nominee for policy-ownership when the 

policy is taken out. More than one nominee may be appointed. If no nominee has been filled in on the 

proposal form, the proposal will be referred back to the intermediary. 

CESSIONS 

Outright cessions and collateral cessions are available. 

Outright cessions: 

The policy may not be ceded outright to a tax paying institution. If the tax status of the cessionary differs 

from that of the cedent, the cessionary's values could differ from those of the cedent. 

Collateral cessions: 

The tax status of the cessionary has no influence on the policy. 


Owing to the nature of the assets underlying the investment, the policy cannot be cancelled. No 

cooling-off period therefore applies. 

CASH WITHDRAWALS 

A full cash withdrawal can be done after a six-month waiting period. Partial cash withdrawals cannot be 

done. The Escalating Guarantee Investment is an illiquid investment. This means that the cash value 

at early termination can be significantly lower than the single premium. 

GE 8/2006 BL1/3

LOANS 

No loans are available. 

CONTINUATIONS 

At the end of the policy term the policyholder can decide to continue the policy in the Escalating 

Guarantee Investment or in Stratus. If the policyholder chooses to continue the investment in the 

Escalating Guarantee Investment, the term will again be five years. 



Product name code G006 

Quotations Quotations are not available on SanQuote. It must be requested from 

Product Advice on 021 916 3082. Quotations are also available at advisors 

and marketing consultants. 

GE 8/2006 BL1/4

SECTION BQ 

COLLECTIVE INVESTMENTS 

GE 9/2009 BQ 

Page 

WHY DO PEOPLE SAVE? ………………………………………………………….. BQ1 

WHY INVEST IN COLLECTIVE INVESTMENTS? ……………………………….. BQ1 

SANLAM COLLECTIVE INVESTMENTS …………………………………………. BQ2 

– GEOGRAPHICAL CLASSIFICATION …………………………………..…………….….. BQ2 

– ASSET CLASSES …………………………………………………………………………… BQ3 

– DOMESTIC EQUITY FUNDS ………………………………………………………….….. BQ3 

General Sector ….…………………………………………………….……………………... BQ3 

Growth Sector …..……………………………………………………………………………. BQ3 

Large Cap Sector …………………………………………………………………….…..….. BQ4 

Industrial Sector ……………………………………………………………………………… BQ4 

Financial Sector ……………………………………………………………………………… BQ4 

Smaller Companies Sector .……………………………………………………………..…. BQ4 

Value Sector ………………………………………………………………………….…..….. BQ4 

– DOMESTIC ASSET ALLOCATION FUNDS …………………………………………. BQ5 

Prudential Medium Equity Sector ……………………...………………………………..…. BQ5 

Prudential Variable Equity Sector ………………………………………………………….. BQ5 

Targeted Absolute & Real Return Sector …………………………………………………. BQ5 

– DOMESTIC REAL ESTATE FUNDS ……………………………………………………… BQ6 

General Sector ………………………………………………………………………………. BQ6 

– DOMESTIC FIXED INTEREST FUNDS …………………………………………….. BQ6 

Varied Specialist Sector .............…………………………………………………………… BQ6 

Bond Sector .……………………………………………………………………………….… BQ6 

Money Market Sector …………………………………………………………………..….... BQ6 

– WORLDWIDE EQUITY FUNDS ………………………………………..................... BQ7 

Varied Specialist Sector .……………..………………………………………………….…. BQ7 

– FOREIGN FUNDS ……….………………………………………………………….. BQ7 

Equity – General Sector …………….…………………………………………………….... BQ7 

Equity – Varied Specialist …………………………………………………………………. BQ8 

Asset Allocation Flexible Sector ………………………………………………………..….. BQ8 

Fixed Interest – Bond Sector …………...................................................................…... BQ9 

– GENERAL INFORMATION ……………………………………………………………….... BQ10 

– APPLICATION PROCEDURE ……………………………………………………………... BQ10 

2/…

- 2 - 

GE 9/2009 BQ 

Page 

– DEALING WITH CHEQUES ……………………………………………………………….. BQ11 

Pricing policy …………………………………………………………………………………. BQ11 

Forward pricing ……………………………………………………………………………… BQ12 

– ENQUIRIES: Sanlam Collective Investments …………………………………………... BQ12 

RISK PROFILES OF MANAGED FUNDS …………………………………………. BQ13 

RISK RATINGS OF ACTIVE FUNDS ………………………………………………. BQ14

Collective Investments are an ideal investment medium for your client wishing to save effectively in the 

medium term (three years) and longer by means of an equity linked or money market investment. Apart 

from the fact that the investor can enjoy the benefits of capital growth, he has a liquid investment which 

can be easily converted into cash. 

WHY DO PEOPLE SAVE? 

• For a specific purpose – house, own business, trip around the world, a farm to retire on, a motor-car 

or a boat. 

• To accumulate capital – for providing for children’s studies and for carefree days after retirement. 

• For peace of mind – for the knowledge that funds will be available when something unforeseen 

happens. 

WHAT HAMPERS EFFECTIVE SAVING? 

• The effect of inflation 

• The effect of tax 

• Various needs to be satisfied 

INVESTMENT CHANNELS AVAILABLE 

• Income-providing (interest) : banks and post office. 

• Capital growth only : gem-stones, paintings and Persian carpets. 

• Growth investments (income : shares, collective investments, properties and assurance. 

and capital growth) 

However, successful investment in shares requires: 

• a large capital outlay 

• time 

• investment expertise. 

COLLECTIVE INVESTMENTS 

If all three requirements cannot be satisfied, the answer is a Sanlam collective investment (or unit trust 

as it is generally known). 

WHY INVEST IN COLLECTIVE INVESTMENTS? 

• A collective investment portfolio with a good spread reduces investment risks. 

• The investor benefits from Sanlam’s investment expertise, since he does not have to select shares 

himself. 

• When share prices rise, he enjoys capital growth. 

• An investment in collective investments ensures liquidity. 

• An investment in collective investments offers tax benefits, leaving the client with more money to his 

disposal (see "Taxability of Collective Investments "). 

• The investor can invest as and when it suits him. 

• Less record-keeping and control are necessary. 

• A regular fixed investment reduces the risk of bad timing and allows the investor to enjoy the benefit 

of rand cost averaging. 

• Collective investments are regulated by the Collective Investment Schemes Control Act. 

GE 9/2009 BQ1

TAXABILITY OF COLLECTIVE INVESTMENTS 

• Capital growth: Subject to capital growth (CGT) since October 2001. The conduit principle applies. 

• Local dividends: Tax-free according to current legislation 

• Foreign dividends: Taxable 

• Interest: Taxable 

Exemption: 

Individuals receive an exemption from interest and foreign dividends: 

• Persons 65 and older : R30 000 

• Persons under 65 : R21 000 

From 01/03/2009 only the first R3 500 of the exemption may be applied against foreign interest and 

foreign dividends (if any). The balance is applied against local interest income. 

The annual capital gain/loss increased to R17 500 as from 01/03/2009. 

The individual allowance granted for offshore investments remained at R2m as from 01/03/2006. 

A lump sum or regular fixed amounts can be invested in any of Sanlam’s collective investments. 

Although all Sanlam’s collective investments strive for strong long-term growth in capital and income, 

the portfolios have been developed in such a way that each one can individually satisfy specific needs to 

a lesser or greater extent. 

Analysing your client’s needs 

SANLAM COLLECTIVE INVESTMENTS 

Collective Investment Schemes in portfolios are grouped into sectors to enable investors to select the 

specific collective investment (or combination of collective investments) which would best satisfy your 

client’s personal needs, as well as compare the performance of portfolios with similar objectives and 

benchmarks. 

The following guidelines will help your client decide upon the ideal fund: 

• Decide geographically where you want to invest for example domestic, foreign, worldwide or 

regional 

• Decide how or where you want to invest the funds. In this case “where” does not refer to the 

geographical area as above, but to the financial tools or instrument 

GEOGRAPHICAL CLASSIFICATION 

Domestic These invest in the local markets and are the most widely available of the 

schemes. Minimum investment in SA should be 80% of the portfolio’s 

assets. 

Foreign CIS in this category have a minimum of 85% of their investments outside of 

South Africa. These funds must not be confused with pure offshore funds in 

which investors can only invest their R2 000 000.00 allowance. Regional 

funds were absorbed into the foreign category since 1 July 2005. Regional 

funds must invest a minimum of 85% of the fund’s assets in a single country 

or region, excluding South Africa, at all times. 

Worldwide Worldwide CIS invest in various markets around the world. With effect 

1 July 2005 worldwide funds have total flexibility and no set minimum for 

foreign or domestic assets. 

GE 9/2009 BQ2

Equity A minimum of 75% of the fund must be invested in equities at all times. At 

least 80% of this equity portion must be invested in the JSE and a maximum 

of 20% may be invested outside the JSE. 

Asset Allocation Invest in a wide spread of investments in the equity, bond, money and 

property markets. 

Fixed Interest Invest in the bond and money markets. 

Real Estate Invest predominantly in listed property shares. 

CATEGORY: GENERAL SECTOR 

SIM General Equity 

Fund 

SMMI Equity Fund of 

Funds 

SIM Top Choice 

Equity Fund 

CATEGORY: GROWTH SECTOR 

ASSET CLASSES 

DOMESTIC EQUITY FUNDS 

GE 9/2009 BQ3 

The fund seeks maximum capital growth over the medium to long term by 

investing in selected shares across all the major sectors of the JSE. 

This fund is suitable for investors wanting a well balanced equity portfolio 

and do not have expert knowledge of the stock exchange. 

The fund invests in a portfolio of collective investment schemes in order to 

secure growth of capital for its unitholders over the long term. The fund will 

invest predominantly in selected sector and theme funds in order to 

maximise returns. 

The fund is ideally suited to the investor striving for optimum capital growth 

through an investment in a wide range of collective investments focusing 

strongly on aggressive capital growth. Investors in this fund should be 

willing to accept a higher though calculated risk. 

The objective of the fund is to deliver above-average growth in capital over 

the medium to long term. The portfolio reflects an aggressive risk profile 

and volatility of capital values can occur over the short term. 

The fund is specifically suited for the more sophisticated client with a longer 

investment horizon and an appetite for higher volatility with resultant 

potentially higher returns. 

SIM Growth Fund The trust seeks maximum capital appreciation as their primary investment 

objective through predominantly investing in growth shares. 

Growth companies can be defined as those whose earnings are on or are 

anticipated to enter a strong and sustainable upward trend and typically 

trade on high price to earnings ratios (PE ratios). Determination of a 

company as "growth share" takes into consideration the company's 

sustainable earnings growth on the basis of a combination of: 

• The 2 year historical earnings growth and 

• 1-year consensus I-net forecasts. 

This fund is suited for clients with a higher risk profile than those who 

normally invest in a general equity fund.

CATEGORY: LARGE CAP SECTOR 

SIM Index Fund The fund seeks long term growth by tracking the FTSE/JSE Top 40 listed 

shares. The fund’s portfolio is therefore tailored to match the performance 

of the FTSE/JSE Top 40 Index. 

CATEGORY: INDUSTRIAL SECTOR 

GE 9/2009 BQ4 

This fund is suited for clients who wish to apply their own investment timing 

and/or who believe that this passively managed fund will offer better returns 

than the average actively managed equity fund in the long term. 

SIM Industrial Fund The fund seeks capital growth by investing in selected shares in the 

industrial sector. The trust can also invest in foreign markets. 

CATEGORY: FINANCIAL SECTOR 

This fund is suited for clients requiring larger exposure to industrial shares, 

with the associated capital growth this sector is able to offer. 

SIM Financial Fund This is a specialist fund that offers investors an opportunity of investing in 

the financial services industry. A typical portfolio of financial services 

companies would include banks, insurance companies, brokerage firms and 

other companies whose principal business operations involve the provision 

of various financial services. 

The fund aims to achieve superior returns over the medium to long term 

through well researched superior stock selection. The fund is suitable for 

clients requiring greater exposure to financial shares as part of a balanced 

portfolio. 

CATEGORY: SMALLER COMPANIES SECTOR 

SIM Small Cap Fund The fund is managed actively and aggressively in order to achieve 

maximum capital appreciation in the medium to long term. The focus is on 

small to mid capitalisation companies with above average growth potential 

and that have been mispriced by the market. At least 75% of the fund will 

be invested in small to mid cap shares at all times. Our pragmatic value 

approach emphasises the importance of minimising any downside risk, 

while maximising the contribution from stock selection. 

CATEGORY: VALUE SECTOR 

This fund is suited for clients who are seeking exceptional growth potential 

in the longer term and are prepared to accept a higher degree of risk. 

SIM Value Fund The fund has the primary objective of growth, by investing in a medium with 

a reasonable level of current income and relative stability for capital. The 

fund focus on achieving this objective by investing in financially sound 

companies which offer exceptional value. 

These include shares with a low price to earnings ratio, shares trading at a 

discount to their net asset value, and shares whose prices do not reflect 

future earnings potential. 

The investor most likely to invest in this fund is the more conservative and 

knowledgeable investor following an investment approach of seeking value.

These funds invest in a spectrum of investments in the equity, bond money, or property markets. 

Typically the actual equity exposure will be between 40% and 65% as funds in this category generally 

conform to legislation governing retirement funds, (Regulation 28 of the Pension Funds Act). 

CATEGORY: PRUDENTIAL MEDIUM EQUITY SECTOR 

SMMI Balanced Fund 

of Funds 

GE 9/2009 BQ5 

This fund invests in a portfolio of collective investments or approved 

international funds to seek steady growth of capital and income. The 

fund’s investments are composed in such a way that it is accessible for 

pension fund investments i.e. follows prudential guidelines. 

The fund can be recommended to the client who has to comply with the 

instructions of Regulation 28 under the Law on Pension Funds. This client 

would want to employ collective investments as a medium for pension 

provision, but would shun the burden of investment choices. With its 

specific investment objective, this fund is ideally suited to the client 

wanting long-term stable growth and capital in a broad distribution of 

collective investments subscribing to the above objective. 

CATEGORY: PRUDENTIAL VARIABLE EQUITY SECTOR 

SIM Balanced Fund The fund invests in a wide spectrum of investments in the equity, bond, 

money and property markets in order to maximize total returns over the 

long term. 

The fund is suited for pension funds, smaller companies and employers 

wishing to make pension provision for employees, as well as individuals 

requiring capital growth via a balanced portfolio. This is a moderate risk 

balanced fund that complies with Regulation 28 of the Pension Funds Act. 

This means that the fund may not have more that a 75% exposure to 

equities at any one time. 

CATEGORY: TARGETED ABSOLUTE & REAL RETURN SECTOR 

SIM Inflation Plus 

Fund 

SMMI Defensive Fund 

of Funds 

DOMESTIC ASSET ALLOCATION FUNDS 

This fund invests in the flexible combination of investments in the equity, 

gilt and money markets, both locally and abroad, aiming for maximum 

positive real returns (comprising capital and income growth) over the 

medium to longer term. 

The fund can be recommended to the client who has to comply with the 

instructions of Regulation 28 under the Law on Pension Funds. The fund 

is ideally suited to the cautious investor wanting to save for e.g. 

retirement. 

The fund invests in a balanced and diversified portfolio of collective 

investments which invests in sectors or shares with sound growth potential 

in order to achieve stable income and capital growth. 

This fund is a prudential fund (Regulation 28), and is thus ideally suited to 

the cautious investor wanting to save for e.g. retirement. The fund is 

suited for any investor wanting to earn a real return. This fund also 

provides manager diversification which should help the portfolio to have a 

lower volatility than similar mandated single – manager portfolios.

CATEGORY: GENERAL SECTOR 

SIM Property Fund This fund aims to provide investors with both a high income yield, and 

long-term capital growth. It therefore meets the needs of investors who 

require high levels of income, and who are willing to accept higher risk 

than that of the traditional fixed-interest or money market portfolios. 

CATEGORY: VARIED SPECIALIST SECTOR 

SIM Absolute Return 

Income Fund 

SIM Active Income 

Fund 

CATEGORY: BOND SECTOR 

GE 9/2009 BQ6 

The fund is managed with the dual goal of capital protection as well as the 

out performance of inflation on a consistent basis. The primary goal of 

this fund is therefore to consistently outperform inflation (headline CPI) 

with a return of 3% p.a. over any 24 month period, while also delivering 

positive returns over any rolling 12 month period. 

This is a low risk fund that complies with regulation 28 of the Pension 

Fund Act. This fund will have no equity exposure. 

The SIM Active Income Fund’s objective is to provide a high level of 

income and to maximise returns over the medium to long term. 

The fund is actively managed and invests across the income-yielding 

universe, including fixed-interest securities, corporate and government 

bonds, preference shares, money-market instruments and listed property. 

Investors in this fund accept the aggressive performance objectives that 

go hand in hand with higher volatility and higher risk characteristics. 

SIM Bond Plus Fund The fund offers unit holders an optimum overall yield comprising both 

capital growth and income. The fund invests in public and private sector 

bonds and deposits. 

CATEGORY: MONEY MARKET SECTOR 

SIM Money Market 

Fund 

DOMESTIC REAL ESTATE FUNDS 

DOMESTIC FIXED INTEREST FUNDS 

This fund is suited for Institutions and individuals requiring investment 

growth via the capital market with a high income. 

This fund seeks to maximise interest income, preserve the fund’s capital 

and provide immediate liquidity. 

The fund is suited for investors requiring competitive interest with regular 

income distribution and total capital stability.

CATEGORY: EQUITY- VARIED SPECIALIST SECTOR 

SIM Resources Fund This specialist fund focus on maximum capital growth by taking advantage 

of changing resources cycles by investing in companies engaged in 

exploration, mining, distribution and processing of metals, minerals, 

energy, chemicals, forestry and other resources. 

CATEGORY: EQUITY - GENERAL SECTOR 

Sanlam International 

Equity Fund of Funds 

Sanlam Global Equity 

Fund 

SIM World Big Blue 

Chip Fund 

SIM Global Best Ideas 

Feeder Fund 

WORLDWIDE EQUITY FUNDS 

GE 9/2009 BQ7 

The fund will appeal to the knowledgeable investor who is prepared to 

take on calculated risk. 

FOREIGN FUNDS 

The investment objective of the fund is to achieve above average capital 

growth over the medium to long term by investing in a spread of 

international equity collective investments. 

The fund is suited for clients with a need for international diversification 

and a hedge against exchange rate risk. The Fund is constructed to 

reflect the composition of the MSCI World Index (Developed Markets). 

This fund aims to track the MSCI World Index (Developed Markets) and 

active management does not form part of the fund construction process. 

The fund aims to offer superior returns in the medium to long term by 

investing in a well spread portfolio of equities across the globe. The fund 

is an actively managed multi-manager fund. 

The fund is suited for clients with a need for international diversification 

and a hedge against exchange rate risk. 

The SIM World Big Blue Chip Fund’s primary objective is to provide 

above-average capital growth over the long term. 

It only invests in leading large international companies that are listed on 

the major international exchanges. 

This portfolio is widely diversified across global companies, global 

industries, countries and currencies. 

It offers exposure to global equity markets and supplies an optimal 

currency hedge against any SA rand depreciation. 

The objective of the portfolio is to provide above average long term capital 

growth by investing in global equities the Investment Manager has 

identified as being undervalued and as offering above average growth 

potential. 

The portfolio will primarily invest in participatory interests of the FSB 

approved Sanlam Global Best Ideas Fund, a sub-fund of the Irish 

domiciled Sanlam Universal Funds plc. 

The portfolio may also hold ancillary liquid assets, including cash and / or 

money market instruments.

CATEGORY: EQUITY – VARIED SPECIALIST 

Asia Pacific Fund of 

Funds 

Sanlam Pan-Growth 

Fund 

GE 9/2009 BQ8 

The primary objective of the fund is to provide medium to long term capital 

growth by investing predominantly in equity funds focused on countries in 

the Asian Pacific region including Japan. Aimed at the assertive investor 

who wants exposure to the economies of the Asia Pacific countries. The 

fund will primarily invest in Japan and Asian Pacific developed markets, 

with a small part allocated to the so-called emerging Asian Pacific 

markets. 

“Developed markets” include Australia, Hong Kong/China, Singapore, 

New Zealand and other countries that Morgan Stanley Capital 

International may classify in that capacity. “Asian Pacific Emerging 

Markets” include Pakistan, India, Malaysia, Korea, Taiwan, Indonesia, 

Philippines, Thailand and Sri Lanka. 

The fund invests primarily in equities listed on developed Pan-European 

stockmarkets (UK and the Continent). The investment objective of the 

fund is to provide above average capital growth in the medium to long 

term. 

This is a specialist rand-denominated foreign fund and the target market is 

investors who believe that one should diversify your portfolio by including 

exposure to the dynamic environment of the UK and Europe. 

CATEGORY: ASSET ALLOCATION FLEXIBLE SECTOR 


Balanced Fund of 

Funds 


Defensive Fund of 

Funds 

SIM Managed 

Conservative Fund of 

Funds 

The Sanlam International Balanced Fund of Funds is a diversified portfolio 

in terms of international assets classes and investment processes. 

Leading international asset managers are appointed to manage this fund 

and the objective is to provide steady growth of capital to the investor over 

the long term and in dollar terms. 

The fund will be exposed to various asset classes (bond, equity, property 

& money market) and is ideal for the investor with a moderate risk profile 

that requires broad based international exposure. The fund forms part of 

our multi-manager single fund solution. 

The Sanlam International Defensive Fund of Funds is a diversified 

portfolio in terms of assets classes and has a high exposure in less 

volatile asset classes such as cash and fixed interest securities. 

The fund is suitable for investors that want to invest in international 

markets but choose to do so through a less volatile and lower risk option. 

It aims to provide investors with long term capital preservation and capital 

growth qualities, in dollar terms and is positioned for investors that 

requires international exposure but with a lower risk appetite. 

The SIM Managed Conservative Fund of Funds is a portfolio with 

moderately conservative risk qualities and investments are diversified 

across primarily the cash, bond, property and equity asset classes. The 

primary objective of the portfolio is to achieve income generation and to 

deliver capital growth over the long term at low to moderate levels of 

volatility in fund values. 

A maximum of 20% of the portfolio may have exposure to equities. The 

portfolio aims to deliver a return in excess of 2% above inflation (CPIX) 

over a rolling three-year period.

CATEGORY: ASSET ALLOCATION FLEXIBLE SECTOR (continued) 

SIM Managed 

Cautious Fund of 

Funds 

SIM Managed 

Moderate Fund of 

Funds 

SIM Managed 

Moderate Aggressive 

Fund of Funds 

SIM Managed 

Aggressive Fund of 

Funds 

The SIM Managed Cautious Fund of Funds is a portfolio with moderately 

conservative risk qualities and investments are diversified across primarily 

the cash, bond, property and equity asset classes. The primary objective 

of the portfolio is to achieve income generation and to deliver capital 

growth over the long term at low to moderate levels of volatility in fund 

values. The fund will have an equity exposure of less than 40% at all 

times, but this may very depending market conditions. 

The portfolio aims to deliver a return in excess of 3% (gross of fees) above 

inflation (CPIX) over a rolling three-year period. 

The SIM Managed Moderate Fund of Funds is a portfolio with moderate 

risk qualities and investments are diversified across primarily cash, bond, 

property and equity asset classes. The primary objective of the portfolio is 

to achieve long-term capital growth and income generation at volatility 

levels that reflect a moderate risk profile. 

The underlying portfolios will at all times have an exposure to equities of 

between 40% and 60%, but this may vary depending on market 

conditions. 

The SIM Managed Moderate Aggressive Fund of Funds is a portfolio with 

moderate to aggressive risk qualities and investments are diversified 

across primarily cash, bond, property and equity asset classes. The 

primary objective of the portfolio is to achieve long-term capital growth and 

income generation at volatility levels that reflect a moderate to aggressive 

risk profile. 

GE 9/2009 BQ9 

The underlying portfolios will have typical exposure to equities of between 

50% and 65%, but this may vary depending on market conditions. 

The SIM Managed Aggressive Fund of Funds is a portfolio with 

aggressive risk characteristics, and investments are diversified across 

primarily cash, bond, property and equity asset classes. The primary 

objective of the fund is to achieve above-average long-term capital growth 

with income generation being a secondary objective. Short-term volatility 

in value will be reflective of the risk profile of this portfolio. 

The portfolio will at all times have an equity exposure of between 60% and 

75% but this may vary depending on market conditions. 

CATEGORY: FIXED INTEREST - BOND SECTOR 


Bond Fund of Funds 

The fund is a specialist fund with a specific focus on international fixed 

interest funds. The fund will provide access to international funds 

investing in fixed income securities. The volatile equity markets are 

forcing investors to turn to fixed-interest funds to minimise risk. 

This fund offers access to international funds that invests in fixed-income 

securities. The fund will have at least 85% offshore exposure at all times.

MINIMUM CONTRIBUTIONS 

Collective Investment Monthly Lump sum 

SIM Absolute Return Income Fund 

Sanlam Asia Pacific Fund of Funds 

SIM Balanced Fund A 

SIM Bond Plus Fund 

SMMI Defensive Fund of Funds 

Sanlam Alternative Income Fund 

SIM Financial Fund 

SIM General Equity Fund A 

Sanlam Global Equity A 

SIM Growth Fund A 

SIM Index Fund 

SIM Industrial Fund A 

SIM Inflation Plus Fund 

Sanlam International Balanced Fund of Funds 

Sanlam International Bond Fund of Funds 

Sanlam International Defensive Fund of Funds 

Sanlam International Equity Fund of Funds 

SMMI Balanced Fund of Funds A 

SMMI Equity FoF 

SIM Money Market Fund 

Sanlam Pan-Europe Fund 

SIM Property Fund 

SIM Resources Fund 

SIM Small Cap Fund A 

SIM Value Fund 

SIM Top Choice Equity Fund 

SIM Active Income Fund 

SIM Global Best Ideas Feeder Fund 

SIM World Big Blue Chip Fund 

SIM Managed Conservative Fund of Funds 

SIM Managed Cautious Fund of Funds 

SIM Managed Moderate Fund of Funds 

SIM Managed Moderate Aggressive Fund of 

Funds 

SIM Managed Aggressive Fund of Funds 

APPLICATION PROCEDURE 


GE 9/2009 BQ10 

R R 

200,00 

500,00 

200,00 

200,00 

200,00 

1 000,00 

200,00 

200,00 

500,00 

200,00 

200,00 

200,00 

200,00 

500,00 

500,00 

500,00 

500,00 

200,00 

200,00 

1 000,00 

500,00 

200,00 

200,00 

200,00 

200,00 

200,00 

200,00 

1 000,00 

200,00 

200,00 

200,00 

200,00 

200,00 

200,00 

Registration (form TA/TE7). Fill in the investor’s personal details. 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

20 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

50 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

The investor has to sign the registration form. To comply with the Collective Investment Schemes 

Control act the advisor has to disclose the following information to the client: investment objectives of 

the portfolio, information on the price (nav price), charges, risk factors, income accruals, any additional 

information.

APPLICATION PROCEDURE (continued) 

Remember to enter your name and telephone number in the space provided for intermediaries. 

According to FICA legislation that came into effect on 30 June 2005, the information of the client must 

be identified and verified before SCI can transact. (refer to AEB forms on the brokers and adviser's 

web). The required documentation must be included with the registration form. SCI may not process or 

price any lump sum investment of R50 000 or recurring investment with an annual premium of R25 000 

without the completed FICA documentation. Proof of bank verification is required with each application. 

An advice record, as required by FAIS, must also accompany the application form. The investment will 

not be processed without the advice record. The same applies to switching instructions. 

Investment particulars 

• Monthly investment – no initial amount is required. 

• A lump sum investment and further amounts equal to the debit order minimum per fund. 

Income 

Reinvestment of income is recommended to boost growth, except when needed to supplement income. 

Debit Order 

Supply address if account-holder is not the investor. 

DEALING WITH CHEQUES 

In future amended cheques or cheques that have already been deposited will no longer be accepted by 

banks. An amended cheque is any cheque on which a change has been made, whether it is the date, 

the amount or the signature of the drawer. Even if the owner of the cheque signs his name next to the 

change, it will not be accepted. A cheque that has already been deposited is one that was deposited at 

a bank and stamped but was returned to the depositor for some reason. Some of the reasons for this 

might be that it is a post-dated cheque deposited too early, or that there are insufficient funds in the 

relevant account. Such a cheque cannot be deposited at the bank again. 

Banks will no longer be liable unless the words "Non-transferable" or "Not transferable" appear clearly 

on the face of the cheque. In terms of the new Act it is also illegal to delete or cancel a crossing or the 

word "Non-transferable" on a cheque. Therefore cheques made payable to someone else and marked 

"Non-transferable" may not be accepted. 

Cheques must be made payable to: Sanlam Collective Investments Limited 

If there are any delays for the above-mentioned reasons, it could mean that, if share prices rise, a client 

would have to pay a higher purchase price when Sanlam Collective Investments subsequently receives 

the "correct" cheque. 

PRICING POLICY 

All unit transactions, i.e. investments, switches, transfers and repurchases will be processed at the 

ruling price on the date on which SCI / a Sanlam office receives the monies as well as all the required 

documentation (including FICA and FAIS requirements). 

Once-off debit orders will be invested at the ruling price on the date on which SCI receives the monies 

from the bank (which is also the same date on which the client’s account will be debited). This process 

normally takes three working days. The daily cut-off time for the valuation of our funds is 15h00. 

GE 9/2009 BQ11

FORWARD PRICING 

SCI uses the forward pricing method to determine fund prices from day to day. With this method the 

ruling price for the day is established every evening, and then applied to all transactions received before 

15h00 that day. This means that all transactions can only be priced and processed at the end of the day 

and that the investor will transact at an unknown price. 

ENQUIRIES 

: Sanlam Collective Investments 

Enquiries may be directed to your Collective Investments Sales Support Manager/Consultant or Sanlam 

Collective Investments’ General Enquiries Line at (021) 916 1800. 

GE 9/2009 BQ12

RISK PROFILES OF MANAGED FUNDS (according to sim.sense) 

SIM FUNDS FUND CATEGORY RISK PROFILE 

SIM Absolute Return Income 

Fund 

GE 9/2009 BQ13 

Domestic – Fixed Interest – Varied Specialist CONSERVATIVE 

SIM Balanced Fund Domestic – Asset Allocation – Variable Equity 

SMMI Defensive Fund of 

Funds 

MODERATELY 

AGGRESSIVE 

Domestic – Asset Allocation – Targeted Absolute & Real Return CONSERVATIVE 

SIM Inflation Plus Fund Domestic – Asset Allocation – Targeted Absolute & Real Return CAUTIOUS 


Balanced FoF 


Defensive FoF 

Sanlam International Equity 

FoF 

Foreign – Asset Allocation – Flexible MODERATE 

Foreign – Asset Allocation – Flexible CONSERVATIVE 

Foreign – Equity – General AGGRESSIVE 

SMMI Balanced FoF Domestic – Asset Allocation – Prudential Medium Equity MODERATE 

SIM Managed Aggressive 

Fund of Funds 

SIM Managed Conservative 

Fund of Funds 

SIM Managed Cautious Fund 

of Funds 

SIM Managed Moderate 

Aggressive Fund of Funds 

SIM Managed Moderate 

Fund of Funds 

SANLAM COLLECTIVE INVESTMENTS 

Domestic – Asset Allocation – Flexible AGGRESSIVE 

Domestic – Asset Allocation – Flexible CONSERVATIVE 

Domestic – Asset Allocation – Flexible CAUTIOUS 

Domestic – Asset Allocation – Flexible 

MODERATELY 

AGGRESSIVE 

Domestic – Asset Allocation – Flexible MODERATE

RISK RATINGS OF ACTIVE FUNDS 

SIM FUNDS FUND CATEGORY RISK RATING 

SIM Active Income Domestic – Fixed Interest – Varied Specialist Medium 

Asia Pacific Fund of Funds Foreign – Equity – Varied Specialist High 

SIM Bond Plus Fund Domestic – Fixed Interest – Bond Medium 

Sanlam Alternative Income 

Fund 

GE 9/2009 BQ14 

Domestic – Fixed Interest – Varied Specialist Low 

SIM Financial Fund Domestic – Equity – Financial High 

SIM General Equity Fund Domestic – Equity – General High 

Sanlam Global Equity Fund Foreign – Equity – General High 

SIM Growth Fund Domestic – Equity – Growth High 

SIM Index Fund Domestic – Equity – Large Cap High 

SIM Industrial Fund Domestic – Equity – Industrial High 

Sanlam International Bond 

FoF 

Foreign – Fixed Interest – Bond Medium 

SIM Money Market Fund Domestic – Fixed Interest – Money Market Low 

SMMI Equity FoF Domestic – Equity – General Medium to High 

Sanlam Pan-Europe Fund Foreign – Equity – Varied Specialist High 

SIM Property Fund Domestic – Real Estate – General Medium 

SIM Resources Fund Worldwide – Equity – Varied Specialist High 

SIM Top Choice Equity Domestic – Equity – General High 

SIM Small Cap Fund Domestic – Equity – Smaller Companies High 

SIM Value Fund Domestic – Equity – Value High 

SIM Global Best Ideas 

Feeder Fund 

SIM World Big Blue Chip 

Fund 

Foreign – Equity – General High 

Foreign – Equity – General High

GE 6/2012 BR 

Bladsy 

TABLE CODE AND PRODUCT NAME CODE ………………………………… BR 1 

INCEPTION AGES ………………………………………………………………… BR 1 

TERM ……………………………………………………………………………….. BR 2 

BENEFIT LIMITS ………………………………………………………………….. BR 2 

WHEN THE POLICY WILL END ………………………………………………… BR 2 

PREMIUM PAYMENTS …………………………………………………………… BR 2 

AUTOMATIC PREMIUM AND COVER INCREASES ………………………… BR 2 

ADMITTANCE OF A CLAIM …………………………………………………….. BR 3 

PAYMENT OF BENEFITS ……………………………………………………….. BR 3 

NO CLAIM BONUS ……………………………………………………………….. BR 3 

TO WHOM WILL BENEFITS BE PAID …………………………………………. BR 4 

ADJUSTMENTS TO PREMIUMS OF LIFE COVER ………………………….. BR 4 

CESSIONS …………………………………………………………………………. BR 4 

AMENDMENTS ……………………………………………………………………. BR 4 

COOLING-OFF PERIOD …………………………………………………………. BR 4 

ADDITIONAL SERVICES BR 5 

− FUNERAL TRANSPORT SERVICES.…………………………………………………. BR 5 

− DISCOUNT ON DISABILITY AIDS AND VEHICLE ALTERATIONS………………… BR 5 

− HIV ASSISTANCE…………….…………………………………………………………. BR 5 

− TRAUMA AND ASSAULT ASSISTANCE …………………………………………… BR 5 

− LEGAL ASSISTANCE ……………………………….…………………………………. BR 5 

BENEFIT DESCRIPTIONS 

SECTION BR 

ONE STEP COVER 

WHOLE LIFE PHYSICAL IMPAIRMENT ………………………………………. BR 6 

− DESCRIPTION …………………………………………….……………………………. BR 6 

− TYPE OF BENEFIT AND BENEFIT CODE …………………………………………… BR 6 

− BENEFIT PAYABLE …………………………………………………………………….. BR 6 

− FULL DESCRIPTION OF CLAIM EVENTS …………………………………………… BR 7 

− ADMITTANCE OF A CLAIM ……………………………………………………………. BR 8 

− EXCLUSIONS ……………………………………………………………………………. BR 8 

− BENEFIT CEASE EVENT ………………………………………………………………. BR 8 

− EXPLANATIONS ………………………………………………………………………… BR 9 

2/..

- 2 - 

GE 6/2012 BR 

Page 

PHYSICAL IMPAIRMENT ………………………………………………………... BR 10 


− TYPE OF BENEFIT AND BENEFIT CODE …………………………………………… BR 10 


− FULL DESCRIPTION OF CLAIM EVENTS …………………………………………… BR 11 


− EXCLUSIONS ……………………………………………………………………………. BR 12 



CANCER COVER ………………………………………………………............... BR 14 


− KIND OF BENEFIT AND BENEFIT CODE …………………………………………… BR 14 

− AVAILABLE BENEFIT AMOUNT ………………………………………………………. BR 14 



− EXCLUSIONS ……………………………………………………………………………. BR 15 

− TEMPORARY EXCLUSIONS ………………………………………………………….. BR 15 



UNDERWRITING 

FINANCIAL UNDERWRITING ………………………………………………….. BR 16 

MEDICAL UNDERWRITING …………………………………………………….. BR 16 

ADMINISTRATIVE INFORMATION ………………………..…………………... BR 16

The One Step Cover is a risk product with limited underwriting. This product is for the general middle 

market and gives clients the opportunity to obtain life cover or term cover, with or without certain 

benefits, with minimum medical underwriting. 

Clients have the choice between the following: 

Whole life policy 

• only death cover 

• death cover plus whole life physical impairment cover 

Term cover policy 

• only death cover 

• death cover plus physical impairment cover 

• death cover plus physical impairment cover plus cancer cover 

• death cover plus cancer cover 

Benefits increase yearly via compulsory payment and cover growth. 

Whole life policy 

Product name : One Step Cover 

Table code : 86R 

Product name code : H024 for rate group 1 


Term cover policy 

Product name : One Step Term Cover 

Table code : 86M 

Product name code : H025 for rate group 1 


Minimum : 18 anb 

Maximum : 60 anb for whole life policy 

: 55 anb for term cover policy 

SECTION BR 

ONE STEP COVER 

TABLE CODE AND PRODUCT NAME CODE 

INCEPTION AGES 

GE 6/2012 BR 1

TERM 

A term only applies to the term cover product and is always until the policy anniversary before the 

policyholder turns 65. 

Minimum : 10 years 

BENEFIT LIMITS 

Death, Physical impairment and Whole life physical impairment 


Maximum : R400 000 for both rate groups 

Cancer cover 


Maximum : R50 000 for both rate groups 

The cover amounts of all similar policies (Table 86's) at Sanlam will be taken into consideration to 

determine the maximum available cover amount. 

The premiums for the available benefit levels are indicated in the relevant application form. 

WHEN THE POLICY WILL END 

The policy ends if any one of the list of events below occurs: 

• the life insured dies; 

• the policyholder does not pay the premiums when due; 

• the full life cover amount has been paid (if the physical impairment benefit was chosen in addition to 

the death benefit, and claims in terms of this benefit which add up to the life cover level are admitted 

and paid.) 

• when the term expires (in the case of a term cover policy). 

PREMIUM PAYMENTS 

In the case of the whole life policy, premiums will be payable for as long as the life insured lives, and in 

the case of the term cover policy until the end of the chosen term. 

Premiums can be paid via stop order or debit order. There is no debit order discount. 

The first premium is payable on the date the policy begins. For the payment of premiums after that, 

Sanlam Life allows 15 days' grace after the premium payment date. If more than one monthly premium 

is outstanding, the policy will end. 

AUTOMATIC PREMIUM AND COVER INCREASES 

Premium and cover growth are contractual and compulsory. Premiums will increase at 5% per year and 

cover at 2% per year. 

The premium growth is compulsory to maintain the contractual cover amount and the cover growth. The 

life cover amount will decrease by 3% every time Sanlam Life does not receive a premium increase. 

GE 6/2012 BR 2

ADMITTANCE OF A CLAIM 

Sanlam Life will admit a claim at death only if: 

• Sanlam Life receives all information Sanlam Life reasonably may require; 

• the premiums of the policy have been paid in full. 

Sanlam Life will not admit a claim at death of the life insured which is caused by suicide, also during 

insanity, committed within 24 months of the cover start date. The person who claims the benefit must 

prove that the life insured did not commit suicide. 

Conditions for the admittance of a claim that only applies to the Whole life physical impairment benefit (if 

applicable), are set out under Whole life physical impairment later in this section. 

PAYMENT OF BENEFITS 

At death of the life insured, the cover amount as shown in the policyholder's policy overview, will be 

paid, provided the policy has already begun and it has not yet ceased. 

Only a percentage of the cover amount will be paid for natural death in the first 24 months. 

Number of months since 

inception date 

GE 6/2012 BR 3 

% of cover available for natural death (for life cover) 

or for claim events not due to an accident after 

number of months 

0 up to 6 months 0% 




25 months and longer 100% 

The full life cover amount will be payable for an unnatural death from the date the cover starts. 

A natural death is any death that is not caused by an accident. An unnatural death is any death that is 

caused by an accident. An accident is an unforeseeable event that occurred in a violent, external and 

visible manner, independently of any other cause, and which caused an injury resulting in the life 

insured's death, within 90 days of the event taking place. 

The date on which cover starts is the cover start date as per the latest policy overview. 

This policy does not have a loan value, cash value or surrender value. 

NO CLAIM BONUS 

The term cover product pays a no claim bonus at the end of the policy term if no claims have been paid. 

The bonus amount equals one third of the total premiums paid.

TO WHOM BENEFITS WILL BE PAID 

The policyholder may appoint one or more beneficiaries to receive the benefits payable at his or her 

death. Sanlam Life will pay the benefits to a beneficiary only if the latter accepts the appointment as 

beneficiary. However, a beneficiary can only accept the appointment after the policyholder's death. 

The policyholder may cancel or change the appointment of a beneficiary at any time. The appointment, 

cancellation or change must be in writing and signed by the policyholder, and must reach Sanlam Life's 

head office before the policyholder's death. 

If there is no appointed or surviving beneficiary, the life cover amount will be paid to the estate of the life 

insured. 

ADJUSTMENTS TO PREMIUMS OR LIFE COVER 

The initial premium has been calculated for the full term of the benefits and is based on Sanlam Life's 

best estimate assumptions of claims and other factors. Sanlam Life may review the premium or the life 

cover amounts annually. Sanlam Life may then adjust it, but only if Sanlam Life's assumptions of claims 

and other factors have changed and not because a life insured is older at that time. 

When Sanlam Life reviews its assumptions, Sanlam Life looks at the expected experience relating to 

claims, investment returns on premium income, the incidence of taxation, the cost of reinsurance, and 

lapses. Sanlam Life will analyse their actual experience as well as industry experience of these factors 

for similar plans, the expected impact of future medical advances and practices, and other trends and/or 

practices that are expected to influence these factors. Sanlam Life will then compare the assumptions 

applicable at the time of the premium review with those that were previously used and, by reference to 

that comparison, use a fair and reasonable method of calculating any adjustment to the premium. 

The premium may increase at each premium review as a result of the revised assumptions. An 

adjustment to the premium will not depend on the policyholder's individual circumstances, for example 

his or her health, at the time of the premium review. If an increase is made, this increase applies in 

addition to any contractual predetermined premium growth on the same date. Similarly the premium 

may be reduced, or the life cover amount increased, if the revised assumptions are favourable. 

Sanlam Life will notify the policyholder in writing at least 2 months before any adjustment. If the 

premium increases as a result of a review, the policyholder can choose to continue paying the amount 

before the increase, instead of the increased amount. Sanlam Life will then reduce the cover amount of 

a benefit proportionally. 

CESSIONS 

The policyholder may cede the policy as security. The policyholder must notify Sanlam Life of the 

cession in writing. The notice will take effect when Sanlam Life receives it. 

An appointment of a beneficiary to receive the benefits payable at the policyholder's death will not be 

cancelled, but the person or entity to whom the policy is ceded, will have the first right to benefits when 

they become payable. 

AMENDMENTS 

No amendments are available for this product. 

COOLING–OFF PERIOD 

The normal cooling-off period applies. 

GE 6/2012 BR 4

ADDITIONAL SERVICES 

FUNERAL TRANSPORT SERVICES 

At the death of the life insured, FMS Marketing Solutions will arrange for the transportation of the 

deceased to a South African funeral home nearest to the place of burial, as long as the place of death is 

in the Republic of South Africa, Namibia, Zimbabwe, Botswana, Swaziland, Lesotho or Mozambique, 

south of the 22-degree parallel. One relative may accompany the deceased and, if necessary, overnight 

accommodation will be arranged by FMS. If their normal requirements are met, FMS will provide the 

service free of charge while the policy is in force. 

To make use of this 24-hour service, FMS must be contacted on 086 000 4072. 

DISCOUNT ON DISABILITY AIDS AND VEHICLE ALTERATIONS 

A discount of 15% (to a maximum of R3 000) will be provided on disability aids such as wheelchairs, 

walking aids, commodes, bathing, toiletry and prosthetics. You will also receive this discount on vehicle 

alterations. 

The discount can be arranged through FMS during weekdays (excluding public holidays) between 

08h00 and 17h00, on 086 000 4072. 

HIV ASSISTANCE 

A 24-hour service is provided to you by FMS on 086 000 4072. This service includes information, 

advice and telephonic counselling on HIV/Aids. 

You can contact FMS within 48 hours after being exposed to the HIV virus, to receive: 

• a consultation 

• a blood test and 

• a preventative treatment to try to guard against becoming HIV positive. 

This service does not provide preventative treatment if the first blood test shows that you are already 

HIV positive. 

TRAUMA AND ASSAULT ASSISTANCE 

A 24-hour emergency assistance service is provided to you by FMS on 086 000 4072 when assault or 

any other trauma has occurred. 

LEGAL ASSISTANCE 

A 24-hour emergency assistance service is provided to you by FMS on 086 000 4072, for legal advice 

and an appointment with an attorney. 

GE 6/2012 BR 5

DESCRIPTION 

Sanlam Life will pay the percentage of the cover amount linked to the particular claim event as set out 

below. 

The benefit amount is the same as the amount chosen for death on the policy. 

TYPE OF BENEFIT AND BENEFIT CODE 

This benefit is available as an accelerator benefit with the whole life product only. Accelerator benefits 

mean an early payment of the benefit at death in the event of a claim. 

Benefit code : WPI 

BENEFIT PAYABLE 

If Sanlam Life admits a claim, we will pay the percentage of the life cover amount linked to the particular 

claim event as set out below. The life cover amount is set out in the policy holder's policy overview, and 

will be reduced for a claim due to natural causes in the first 24 months of the policy. 

For claim events not due to an accident that occur in the first 24 months, the available life cover amount 

is equal to a percentage of the life cover amount. 

Number of months 

since inception date 


WHOLE LIFE PHYSICAL IMPAIRMENT 

GE 6/2012 BR 6 

% of cover amount available for 

claim events not due to an 

accident in months 






For claim events due to an accident, the available life cover amount is always equal to the full life cover 

amount. 

The physical impairment must be permanent, and will be evaluated according to the principles and 

ratings of the latest edition of the American Medical Association's Guides to the Evaluation of permanent 

Impairment. The physical impairment, and whether it is permanent, will be evaluated only after the life 

insured has undergone optimal, reasonable treatment, based on generally accepted medical protocols 

for treatment of the condition in question at the time of the claim. Treatment already undergone, as well 

as treatment still to be undergone, will be taken into account.

FULL DESCRIPTION OF CLAIM EVENTS 

Loss of function, excluding amputation 

Claim event % of the life cover amount 

• One foot 25 

• One leg 50 

• One hand 75 

• One arm 75 

Total vision loss 

• One eye 25 

• Two eyes 100 

Loss of speech 100 

Total hearing loss 

• Two ears 100 

Amputation 





Loss of function, or amputation, of any two of the following 

resulting from the same cause, provided they are not part of 

the same limb: 

• a foot 

• a leg 

• a hand 

• an arm 

• vision in an eye 

Loss of function, or amputation, of any of the following 

resulting from the same cause: 

• two feet 

• two legs 

• two hands 

• two arms 

Permanent confinement to a bed or a wheelchair 100 

Third degree burns covering at least... 

• 20% of total body surface 50 


If the amount Sanlam Life pays for a claim event is less than the full life cover amount, we will reduce 

the life cover amount by the amount paid. Any amount Sanlam Life pays thereafter for a subsequent 

claim event, will be based on the reduced life cover amount. However, if the subsequent claim event 

and the preceding claim event are based on the same cause, and the percentage of the life cover 

amount linked to the subsequent claim event is higher than the percentage linked to the preceding claim 

event, Sanlam Life will calculate the amount for payment of the subsequent claim event on the life cover 

amount before it was reduced. From the amount so calculated, Sanlam Life will deduct the amount paid 

for the preceding claim, and pay the balance. 

GE 6/2012 BR 7 

100 

100


Besides the conditions for admittance of a claim set out in the general policy provisions, Sanlam Life will 

admit a claim only if: 

• the physical impairment is permanent, after the life insured has undergone optimal, reasonable 

treatment; 

• Sanlam Life has not previously admitted a claim for the same claim event. 

If Sanlam Life has admitted a claim, we will reduce the life cover amount for the life insured by the claim 

amount. 

EXCLUSIONS 

Sanlam Life will not admit a claim if the physical impairment of the life insured can be substantially 

removed or improved by surgery or other medical treatment, which we can reasonably expect him or her 

to undergo, taking into account the risks involved and the chances of success of such surgery or 

treatment. 

Sanlam Life will not admit a claim if it resulted directly or indirectly from any or the following, whereby the 

life insured: 

• participates in riot, insurrection, civil commotion, military or hostile action, or an act of terrorism; 

• commits or attempts to commit a crime or murder, assault, housebreaking, theft, robbery, 

kidnapping, a crime involving a sexual act, or a crime of a similar nature to any of the aforesaid 

crimes; 

• deliberately inflicts an injury on himself or herself; 

• takes drugs or medicine not in accordance with medical prescription, or drives any form of motorised 

vehicle on a public road whilst his or her blood alcohol level exceeds the legal limit; 

• is exposed to a nuclear explosion or radio-activity; 

• participates in cave diving, commercial diving, or the exploration of underwater wrecks for financial 

gain; 

• participates in motorised racing, speed contests or acrobatic flights; 

• recurrently participates in microlight flights, hang-gliding, paragliding, parasailing, sky-diving, 

parachuting or sky-surfing; 

• participates in professional boxing, professional kick-boxing or professional wrestling. 

BENEFIT CEASE EVENT 

This benefit will end 

• if the policy ends for any reason before the cover end date, or 

• when the full life cover amount has been paid. 

GE 6/2012 BR 8

EXPLANATIONS 

Foot 

• Loss of function refers to the permanent loss of more than 90% of the use of a foot. For this purpose 

a foot includes the ankle joint. 

• Amputation refers to the complete physical severance of a leg below the knee. 

Leg 

• Loss of function refers to the permanent loss of more than 90% of the use of a leg. For this purpose 

a leg includes the hip joint. 

• Amputation refers to the complete physical severance of a leg through or above the knee. 

Hand 

• Loss of function refers to the permanent loss of more than 90% of the use of a hand. For this 

purpose a hand includes the wrist joint. 

• Amputation refers to the complete physical severance of an arm below the elbow. 

Arm 

• Loss of function refers to the permanent loss of more than 90% of the use of an arm. For this 

purpose an arm includes the shoulder joint. 

• Amputation refers to the complete physical severance of an arm above the elbow. 


Total, permanent and irrecoverable loss of vision in an eye. 

Loss of speech 

Total, permanent and irrecoverable loss of the ability to speak. 


Total, permanent and irrecoverable loss of hearing in both ears. 

GE 6/2012 BR 9

DESCRIPTION 


below. 

The benefit amount is the same as the amount chosen for death on the policy. 

TYPE OF BENEFIT AND BENEFIT CODE 

This benefit is available as accelerator benefit with the term cover product only. Accelerator benefits 

mean an early payment of the death benefit in the event of a claim for physical impairment. 

Benefit code : PI 


If Sanlam Life admits a claim, we will pay the percentage of the life cover amount linked to the particular 

claim event as set out below. The life cover amount is set out in the policy holder's policy overview, and 

will be reduced for a claim due to natural causes in the first 24 months of the policy. 

For claim events not due to an accident that occur in the first 24 months, the available life cover amount 

is equal to a percentage of the life cover amount. 



PHYSICAL IMPAIRMENT 

GE 6/2012 BR 10 


claim events not due to an 

accident in months 






For claim events due to an accident, the available life cover amount is always equal to the full life cover 

amount. 

The physical impairment must be permanent, and will be evaluated according to the principles and 

ratings of the latest edition of the American Medical Association's Guides to the Evaluation of permanent 

Impairment. The physical impairment, and whether it is permanent, will be evaluated only after the life 

insured has undergone optimal, reasonable treatment, based on generally accepted medical protocols 

for treatment of the condition in question at the time of the claim. Treatment already undergone, as well 

as treatment still to be undergone, will be taken into account.



Claim event % of the life cover amount 











Amputation 





Loss of function, or amputation, of any two of the following 



• a foot 

• a leg 

• a hand 

• an arm 




• two feet 

• two legs 

• two hands 

• two arms 


Third degree burns covering at least... 



If the amount Sanlam Life pays for a claim event is less than the full life cover amount, we will reduce 

the life cover amount with the amount paid. Any amount Sanlam Life pays thereafter for a subsequent 

claim event, will be based on the reduced life cover amount. However, if the subsequent claim event 

and the preceding claim event are based on the same cause, and the percentage of the life cover 


event, Sanlam Life will calculate the amount for payment of the subsequent claim event on the life cover 



GE 6/2012 BR 11 

100 

100



admit a claim only if: 

• the physical impairment is permanent, after the life insured has undergone optimal, reasonable 

treatment; 


If Sanlam Life has admitted a claim, we will reduce the life cover amount for the life insured by the claim 

amount. 

EXCLUSIONS 

Sanlam Life will not admit a claim if the physical impairment of the life insured can be substantially 

removed or improved by surgery or other medical treatment, which we can reasonably expect him or her 

to undergo, taking into account the risks involved and the chances of success of such surgery or 

treatment. 

Sanlam Life will not admit a claim if it resulted directly or indirectly from any or the following, whereby the 

life insured: 


• commits or attempts to commit a crime or murder, assault, housebreaking, theft, robbery, 


crimes; 






gain; 








• when the full life cover amount has been paid 

• when the term of the policy expires. 

GE 6/2012 BR 12

EXPLANATIONS 

Foot 

• Loss of function refers to the permanent loss of more than 90% of the use of a foot. For this purpose 

a foot includes the ankle joint. 

• Amputation refers to the complete physical severance of a leg below the knee. 

Leg 

• Loss of function refers to the permanent loss of more than 90% of the use of a leg. For this purpose 

a leg includes the hip joint. 

• Amputation refers to the complete physical severance of a leg through or above the knee. 

Hand 

• Loss of function refers to the permanent loss of more than 90% of the use of a hand. For this 

purpose a hand includes the wrist joint. 

• Amputation refers to the complete physical severance of an arm below the elbow. 

Arm 

• Loss of function refers to the permanent loss of more than 90% of the use of an arm. For this 

purpose an arm includes the shoulder joint. 

• Amputation refers to the complete physical severance of an arm above the elbow. 



Loss of speech 



Total, permanent and irrecoverable loss of hearing in both ears. 

GE 6/2012 BR 13

DESCRIPTION 


below. 

KIND OF BENEFIT AND BENEFIT CODE 

This benefit is only available as an accelerator benefit with the term cover product. A claim on the 

cancer cover benefit will lead to reduction of the cover amounts of each of the remaining benefits on the 

policy. 

Benefit code : CCB 

AVAILABLE BENEFIT AMOUNT 

The policyholder has a choice between two benefit amounts: R25 000 and R50 000. 


If Sanlam Life admits a claim, we will pay the percentage of the cover amount linked to the particular 

claim event as set out below. The cover amount is set out in the policyholder's policy document. 



GE 6/2012 BR 14 


claim events in months 






100% of the available cover amount will be paid for all cancers except those excluded under 

"Exclusions". 


CANCER COVER 


admit a claim only if the life insured survived the diagnosis of the claim event, 

• by more than 14 days without life support, or 

• in cases where life support was used, by more than 14 days after having been taken off life support. 

If Sanlam Life has admitted a claim, we will reduce the cover amounts of each of the remaining benefits 

for the life insured by the claim amount.

EXCLUSIONS 

Sanlam Life will not admit a claim for cancer if it is 

• any premalignant condition, or 

• any cancer in situ, except cancer in situ of the breast or fibrocystic disease of the breasts in the 

presence of a strong family history, that according to best medical practice at the time requires a 

total unilateral or bilateral mastectomy, or 

• any skin cancer, except malignant melanoma that has been histologically classified as having 

caused invasion beyond the epidermis (outer layer of the skin) with Clark level 2 or more depth 

invasion, or 

• any tumour of the prostate unless histologically classified as having a Gleason score greater than 6 

or having progressed to at least clinical TNM classification T2N0M0. 

Other general exclusions are set out in the general plan provisions. 

Specific exclusions, if any, are set out in the policy overview, in the special provisions for the life insured 

concerned. 

TEMPORARY EXCLUSION 

Sanlam Life will not admit a claim that has resulted directly or indirectly from cancer if, before the cover 

for this benefit has started, or within the first 180 days after the cover for this benefit has started, 

• the symptoms or clinical signs appear, or 

• the condition is present, or 

• the condition is diagnosed. 



• at midnight before the cover end date set out in the policy overview, or 


• if the full death and impairment benefit amount is paid, or 

• when a claim has been admitted under this benefit. 

EXPLANATIONS 

Cancer 

A malignant tumour positively diagnosed with histological confirmation and characterised by the 

uncontrolled growth of malignant cells and invasion of tissue. The term malignant tumour includes 

leukaemia, lymphoma and sarcoma. 

GE 6/2012 BR 15

Special underwriting requirements apply for the One Step Cover. 

FINANCIAL UNDERWRITING 

The product is exclusively available to clients whose income and education levels meet the following 

requirements in one of the two qualifying rate groups: 

Rate Group 2 

• a household income of at least R10 000 per month, or 

• a personal income of R6 000 per month, plus matric, or 

• a 3 year diploma, of higher qualification (regardless of income). 

Rate Group 1 * 

• a household income of R5 000 per month up to R9 999 per month, or 

• a personal income of R3 000 per month up to R5 999 per month, plus matric. 

* For lives insured who qualify for rate group 1, the product is currently available temporarily 

only. 

The following subsidies may be taken into account when determining the monthly income: 

• Housing benefit – A rent amount or bond repayment amount paid for by the employer up to a 

maximum of 15% of the gross monthly income. 

• Vehicle benefit – An amount linked to the monthly repayment for the car paid for by the employer up 

to a maximum of 10% of gross monthly income. 

• Utility benefit – An amount to reflect utility usage paid for by the employer up to a maximum of 5% of 

gross monthly income. 


Only a fully completed medical questionnaire is required. No HIV and cotinine tests are required. 

Underwriters may request additional questionnaires and / reports, but no medical tests will be required. 


Application forms AEB54 

UNDERWRITING 

Quotations No quotations are available. Premiums are determined according to the 

table in this section of the Electronic Product Guide. 

Product enquires SPF Client Solutions : Product Support (021) 916-3082 

Un-issued applications New Business : Help Line (021) 916-3600 

Underwriting New Business : Help Line (021) 916-3600 

Claims enquiries Sanlam Life Claims Call centre (021) 916-1710 

Commission enquiries Distribution : Commission Support (021) 947-5002 

GE 6/2012 BR 16

SECTION BU 

SANLAM TRUST 

GE 2/2011 BU 

Page 

SANLAM TRUST …………………………………………………………...……………………... BU1 

− WILL SERVICES ……………………………………………………………………………...… BU1 

− ESTATE SERVICES …………………………………………………………………………… BU2 

− TRUST SERVICES .…………………………………………………………………………….. BU3 

− BENEFICIARY FUND …………………………………………………………………………... BU3 

− ASSET AND FINANCIAL MANAGEMENT …………………………………………………... BU4 

GENERAL …………………………………………………………………….…………… BU4 

ESTATE AND TRUST CONSULTANTS …………………………………………….… BU5

Sanlam Trust provides the following services: 

• Drafting and audit of wills 

• Administration of deceased solvent estates 

• Drafting of and changes to trust deeds 

• Administration of trusts, including inter vivos (family), testamentary, umbrella and guardian 

• Administration of Beneficiary Funds 

• Asset and financial management for clients under a power of attorney. 

These services create a number of new opportunities to service the senior market in particular, and offer 

intermediaries the opportunity to provide a far more comprehensive service to clients. Will services, in 

particular, are an excellent way of "opening doors", building lasting relationships with clients, facilitating 

future appointments with clients and promoting client retention and enable intermediaries, according to 

proven research, to write more business. 

Will Services • Trust companies are authorised to charge a fee for drafting a will. 

• The Santrust wills package is a computer program designed to draft standard 

wills which is available free of charge. The program has been improved and 

expanded annually. This package, which allows a will to be drafted instantly, 

should meet the requirements of most clients. The intermediary may choose to 

either provide this service to the client free of charge or at a standard fee of 

R285,00 (VAT incl.) which fee must be forwarded to Sanlam Trust together with 

the signed will. 

• If the will is not handled by Santrust, the will request form should be forwarded/ 

faxed to the Bellville- or Pretoria offices where the will, will be drafted. The 

request may also be forwarded to Sanlam Trust via the Internet. If the 

intermediary has an e-mail address, the drafted will may be forwarded via email. 

A fee of R399,00 (VAT incl.) is applicable to all wills drafted by Sanlam 

Trust. If Sanlam Trust is not nominated as (co-) Executor a minimum fee of 

R798,00 (VAT incl.) is applicable. Fee for offshore wills available on request. 

• All signed wills must be sent to Sanlam Trust, Head Office to be checked for 

correctness and for safekeeping. 

• Sanlam Trust does not recover any fees for the safekeeping of wills. 

• No fees are charged for revision of wills in safe custody with Sanlam Trust. 

Intermediary remuneration: 

Commission of R200,00 and R100,00 is payable where a fee is recovered and the 

will is filed with Sanlam Trust for SanTrust and Santrust Plus wills with asset value 

above R200 000 and R500 000 respectively (except where Sanlam Trust not 

appointed as executor). The intermediary has the right to waive the commission, in 

which case the fee will be reduced accordingly. 

Contact details: 

BellvilleTestamente@sanlam.co.za 

PretoriaTestamente@sanlam.co.za 

Fax 

Bellville : 021 947 6353 

Pretoria : 012 470 0136 

SANLAM TRUST 

GE 8/2011 BU1

Estate 

Services 

Deceased estates originate from the following sources: 

• Wills in which Sanlam Trust is named as the (co-)executor. 

• Wills in which no professional executor has been appointed (with no knowledge 

and experience in estate administration). 

• Cases in which persons die without a valid will (intestate), or with a valid will 

without an executor. 

Intermediaries are constantly kept informed regarding the progress of the 

administrative process. 

All inheritances are deposited straight into the bank accounts of the heir(s), with 

notification of such deposits being sent to the intermediary. 


Sanlam Trust pays intermediaries remuneration at the following scale: 

Executor's remuneration Percentage 

R 5 001 to R 9 000 

R 9 001 to R 35 000 

R 35 001 to R 45 000 

R 45 001 to R 55 000 

R 55 001 to R 65 000 

R 65 001 to R 90 000 

R 90 001 to R115 000 

R115 001 to R350 000 

Above R350 001 

GE 8/2011 BU2 

10% 

15% 

20% 

25% 

30% 

35% 

40% 

45% 

50% 

An estate yielding R70 000 towards executor's remuneration, for example will pay 

out intermediary remuneration as follows: 

On first R9 000 

On R 9 001 to R35 000 

On R35 001 to R45 000 

On R45 001 to R55 000 

On R55 001 to R65 000 

On R65 001 to R70 000 

Total compensation to intermediary 

10% 

15% 

20% 

25% 

30% 

35% 

R 400,00 

R 3 900,00 

R 2 000,00 

R 2 500,00 

R 3 000,00 

R 1 750,00 

R13 550,00 

NB: Fifty percent of the estimated remuneration is payable when the estate 

is reported (if Sanlam Trust administers the estate) and the balance, 

calculated on the actual fee taken by Sanlam Trust, is payable on the 

finalisation of the estate. A 10% penalty on commission payable is 

applicable if a Sanlam Trust will was not lodged for safe custody. 

A fee for reporting estate is payable if intermediary does not qualify for abovementioned 

compensation (if Sanlam Trust administers the estate): R300 on asset 

value less than R500 000, R600 on value R500 000 to R1m and R1 000 on value 

exceeding R1m (to be deducted from the other intermediary's compensation). 

Contact details: 

Bellville : 021 947 4401 

Port Elizabeth : 041 392 5107 

Pretoria : 012 470 0020 

Durban : 031 300 0892 

Bloemfontein : 051 407 8244 

Johannesburg : 011 778 6453

Trust 

Services 

Beneficiary 

Fund 

A trust is the administration of assets on behalf of someone else who, for various 

reasons, is unable or unwilling to undertake the administration him/herself. The 

following services are provided: 

• Drafting of and changes to trust deeds 

• Administration of trusts 

Various types of trusts can be established and administered on behalf of clients: 

• Testamentary Trust : This type of trust is created within a will and comes 

into force only at death of the testator or testatrix. 

• Inter Vivos Trust 

(also known as a 

Family Trust) 

• Trusts for public 

benefit organisation 

or purpose 

GE 8/2011 BU3 

: This type of trust is established and managed 

during the lifetime of the person establishing it and 

constitutes an important estate planning 

mechanism. Assets are transferred into this trust 

to keep further growth from the client's own estate. 

: Loans or grants are made to a trust exempt from 

income tax or donation tax to ensure that grants to 

worthy institutions are tax effective. 

• Umbrella Trust : To deposit death benefits payable from group life 

insurance to beneficiaries who are unable to 

handle their own affairs, into this trust to be 

managed on their behalf and for their sole benefit 

as prescribed by the authorities and relevant 

legislation. 

• Guardian Trust : This type of trust is established as alternative for 

the Master's Guardian Fund and also for the 

purpose of managing death benefits payable to 

minors in terms of a policy. 


Establishing 

and registering 

trusts 

Trusts under 

administration 

(excluding 

testamentary) 

: 20% of the fee of R2 500,00 (VAT excl.), therefore R500,00. 

: Trust asset value between 

R40 000 - R50 000 

Trust asset value between 

R50 000 - R60 000 

Trust asset value above 

R60 000 

Where the intermediary 

negotiates with the client 

additionally to trust fees, 

and also executes certain 

services 

: 25% of acceptance fee 



% of management fee 

maximum of 25% ST fee 

To deposit death benefits allocated to beneficiaries of members of Pension, 

Provident and Retirement Annuity funds who are unable to handle their own affairs, 

into this Fund to be managed on their behalf as prescribed by relevant legislation. 

This ensures that the benefits be used for the sole benefit of the relevant 

beneficiary.

Asset and 

financial 

management 

(FinAssist) 

For clients who do not wish to place assets in trust but prefer not to administer the 

assets themselves. Sanlam Trust will be given a mandate to manage certain 

assets on behalf of the client. 

Where the intermediary negotiates with the client additionally to ST fees, and also 

executes certain services: % of management fee – maximum 25% of ST fee. 

General Sanlam recognition credits ("Score") are payable as determined from time to time 

in respect of all Sanlam Trust products. 

Sanlam Trust undertakes to protect the interests of intermediaries with regard to 

the clients that they refer to us. Any leads for further sales will be reverted to the 

intermediary who referred the client to us. The intermediary will be given the 

opportunity of making investment proposals to the Trustees of the trust and is 

entitled to all commission payable on his proposal which has been accepted. 

Contact details for trust services: 

021 947 6355 

GE 8/2011 BU4

Estate and 

Trust 

consultants 

• BELLVILLE 

Albie Janse van Rensburg 

Tel. no. 

Fax 

Email 

• JOHANNESBURG 

Shane Zinn 

Tel. no. 

Fax no. 

E-mail 

• PRETORIA 

GE 8/2011 BU5 

: (021) 947 6364 

: (021) 957 3717 

: albie.jansevanrensburg@sanlam.co.za 

: (011) 778 6453 

: (012) 339 1571 

: shane.zinn@sanlam.co.za 

Henriette Jansen van Vuuren 

Tel. no. 

Fax 

Email 

Ryno van Niekerk 

Tel. no. 

Fax 

Email 

: (012) 4700 173 

: (012) 4700 136 

: henriette.vanvuurenn@sanlam.co.za 

: (012) 470 0047 

: (012) 339 1124 

: ryno.vanniekerk@sanlam.co.za 

• SOUTHERN AND EASTERN CAPE 

Soekie Meyer 

Tel. no. 

Fax 

Email 

• BLOEMFONTEIN 

Nico Jonas 

Tel. no. 

Fax 

Email 

• DURBAN (vacant) 

: (041) 392 5107 

: (021) 957 3642 

: soekie.meyer@sanlam.co.za 

: (051) 407 8144 

: (051) 407 8030 

: nico.jonas@sanlam.co.za 

Albie Janse van Rensburg (Bellville)(temporary) 

Tel. no. 

Fax 

Email 

: (021) 947 6364 

: (021) 957 3717 

: albie.jansevanrensburg@sanlam.co.za

GE 3/2012 BV 

Page 

OVERWIEW OF PRODUCTS ……………………………………………………… BV 1 

A. STRATUS LINKED INVESTMENTS 

SECTION BV 

LINKED PRODUCTS 

DESCRIPTION ………………………………………………………………………. BV 2 

PRODUCTS ………………………………………………………………………….. BV 2 

EXPLANATIONS ……………………………………………………………………. BV 3 

TERM …………………………………………………………………………………. BV 3 

AGE AT ENTRY …………………………………………………………………….. BV 3 

START DATE ………………………………………………………………………… BV 3 

PAYMENTS ………………………………………………………………………….. BV 4 

PAYMENT GROWTH ………………………………………………………………. BV 5 

RIDER BENEFITS ………………………………………………………………….. BV 5 

INVESTMENT ……………………………………………………………………….. BV 5 

INVESTMENT GUARANTEE ……………………………………………………... BV 7 

FUND VALUE ……………………………………………………………………….. BV 8 

LOYALTY BONUS …………………………………………………………………. BV 9 

CHARGES …………………………………………………………………………… BV 9 

INVESTMENT ADVICE AGREEMENT BETWEEN THE PLANHOLDER AND 

THE INTERMEDIARY ………………………………………………………………. BV 11 

REDUCTION OR STOPPING OF THE RECURRING PAYMENT ……………. BV 12 

REALISING THE PLAN BENEFITS ……………………………………………… BV 12 

LOANS ……………………………………………………………………………….. BV 13 

AT DEATH OF A PLANHOLDER …………………….………………………….. BV 13 

CESSIONS …………………………………………………………………………… BV 13 

TAX ……………………………………………………………………………………. BV 13 

ALTERATIONS …………………………..…………………………………………. BV 13 

CONTINUATIONS AND CONVERSIONS ………………………………..……… BV 14 

DELAY IN CARRYING OUT REQUESTS ……………………………….………. BV 14 

EXCLUSION OF LIABILITY …………………………………………………….… BV 14 

2/…

B. STRATUS / COBALT PROFESSIONALS LINKED RETIREMENT 

ANNUITY 

- 2 - 

GE 3/2012 BV 

Page 

DESCRIPTION ………………………………………………………………………. BV 15 

EXPLANATIONS ……………………………………………………………………. BV 15 

TERM …………………………………………………………………………………. BV 16 

THE OPTION DATE ………………………………………………………………… BV 16 

AGE AT ENTRY AND RETIREMENT …………………………………………….. BV 16 

START DATE ………………………………………………………………………… BV 16 

PAYMENTS ………………………………………………………………………….. BV 17 

PAYMENT GROWTH ………………………………………………………………. BV 18 

RIDER BENEFITS ………………………………………………………………….. BV 18 

INVESTMENT ……………………………………………………………………….. BV 18 

INVESTMENT GUARANTEE ……………………………………………………... BV 20 

FUND VALUE ……………………………………………………………………….. BV 21 

LOYALTY BONUS …………………………………………………………………. BV 22 

SANLAM RETIREMENT BOOSTER …………………………………………….. BV 22 

CHARGES …………………………………………………………………………… BV 23 

INVESTMENT ADVICE AGREEMENT BETWEEN THE MEMBER AND THE 

FUND …………………………………………………………………………………. BV 25 

REDUCTION OR STOPPING OF THE RECURRING PAYMENT ……..……… BV 25 

RETIREMENT BENEFIT …………………………………………………………… BV 25 

TAX ON RETIREMENT BENEFIT ………………………………………………… BV 26 

TAX ON EARLY WITHDRAWAL BENEFIT ……………………………………… BV 26 

BENEFIT PAYABLE AT DEATH …………………………………………………. BV 27 

PROVISION OF REGULAR PENSION PAYMENTS …………………………… BV 27 

ALTERATIONS ……………………………………………………………………… BV 27 

CONVERSIONS AND REPLACEMENTS ………………………………………... BV 28 

DELAY IN CARRYING OUT REQUESTS ……………………………………….. BV 28 

EXCLUSION OF LIABILITY ……………………………………………………….. BV 28 

C. AVAILABLE INVESTMENT FUNDS 

AVAILABLE INVESTMENT FUNDS PER PRODUCT ACCORDING TO THE 

AMOUNT OF THE PAYMENT …………………………………………. 

BV 29

Sanlam Life offers a range of new generation linked savings products, which enables the client to obtain 

transparent low cost non-risk plans. The products offer the required flexibility so that the client's savings 

needs can be addressed accurately. 

OVERVIEW OF PRODUCTS 

The following linked savings products are currently available: 

Type of product Product name Product code 

Endowment plans Stratus Linked Investment : Committed 

Plan 

Retirement 

Annuities 

LINKED PRODUCTS 

GE 3/2012 BV 1 


code 

D03 PBM 

Stratus Linked Savings Plan D03 PBL 

Stratus Linked Investment : Flexible 

Plan 

Stratus Savings Plan as part of a 

combination product with Matrix 

D04 PBP 

D06 D06 

Stratus Linked Retirement Annuity L01C PBI 

Stratus Linked Pension Fund Booster L01C PBJ 

Cobalt for Professionals Linked 

Retirement Annuity 

L02S PBK 

Only persons in rate group 5 qualify for Cobalt for Professionals Linked Retirement Annuity.

A. 

STRATUS LINKED INVESTMENTS 

DESCRIPTION 

Stratus Linked Investments are plans of which the money are invested in investment funds that are 

managed by collective investment companies, and is a contract between the planholder and Sanlam 

Linked Investments (Pty) Ltd (SanLink). SanLink is an administrative financial services provider 

licensed by the Financial Services Board in terms of the Financial Advisory and Intermediaries Act, 2002 

(FAIS). 

If an investment guarantee is chosen, the guarantee is provided by Sanlam Life. Therefore the contract 

for the guarantee is between the planholder and Sanlam Life, and not between the planholder and 

SanLink. The contract for the guarantee is an insurance policy as described under, and regulated by 

the Long-term Insurance Act, 1998. It forms part of the plan documents. 

These investments are without any risk benefits (without life cover), and the planholder can invest in one 

or more of the available investment funds (a maximum of 10 funds may be chosen). Because it is not a 

policy no lives insured are applicable. 

After deduction of certain charges, SanLink buys units for the planholder with his or her net investment. 

The planholder can switch between available investment funds at any time. 

PRODUCTS 

Two discretionary products are available: 

• Committed Plan 

With this plan the client chooses an initial term. Recurring and one-off payments are available. As 

there is no initial marketing charge for this plan for recurring payments of R500 or more there will be 

a 100% allocation for these debit order payments. 

Intermediary remuneration can consist of an initial fee, a payment based fee and a fund-based fee. 

An alteration charge is payable for alterations as explained later in this chapter. 

This plan offers a loyalty bonus. 

• Flexible Plan 

This plan is more flexible than the Committed Plan. With the Flexible Plan no initial term is chosen – 

the term is open-ended. One-off as well as recurring payments can be made. 

Because of an initial marketing charge on this plan there is not a 100% allocation of payments. 

Payment-based fees are payable on payments, and a fund-based fee may also be payable. 

No alteration charge is payable for alterations. 

This plan does not offer a loyalty bonus. 

GE 3/2012 BV 2

EXPLANATIONS 

Option date 

It is the date which indicates the end of the term for the Committed Plan, and is indicated in the 

planholder's statement. 

Open-ended term 

After the chosen term has expired, the term of the plan is considered as open-ended. This means that 

the fund value will not be paid out automatically after the chosen term has expired, but that the plan will 

continue until the planholder terminates the plan. 

One-off fund 

It is the part of the fund value built up by one-off payments. 

Recurring fund 

It is the part of the fund value built up by recurring payments. 

Alteration charge date 

It is the date until which we will levy an alteration charge for certain alterations (if applicable), and is 

indicated in the planholder's statement. A separate date applies for the one-off and recurring funds. 

Working day 

It is any day of the week from Monday to Friday, excluding public holidays. 

TERM 

With the Committed Plan the client chooses an initial term. After the expiry of the initial term the term is 

open-ended. 


Maximum : 20 years 

With the Flexible Plan an open term applies. 

AGE AT ENTRY 



START DATE 

The start date of the investment is determined in the same manner as for Stratus Endowment. See 

Section BX. 

GE 3/2012 BV 3

PAYMENTS 

One-off payments 

One-off payments may be made provided that they are not less than the minimum allowed. If the 

transaction date for a payment, as indicated in the planholder's statement, is more than two days later 

than the payment date, SanLink will add interest from the payment date to the transaction date. 

Minimum : R 2 500 if combined with recurring payments 

: R10 000 if one-off payment only 

: R20 000 if regular withdrawals are taken from start date 

: R 2 500 if an ad hoc payment is made 

Maximum : None 

One-off payments are allowed on both the Committed Plan and the Flexible Plan. 

If part of a Stratus Savings Plan which is part of a combination product with Matrix, a one-off payment is 

not allowed if the recurring payment is not chosen. 

Recurring payments 

Recurring payments are allowed, but then they should apply from the start of the plan. They cannot be 

added later. A recurring payment, if applicable, is due on the same day of each month or year, as 

indicated in the planholder's statement. 

If recurring payments are stopped, it may not be resumed later on. 

Recurring payments may be made by debit order or stop order. If made by debit order, and the 

requested day on which SanLink has to collect the payment does not fall on a working day, or a month 

does not have the particular day, it will be collected on the following working day. 

The transaction date for a recurring payment is the later of the payment due date and the actual 

payment date. If this is not a working day, the transaction date will be the first working day thereafter. 

SanLink will not add interest if a recurring payment is made before the transaction due date. 

If a payment is not made in full within a 30 day period of grace, SanLink may consider the recurring 

payment stopped, and will then levy the alteration charge for stopping recurring payments (if applicable). 

Recurring payments can be payable only monthly or annually. 

Minimum : Committed Plan : R400 per month for terms less than 10 years 

: R200 per month for terms 10 years and longer 

: The same minimum payments apply if part of combination 

product 

Flexible Plan : R400 per month 

NB: 

1) The above-mentioned minimum recurring payments are further subject to the minimum 

payments per investment fund. See Investment funds for the latter minimums. 

2) For payments less than R500 per month per debit order, payment growth is compulsory. See 

"Payment Growth" later in this section for more information regarding when compulsory 

payment growth applies. 

Maximum: None 

GE 3/2012 BV 4

PAYMENT GROWTH 

Payment growth on these plans is optional, except in cases where the debit order payment is less than 

R500 per month and only recurring payments are payable. The client can choose a fixed rate, or can 

choose that payments increase at Sanlam inflation. In the case of compulsory growth, the client can 

also choose any of the growth options, but the Sanlam inflation rate is the default choice. 

If the plan has payment growth, the recurring payment will be increased according to the conditions of 

the type of payment growth, as chosen. 

Available types of payment growth 

Fixed growth: The recurring payment will be increased each year by the chosen fixed 

percentage. 

Any percentage payment growth between 5% (minimum) and 20% (maximum) 

can be chosen. 

Sanlam inflation: The recurring payment will be increased each year by the inflation rate, as 

determined by SanLink. In setting the rate, SanLink will take into account the 

change in the consumer price index, or any other commonly accepted method of 

measuring inflation that may apply at the time. The Sanlam inflation rate may 

differ from official rates, due to differences in calculation methods. A minimum 

(currently 4%) and maximum (currently 20%) increase apply, which may change 

from time to time. 

The payment growth type that applies for a plan is indicated in the planholder's statement. 

Payment growth can be cancelled or added any time. No alteration charge is then payable. 

If Stratus Savings Plan is taken as part of a combination product with Matrix, payment growth is 

compulsory. 


No rider benefits (waiver of payment benefit included) are available on Stratus Linked Investments. 

INVESTMENT 

SanLink invests a payment, plus an additional allocation, if applicable, less charges, in the respective 

investment funds, as chosen by the planholder. The additional allocation depends on the level of 

intermediary fees negotiated at the start. Investments are administered subject to the terms and 

conditions stipulated by the asset managers. 

SanLink uses the amount allocated to a specific investment fund to buy units in that investment fund. 

The units are held in the name of an independent nominee, Afflulink Nominee (Pty) Ltd, on behalf of the 

planholder. 

Available investment funds 

See Investment funds later in this section for information about the available investments funds. Further 

information about all the available investment funds is available on the Sanlam website. 

Investment date 

The investment date for an amount allocated to a specific investment fund is usually the first working 

day after the transaction date. The investment takes place at the unit price applicable on the investment 

date. If more than one working day elapses between the transaction date and the investment date, 

because of circumstances not within SanLink's control, SanLink will add interest as determined by 

Sanlam Life, to the amount allocated to a specific investment fund. This interest will be calculated from 

the date the investment should have taken place to the actual investment date. 

GE 3/2012 BV 5

Clearance period 

Payments are subject to a clearance period of 30 days, and no selling of units that resulted from an 

uncleared payment will be allowed during this period. 

Unit price 

The unit price of a specific investment fund is determined by the asset manager. A price is usually only 

available one or two days after the day to which it applies. Therefore it will take a few days before a 

transaction reflects on the statement. Details of the calculation of unit prices are available on request 

from the asset managers. 

Income 

When income for an investment fund is declared, such income, which may include interest and 

dividends, is automatically reinvested in the investment fund for which the income has been declared. 

This takes place on the date that the income is paid, which may be later than the date on which the 

income was declared. 

Discontinuation of availability of an investment fund 

It is possible that the availability of an investment fund be discontinued. This may occur if, for example, 

legislation changes or the asset manager closes the investment fund. If the plan is affected, Sanlam 

Life will request the planholder to choose another investment fund allowed at that stage for this type of 

plan, and to inform Sanlam Life of the choice made. If Sanlam Life receives no response to such a 

request, SanLink will decide in which investment fund to continue the affected part of the plan. 

Switches between investment funds 

Switching of investment funds allowed at the time for this type of plan may be done on request. 

Future payments may be allocated to any investment fund allowed for this type of plan. The payments 

already allocated to the current investment funds, will then remain in these investment funds. 

Currently there is no transaction charge for the first four switches in a plan year. For each subsequent 

switch in a plan year, SanLink will levy a transaction charge, which will be determined at the time. The 

current transaction charge is indicated in the planholder's statement. SanLink may change the number 

of free switches from time to time. 

To perform a switch, SanLink sells the required number of units of the investment funds out of which a 

switch is made. With the proceeds of the selling transaction, less the transaction charge (if applicable), 

SanLink buys units of the investment funds into which a switch is made. SanLink usually sells and buys 

on the first working day after receiving the switch request. If SanLink cannot sell the units on that day, 

the buying of units is delayed until SanLink can sell the units. However, if the selling takes place, but 

the buying is delayed because of circumstances not within SanLink's control, SanLink will add interest to 

the proceeds of the selling transaction, after deducting the transaction charge (if applicable). This 

interest will be calculated from the date the buying should have taken place to the date SanLink actually 

buys the units. 

GE 3/2012 BV 6


A money-back guarantee on the payments less payment charges (if applicable) in certain investment 

funds is available. This will include guarantees on investment funds of two external fund managers. 

The guarantees mean that the planholder's guaranteed amounts in the relevant investment funds are 

guaranteed back on the investment guarantee date. No guarantee will apply at the death of the client, 

seeing that there are no lives insured with these investments. 

The guarantee is available with: 

• Stratus Linked Investment : Flexible Plan – only for one-off payments 

• Stratus Linked Investment : Committed Plan – for recurring and one-off payments. 

If the client has chosen a guarantee with a Flexible Plan, a recurring payment will not be allowed. 

Investment funds 

The investment guarantee is available with the following investment funds: 

• SIM Managed Conservative Solution 

• SIM Managed Cautious Solution 

• SMMI Defensive Fund of Funds 

• SIM Inflation Plus Fund 

• Allan Gray Stable Fund 

• Nedgroup Stable Fund 

Working of the guarantee 

A normal Stratus Linked Investment plan is issued, with an indication in the contract document that an 

investment guarantee will apply on the investment guarantee date and that a policy will provide the 

guarantee. No intermediary remuneration is payable on the policy that provides the guarantee. The 

policy forms part of the Stratus Linked Investment plan and may not be traded with on its own. 

The fund value of an investment fund for which a guaranteed return was chosen, is guaranteed not to be 

less than the guaranteed amount of that investment fund, as calculated for a specific plan. The 

guaranteed amount of an investment fund is equal to the payments less payment charges, if applicable, 

allocated to that investment fund, accumulated each year by the guaranteed rate for the investment 

fund. 

The investment guarantee only applies on the investment guarantee date as indicated in the 

planholder's statement. If the fund value of an investment fund is then less than the guaranteed amount 

of that investment fund, SanLink will add more units to that investment fund, to give the value required. 

If the fund value is reduced because of an alteration, the guaranteed amount of an investment fund will 

be reduced accordingly. However, for withdrawals made to pay an intermediary for investment advice, if 

applicable, the guaranteed amount will not be reduced. 

If the investment guarantee date is before the option date (in the case of the Committed Plan) and 

SanLink still offers this investment guarantee for new plans at that time, the investment guarantee will 

continue beyond the investment guarantee date. SanLink will then determine the new investment 

guarantee date. Currently, if the option date is less than 15 years after the investment guarantee date, 

the new investment guarantee date will be equal to the option date. However, if the option date is 15 

years or more after the investment guarantee date, the new investment guarantee date will be 10 years 

after the current investment guarantee date. 

GE 3/2012 BV 7

Working of the guarantee (continued) 

SanLink indicates in the planholder's statement what the guarantee dates could be. 

If ever the fund value of an investment fund for which an investment guarantee was chosen is switched 

or withdrawn, the guaranteed amount of that investment fund will be reduced to zero and the investment 

guarantee of that investment fund will be cancelled. This cancellation will not take place if the recurring 

payment (if applicable), less charges, continues to be allocated to that investment fund at that stage. 

If the investment fund is closed for further investments or is disbanded, or if the percentage of equities 

and foreign assets in an investment fund managed by an external asset manager exceeds 50% of the 

investment fund, SanLink has the right to allocate all future payments directed to the investment fund for 

which a guaranteed return was chosen to an alternative investment fund of SanLink's choice, to retain 

the investment guarantee. In addition, the fund value of the investment fund for which a guaranteed 

return was chosen will be moved to this alternative investment fund. The investment guarantee will then 

apply to this alternative investment fund. 

Participation fee 

SanLink can levy a participation fee if the investment in an investment fund to which an investment 

guarantee applies, is increased with a one-off payment within 60 months before an investment 

guarantee date. If an investment guarantee was chosen, increases of more than 20% of the payment 

will not be allowed during the last five years before an investment guarantee date. 

External asset managers 

The contract document contains a clause about the investment guarantee if it was chosen for the 

investment fund of an external asset manager. The clause determines that SanLink may switch the 

investment to another suitable investment fund if the asset manager concerned invests more that 50% 

of the fund assets in equities and offshore investments at any stage. If the client wants to remain in the 

investment fund of the external asset manager concerned, he or she can do so but then the investment 

guarantee will lapse. 

Existing plans 

It is not possible to add the guarantee to existing plans. 

FUND VALUE 

The fund value of a specific investment fund is the number of units multiplied by the unit price for that 

investment fund. 

The fund value of the plan is the total fund value of all the investment funds for that plan. 

GE 3/2012 BV 8

LOYALTY BONUS 

SanLink offers a loyalty bonus on the Committed Plan. 

Rebates for certain charges are added to the fund value in the form of a loyalty bonus on the plan 

anniversaries indicated below. The amount of the loyalty bonus is calculated as 'n percentage of some 

of the charges deducted from the plan since the date on which the previous loyalty bonus was added or 

since the start date for the first loyalty bonus. 

The rebate percentage for each relevant plan anniversary is as follows: 

Plan anniversary 

from start date Initial term 

= 5 years 

GE 3/2012 BV 9 

Rebate for charges 

% 

5< initial term 

10 years 

5 35 10 10 

10 52.5 57.5 50 

15 57.5 60 62.5 

20, and every 5 years thereafter 62.5 62.5 62.5 

The charges included in the calculation of the loyalty bonus are the fixed and variable administration 

charges. For the purpose of this calculation these charges are adjusted at the same rate at which the 

unit price of each investment fund changes. 

SanLink will also add a loyalty bonus when the plan is terminated on request on or after option date, 

provided that the plan is not terminated within two years of the start date. 

If for the above termination events the termination date falls between any of the plan anniversaries in the 

table above, the next plan anniversary in the table is used to determine the percentage of the rebate. 

Sanlink will add the loyalty bonus to the fund value by adding units to the plan. If the plan anniversary or 

termination date on which the loyalty bonus is payable is not on a working day, SanLink will add the 

units on the first working day thereafter. 

CHARGES 

VAT 

VAT will be levied on all the charges below. VAT will not be levied on the payment for the investment 

guarantee (if applicable). 

Plan charges 

The current charges are indicated in the statement and can be one or more of the following: 

• The payment charge, deducted from recurring payments, if payments are made by stop order. The 

charge is calculated as a percentage of the recurring payment. 

• A monthly plan charge, which is increased yearly, to allow for inflation. The charge is deducted 

monthly from the fund value by selling units to the value of the charge.

Plan charges (continued) 

• A yearly administration charge, which consists of two parts: 

− A fixed administration charge, which is a percentage of the fund value. Separate percentages 

apply to the one-off and recurring funds. This charge is calculated on a monthly basis, which 

means it is divided by 12. The charge is deducted monthly from the fund value by selling units to 

the value of the charge. 

− A variable administration charge, which is a percentage of the fund value. Separate 

percentages apply to the one-off and recurring funds. This charge is calculated on a monthly 

basis, which means it is divided by 12. The charge is deducted monthly from the fund value by 

selling units to the value of the charge. 

As indicated in the planholder's statement the variable administration charge changes as the 

fund value increases to higher fund value bands. 

Payment for the investment guarantee 

A yearly payment for the investment guarantee is made to Sanlam Life, to pay for the cost of the 

investment guarantee of every investment fund for which a guaranteed return was chosen. This 

payment is calculated as 'n percentage of the fund value. The yearly payment is calculated on a 

monthly basis, which means it is divided by 12. An amount equal to the payment is deducted monthly 

from the fund value by selling units to the value of the payment. 

Deductions made by the asset managers 

An asset manager levies the following for an investment fund. These are included in the daily price of 

the units. 

• A yearly asset management charge, which is a percentage of the market value of the assets in an 

investment fund. This charge is calculated on a daily basis, which means it is divided by 365. The 

current charge for an investment fund is indicated in the planholder's statement. 

• A performance charge, which is levied if the investment fund outperforms its benchmark. The 

performance charge depends on the investment performance of the fund and is not included in the 

asset management charge. Detail on the benchmark, and how the charge is calculated, is available 

on the Sanlam Website under "Investment funds". 

• Some asset managers give a rebate on the asset management charge for their investment funds. 

Such a rebate is taken into account when the fixed and variable administration charges are 

calculated. The impact of this is that the fixed and variable administration charges are lower than 

what they would have been without a rebate. The size of the rebate as a percentage of the market 

value for each investment fund is indicated in a table in the planholder's statement. 

• Some asset managers pay Sanlam Life a platform management fee for their investment funds. 

Such a fee is taken into account when the fixed and variable administration charges are calculated. 

The impact of this is that the fixed and variable administration charges are lower than what they 

would have been without a platform management fee. The size of the platform management fee as 

a percentage of the market value for each investment fund is indicated in a table in the planholder's 

statement. 

• Some investment funds may invest in one or more of the managed asset classes in order to improve 

the diversification of this investment fund. Managed asset classes include, among other, hedge 

funds, exchange traded funds, property investments, private equity investments, derivatives and 

credit conduits. The managers of these managed asset classes, which may include companies 

within the Sanlam Group, deduct their management fees, performance fees and expenses directly 

from the investment returns. These deductions are therefore not included in the indicated 

percentage. 

• Direct investment expenses, for example collective investment initial fees, brokerage, audit fees, 

bank charges and trustee fees. 

GE 3/2012 BV 10

Alteration charge 

A plan may be changed at any stage, provided SanLink agrees to the alteration. 

For the Flexible Plan no alteration charge is levied. 

For the Committed Plan, SanLink will levy an alteration charge if the alteration is done before an 

alteration charge date. The alteration charge date is determined at the start and then does not change 

at subsequent alterations. Separate alteration charge dates apply to the one-off and recurring funds. 

The alteration charge will be taken from the fund value by selling the required number of units. 

The current alteration charge for the most common alterations is indicated in the planholder's statement. 

Transaction charge 

In addition to the above-mentioned alteration charge SanLink will levy a transaction charge for each of 

the following alterations: 

• Reduction or stopping of the recurring payment; 

• Termination of the plan; 

• Transfer of units out of the plan; 

• An ad hoc withdrawal from the plan. 

This transaction charge will increase in future to allow for inflation. 

SanLink will not levy this transaction charge on or after the option date. 

SanLink will levy a transaction charge for other transactions, as mentioned in this plan description, and 

as indicated in the planholder's statement. This transaction charge will be increased in future to allow 

for inflation. 

SanLink will continue to levy a transaction charge after the alteration charge date. 

Every transaction charge will be taken from the fund value by selling the required number of units. 

INVESTMENT ADVICE AGREEMENT BETWEEN THE PLANHOLDER AND THE 

INTERMEDIARY 

The planholder may request SanLink to pay a fee for ongoing investment advice for his or her 

investment. VAT will be levied on this fee. SanLink will pay this fee monthly to the intermediary who 

provides this advice. 

This investment advice is an optional service that the planholder may request, and is provided by an 

intermediary nominated by the planholder. It is a specialised service which is in addition to and not part 

of the intermediary services for which SanLink pays fees. 

The fund-based fee for this investment advice is specified as a percentage per year of the fund value. 

The planholder must specify the percentage. The fee is calculated on a monthly basis, which means it 

is divided by 12. It is deducted monthly from the fund value by means of a withdrawal to the value of the 

monthly fee. The amount of the fund-based fee is linked to and will therefore fluctuate with the fund 

value, for example, a fee of 0,50% implies R41,67 per month if the fund value equals R100 000,00. 

The current fund-based fee, if applicable, is indicated in the planholder's statement. 

GE 3/2012 BV 11

REDUCTION OR STOPPING OF THE RECURRING PAYMENT 

The recurring payment may be reduced or stopped on request, provided SanLink's conditions at the 

time are met. If this happens before the recurring fund's (if applicable) alteration charge date, SanLink 

will levy an alteration charge. 

SanLink will levy a transaction charge when the recurring payment for the Committed Plan is reduced or 

stopped before the option date. 

One of the conditions for stopping the recurring payment is that a minimum fund value should remain, 

after the alteration and transaction charges, if applicable, have been deducted. If recurring payments 

are stopped despite this condition not being met, the plan will be terminated. If no termination value is 

available, the plan will lapse. The minimum fund value is indicated in the planholder's statement. 

REALISING THE PLAN BENEFITS 

The plan benefits may be realized in one of the ways described below. To realise a benefit, SanLink will 

sell units on the first working day after the day on which SanLink receives the request. Transfer of units 

will take longer to finalise. 

Termination of the plan 

A plan may be terminated on request. The fund value minus the alteration and transaction charges, if 

applicable, will be paid to the planholder when the plan is terminated. 

On the termination date the plan may be entitled to income already declared, but not yet invested. Once 

all declared income has been invested, the units will be sold. The proceeds will be paid to the 

planholder, after the deduction of a transaction charge, which will be determined at the time. Its current 

level is indicated in the planholder's statement. 

If the investment guarantee applies on the plan, the normal rules for surrenders apply. The policy held 

for the investment guarantee has no surrender value and can therefore not be surrendered. If the 

Stratus Linked Investment is surrendered, the policy for the guarantee simply ceases to exist. 

Transfer of units out of the plan 

Units may be transferred to another financial services provider or to the planholder. The fund value will 

reduce by the alteration and transaction charges, if applicable, as well as by the value of the units that 

are transferred. 

Ad hoc withdrawal from the plan 

The planholder may make an ad hoc withdrawal from the plan, provided that SanLink's conditions at the 

time are met. As these conditions will change from time to time, they will be communicated when the 

planholder applies for an ad hoc withdrawal. SanLink will sell the required number of units to pay the 

alteration and transaction charges, if applicable, and the withdrawal amount. The fund value will reduce 

by the value of the units sold. 

Regular withdrawals for the plan 

The planholder may apply to make regular withdrawals from the plan, provided that SanLink's conditions 

at the time are met. One of these conditions is that regular withdrawals may not be made while 

recurring payments are being made. However, as conditions will change from time to time, they will be 

communicated when the planholder applies for regular withdrawals. 

The details of the regular withdrawals will be indicated in the planholder's statement after SanLink has 

accepted the application for making regular withdrawals. 

GE 3/2012 BV 12

Regular withdrawals for the plan (continued) 

SanLink levies a transaction charge for each withdrawal payment made. The charge will vary over time. 

Its current level is indicated in the planholder's statement. 

The minimum regular withdrawal is currently R150 per withdrawal. 

SanLink will sell the required number of units from the applicable investment funds proportional to their 

fund values to pay the transaction charge and the requested withdrawal amount. The fund value will 


If a month does not have the requested withdrawal day, or if it does not fall on a working day, SanLink 

will consider the following working day to be the requested withdrawal day. SanLink will sell the units on 

the first working day after the requested withdrawal day each month or year. SanLink will pay the 

withdrawal amount as soon as possible after the units have been sold. 

SanLink will stop the regular withdrawals when it fails to satisfy their conditions. 

LOANS 

No loans will be allowed. 

AT DEATH OF A PLANHOLDER 

A linked investment does not have an insured life as in the case of an endowment policy. A person or 

an entity may be nominated to become the new planholder after the death of the planholder. The 

nominee may only accept or reject a nomination after the death of the planholder. 

If the nominee does not accept the nomination, or if nobody has been nominated, the plan will be an 

asset in the estate of the planholder. 

A nomination may be added, cancelled or changed at any time. It must be in writing and signed by the 

planholder, and must reach Sanlam Head Office before the death of the planholder. 

The nomination will lapse if the plan is ceded, whether outright or as collateral security. 

CESSIONS 

The planholder may do a collateral or outright cession. 

TAX 

The planholder will be responsible for the tax liability arising from the plan. SanLink will supply a tax 

certificate each year, setting out the income and capital gains on the plan. Any selling of units, including 

those that are sold to pay for charges and where applicable the investment guarantee, will result in a 

capital gain or loss which may have a tax impact. 

A tax liability may also arise when the planholder changes, for example if the plan is ceded outright. 

ALTERATIONS 

The same alterations available for Stratus Endowment, are also available on this product. See 

Section BX for the list of alterations allowed. 

If an investment guarantee was chosen, increases of more than 20% of the payment will not be allowed 

during the last five years before an investment guarantee date. 

GE 3/2012 BV 13

CONTINUATIONS AND CONVERSIONS 

No continuations and conversions of policies to Stratus Linked Investment products are allowed. 

Internal transfers of funds from policies that mature, to a Stratus Linked Investment: Flexible Plan or 

Stratus Linked Investment : Committed Plan where one-off payments are permitted can, however, be 

done. 

DELAY IN CARRYING OUT REQUESTS 

In some circumstances SanLink may not be able to carry out requests within the normal time standards. 

An example would be where an extraordinary event occurs that causes extensive market activity, such 

as the outflows experienced on 11 September 2001. An asset manager may also temporarily suspend 

the selling of units. SanLink will then carry out requests on the earliest possible opportunity. 

EXCLUSION OF LIABILITY 

Sanlam Life in its own capacity or as agent of SanLink, and SanLink will not be held responsible, and 

will not accept liability, for any damages or losses, including consequential losses, sustained by the 

planholder arising from or caused by 

• errors, actions or omissions by third parties providing the investment underlying the plan; 

• any time calculation standards, practices and procedures of these parties, or their delay of selling or 

refusal to allow selling on a specific date or at a specific price; 

• any tax or levy of whatever nature imposed by any local, provincial, national or other authority; 

• the acting by SanLink and Sanlam Life on any instructions that were transferred by telephone, fax, 

electronic mail or the Internet, provided that SanLink and Sanlam Life exercised reasonable care to 

establish the validity of the instruction. 

GE 3/2012 BV 14

B. 

STRATUS / COBALT FOR PROFESSIONALS LINKED RETIREMENT 

ANNUITY 

DESCRIPTION 

The Stratus / Cobalt for Professionals Linked Retirement Annuity are linked investments that the Sanlam 

Linked Retirement Annuity Fund uses to finance the benefits that it must pay to its members. Hereafter 

SanLink refers to the linked investment as a "plan" and to the retirement annuity fund as "Fund". 

As a member of the Fund the member makes contributions to the Fund to receive benefits from it. To 

fund these benefits, the Fund invests in a plan with Sanlam Linked Investments (Pty) Ltd (SanLink). 

The Fund is the planholder and uses the member’s contribution(s) to make the one-off and/or recurring 

payments. The information below will give an indication of the benefits the member can expect to 

receive from the Fund. 

The plan invests in investment funds that are managed by collective investment companies, and is a 

contract between the planholder and SanLink. SanLink is an administrative financial services provider 

licensed by the Financial Services Board in terms of the Financial Advisory and Intermediary Services 

Act, 2002 (FAIS). 

If an investment guarantee is chosen, the guarantee is provided by Sanlam Life. Therefore the contract 

for the guarantee is between the Fund and Sanlam Life, and not between the Fund and SanLink. The 

contract for the guarantee is an insurance policy as described under, and regulated by the Long-term 

Insurance Act, 1998. If forms part of the plan documents mentioned in this plan description 

As required by the Pension Funds Act, contributions must be paid directly to SanLink, and not to the 

Fund. SanLink receive the contributions as the payments of the plan. 

As in the case of Stratus Linked Investment, this is also an investment without any risk benefits (without 

life cover) in one or more of the available investment funds (a maximum of 10 funds may be chosen). 

After deduction of certain charges, SanLink buys units for the member's benefit with the nett payment. 

The member can switch between available investment funds at any time. 

See Section BX for more information regarding the purpose of a retirement annuity, income tax and 

estate duty. 

EXPLANATIONS 

Option date 

It is the date which indicates the end of the term, and is indicated in the member's statement. 




continue until the member requests that the plan terminates. 

One-off fund 


GE 3/2012 BV 15


It is part of the fund value built up by recurring payments. 


It is the date until which Sanlam Life will levy an alteration charge for certain alterations, and is indicated 

in the member's statement. A separate date applies for the one-off and recurring funds. 

Working day 


TERM 

• The member selects a retirement date at the start of the plan. 

• This retirement date can be any date from the member’s fifty-fifth birthday. No maximum retirement 

age applies. The period from the start date up to and including the chosen retirement date is called 

the initial term. 

• For recurring payments a minimum term of two years apply. 

• After the initial term has expired, the term is open-ended. This means that the plan will not 

automatically be paid out when the initial term has expired, but that the plan will continue until the 

member or the Fund informs SanLink that the plan must be terminated or until the death of the 

member – whichever comes first. 

THE OPTION DATE 

The member chooses an initial term at the inception of the plan. The date at the end of the initial term is 

the option date. This date cannot be before the member's 55 th birthday. 

The plan will continue automatically after the option date if the member or the Fund does not notify 

SanLink that the available retirement benefit must be paid out. The plan can continue with or without 

further payments. 

AGE AT ENTRY AND RETIREMENT 

• Minimum age at entry : 1 anb for Stratus Linked Retirement Annuity 

15 anb for Cobalt for Professionals Linked Retirement Annuity 

• Maximum age at entry : None 

• Minimum age at retirement : the member's 55 th birthday 

• Maximum age at retirement : None 

START DATE 

The start date of the investment is determined in the same manner as for the Stratus / Cobalt for 

Professionals Retirement Annuity. See Section BX. 

GE 3/2012 BV 16

PAYMENTS 


One-off payments may be made, provided that they are not less than SanLink's minimum allowed. If the 

transaction date for a payment, as indicated in the member's statement, is more than two days later than 

the payment date, SanLink will add interest from the payment date to the transaction date. 




indicated in the member's statement. 

Recurring payments may be made by debit order. If recurring payments are made by debit order, and 

the requested day on which SanLink has to collect the payment does not fall on a working day, or a 

month does not have the particular day, SanLink will collect it on the following working day. 



SanLink will not add interest if a recurring payment is made before the transaction date. 

If a payment is not made in full within a 30 day period of grace, SanLink may consider the recurring 

payment stopped, and will then levy the alteration charge for stopping recurring payments. 

Minimum payments: 

One-off 

payment only: 

One-off 

payment plus 

recurring 

payments: 

Recurring 

payment only 

One-off 

payment 

R10 000 

R2 500 

N.a. 

Ad hoc 

addition 

(one-off 

payment) 

R2 500 

R2 500 

R2 500 

GE 3/2012 BV 17 

Initial 

term 15 

years or 

more 

N.a. 

R150 

R150 

Recurring payment per month 1 

Initial term 

10 years 

or more, 

but less 

than 

15 years 

N.a. 

R250 

R250 

Initial 

term 5 

years or 

more, 

but less 

than 

10 years 

N.a. 

R400 

R400 

Initial 

term 

less 

than 

5 years 

N.a. 

R500 

R500 

1 The minimum amount that may be invested per investment fund is R50,00. The minimum recurring 

payment is further subject to the minimum payments which apply per investment funds. Higher 

minimum payments apply for certain investment funds. See Investment funds for these minimums. 

NB: For payments less than R500 per month per debit order, payment growth is compulsory. 

See "Payment Growth" later in this section for more information regarding when 

compulsory payment growth applies. 

Maximum payments: 

None 

Ad hoc 

recur- 

ring 

payment 

increase 

N.a. 

R150 

R150





also choose any of the growth options, but the Sanlam inflation rate is the default choice. 



Available types of payment growth 

Fixed growth : The recurring payment will be increased each year by the chosen fixed 

percentage. 

Any percentage payment growth between 5% (minimum) and 20% 

(maximum) can be chosen. 

Sanlam inflation : The recurring payment will be increased each year by the inflation rate, as 

determined by SanLink. In setting the rate, SanLink will take into account the 

change in the consumer price index, or any other commonly accepted method 

of measuring inflation that may apply at the time. The Sanlam inflation rate 

may differ from official rates, due to differences in calculation methods. A 

minimum increase (at present 4% per annum) applies, which may change 


Flexi growth : Flexi growth is only available for a plan that forms part of a scheme. The 

recurring payment will be increased on request. Any number of increases per 

year may be requested. Any amount or percentage may be requested for an 

increase, subject to a minimum (at present 4% per time) which may change 


The increase must take place on the same day of the month as the start date 

of the plan. This type of payment growth is available only on plans with a 

monthly frequency. A requested payment increase in terms of Flexi growth 

may not be cancelled. 

The payment growth type that applies for a plan is indicated in the member's statement. 

Payment growth (Flexi growth excluded) can be cancelled or added at any time. No alteration charge is 

then payable. 


No rider benefits (waiver of payment benefits included) are offered on the Stratus Linked Retirement 

Annuity or the Cobalt for Professionals Linked Retirement Annuity. 

INVESTMENT 

SanLink invests a payment, plus an additional allocation, if applicable, less charges, in the respective 

chosen investment funds. The additional allocation depends on the level of intermediary fees 

negotiated at the start. Investments are administered subject to the terms and conditions stipulated by 

the asset managers. 

SanLink uses the amount allocated to a specific investment fund to buy units in that investment fund. 

The units are held in the name of an independent nominee, Afflulink Nominee (Pty) Ltd, on behalf of the 

Fund. 

Life time investment option 

If a life time investment option was chosen, SanLink will actively manage the allocation of the 

investment to the respective investment funds according to the chosen option. As SanLink considers 

necessary, SanLink will select other investment funds for the chosen option, and decide on the 

allocation to them. As the member gets older, SanLink will gradually shift the allocation of the 

investment to more stable investment funds. 

GE 3/2012 BV 18

Available investment funds 

See Investment Funds later in this section for information about available investment funds. Further 

information about all the available investment funds is available on the Sanlam website. 

Investment date 

The investment date for an amount allocated to a specific investment fund is usually the first working 

day after the transaction date. The investment takes place at the unit price applicable on the investment 

date. If more than one working day elapses between the transaction date and the investment date, 

because of circumstances not within our control, SanLink will add interest as determined by Sanlam Life 

to the amount allocated to a specific investment fund. This interest will be calculated from the date the 

investment should have taken place to the actual investment date. 

Clearance period 

Payments are subject to a clearance period of 30 days, and no selling of units that resulted from an 

uncleared payment will be allowed during this period. 

Unit price 

The unit price of a specific investment fund is determined by the asset manager. A price is usually only 

available one or two days after the day to which it applies. Therefore it will take a few days before a 

transaction reflects on the statement. Details of the calculation of unit prices are available on request 

from the asset managers. 

Income 

When income for an investment fund is declared, such income, which may include interest and 

dividends, is automatically reinvested in the investment fund for which the income has been declared. 

This takes place on the date that the income is paid, which may be later than the date on which the 

income was declared. 


It is possible that the availability of an investment fund be discontinued. This may occur if, for example, 

legislation changes or the asset manager closes the investment fund. If the plan is affected, Sanlam 

Life will request the member to choose another investment fund allowed at that stage for this type of 

plan, and to inform Sanlam Life of the choice made. If Sanlam Life receives no response to such a 

request, SanLink will decide in which investment fund to continue the affected part of the plan. 

Switches between investment funds 

Switching of investment funds allowed at the time for this type of plan may be done on request. 



If a life time investment option is active when any requested switch is done, or payments are allocated 

differently on request, the option will be cancelled. 


switch in a plan year, SanLink will levy a transaction charge, which will be determined at the time. The 

current transaction charge is indicated in the member's statement. SanLink may change the number of 

free switches from time to time. 

Any switch of investment funds that SanLink does according to the chosen life time investment option, 

will be free of charge. No transaction charge will be levied. 

GE 3/2012 BV 19

Switches between investment funds (continued) 

To perform a switch, SanLink sells the required number of units of the investment funds out of which a 

switch is done. With the proceeds of the selling transaction, less the transaction charge (if applicable), 

SanLink buys units of the investment funds into which a switch is done. SanLink usually sells and buys 

on the first working day after receiving the switch request. If SanLink cannot sell the units on that day, 

the buying of units is delayed until SanLink can sell the units. However, if the selling takes place, but 

the buying is delayed because of circumstances not within our control, SanLink will add interest to the 

proceeds of the selling transaction, after deducting the transaction charge (if applicable). This interest 

will be calculated from the date the buying should have taken place to the date the units are actually 

bought. 


A money-back guarantee on the payments less payment charges (if applicable) in certain investment 

funds is available. This will include guarantees on investment funds of two external fund managers. 

The guarantees mean that the member's guaranteed amounts in the relevant investment funds are 

guaranteed back on the investment guarantee date as well as upon death of the member. 

Investment funds 

The investment guarantee is available with the following investment funds: 

• SIM Managed Conservative Solution 

• SIM Managed Cautious Solution 

• SMMI Defensive Fund of Funds 

• SIM Inflation Plus Fund 

• Allan Gray Stable Fund 

• Nedgroup Stable Fund 

Working of the guarantee 

A normal Stratus Linked Retirement Annuity or Cobalt for Professionals Linked Retirement Annuity is 

issued, with an indication in the contract document that an investment guarantee will apply on the 

investment guarantee date as well as upon death of the member, and that a policy will provide the 

guarantee. No intermediary remuneration is payable on the policy that provides the guarantee. The 

policy forms part of the relevant retirement plan and may not be traded with on its own. 



guaranteed amount of an investment fund is equal to the payments less payment charges, if applicable, 

allocated to that investment fund, accumulated each year by the guaranteed rate for the investment 

fund. 

The investment guarantee only applies on the earlier of the investment guarantee date and the date on 

which SanLink receives notice of the death of the member. If the fund value of an investment fund is 

then less than the guaranteed amount of that investment fund, SanLink will add more units to that 

investment fund, to give the value required. 


be reduced accordingly. However, for withdrawals made to pay an intermediary for investment advice, if 

applicable, the guaranteed amount will not be reduced. 

If the investment guarantee date is before the option date and SanLink still offers this investment 

guarantee for new plans at that time, the investment guarantee will continue beyond the investment 

guarantee date. SanLink will then determine the new investment guarantee date. Currently, if the 

option date is less than 15 years after the investment guarantee date, the new investment guarantee 

date will be equal to the option date. However, if the option date is 15 years or more after the 

investment guarantee date, the new investment guarantee date will be 10 years after the current 

investment guarantee date. 

GE 3/2012 BV 20

Working of the guarantee (continued) 

SanLink indicates in the member's statement what the guarantee dates could be. 


or withdrawn, the guaranteed amount of that investment fund will be reduced to zero, and the 

investment guarantee of that investment fund will be cancelled. This cancellation will not take place if 

the recurring payment, less charges, continues to be allocated to that investment fund at that stage. 

If the investment fund is closed for further investments or is disbanded, or if the percentage of equities 

and foreign assets in an investment fund managed by an external asset manager exceeds 50% of the 

investment fund, SanLink has the right to allocate all future payments directed to the investment fund for 

which a guaranteed return was chosen to an alternative investment fund of their choice, to retain the 

investment guarantee. In addition, the fund value of the investment fund for which a guaranteed return 

was chosen will be moved to this alternative investment fund. The investment guarantee will then apply 

to this alternative investment fund. 

An investment guarantee cannot be added after the plan’s inception. Should the fund value ever be 

switched from an investment fund for which an investment guarantee has been chosen, or withdrawn 

from this investment fund, the investment guarantee will be cancelled, except when the payment are still 

being allocated to this (these) investment fund(s) at that stage. 

Participation fee 

SanLink may levy a participation fee if the investment in an investment fund to which an investment 

guarantee applies, is increased with a one-off payment within 60 months before an investment 

guarantee date. 

External asset managers 

The contract document contains a clause about the investment guarantee if it was chosen for the 

investment fund of an external asset manager. The clause determines that SanLink may switch the 

investment to another suitable investment fund if the asset manager concerned invests more that 50% 

of the fund assets in equities and offshore investments at any stage. If the client (the member) wants to 

remain in the investment fund of the external asset manager concerned, he or she can do so but then 

the investment guarantee will lapse. 

Existing plans 

It is not possible to add the guarantee to existing plans. 

FUND VALUE 




GE 3/2012 BV 21

LOYALTY BONUS 

Rebates for certain charges are added to the fund value in the form of a loyalty bonus, on the plan 

anniversaries as indicated below. The amount of the loyalty bonus is calculated as a percentage of 

some of the charges deducted from the plan since the date on which the previous loyalty bonus was 

added or since the start date of the first loyalty bonus. 



from start date 

GE 3/2012 BV 22 

Rebate of accumulated charges 

% 

Cobalt for Professionals 

Linked 


Stratus Linked 


5 25% 25% 

10 50% 50% 

15 60% 60% 

20, and every 5 years 

thereafter 65% 65% 

The charges included in the calculation of the loyalty bonus are the fixed and variable administration 

charges. For the purpose of this calculation these charges are adjusted at the same rate at which the 


SanLink will also add a loyalty bonus when the plan is terminated 

• due to a death claim, or 

• on request on or after option date, provided that the plan is not terminated within two years of the 

start date. 

If for either of the above termination events the termination date falls between any of the plan 

anniversaries in the table above, the next plan anniversary in the table is used to determine the 

percentage of the rebates. 

Sanlink will add the loyalty bonus to the fund value by adding units to the plan. If the plan anniversary or 

termination date on which the loyalty bonus is payable is not on a working day, SanLink will add the 

units on the first working day thereafter. 

SANLAM RETIREMENT BOOSTER 

For Cobalt for Professional Linked Retirement Annuity, an additional rebate on fund charges will be 

made available as a Sanlam Retirement Booster. This rebate will be available on the same plan 

anniversaries as those for the loyalty bonus. The rebate will also be available when the plan is 

terminated on request on or after the option date, provided that the termination is not within five years 

from the start date. The rebate will not be available when the plan is terminated due to a death claim. 

The rebate for the Sanlam Retirement Booster will amount to an additional 5% to each rebate 

percentage for the loyalty bonus. Sanlam Life will add this rebate to the plan by buying units in the 

Sanlam Share Fund. Up to 75% of the assets in this investment fund are invested in Sanlam Limited 

shares. If the date on which the rebate is allocated is not on a working day, Sanlam Life will buy the 

units on the first working day thereafter. The units in this investment fund may be switched at any time 

to any other investment fund allowed at the time for this type of plan.

CHARGES 

Tax 

Currently no tax is levied for retirement funds. 

VAT 

VAT will be levied on all charges below. VAT will not be levied on the payment for the investment 

guarantee. 

Charges for the plan 

The current charges are indicated in the member's statement and can be one or more of the following: 

• An initial marketing charge, if applicable, deducted from every payment (one-off or recurring). 

• A payment charge, deducted from recurring payments, if payments are made by stop order. The 



monthly from the fund value by selling units to the value of the charge. 


− A fixed administration charge, which is a percentage of the fund value. Separate percentages 

apply to the one-off and recurring funds. This charge is calculated on a monthly basis, which 

means it is divided by 12. The charge is deducted monthly from the fund value by selling units to 

the value of the charge. 





Payment for the investment guarantee 

A yearly payment for the investment guarantee is made to Sanlam Life, to pay for the cost of the 

investment guarantee of every investment fund for which a guarantee return was chosen. This payment 

is calculated as a percentage of the fund value. The yearly payment is calculated on a monthly basis, 

which means it is divided by 12. An amount equal to the payment is deducted monthly from the fund 

value by selling units to the value of the payment. 



the units. 



current charge for an investment fund is indicated in the member's statement. 

• A performance charge, which is levied if the investment fund outperforms its benchmark. Detail on 

the benchmark, and how the charge is calculated, are available from the asset manager. 










a percentage of the market value for each investment fund is indicated in a table in the planholder's 

statement. 

GE 3/2012 BV 23

CHARGES (continued) 

Deductions made by the asset managers (continued) 







percentage. 




A plan may be changed at any stage, provided SanLink agree to the alteration. SanLink will levy an 

alteration charge if the alteration is done before an alteration charge date. The alteration charge date is 

determined at the start and does not change at subsequent alterations. Separate alteration charge 

dates apply to the one-off and recurring funds. 


A minimum alteration charge applies. The current alteration charge for the most common alterations, as 

well as the current minimum alteration charge, is indicated in the member's statement. This charge and 

the minimum that applies may change from time to time. 


In addition to the above-mentioned alteration charge SanLink will levy a transaction charge for each of 

the following alterations: 

• Reduction or stopping of the recurring payment 

• Taking an early retirement benefit; 

• Termination of the plan due to emigration. 

This transaction charge will increase in future to allow for inflation. 

SanLink will not levy this transaction charge on or after the option date. 

SanLink will levy a transaction charge for other transactions, as mentioned in the relevant plan 

description, and as indicated in the member's statement. This transaction charge will be increased in 

future to allow for inflation. 

SanLink will continue to levy a transaction charge after the alteration charge date. 


GE 3/2012 BV 24

INVESTMENT ADVICE AGREEMENT BETWEEN THE MEMBER AND THE FUND 

A member of the Fund may request the Fund to pay a fee for ongoing investment advice for his or her 

retirement investment. VAT will be levied on this fee. SanLink, as the administrator of the Fund and on 

instruction of the Fund, will pay this fee monthly on behalf of the Fund to the intermediary who provides 

this advice. 

The investment advice is an optional service that the member may request, and is provided by an 

intermediary nominated by the member. It is a specialised service which is in addition to and not part of 

the intermediary services for which SanLink pays fees. 


The member must specify the percentage. The fee is calculated on a monthly basis, which means it is 

divided by 12. It is deducted monthly form the fund value by means of a withdrawal to the value of the 


value, for example, a fee of 0,50% implies R41,67 per month if the fund value equals R100 000,00. 

The current fund-bases fee, if applicable, is indicated in the member's statement. 


The recurring payment may be reduced or stopped on request, provided that SanLink's conditions at the 

time are met. SanLink will levy a transaction charge when the recurring payment is reduced or stopped 

before the option date. SanLink will also levy an alteration charge if this happens before the recurring 

fund's alteration charge date. 

One of the conditions for stopping the recurring payment is a minimum fund value, after the alteration 


this condition not being met, the plan will lapse. At present the minimum fund value is indicated in the 

member's statement. 

If recurring payments are stopped after emigration, the plan's termination value may be taken as a lump 

sum provided that the emigration has been confirmed in writing by an authorised Reserve Bank dealer. 

The termination value is equal to the fund value less the alteration and transaction charges, if 

applicable. 

RETIREMENT BENEFIT 

The retirement benefit may be taken at any time from the member's 55 th birthday, except in the event of 

ill-health when it may be taken earlier. The retirement benefit amount is equal to the plan's termination 

value, which is the fund value less the alteration and transaction charges, if applicable. 

On the retirement date the plan may be entitled to income already declared, but not yet invested. Once 

all declared income has been invested, the units will be sold. After the deduction of a transaction 

charge which will be determined at the time, the proceeds will be added to the amount used to provide 

regular pension payments or paid in cash if regular pension payments are not received. The current 

level of the charge is indicated in the member's statement. 

According to current legislation, the member may take up to one-third of the benefit amount as a lump 

sum. The balance must be used to provide regular pension payments. Or, the member can choose that 

the full benefit amount be used to provide regular pension payments. 

If the benefit amount does not exceed the amount prescribed by legislation from time to time (currently 

R75 000), the member may take the full benefit amount as a lump sum. 

Whichever way the benefit amount is taken, the plan will then end. 

GE 3/2012 BV 25

TAX ON RETIREMENT BENEFIT 

According to current tax legislation, and depending on the member's tax situation, 

• the lump sum benefit could be tax-free within certain limits, and 

• regular pension payments will be fully taxable as income. 

Lump sum retirement benefits 

If a retirement fund lump sum retirement benefit accrues to a person, the tax will be calculated in 

accordance with the table below on the total of that retirement fund lump sum retirement benefit, plus 

retirement fund lump sum withdrawal benefits (received on or after 1 March 2009) plus lump sum 

retirement benefits (received on or after 1 October 2007) plus severance benefits (received on or after 

1 March 2011) received by or accrued to that person before the planned retirement fund lump sum 

retirement benefit accrued to him or her. 

Taxable amount Tax rate 

Up to 315 000 * : 0% of the amount 

More than R315 000, but not exceeding 

R630 000 


R945 000 

GE 3/2012 BV 26 

: 18% of the amount exceeding R315 000 

: R56 700 plus 27% of the amount exceeding 

R630 000 

Exceeding R945 000 : R141 750 plus 36% of the amount exceeding 

R945 000 

* The R315 000 will be increased by any contributions not previously deductible. 

The tax amount calculated in terms of the calculation above, will be reduced by an amount equal to the 

tax that would have been levied for this person according to this calculation on a taxable income 

consisting of the total of retirement fund lump sum withdrawal benefits (received on or after 

1 March 2009); retirement fund lump sum retirement benefits (received on or after 1 October 2007) and 

severance benefits (received on or after 1 March 2011) previously received by or accrued to that person 

(before the planned retirement fund lump sum retirement benefit). 

TAX ON EARLY WITHDRAWAL BENEFIT 

Lump sum withdrawal benefit 

If a retirement fund lump sum withdrawal benefit (in full or partially) accrues to a person, the tax will be 

calculated according to the table below on the total amount of the retirement fund lump sum withdrawal 

benefit concerned, plus any retirement fund lump sum withdrawal benefits (received on or after 

1 March 2009) plus retirement fund lump sum retirement benefits (received on or after 1 October 2007) 

plus severance benefits (received on or after 1 March 2011) previously received by or having accrued 

to that person (before the planned retirement fund lump sum withdrawal benefit). 

Lump sum withdrawal 

benefit 

R0 up to R22 500 * : 0% tax 

Tax liability 

R 22 501 up to R600 000 : 18% of the amount above R22 500 

R600 001 up to R900 000 : R103 950 plus 27% of the amount above R600 000 

R900 001 and more : R184 950 plus 36% of the amount above R900 000 

* The R22 500 will be increased by any contributions not deductible previously. 

The tax amount levied in terms of the above calculation, must be reduced by an amount equal to the tax 

that would have been levied in terms of this calculation for this person on taxable income consisting of 

the total of retirement fund lump sum withdrawal benefits (received on or after 1 March 2009); 

retirement fund lump sum retirement benefits (received on or after 1 October 2007) and severance 

benefits (received on or after 1 March 2011) received by or accrued to that person previously (before the 

planned retirement fund lump sum withdrawal benefit).

BENEFIT PAYABLE AT DEATH 

The benefit amount is equal to the fund value on the date that SanLink receives notice of the death of 

the member. 

On the date that SanLink receives notice of the death of the member the plan may be entitled to income 

already declared, but not yet invested. Once all declared income has been invested, the units will be 

sold. After the deduction of a transaction charge which will be determined at the time, the proceeds will 

be added to the amount used to provide regular pension payments or paid in cash if regular pension 

payments are not received. The current level of the charge is indicated in the member's statement. 

The full benefit amount may be paid as a lump sum, or it can be used to provide regular pension 

payments. 

As required by the Pension Funds Act, any amount payable as a result of death must be paid 

• to any or all of the dependants of the member, or 

• if the member has appointed nominees who are not dependants, then to any one or more of or the 

dependants and nominees. 

The trustees of the Fund will decide whether the needs of dependants have been adequately provided 

for. They will therefore decide each dependant's share, if any, of an amount payable. If a nominee is 

not a dependant, the trustees will also decide whether the nominee qualifies for any benefits and if so to 

what extent the nominee will share with the dependants in an amount payable. 


• The spouse (permanent life partner, civil union partner and customary marriages included) of the 

member. 

• A child of the member, including an adopted or illegitimate child. 

• A person who, in law or in fact, depends on the member for financial support. 

• A person who, in law or in fact, would have depended on the member for financial support had the 

member not died. For example, a child of the member who is born after the member's death. 

It is recommended that the member appoints or nominate someone to receive the benefit available at 

death, or a part of it. Sanlam Life, and the trustees of the Fund, will then know what the wishes of the 

member are. A nominee may only accept or reject the appointment after the death of the member. 

An appointment may be added, cancelled or changed at any time. It must be in writing and signed by 

the member, and must reach Sanlam Life's head office before the member's death. 

PROVISION OF REGULAR PENSION PAYMENTS 

An annuity plan will be taken out to provide the regular pension payments. This plan must be taken out 

with an insurer who is registered as a long-term insurer under the Long-term Insurance Act, 1998. 

ALTERATIONS 

The same alterations available for Stratus / Cobalt for Professionals Retirement Annuity are also 

available on this product. See Section BX for the list of alterations allowed. 

GE 3/2012 BV 27

CONVERSIONS AND REPLACEMENTS 

Linked plans cannot be continued as non-linked plans, and vice versa. However, replacements of RA 

policies that mature, with a Stratus Linked Retirement Annuity and a Cobalt for Professionals Linked 

Retirement Annuity can be done. 

Conversions from Stratus Retirement Annuities and Legacy-RA's can be done. The transfer value will 

be applied as a one-off payment (compulsory money) on the Cobalt for Professionals Linked Retirement 

Annuity. 

Internal transfers from other policies or plans are also possible. The transfer value will be applied as a 

one-off payment (optional money). 

DELAY IN CARRYING OUT REQUESTS 

In some circumstances SanLink may not be able to carry out requests within the normal time standards. 

An example would be where an extraordinary event occurs that causes extensive market activity, such 

as the outflows experienced from 11 September 2001. An asset manager may also temporarily 

suspend the selling of units. SanLink will then carry out requests on the earliest possible opportunity. 

EXCLUSION OF LIABILITY 

Sanlam Life, in our own capacity and as agent of SanLink, and SanLink will not be held responsible, and 

will not accept liability, for any damages or losses, including consequential losses, sustained by the 

member arising from or caused by 

• errors, actions or omissions by third parties providing the investment underlying the plan; 

• any time calculation standards, practices and procedures of third parties which provide the 

investment that is underlying to the plan, or their delay of selling or refusal to allow selling on a 

specific date or at a specific price; 

• any tax or levy of whatever nature imposed by any local, provincial, national or other authority; 

• the acting on any instructions that were transferred by telephone, fax, electronic mail or the Internet, 

provided that SanLink and Sanlam Life exercised reasonable care to establish the validity of the 

instruction. 

GE 3/2012 BV 28

C. AVAILABLE INVESTMENT FUNDS 

To determine which investment funds are available for the specific products, consult the relevant application form. The relevant quotation system also indicates which 

investment funds are currently available for the relevant product. 

For descriptions, risk levels, charges, benchmarks, etc. for the available SIM, SMMI, Sanlam Unit Trust and external unit trust investment funds, please visit the Sanlam 

website. For this information on broker house investment funds available for accredited brokers for marketing, the relevant brokers have to consult the websites of the 

respective broker houses. 

AVAILABLE INVESTMENT FUNDS PER PRODUCT ACCORDING TO THE AMOUNT OF THE PAYMENT 

The available investment funds for a specific product are determined by the amount of the payment for the relevant plan. This is determined as follows: 

Minimum payments for ordinary insurance 

Product 

GE 3/2012 BV 29 

Terms 10 years and longer 

Only SIM/ 

SMMI 

investment 

funds 

All available 

investment 

funds 

Minimum payment for relevant plan 

Terms 5 up to and including 

9 years 

Only SIM/ 

SMMI 

investment 

funds 

All available 

investment 

funds 

Terms shorter than 5 years 

Only SIM/ 

SMMI 

investment 

funds 

All available 

investment 

funds 

Stratus Linked Investment : Committed Plan R200 R400 R400 R600 n.a. n.a. 

Stratus Savings Plan as part of the combination 

product R200 n.a. R400 n.a. n.a. n.a. 

Stratus Linked Investment : Flexible Plan R400 R600 R400 R600 R400 R600 

NB: 

1) In addition to above-mentioned minimum payments, a minimum payment of R50 per selected investment fund applies. 

2) If a one-off payment applies to a plan, all available investment funds are available for the relevant plan, irrespective of the amount of the recurring payment. In 

such a case only the minimum payment as for SIM / SMMI investment funds applies. 

3) If only recurring payments are payable on the plan and the debit order payment is less than R500 per month, payment growth is compulsory.

AVAILABLE INVESTMENT FUNDS PER PRODUCT ACCORDING TO THE AMOUNT OF THE PAYMENT (continued) 

Minimum payments for retirement business 

Product Only SIM/ 

SMMI 

investment 

funds 

GE 3/2012 BV 30 

Terms 15 years or more 

All 

available 

investment 

funds 

Minimum payment for the relevant plan 

Terms 10 and more, but 

less than 15 years 

Only SIM/ 

SMMI 

investment 

funds 

All 

available 

investment 

funds 



Only SIM/ 

SMMI 

investment 

funds 

All 

available 

investment 

funds 

Terms shorter than 5 

years 

Only SIM/ 

SMMI 

investment 

funds 

All 

available 

investment 

funds 

Stratus Linked Retirement Annuity R150 R300 R250 R400 R400 R600 R500 R600 

Cobalt for Professionals Linked Retirement 

Annuity R150 R300 R250 R400 R400 R600 R500 R600 

NB: 


2) If a one-off payment applies to a plan, all available investment funds are available for the relevant plan, irrespective of the amount of the recurring payment. 

3) If only recurring payments are payable on the plan, and the debit order payment is less than R500,00 per month, payment growth is compulsory.

SECTION BW 

CUMULUS PRODUCTS 

GE 6/2012 BW 

Page 

INVESTMENT FUND INFORMATION ………………..………………………… BW 1 

− AVAILABLE INVESTMENT FUNDS …………………………………………………. BW 1 

− THE ESCALATING-FUND …………………………………………………………….. BW 1 

− SWITCHING BETWEEN INVESTMENT FUNDS …………………………………… BW 2 

SANLAM CUMULUS INVESTMENT ............................................................. BW 3 

− DESCRIPTION ………………………………………………………………………..… BW 3 

− LICENSE ………………………………………………………………………………… BW 3 

− EXPLANATIONS ………………………………………………………………………… BW 3 

− PLANHOLDER …………………………………………………………………………… BW 4 

− INITIAL TERM …………………………………………………………………………… BW 4 

− PAYMENTS ……………………………………………………………………………… BW 4 

− AGE AT ENTRY ……………………………………………………………………….... BW 4 

− INVESTMENT ……………………………………………………………………………. BW 4 

− CHARGES ……………………………………………………………………………….. BW 5 

− INVESTMENT ADVICE AGREEMENT BETWEEN THE PLANHOLDER AND THE 

INTERMEDIARY ………………………………………………………………………… 

BW 7 

− REALISING THE PLAN BENEFITS ………………………………………………….. BW 7 

− BENEFITS PAYABLE AT DEATH ……………………………………………………. BW 9 

− NOMINEE TO BECOME THE NEW PLANHOLDER ………………………………. BW 9 

− PAYMENTS ……………………………………………………………………………… BW 9 

− CONTINUATIONS AND CONVERSIONS ……………………………………………. BW 10 

− ALTERATIONS ………………………………………………………………………….. BW 10 

− CESSIONS ……………………………………………………………………………… BW 10 

− TAX ……………………………………………………………………………………….. BW 10 

− COOLING-OFF PERIOD ……………………………….……………………………… BW 10 

SANLAM CUMULUS RETIREMENT ANNUITY ............................................. BW 11 

− DESCRIPTION ………………………………………………………………………..… BW 11 

− LICENSE ………………………………………………………………………………… BW 11 

− EXPLANATIONS ……………………………………………………………………..… BW 11 

− INITIAL TERM ………………………………………………………………………….. BW 12 

− THE OPTION DATE …………………………………………………………………… BW 12 

2/…

- 2 - 

GE 6/2012 BW 

Page 

− FUND VALUE …………………………………………………………………….……... BW 12 

− INVESTMENT ………………………..………………………………………………….. BW 12 

− PAYMENTS ……………………………………………………………………………… BW 13 

− PAYMENT GROWTH ………………………………………………………………….. BW 14 

− START DATE …………………………………………………………………………… BW 15 

− AGE AT ENTRY AND RETIREMENT ………………………………………………… BW 15 

− LOYALTY BONUSES ……………………………………………………………….…. BW 16 

− RETIREMENT BENEFIT AVAILABLE ON OPTION DATE …………………….….. BW 16 

− CHARGES ………………………………………………………………………………. BW 17 

− INVESTMENT ADVICE AGREEMENT BETWEEN THE LIFE INSURED AND 

THE FUND ……………………………………………………………………………… 

BW 18 

− REDUCTION OR STOPPING OF THE RECURRING PAPYMENT ………………. BW 19 

− RIDER BENEFITS ………………..……………………………………………………. BW 19 

− LIFE COVER AND DISABILITY BENEFITS ………………………………………… BW 19 

− BENEFITS PAYABLE AT DEATH ……………………………………………….…… BW 19 

− TAX ON BENEFITS AT DEATH …………………………………………………..….. BW 20 

− RETIREMENT BENEFIT ……………………………………………………………… BW 20 

− TAX ON RETIREMENT BENEFIT …………………………………………………… BW 20 

− EARLY WITHDRAWAL ……………………………………………………………….. BW 21 

− TAX AT WITHDRAWAL ……………………………………………………………….. BW 21 

− LOANS …………………………………………………………………………………… BW 22 

− ALTERATIONS …………………………………………………………………………. BW 22 

− COOLING-OFF PERIOD ……………………………………………………………… BW 22 

SANLAM CUMULUS PRESERVATION FUNDS ........................................... BW 23 

− DESCRIPTION …………………………………………………………………………. BW 23 

− LICENSE ………………………………………………………………………………… BW 23 

− EXPLANATIONS ………………………………………………………………………… BW 23 

− INITIAL TERM …………………………………………………………………………… BW 24 

− PAYMENTS ……………………………………………………………………………… BW 24 

− ADDITIONAL ONE-OFF PAYMENTS ………………………………………………… BW 24 

− START DATE ……………………………………………………………………………. BW 25 

− AGE AT ENTRY AND RETIREMENT ……………………………………………….... BW 25 

− INVESTMENT ……………………………………………………………………………. BW 25 

− FUND VALUE …………………………………………………………………………… BW 25 

3/…

- 3 - 

GE 6/2012 BW 

Page 

− LOYALTY BONUSES ………………………………………………………………….. BW 26 

− CHARGES ……………………………………………………………………………….. BW 26 


THE FUND ……………………………………………………………………………… 

BW 28 

− WITHDRAWAL FROM PRESERVATION FUNDS ………………………………….. BW 28 

− WITHDRAWAL BENEFIT ……………………………………………………………… BW 28 

− RETIREMENT BENEFIT ………………………………………………………………. BW 29 

− TAX ON WITHDRAWAL AND RETIREMENT BENEFITS …………………….……. BW 29 

− BENEFIT PAYABLE AT DEATH …………..………………………………………….. BW 30 

− TAX ON BENEFIT AT DEATH ………………………………………………………… BW 31 

− RIDER BENEFITS ………………………………………………………………………. BW 31 

− LIFE COVER AND DISABILITY BENEFITS ………….……………………………….. BW 31 

− LOANS ……………………………………………………………………………………. BW 31 

− CESSIONS ……………………………………………………………………………… BW 31 

− COOLING-OFF PERIOD ……………………………….……………………………… BW 31

CUMULUS PRODUCTS 

The following fund information applies to all Sanlam Cumulus products, i.e. Sanlam Cumulus 

Investments (Endowments), Sanlam Cumulus Retirement Annuities and Sanlam Cumulus Preservation 

Funds. 

AVAILABLE INVESTMENT FUNDS 

A series of Escalating as well as Unit trust funds are offered. 

The available investment funds are indicated on the quotation system. Information about all investment 

funds that Sanlam Developing Markets Limited (SDM) offer is available on the Sanlam website at 

http://www.sanlam.co.za. 

THE ESCALATING-FUNDS 

WORKING OF THE ESCALATING-FUNDS 

INVESTMENT FUND INFORMATION 

These funds offer clients the opportunity to share in the prosperity of a rising market but with downside 

protection should the markets fall. 

Each Escalating fund has a built in guarantee that ensures that the unit price of that investment fund will 

not drop below 80% of the highest unit price it has ever reached since the inception date of that 

Escalating fund, irrespective of what happens to the underlying investments. This ensures that the 

investment has some protection against adverse market conditions at all times. 

The guarantee is provided by SDM for the Sanlam Cumulus Investments product. For the Sanlam 

Cumulus Retirement Annuity, and Sanlam Cumulus Preservation Fund, the guarantee is provided by 

Sanlam Life Insurance Limited (Sanlam Life). 

An Escalating fund invests in a combination of the corresponding investment fund and cash. 

Accordingly, the investment return on an Escalating fund is a combination of the investment returns on 

the corresponding investment fund and cash, and can thus differ substantially from that of the 

corresponding investment fund. The allocation between the corresponding investment fund and cash is 

not fixed, but varies according to market conditions. When the market value of the corresponding 

investment fund decreases, the percentage allocated to cash will be increased to protect the capital 

value. Similarly, when the market value of the corresponding investment fund increases, the percentage 

allocated to the corresponding investment fund will be increased, allowing the Escalating fund to benefit 

from a rising market. 

An Escalating fund reduces the volatility of returns, compared to the corresponding investment fund, and 

aims to limit capital losses in a declining market, while also benefiting from rising markets. In market 

downturns, the cash component of an Escalating fund may increase substantially and an Escalating 

fund may invest the bulk of its assets in cash. Therefore it is not unlikely that the cash component of an 

Escalating fund may exceed 50% from time to time. In extreme downturns, an Escalating fund could 

become 100% invested in cash. However, interest earned on the cash coupled with a recovery in the 

market will result in an Escalating fund gradually switching from cash and to the corresponding 

investment fund again. 

GE 3/2013 BW1

VALIDITY OF GUARANTEE 

The guarantee applies at all times – also when the plan is terminated early, as well as when a switch is 

done. It also applies when a loan is applied for from the Sanlam Cumulus Investments product. For 

investments in Escalating funds, the unit prices used in these calculations will never be less than the 

minimum guaranteed unit prices. 

SWITCHING BETWEEN INVESTMENT FUNDS 

The planholder may at any time switch between any of the investment funds available for the applicable 

product. The planholder may also switch between Escalating and Unit trust funds. 

Units of the investment fund out of which a switch is done, will be sold, and units of the investment fund 

into which a switch is done, will be bought. This will be done on the first working day after receiving the 

switch request. 



COST TO SWITCH INVESTMENT FUNDS 

There is no participation charge when switching to an Escalating fund. 


switch in a plan year, a transaction charge, which will be determined at the time, will be levied. The 

current transaction charge is indicated in the planholder's statement. The number of free switches may 

be changed from time to time. 

GE 3/2013 BW2

DESCRIPTION 

Sanlam Cumulus Investments is an endowment investment solution for investors who want to invest in a 

cost effective investment product with a one-off payment. This solution also provides upside growth 

potential while providing downside protection against market falls, if the investor chooses one or more of 

the Escalating Funds available. 

This solution offers an additional allocation to the one-off investment amount, thus ensuring that the 

value of the investment is enhanced. 

Sanlam Cumulus Investments is issued by Sanlam Developing Markets Limited (SDM), and 

administered by Sanlam Life. 

LICENSE 

Sanlam Cumulus Investments (Endowment) are marketed under SDM's license. 

EXPLANATIONS 

OPTION DATE 

It is the date which indicates the end of the initial term, and is indicated in the planholder’s statement. 

OPEN TERM 

After the initial term has expired, the term of the plan is considered as open-ended. This means that the 

fund value will not be paid out automatically after the initial term has expired, but that the plan will 

continue until the planholder, or SDM, in the event that this product is no longer available for new 

business, terminates the plan. In the latter case the planholder will be provided with the various options 

available at that time. 

ALTERATION CHARGE DATE 

It is the date until which SDM will levy an alteration charge for certain alterations, and is indicated in the 

planholder’s statement. 

WORKING DAY 

SANLAM CUMULUS INVESTMENTS 


GE 3/2013 BW3

PLANHOLDER 

Only individuals and trusts, of which all the beneficiaries are natural persons, may take out this product. 

It is not available to institutions – either taxpaying or tax-exempt. Also, any successive planholder must 

be an individual, i.e. when ceded outright or nominated for ownership. 

INITIAL TERM 

The initial term is 5 years, with an open term thereafter. 

PAYMENTS 

ONE-OFF PAYMENTS 

Only one-off payments may be made, provided that they are allowed by legislation and are not less than 

SDM's minimum allowed. If the transaction date for a payment, as indicated in the statement, is more 

than two days later than the payment date, we will adjust the payment to allow for the delay from the 

payment date to the transaction date. 

MINIMUM PAYMENTS 

• New business : R100 000 

• Ad hoc one-off payments : R25 000 

AGE AT ENTRY 

The minimum and maximum entry ages are as follows: 

• Minimum : 1 anb 

• Maximum : 90 anb 

INVESTMENT 

AMOUNT INVESTED 

SDM invests a one-off payment plus an additional allocation, if applicable, in the respective chosen 

investment funds. The additional allocation depends on the level of commission negotiated at the start. 

SDM uses the amount allocated to a specific investment fund to buy units in that investment fund on the 

transaction date. 

GE 3/2013 BW4

UNIT PRICE 

A unit price is calculated daily in South African currency, based on the market value of the assets in the 


The following charges are taken into account when the price is calculated for a specific fund: 

• tax, as levied in the applicable policyholders' fund; 

• the marketing charge; 

• the guarantee charge for Escalating Funds; 

• the asset management charge; 

• a performance charge for the fund manager, if applicable to the investment fund; 

• direct investment expenses, for example collective investment initial fees, brokerage, audit fees, 


CLOSING OF AN INVESTMENT FUND 

It may occur that an investment fund will be closed if, for example, legislation changes or certain classes 

of assets become unavailable. If the plan is affected, SDM will request the planholder to choose 

another investment fund allowed at that stage for this type of plan, and to inform SDM of the choice 

made. If SDM receives no response to such a request, SDM will decide in which investment fund to 

continue the affected part of the plan. 

FUND VALUE 




AMOUNT ON OPTION DATE 

On the option date, the amount to which the fund value has grown, is available. If the planholder takes 

the available amount, the plan will be terminated. 

CHARGES 

TAX 

Tax is levied according to the rate applicable to the relevant policyholder's fund. 

CHARGES FOR THE PLAN 

The current charges are indicated in the planholder's statement and can be one or more of the following: 

• An initial marketing charge, if applicable, deducted from a one-off payment. 

• A yearly marketing charge, which is a percentage of the fund value and may vary for different 

investment funds. It is taken into account when SDM calculates the daily price of the units. 

GE 3/2013 BW5

• A yearly variable administration charge, which is a percentage of the fund value. This charge is 

calculated on a monthly basis, which means it is divided by 12. The charge is deducted monthly 

from the fund value by selling units to the value of the charge. 

As indicated in the planholder's statement the variable administration charge changes as the fund 

value increases to higher fund value bands. 

• A yearly guarantee charge for Escalating Funds, which is a percentage of the fund value and may 

differ for different investment funds. It is taken into account when SDM calculates the daily price of 

the units. 

DEDUCTIONS MADE BY THE ASSET MANAGERS 

An asset manager levies the following for an investment fund. These charges are included in the daily 

price of the units: 



current charge for an investment fund is indicated in the planholder’s statement. 




on the Sanlam Website under “Investment funds”. 

• Asset managers pay SDM a platform management fee for some of their investment funds. Such a 

fee is taken into account when the variable administration charge is calculated. The impact of this is 

that the variable administration charge is lower than what it would have been without a platform 

management fee. The size of the platform management fee as a percentage of the market value for 

each investment fund is indicated in a table in the planholder's statement. 



ALTERATION CHARGE 

A plan may be changed at any stage, provided SDM agrees to the alteration. SDM will levy an 

alteration charge if the alteration is done before an alteration charge date. The alteration charge date is 

determined at the start, and does not change at subsequent alterations. The alteration charge is 



TRANSACTION CHARGE 

In addition to the above-mentioned alteration charge, SDM will levy a transaction charge for each of the 

following alterations: 


• A loan against the plan; 

• An ad hoc withdrawal from the plan. 

The amount of this transaction charge is determined by means of regulatory measures and it will change 

in future if such regulatory measures or legislation change. 

GE 3/2013 BW6

SDM will not levy this transaction charge on or after the option date. 

SDM will also levy a transaction charge for other transactions, as mentioned in the planholder's plan 

description and statement. This transaction charge will increase in future to allow for inflation. 

SDM will continue to levy a transaction charge after the alteration date. 



INTERMEDIARY 

After the option date, the planholder may request SDM to pay a fee, including VAT if applicable, for 

ongoing investment advice for his or her investment. SDM will pay this fee monthly to the intermediary 

who provides this advice. 



of, the intermediary services for which SDM pays commission. 





value, for example, a fee of 0.50% implies R41.67 per month if the fund value equals R100 000.00. 

The current fund-based fee, if applicable, is indicated in the planholder’s statement. 


The plan benefits may be realised in one of the ways described below. To realise a benefit, SDM will 

sell units on the day on which SDM receives the request. 

Legislative restrictions, as mentioned in the plan description, may apply. 

TERMINATION OF THE PLAN 

A plan may be terminated on request. The fund value less the alteration and transaction charges, if 


A LOAN AGAINST THE PLAN 

Two months after the start date the planholder may apply for a loan against the plan, provided that 

SDM's conditions at the time are met. 

Currently the conditions are the following: 

• The loan amount may not be less than a minimum amount (currently R3 000). 

• The fund value, less the loan amount and the alteration and transaction charges, if applicable, may 

not be less than a minimum (currently R3 500). 

• The loan amount may not exceed a certain percentage of the termination value (currently 100%). 

GE 3/2013 BW7

As these conditions will change from time to time, they will be communicated when the planholder 

applies for a loan. 

The day on which SDM receives the request for a loan, SDM will switch a number of units, equivalent in 

value to the approved loan amount, to units in the Stratus Loan Fund for planholders. This fund does 

not participate in any growth. 

SDM will base the calculation of the alteration charge, if applicable, on the reduction in the fund value as 

a result of the loan amount and the transaction charge. 

AN AD HOC WITHDRAWAL FROM THE PLAN 

The planholder may make an ad hoc withdrawal from the plan, provided that SDM’s conditions at the 


planholder applies for an ad hoc withdrawal. SDM will sell the required number of units to pay the 



REGULAR WITHDRAWALS FROM THE PLAN 

The planholder may apply to make regular withdrawals from the plan after the option date, provided that 

SDM’s conditions at the time are met. As conditions will change from time to time, they will be 

communicated when the planholder applies for regular withdrawals. 

The details of the regular withdrawals will be indicated in the planholder’s statement after SDM has 

accepted the application for making regular withdrawals. 

SDM levies a transaction charge for each withdrawal payment made. The charge will vary over time. 

Its current level is indicated in the planholder’s statement. 

SDM will sell the required number of units from the applicable investment funds in proportion to their 

fund values to pay the transaction charge and the withdrawal amount. The fund value will reduce by the 

value of the units sold. 

SDM will sell the units on the requested withdrawal day. If a month does not have this particular day, or 

if it does not fall on a working day, SDM will sell the units on the following working day. SDM will pay 

the withdrawal amount as soon as possible after the units have been sold. 

SDM will stop the regular withdrawals when they fail to satisfy SDM's conditions. 

LEGISLATIVE RESTRICTIONS 

In terms of current legislation, a restricted period applies to the plan, ending on the restricted period end 

date, as indicated in the planholder’s statement. 

During a restricted period, if the planholder wants to terminate the plan, SDM may not pay more at the 

termination than an amount determined according to legislative restrictions (Article 54). The remaining 

part of the termination value may only be paid after the restricted period end date. Therefore, if the 

termination value is more than this restricted amount, SDM does not allow the plan to be terminated, but 

an ad hoc withdrawal may be possible. 

GE 3/2013 BW8

Only one ad hoc withdrawal may be made from the plan during a restricted period. The amount of such 

an ad hoc withdrawal is limited to the amount as determined above. If an ad hoc withdrawal was made 

during a restricted period, another ad hoc withdrawal will not be allowed before the restricted period end 

date. 

In addition, SDM may grant only one loan against the plan during a restricted period. The amount of 

such a loan is also limited, as described above. If SDM has granted a loan during a restricted period, 

they may not do so again before the restricted period end date. 

Regular withdrawals may only be made from the plan after the restricted period end date. 

LIFE COVER AND DISABILITY BENEFITS 

No life cover or lump sum disability benefits are available. 

BENEFITS PAYABLE AT DEATH 

The benefit amount is equal to the fund value on the date that SDM receives notice of the death of the 

last surviving life insured. 

One or more beneficiaries may be appointed to receive the benefit amount. A beneficiary may only 

accept or reject the appointment after the death of the last surviving life insured. 


the planholder, and must reach the Sanlam Life head office before the death of the last surviving life 

insured. 

An appointment will lapse if the plan is ceded outright. If the plan is ceded as collateral security, the 

appointment will not lapse, but the rights of the cessionary will take preference over any rights of a 

beneficiary. 

NOMINEE TO BECOME THE NEW PLANHOLDER 

A person may be nominated to become the new planholder after the death of the planholder. The 

nominee may only accept or reject a nomination after the death of the planholder. 




planholder, and must reach the Sanlam Life head office before the death of the planholder. 

A nomination will lapse if the plan is ceded, whether outright or as collateral security. 

PAYMENTS 

All payments must be made in South Africa in South African currency. 

GE 3/2013 BW9


Continuations and conversions will not be allowed. 

ALTERATIONS 

Ad hoc additions of one-off payments are allowed, subject to the conditions under Section 54 of the 

Long-term Insurance Act. 

CESSIONS 


TAX 

No tax is payable on the proceeds of the plan. SDM already pays tax in the chosen investment fund(s). 



GE 3/2013 BW10

DESCRIPTION 

The Sanlam Cumulus Retirement Annuity is a plan that the Central Retirement Annuity Fund (CRAF) 

uses to finance the benefits that it must pay to its members. When the word "Fund" is used further in 

this section, it refers to CRAF. 


fund these benefits, the Fund takes out a plan on the member's life with Sanlam Life. The Fund is the 

planholder and uses the member's contribution(s) to make the one-off and/or recurring payments. 

With Cumulus, Sanlam Life wants to offer members transparent, good value for money products (plans). 

Sanlam Life uses the contribution to purchase units in investment funds to which the plan on the 

member’s life is linked. 

The member may choose to invest in one or more of the available investment funds (a maximum of 10 

funds may be chosen). 

The member may switch between the available investment funds at any time. 

The member is the life insured on the plan. Therefore, where there is referred to life insured further in 

this chapter, it is the same person as the member. 

See Section BX for more information regarding the purpose of a retirement annuity, income tax and 

estate duty. 

LICENSE 

Sanlam Cumulus Retirement Annuities are marketed under Sanlam Life's (SL) license. 

EXPLANATIONS 

OPTION DATE 

It is the date which indicates the end of the term, and is indicated in the statement that the life insured 

will receive. 

OPEN-ENDED TERM 



continue until the planholder terminates the plan or until the life insured dies. 

ONE-OFF FUND 


RECURRING FUND 

It is the part of the fund value built up by the savings part of recurring payments. 


SANLAM CUMULUS RETIREMENT ANNUITY 


in the statement that the life insured will receive. A separate date applies for the one-off and recurring 

funds. 

GE 6/2012 BW11

WORKING DAY 


INITIAL TERM 

• The life insured selects a retirement date when the plan is taken out. 

• This retirement date can be any date from the life insured's fifty-fifth birthday. No maximum 

retirement age applies. The period from the start date up to and including the chosen retirement 

date is called the initial term. 

• For new plans where the life insured is age 60 next birthday or older, a maximum initial term of ten 

years is permitted. 


automatically be paid out when the initial term has expired, but that the plan will continue until the life 

insured informs Sanlam Life that the plan must be terminated, or until the death of the life insured – 

whichever comes first. 

The minimum initial term is 5 years. 


The life insured chooses an initial term when the plan is taken out. The date at the end of the initial term 

is the option date. This date cannot be before the life insured's 55 th birthday. 

The plan will continue automatically after the option date if the life insured or the Fund does not notify 

Sanlam Life that the available retirement benefit must be paid out. The plan can continue with or 

without further payments. 

FUND VALUE 




INVESTMENT 

Sanlam Life invests a one-off payment and the savings part of a recurring payment plus their additional 

allocations, if applicable, in the respective chosen investment funds. An additional allocation depends 

on the level of commission negotiated at the start. 

INVESTMENT OF AMOUNT ALLOCATED TO A SPECIFIC INVESTMENT FUND 

Sanlam Life uses the amount allocated to a specific investment fund to buy units in the chosen 

investment fund on the transaction date. 

GE 6/2012 BW12

UNIT PRICE 

A unit price is calculated daily in South African currency, on the basis of the market value of the assets 

in the investment fund. 


• tax, as levied in the applicable policyholders' fund. Currently no tax is levied in the policyholders' 

fund for retirement funds; 

• the guarantee charge for Escalating Funds; 





For non-Escalating Funds, the unit price of the investment funds is not guaranteed, and may increase or 

decrease over time. For Escalating Funds, the unit price is guaranteed to be at least 80% of the highest 

unit price that fund has ever achieved since inception. 


It may occur that an investment fund is closed, for example, if legislation changes or certain classes of 

assets become unavailable. If a relevant plan is affected, Sanlam Life will request the life insured to 

choose another investment fund allowed at that stage for the relevant type of plan, and to inform Sanlam 

Life of the choice made. If Sanlam Life receives no response to such a request, Sanlam Life will decide 

in which investment fund to continue the affected part of the plan. 

PAYMENTS 

The life insured can choose to make one of the following payments: 

• One-off payment 

• Recurring payments 

• A combination of a one-off payment and recurring payments 

ONE-OFF PAYMENTS 

One-off payments may be made, provided that they are not less than Sanlam Life's minimum allowed. If 

the transaction date for a payment, as indicated in the member’s statement, is more than two days later 

than the payment date, Sanlam Life will adjust the payment to allow for the delay from the payment date 

to the transaction date. 

RECURRING PAYMENTS 



indicated in the statement that the life insured will receive. 

A recurring payment consists of a savings part and a risk part. If there are no waiver of payment 

benefits on the plan, the risk part of the recurring payment is not applicable. 

Only debit order payments are allowed for recurring payments. Stop orders are not allowed. If the 

requested day on which we have to collect the payment does not fall on a working day, or a month does 

not have the particular day, Sanlam Life will collect it on the following working day. 

GE 6/2012 BW13



Sanlam Life will not adjust a recurring payment that is made before the transaction date to make 

provision for early payment. 

If a recurring payment is not made in full within a 30 day period of grace, Sanlam Life may consider the 

recurring payment stopped. Also, if waiver of payment benefits is applicable, and a recurring payment is 

not made in full within a 30 day period of grace, these benefits will no longer provide cover. 

Recurring payments can only be payable monthly or annually. 

No debit order discount applies. Debit orders are permitted for any day of the month. 

The minimum payment is as follows: 

One-off 

payment 

Ad hoc 

addition 

(one-off 

payment) 

GE 6/2012 BW14 

Recurring payment per 

month 

Initial term 

10 years 

or more 

Initial term 

shorter than 

10 years 

One-off payments only: 

Compulsory money R100 000 R25 000 N.a. N.a. N.a. 

Optional money R 50 000 R25 000 N.a. N.a. N.a. 

Ad hoc 

recurring 

payment 

increase 

One-off payment plus 

recurring payments: R 50 000 R25 000 R500 R1 000 R150 

Recurring payment only: N.a. R25 000 R500 R1 000 R150 


Payment growth on these plans is optional. The life insured can choose a fixed rate, or can choose that 

payments should increase at Sanlam inflation. Automatic payment growth can only take place on a plan 

anniversary. 



The payment growth type that applies for a plan is indicated in the statement that the life insured will 

receive. 

Flexi growth is not an available growth type. 

Sanlam Life offers the following types of payment growth: 

FIXED GROWTH 

The recurring payment will be increased each year by the chosen fixed percentage. Currently the 

minimum is 5% and the maximum 20% per year. 

SANLAM INFLATION 

The recurring payment will be increased each year by the inflation rate, as determined by Sanlam Life. 

In setting the rate, Sanlam Life will take into account the change in the consumer price index, or any 

other commonly accepted method of measuring inflation that may apply at the time. The Sanlam 

inflation rate may differ from official rates, due to differences in calculation methods. A minimum 

increase (currently 4% p.a.) applies, which may change from time to time.

The start date is determined by the type of payment made and is as follows: 

RECURRING PAYMENTS 

The start date can be any day from the 1st up to and including the 28th of the month. The day on which 

the first contribution is payable, is the start date of the plan. 

The debit order date can be any day of the month. For debit order dates after the 28th of the month, the 

start date will be the first of the next month. 

ONE-OFF PAYMENT 

The start date is the date on which New Business receives the last requirements for issuing of the plan. 

If no requirements were set, the start date for the one-off payment deposited at any contracted-in bank 

branch (currently ABSA or First National Bank) will be determined as follows: 

• If the payment was made before the case was created, the case date will be the start date. 

• If the payment was made after the case was created, the actual payment date will be the start date. 

The start date can be any day up to and including the 31st of the month. 

COMBINATION OF ONE-OFF PAYMENT AND RECURRING PAYMENTS 

The recurring payment will, in accordance with the rules stated under "Recurring payments" above, 

determine the start date. The pay date of the one-off payment is not taken into account. 

The plan will not come into being before membership of the Fund is accepted. 

NB: 

START DATE 

• Intermediaries must pay in lives insured's cheques (where applicable) as soon as possible, 

because that date determines or influences the start date and the price at which units are 

purchased. If there are huge market fluctuations between the date on which the life insured 

hands over the cheque to the intermediary and the day on which the cheque is paid in, claims 

could be made against the intermediary and Sanlam Life. Intermediaries will be held 

personally responsible for such claims. 

• The backdating of plans with recurring payments to beyond the beginning of a tax year is not 

permissible. No back-dating for one-off payments is permissible. 


The minimum and maximum ages are as follows: 

Minimum age at entry : 1 anb 

Maximum age at entry : No maximum age at entry. For new plans where the life insured is 

age 60 next birthday or older, a maximum initial term of ten years is 

permitted. 

Minimum age at retirement : The life insured's 55th birthday. 

Maximum age at retirement : No maximum age at retirement. 

GE 6/2012 BW15

LOYALTY BONUSES 

Sanlam Life offers loyalty bonuses on certain plan anniversaries, as well as at termination on or after the 

option date – if it falls between two bonus dates. 

WORKING OF THE LOYALTY BONUS 

The loyalty bonus is a rebate of the variable administration charge. It is added to the fund value of the 

plan on the plan anniversaries as indicated below. The amount of the loyalty bonus is calculated as a 

percentage of the variable administration charge deducted from the plan since the date on which the 

previous loyalty bonus was added or since the fifth plan anniversary from the start date for the first 

loyalty bonus. For the purpose of this calculation, this charge is adjusted at the same rate at which the 





GE 6/2012 BW16 


% 

5 0 

10 40 

15 50 

20 60 

25, and every 5 years thereafter 70 

Sanlam Life will also add a loyalty bonus if the plan is terminated after more than five years from the 

start date: 


• on request on or after the option date. 

If for either of the above termination events, the termination date falls between any of the plan 

anniversaries in the relevant table above, the next plan anniversary in the table is used to determine the 

percentage of the rebate. 

Sanlam Life will add the loyalty bonus to the fund value of the plan by adding units to the plan. If the 

plan anniversary or termination date on which the loyalty bonus is payable is not on a working day, 

Sanlam Life will add the units on the first working day thereafter. 

If the recurring payment is reduced or stopped before the option date all future potential loyalty bonuses 

based on the recurring fund up to and including the option date will be reduced. The reduction of the 

bonuses will depend on the extent of the reduction of the recurring payment and the remaining term up 

to and including the option date. 

RETIREMENT BENEFIT AVAILABLE ON OPTION DATE 

On the option date, the amount to which the fund value has grown, will be available for the provision of 

the retirement benefit. If the life insured takes the available amount, the plan will be terminated. 

Sanlam Life, on behalf of the Fund, may pay out up to one-third of the available amount in a lump sum 

to the life insured. The balance must be used to provide the life insured with regular pension payments. 

Or, depending on the member’s choice, the entire amount available can be used to provide the life 

insured with regular pension payments. 

If the benefit amount does not exceed the amount prescribed by legislation from time to time, the life 

insured may take the full benefit amount as a lump sum.

If the life insured does not take the retirement benefit on the option date, the plan will not be terminated. 

And, except where the life insured or the Fund informs Sanlam Life otherwise, Sanlam Life will continue 

the fund value in the investment fund(s) in which it is invested at that stage, for further growth. If the life 

insured wants the plan to continue, but he or she wants to stop the payments (in the case of recurring 

payments) after the option date, he or she must inform Sanlam Life accordingly at that stage. 

After the initial term has expired (therefore after the option date), the retirement benefits can be taken at 

any time. At present, no alteration charge is applicable after the option date. Sanlam Life may change 

this at any time. 

If the life insured indeed wants to take the fund value on the option date, he or she must, on behalf of 

the Fund, inform Sanlam Life accordingly before or on that date. Sanlam Life will then send the life 

insured the necessary forms to complete and return to Sanlam Life. 

CHARGES 

TAX 

Tax is levied according to the applicable policyholders' fund. 

Currently no tax is levied in the policyholders' fund for retirement funds. See "Tax on retirement benefit" 

later in this section. 


The current charges are indicated in the statement that the life insured will receive and can be one or 

more of the following: 

• A yearly variable administration charge, which is a percentage of the fund value of the plan. 

Separate percentages apply to the one-off and recurring funds. This charge is calculated on a 

monthly basis, which means it is divided by 12. The charge is deducted monthly from the fund value 

of the plan by selling units to the value of the charge. 

As indicated on the statement that the life insured will receive, the variable administration charge 

changes as the fund value of the plan increases to higher fund value bands. 

• A yearly guarantee charge for Escalating Funds, which is a percentage of the fund value of the plan 

and may differ for different investment funds. It is taken into account when Sanlam Life calculates 

the daily price of the units. 



price of the units. 



current charge for an investment fund is indicated in the statement that the life insured will receive. 


performance charge depends on the investment performance of the investment fund and is not 

included in the asset management charge. Detail on the benchmark, and how the charge is 

calculated, is available on the Sanlam Website under "Investment funds". 


Such a fee is taken into account when the variable administration charge is calculated. The impact 

of this is that the variable administration charge is lower than what it would have been without a 

platform management fee. The size of the platform management fee as a percentage of the market 

value for each investment fund is indicated in a table in the statement that the life insured will 

receive. 



GE 6/2012 BW17


A plan may be changed at any stage, provided Sanlam Life agrees to the alteration. Sanlam Life will 

levy an alteration charge if the alteration is done before an alteration charge date. This excludes 

reduction or stopping of recurring payments, for which no alteration charge applies. The alteration 

charge date is determined at the start and does not change at subsequent alterations. Separate 

alteration charge dates apply to the one-off and recurring funds. 

The alteration charge will be taken from the fund value of the plan by selling the required number of 

units. 

The current alteration charge for the most common alterations is indicated in the statement that the life 

insured will receive. 


In addition to the above-mentioned alteration charge, Sanlam Life will levy a transaction charge for each 

of the following alterations: 



Sanlam Life will also levy a transaction charge if the recurring payment is reduced or stopped. 



Sanlam Life will not levy this transaction charge on or after the option date. 

Sanlam Life will also levy a transaction charge for other transactions, as mentioned in the plan 

description, and as indicated in the statement that the life insured will receive. This transaction charge 

will increase in future to allow for inflation. 

Sanlam Life will continue to levy a transaction charge after the alteration charge date. 

Every transaction charge will be taken from the fund value of the plan by selling the required number of 

units. 

INVESTMENT ADVICE AGREEMENT BETWEEN THE LIFE INSURED AND THE FUND 

The life insured, as a member of the Fund, may request the Fund to pay a fee, including VAT if 

applicable, for ongoing investment advice for his or her retirement investment. Sanlam Life, as the 

administrator of the Fund and on instruction of the Fund, will pay this fee monthly on behalf of the Fund 

to the intermediary who provides this advice. 

This investment advice is an optional service that the life insured may request, and is provided by an 

intermediary nominated by the life insured. It is a specialised service which is in addition to and not part 

of the intermediary services for which Sanlam Life pays commission. 

The fund-based fee for this investment advice is specified as a percentage per year of the fund value of 

the plan. The life insured must specify the percentage. The fee is calculated on a monthly basis, which 

means it is divided by 12. It is deducted monthly from the fund value by means of a withdrawal to the 

value of the monthly fee. The amount of the fund-based fee is linked to and will therefore fluctuate with 

the fund value, for example, a fee of 0,50% implies R41,67 per month if the fund value equals R100 

000,00. 

The current fund-based fee, if applicable, is indicated in the statement that the life insured will receive. 

GE 6/2012 BW18


The recurring payment may be reduced or stopped on request, provided that Sanlam Life's conditions at 

the time are met. 

No alteration charge will be levied if the recurring payment is reduced or stopped. A transaction charge, 

will however still be levied if the recurring payment is reduced or stopped before the option date. 

If the recurring payment is reduced or stopped before the option date, all future potential loyalty bonuses 

based on the recurring fund up to and including the option date will be reduced. The reduction of the 

bonuses will depend on the extent of the reduction of the recurring payment and the remaining term up 

to and including the option date. 

One of the conditions for stopping the recurring payment is that a minimum fund value must remain in 

the plan after the transaction charges, if applicable, have been deducted. If recurring payments are 

stopped despite this condition not being met, the plan will lapse. The minimum fund value is indicated in 

the statement that the life insured will receive. 

If recurring payments are stopped due to emigration, the plan's termination value may be taken as a 

lump sum*, provided that the emigration has been confirmed in writing by an authorised Reserve Bank 

dealer. The termination value is equal to the fund value of the plan less the alteration and transaction 

charges, if applicable 

If the total fund value of the plan on a member’s life is less than R7 000 after stopping contributions, 

such a member may also request the Fund to terminate his or her membership and pay out his or her 

benefits*. 

* In both instances it will be taxed as a lump sum withdrawal benefit. 


The following rider benefits are available optionally: 

• waiver of payments with future growth at disability. 

• waiver of payments without future growth at disability. 


No life cover or disability benefits are available. 

BENEFITS PAYABLE AT DEATH 

The benefit amount is equal to the fund value of the plan on the date that Sanlam Life receives notice of 

the death of the life insured. 


payments. The lump sum and pension is subject to income tax (see below), but exempt from estate 

duty. 


• to any or all of the dependants of the life insured, or 

• if the life insured has appointed nominees who are not dependants, then to any one or more of the 




not a dependant, the trustees will also decide whether the nominee qualifies for any benefits and if so, to 


GE 6/2012 BW19

DEPENDANTS ARE: 

• The spouse (permanent life partner, civil union partner and customary marriages included) of the life 

insured. 

• A child of the life insured, including an adopted or illegitimate child. 

• A person who, in law or in fact, depends on the life insured for financial support. 

• A person who, in law or in fact, would have depended on the life insured for financial support had the 

life insured not died. For example, a child of the life insured who is born after the life insured's death. 

It is advisable to appoint nominees. A nominee is someone the life insured appoints to receive the 

benefit available at death, or a part of it. Sanlam Life, and the trustees of the Fund, will then know what 

the wishes of the life insured are. A nominee may only accept or reject the appointment after the death 

of the life insured. 


the life insured, and must reach Sanlam Life's head office before the life insured's death. 

TAX ON BENEFITS AT DEATH 

The tax treatment is the same as at retirement. 


The retirement benefit may be taken at any time from the life insured's 55th birthday, except in the event 

of ill-health (disability) when it may be taken earlier. The retirement benefit amount is equal to the plan's 

termination value, which is the fund value less the alteration charge, and/or transaction charge, if 

applicable. 

According to current legislation, up to one-third of the benefit amount may be paid as a lump sum. The 

balance must be used to provide regular pension payments. Or, the life insured can choose that the full 

benefit amount be used to provide regular pension payments. 

If the benefit amount together with the total fund interest for such member (in case of other plans in the 

Fund) does not exceed the amount prescribed by legislation from time to time (currently R75 000), the 

life insured may take the full benefit amount as a lump sum. 



According to current tax legislation, and depending on the life insured's tax situation, 



GE 6/2012 BW20

LUMP SUM RETIREMENT BENEFITS 








Up to R315 000 * : 0% of the amount 

More than R315 000, but not 

exceeding R630 000 





R630 000 

Exceeding R945 000 : R141 750 plus 36% of the amount 


* The R315 000 will be increased by any contributions not previously deductible 


tax that would be levied for this person according to this calculation on a taxable income consisting of 



benefits (received on or after 1 March 2011) previously received by or accrued to that person (before the 

planned retirement fund lump sum retirement benefit). 

EARLY WITHDRAWAL 

No cash termination benefits are payable in respect of a retirement annuity fund unless the life insured 

has stopped his fund contributions and he has either officially emigrated from South Africa or if the total 

fund interest is less than R7 000 (current amount as published in the Government Gazette). 

TAX AT WITHDRAWAL 

LUMP SUM WITHDRAWAL BENEFIT 





plus severance benefits (received on or after 1 March 2011) previously received by or having accrued 

to that person (before the planned retirement fund lump sum withdrawal benefit). 


benefit 

GE 6/2012 BW21 

Taxable liability 

R0 up to R22 500 * : 0% tax 




* The R22 500 will be increased by any contributions not deductible previously.






planned retirement fund lump sum withdrawal benefit). 

LOANS 

No loans are permitted against retirement annuities. 

ALTERATIONS 

The following alterations may be done: 

• Addition of an ad hoc one-off payment. 

• Increase/ decrease of recurring payments. The minimum increase is R150,00 per month. The 

payment after a decrease must comply with the minimum new business requirement, and must 

therefore be at least R500,00 per month at present for terms 10 years and longer, or R1 000 per 

month for terms shorter than 10 years. 



For a transfer between Funds a cooling-off period applies only if the transferring Fund is prepared to 

receive the money back. 

GE 6/2012 BW22

DESCRIPTION 

The Sanlam Cumulus Preservation Fund is a cost-effective solution for clients to preserve their 

retirement savings. By investing in one or more of the available Escalating funds, protection against 

market falls is also offered. 

This solution offers an additional allocation to the one-off investment amount, thus ensuring that the 

value of the investment is enhanced. 

SANLAM LIFE'S PRESERVATION FUNDS 

Sanlam Life administers the following preservation funds that make use of the Cumulus product range. 

These fund members’ benefits by means of plans on the lives of members: 

• The Sanlam Preservation Pension Fund (hereafter called "the Fund"), 

• The Sanlam Preservation Provident Fund (hereafter called "the Fund"). 

WORKING OF A PRESERVATION FUND 

• The Fund takes out a plan with a one-off payment policy with Sanlam Life on the life of the member 

in order to fund the benefits that the Fund must pay to the member. The Fund (and not the member) 

is the owner of the plan. 

• The Fund pays the benefits to the member (at withdrawal, disability or retirement), or to the 

member’s dependants and/or nominees (at death). 

• Tax concessions as in the case of pension and provident funds are applicable to withdrawal benefits, 

retirement benefits and benefits at death. The concessions applicable to retirement benefits also 

apply in the case of early retirement owing to disability. 



The following products are available: 

• Sanlam Cumulus Pension Preserver, and 

• Sanlam Cumulus Provident Preserver. 

LICENSE 

Sanlam Cumulus Pension Preserver and Sanlam Cumulus Provident Preserver are marketed under 

Sanlam Life’s (SL) license. 

EXPLANATIONS 

OPTION DATE 

It is the date which indicates the end of the term, and is indicated in the statement that the life insured 

will receive. 


SANLAM CUMULUS PRESERVATION FUNDS 



continue until the planholder terminates the plan or until the life insured dies. 

GE 6/2012 BW23

ONE-OFF PAYMENT 

It is the benefits which have been transferred to the Fund. As required by the Pension Funds Act, 

benefits must be paid directly to Sanlam Life, and not to the Fund. 



in the statement that the life insured will receive. 

WORKING DAY 


INITIAL TERM 

A member can choose a retirement date that falls on any date from the member's 55th birthday. No 

maximum retirement age applies. The period from the start date up to and including the retirement date 

is called the initial term. 

After the expiry of the initial term, the term is open ended. This means that the plan is not paid out 

automatically after the initial term has expired, but that the plan continues until the life insured informs 

Sanlam Life that the plan must be terminated, or until the death of the life insured – whichever comes 

first. 

The minimum initial term is 5 years. 

PAYMENTS 

One-off payments may be made, provided that they are not less than Sanlam Life’s minimum allowed. If 

the transaction date for a payment, as indicated in the statement that the life insured will receive, is 

more than two days later than the payment date, Sanlam Life will adjust the payment to allow for the 

delay from the payment date to the transaction date. The minimum initial payment is R100 000. 

ADDITIONAL ONE-OFF PAYMENTS 

Sometimes, after funds have already been transferred, surplus money or interest from the same pension 

or provident fund (therefore the same transferring fund) becomes available for a preservation fund 

member. Such additional one-off payments must be added to existing preservation fund plans. See 

"Allowable Transfers" in Section BX. 

Sanlam Life requires the following: 

• The money must come from the same pension or provident fund as the original one-off payment. 

• Proof of the money (the fund transfer form) is required, or written confirmation from the transferring 

Fund that the money is in fact going to be transferred. 

GE 3/2013 BW24

MINIMUM AD HOC ONE-OFF PAYMENT 

The minimum ad hoc one-off payment is R25 000. 

START DATE 

The start date of the plan is the date on which the one-off payment is received. 


Minimum age at entry : 15 next birthday 

Maximum age at entry : None 

Minimum age at retirement : 56 next birthday 

Maximum age at retirement : None 

INVESTMENT 

Sanlam Life invests a one-off payment plus an additional allocation, if applicable, in the respective 

chosen investment funds. The additional allocation depends on the level of commission negotiated at 

the start. 

UNIT PRICE 



The following charges are taken into account when the price is calculated for a specific investment fund: 

• tax, as levied in the applicable policyholders' fund. Currently no tax is levied in the policyholders 


• the guarantee charge for Escalating funds; 





For non-Escalating funds, the unit price of the investment funds is not guaranteed, and may increase or 

decrease over time. For Escalating funds, the unit price is guaranteed to be at least 80% of the highest 

unit price that fund has ever achieved since the inception date. 

CLOSING OF AN INVESTMENT FUNDS 

This may occur if, for example, legislation changes or certain classes of assets become unavailable. If 

the plan is affected, Sanlam Life will request the member to choose another investment fund allowed at 

that stage for this type of plan, and to inform Sanlam Life of the choice made. If Sanlam Life receives no 

reponse to such a request, Sanlam Life will decide in which investment fund to continue the affected 

part of the plan. 

FUND VALUE 




GE 6/2012 BW25



option date. 

WORKING OF THE LOYALTY BONUS 

The loyalty bonus is a rebate of the variable administration charge. It is added to the fund value of the 

plan on the plan anniversaries as indicated below. The amount of the loyalty bonus is calculated as a 

percentage of the variable administration charge deducted from the plan since the date on which the 

previous loyalty bonus was added or since the fifth plan anniversary from the start date for the first 

loyalty bonus. For the purpose of this calculation, this charge is adjusted at the same rate at which the 





GE 6/2012 BW26 


% 

5 0 

10 40 

15 50 

20 60 


Sanlam Life will also add a loyalty bonus when the plan is terminated after more than five years from the 

start date: 

• a due to a death claim, or 

• on request on or after the option date. 




Sanlam Life will add the loyalty bonus to the fund value by adding units to the plan. If the plan 

anniversary or termination date on which the loyalty bonus is payable is not on a working day, Sanlam 

Life will add the units on the first working day thereafter. 

CHARGES 

TAX 

Tax is levied according to the applicable policyholders' fund. Currently no tax is levied in the 

policyholders' fund for retirement funds. 


The current charges are indicated in the statement that the life insured will receive and can be one or 

more of the following: 

• A yearly variable administration charge, which is a percentage of the fund value of the plan. This 

charge is calculated on a monthly basis, which means it is divided by 12. The charge is deducted 


As indicated on the statement that the life insured will receive, the variable administration charge 

changes as the fund value of the plan increases to higher fund value bands.

• A yearly guarantee charge for Escalating funds, which is a percentage of the fund value and may 

differ for different investment funds. It is taken into account when we calculate the daily price of the 

units. 






current charge for an investment fund is indicated in the statement that the life insured will receive. 


performance charge depends on the investment performance of the investment fund and is not 

included in the asset management charge. Detail on the benchmark, and how the charge is 

calculated, is available from the asset manager. 





a percentage of the market value for each investment fund is indicated in a table in the statement 

that the life insured will receive. 





levy an alteration charge if the alteration is done before the alteration charge date. The alteration 

charge date is determined at the start and does not change at subsequent alterations. 

The alteration charge will be taken from the fund value of the plan by selling the required number of 

units. 

The current alteration charge for the most common alterations is indicated in the statement that the life 

insured will receive. 





• Taking a withdrawal benefit. 





description, and as indicated in the statement that the life insured will receive. This transaction charge 

will increase in future to allow for inflation. 



GE 6/2012 BW27

INVESTMENT ADVICE AGREEEMENT BETWEEN THE LIFE INSURED AND THE 

FUND 






intermediary nominated by the life insured. It is a specialised service which is in addition to, and not part 

of, the intermediary services for which Sanlam Life pays commission. 

The fund-based fee for this investment advice is specified as a percentage per year of the fund value of 

the plan. The life insured must specify the percentage. The fee is calculated on a monthly basis, which 


value of the monthly fee. The amount of the fund-based fee is linked to and will therefore fluctuate with 

the fund value, for example, a fee of 0,50% implies R41,67 per month if the fund value equals 

R100 000,00. 

The current fund-based fee, if applicable, is indicated in the statement that the life insured will receive. 

WITHDRAWAL FROM PRESERVATION FUNDS 

• The rules of a preservation fund allow members to withdraw from the fund at any stage before the 

chosen retirement age if the conditions of transfer do not prohibit this. The provisions of the contract 

indicate whether or not withdrawal is permitted on a relevant plan. 

• In the case of a withdrawal, the accrued benefit from a preservation fund may be taken in full in cash 

(as in the case of resignation from an ordinary pension or provident fund), after deduction of tax (if 

applicable). It is not deemed as a retirement. 

• Upon withdrawal from a preservation fund, and depending on the instructions of the life insured, the 

Fund will, 

− pay the value of the plan to the life insured (after deduction of tax), or 

− pay the value to another preservation fund, or 

− pay the value to the approved Fund (pension/provident fund) in which his new employer 

participates if he is a member of the new Fund. 

WITHDRAWAL BENEFIT 

Depending on the transfer conditions, the full withdrawal benefit amount, or part of it, may be withdrawn 

as a lump sum from the Fund once. These transfer conditions may also determine that no benefit 

amount may be withdrawn. The percentage available to be withdrawn is indicated in the statement that 

the life insured will receive. The withdrawal benefit amount is equal to the plan's termination value, 

which is the fund value less the alteration and transaction charges, if applicable. 

If the member has made one withdrawal, he/she will not be allowed to do so again before the 

normal retirement age. 

If the full withdrawal benefit amount is taken, the plan will end. 

GE 6/2012 BW28

If only part of the benefit may be withdrawn, the following will apply: 

• Minimum partial withdrawal allowed : R2 500 

• Maximum partial withdrawal allowed : The full withdrawal benefit amount less R3 500 


The retirement benefit may be taken at any time from the life insured's 55th birthday. The retirement 

benefit amount is equal to the plan's termination value, which is the fund value less the alteration and 

transaction charges, if applicable. 

PROVIDING A RETIREMENT BENEFIT 

According to current legislation, the life insured in a preservation pension fund may take up to one-third 

of the benefit amount as a lump sum. The balance must be used to provide regular pension payments. 

The life insured can alternatively choose that the full benefit amount be used to provide regular pension 

payments. 

The life insured in a preservation provident fund may take the full benefit amount as a lump sum, or it 

can be used to provide regular pension payments. 


R75 000), the member of a preservation pension fund may also take the full benefit amount as a lump 

sum. 


TAX ON WITHDRAWAL AND RETIREMENT BENEFITS 




No tax is payable on the transfer of retirement benefits to a preservation fund. 

The tax payable by the member on the benefits that he/she receives from a preservation fund at 

retirement, death or disability will be determined as in the case of an ordinary pension/provident fund: 

• Lump sum retirement benefits 


accordance with the table below on the total of that retirement fund lump sum retirement benefit, 

plus retirement fund lump sum withdrawal benefits (received on or after 1 March 2009) plus lump 

sum retirement benefits (received on or after 1 October 2007) plus severance benefits (received on 

or after 1 March 2011) received by or accrued to that person before the planned retirement fund 

lump sum retirement benefit accrued to him or her. 




R630 000 


More than R630 000, but not exceeding : R56 700 plus 27% of the amount exceeding 

R945 000 

R630 000 




GE 6/2012 BW29

The tax amount calculated in terms of the calculation above, will be reduced by an amount equal to 

the tax that would have been levied for this person according to this calculation on a taxable income 

consisting of: the total of retirement fund lump sum withdrawal benefits (received on or after 

1 March 2009); retirement fund lump sum retirement benefits (received on or after 1 October 2007) 

and severance benefits (received on or after 1 March 2011) previously received by or accrued to that 

person (before the planned retirement fund lump sum retirement benefit). 

• Pension payments are fully taxable as gross income 

Where a member receives benefits from a preservation fund, which had previously been transferred 

from a paragraph (a) or (b) fund (for example public sector funds such as the Government 

Employees Pension Fund, funds for local authorities, etc.) then any portion thereof that accrued 

before 1 March 1998, is tax-free since 1 March 2006. For this purpose, the transfer forms indicate 

the date of entry, as well as the date of termination of service, which are used when application is 

made for a tax directive from the SARS. However, benefits resulting from contributions made since 

1 March 1998, are taxed just as with membership of any private fund (that is, as indicated in the 

previous paragraph). 

• Lump sum withdrawal benefit 

If a retirement fund lump sum withdrawal benefit (in full or partially) accrues to a person, the tax will 

be calculated according to the table below on the total amount of the following: retirement fund lump 

sum withdrawal benefit concerned, plus any retirement fund lump sum withdrawal benefits (received 

on or after 1 March 2009) plus retirement fund lump sum retirement benefits (received on or after 

1 October 2007) plus severance benefits (received on or after 1 March 2011) previously received by 

or having accrued to that person (before the planned retirement fund lump sum withdrawal benefit). 


benefit 

GE 6/2012 BW30 

Taxable liability 

R0 up to R22 500 * : 0% tax 





The tax amount levied in terms of the above calculation, must be reduced by an amount equal to the 

tax that would have been levied in terms of this calculation for this person on taxable income 

consisting of the following: the total of retirement fund lump sum withdrawal benefits (received on or 

after 1 March 2009); retirement fund lump sum retirement benefits (received on or after 

1 October 2007) and severance benefits (received on or after 1 March 2011) received by or accrued 

to that person previously (before the planned retirement fund lump sum withdrawal benefit). 


The benefit amount is equal to the fund value of the plan on the date that Sanlam Life receives notice of 

the death of the life insured. 


payments. 




dependants and nominees.







insured. 




life insured not died. For example, a child of the life insured who is born after the life insured's 

death. 


benefit available or a part of it, at death. Sanlam Life, and the trustees of the Fund, will then know what 





TAX ON BENEFIT AT DEATH 



No rider benefits are available. 



LOANS 

No loans are allowed. 

CESSIONS 

No cessions are allowed. 





GE 6/2012 BW31

SECTION BX 

STRATUS SAVINGS PRODUCTS 

OVERVIEW OF PRODUCTS ……………………………………… 

A. STRATUS PRODUCTS ……………………………………….. 

GE 3/2012 BX 

Page 

STRATUS ENDOWMENT ………………………………………………………... BX4 

STRATUS INTERNATIONAL ENDOWMENT ………………………………….. BX18 

STRATUS EDUFOCUS …………………………………………………………… BX26 

STRATUS ENDOWMENT CONTINUATIONS …………………………………. BX38 

STRATUS CONTINUATIONS WITHOUT LIFE INSURED ……………………. BX48 

STRATUS RETIREMENT ANNUITY ……………………………………………. BX53 

STRATUS RETIREMENT ANNUITY CONTINUATIONS …………………….. BX69 

STRATUS WITH PRESERVATION FUNDS …………………………………… BX81 

STRATUS WITH PRESERVATION FUND CONTINUATIONS …………….. BX95 

STRATUS ENDOWMENT FOR PROVIDENT FUNDS ……………………….. BX105 

STRATUS INVESTMENT LINKED PENSION …………………………………. BX119 

STRATUS COMPOSITE ANNUITY ……………………………………………… BX124 

STRATUS GUARANTEED INCOME ……………………………………………. BX128 

STRATUS GUARANTEED RETURN …………………………………………… BX131 

STRATUS GUARANTEED INVESTMENT …………………………………….. BX134 

STRATUS TRADED POLICIES ……………………………….………………… BX141 

B. STRATUS PREMIER PRODUCTS …………………………… 

C. FEATURES OF STRATUS …………………………………… 

BX1 

BX4 

BX144 

BX145 

1. AVAILABILITY OF PRICES …………….……………………………………. BX145 

2. SWITCHING AND REDIRECTIONS ………………………………………... BX145 

3. INVESTMENT GUARANTEES ………………………………………………. BX145 

4. LIFE TIME INVESTMENT OPTION ………………………………………….. BX147 

2/…

D. STRATUS RIDER BENEFITS ……………………………… 

GE 3/2012 BX 

- 2 - 

Page 

BX150 

WAIVER OF PAYMENT AT DISABILITY (OPG, OGG) …………… BX150 

WAIVER OF PAYMENT AT DEATH (DP, DG) …………………….. BX155 

E. SUMMARIES ………………………………………………….. 

BX158 

1. AVAILABLE INVESTMENT FUNDS PER PRODUCT ACCORDING 

TO THE AMOUNT OF THE PAYMENT ......................................... BX158 

2. MINIMUM PAYMENTS AND PRODUCT CODES ………….…...…… BX160 

F. ADDITIONAL INFORMATION ABOUT RETIREMENT 

ANNUITY FUNDS …………………………………………… BX164


GE 3/2012 BX 

Page 

− ENDOWMENT PLANS ………..……………………..…………………………...…. BX1 

− RETIREMENT ANNUITIES (policies) ……………………………………………… BX1 

− PRESERVATION FUNDS …………………………………………………………... BX2 

− PROVIDENT FUNDS ………………………………………………………………... BX2 

− INVESTMENT PLANS ………………………………………………………………. BX2 

− PENSION PRODUCTS ……………………………………………………………… BX2 

− OTHER PRODUCTS ………………………………………………………………… BX2 

− STRATUS PREMIER SERIES PRODUCTS ……………………………………… BX3 

A. STRATUS PRODUCTS 

SECTION BX 

STRATUS SAVINGS PRODUCTS 

STRATUS ENDOWMENT ....................................….................................. BX4 

− DESCRIPTION ……………………..……………………..…………………………. BX4 

− EXPLANATIONS …………………………………………………………………….. BX4 

− INITIAL TERM ……....................................................................................…….. BX5 

− FUND VALUE ………………………………………………………………………… BX5 

− AMOUNT ON OPTION DATE .............................................……………....……. BX6 

− AVAILABLE INVESTMENT FUNDS .................................................................. BX6 

− SWITCHING BETWEEN INVESTMENT FUNDS ………………………………… BX6 

− INVESTMENT GUARANTEES …………..…………………………………………. BX6 

− PAYMENTS …………………………………………………………………………… BX6 

− START DATE ..…………………………...………………………...………………… BX8 

− AGE AT ENTRY ……………………………………………………………………… BX8 

− PAYMENT GROWTH ………………………………………………………..……… BX9 

− INVESTMENT ………………………………………………………………………… BX9 

− LOYALTY BONUS ..…….…………………………………………………………… BX11 

− CHARGES ……………………………………………………………………………. BX12 

− REDUCTION OR STOPPING OF THE RECURRING PAYMENT …………….. BX14 

− REALISING THE PLAN BENEFITS ……………………………………………….. BX14 

− LEGISLATIVE RESTRICTIONS ……………………………………………………. BX16 

− RIDER BENEFITS …………………………………………………………………… BX16 

− LIFE COVER AND DISABILITY BENEFITS ………………………………………. BX16 

− BENEFIT PAYABLE AT DEATH …………………………………………………… BX17 

− NOMINEE TO BECOME THE NEW PLANHOLDER …………………………… BX17 

− ALTERATIONS ………………………………………………………………………. BX17 

− CESSIONS ……………………………………………………………………………. BX17 

− TAX ……………………………………………………………………………………. BX17 

− COOLING-OFF PERIOD ……………………………………………………………. BX17 

2/…

- 2 - 

GE 3/2012 BX 

Page 

STRATUS INTERNATIONAL ENDOWMENT ………................................ BX18 


− INVESTMENT PROCESS ………………………………………………………….. BX18 

− INITIAL TERM ……………………………………………………………………….. BX18 

− THE OPTION DATE ………………………………………………………………… BX18 

− AMOUNT ON OPTION DATE ……………………………………………………… BX19 

− CONDITIONS TO QUALIFY FOR THE PRODUCT ……………………………… BX19 

− AVAILABLE INVESTMENT FUNDS ……………………………………………….. BX19 

− INVESTMENT GUARANTEES ……………………………………………………... BX19 

− START DATE …………………………………………………………………………. BX19 

− AGE AT ENTRY ……………………………………………………………………… BX19 

− PAYMENTS …………………………………………………………………………… BX19 

− INVESTMENT ………………………………………………………………………… BX20 

− VALUE OF THE POLICY INVESTMENT ………………………………………….. BX21 






− NOMINEE TO BECOME THE NEW PLANHOLDER …………………………….. BX22 

− PAYMENT OF ANY BENEFITS ……………………………………………………. BX23 

− MAXIMUM ALLOWANCE …………………………………………………………… BX23 


− CESSIONS …………………………………………………………………………… BX24 

− TAX ……………………………………………………………………………………. BX25 


STRATUS EDUFOCUS ………...……….................................................... BX26 




− FUND VALUE ………………………………………………………………………… BX27 

− THE OPTION DATE …………………………………………………………………. BX27 

− AMOUNT ON OPTION DATE ……………………………………………………… BX27 

− AVAILABLE INVESTMENT FUNDS ………………………………………………. BX28 



− PAYMENTS …………………………………………………………………………… BX28 

− START DATE …………………………………………………………………………. BX29 

− AGE AT ENTRY ……………………………………………………………………… BX30 

− PAYMENT GROWTH ……………………………………………………………….. BX30 

− INVESTMENT ………………………………………………………………………… BX31 

− LOYALTY BONUS …………………………………………………………………… BX32 

3/…

STRATUS EDUFOCUS (continued) 

- 3 - 

GE 3/2012 BX 

Page 

− CHARGES ……………………………………………………………………………. BX33 

− REDUCTION OR STOPPING OF THE RECURRING PAYMENT ……………... BX34 




− LIFE COVER AND DISABILITY BENEFITS ……………………………………… BX36 


− BENEFICIARY TO RECEIVE BENEFITS AT DEATH …………………………… BX37 

− NOMINEE TO BECOME A NEW PLANHOLDER ………………………………... BX37 


− CESSIONS …………………………………………………………………………… BX37 

− TAX ……………………………………………………………………………………. BX37 

− COOLING-OFF PERIOD …………………………………………………………… BX37 

STRATUS ENDOWMENT CONTINUATION ………...……….................... BX38 



− INITIAL TERM ……….................................................................................……. BX38 

− AVAILABLE INVESTMENT FUNDS ……............................................................ BX38 



− THE INVESTMENT GUARANTEE DATE …………………………………………. BX38 

− PAYMENTS …………………………………………………………………………… BX39 


− START DATE ………………………………………………………………………… BX40 

− AGE AT ENTRY ……………………………………………………………………… BX40 

− INVESTMENT ………………………………………………………………………… BX40 

− FUND VALUE ………………………………………….……………………………. BX41 

− LOYALTY BONUS …………………………………………………………………… BX42 

− CHARGES …………..……………………………………………………………..… BX42 

− INVESTMENT ADVICE AGREEMENT BETWEEN THE PLANHOLDER AND 

THE INTERMEDIARY ……………………………………………………………….. 

BX44 

− REDUCTION OR STOPPING OF RECURRING PAYMENTS ………………….. BX44 




− BENEFIT PAYABLE AT DEATH ……………….………………………………….. BX47 

− NOMINEE TO BECOME THE NEW PLANHOLDER …………………………… BX47 


− CESSIONS ……………………………………………………………………………. BX47 

− TAX ……………………………………………………………………………………. BX47 

4/…

- 4 - 

GE 3/2012 BX 

Page 

STRATUS CONTINUATIONS WITHOUT LIFE INSURED ..………………. BX48 


− INITIAL TERM …….....................................................................................……. BX48 

− AVAILABLE INVESTMENT FUNDS …............................................................... BX48 



− PAYMENTS …………………………………………………………………………… BX48 

− START DATE ………………………………………………………………………… BX49 

− AGE AT ENTRY ……………………………………………………………………… BX49 

− PAYMENT GROWTH ………………………………………………………………. BX49 



− BENEFIT AT DEATH ………………………………………………………………… BX49 

− WITHDRAWALS …………………………………………………………………….. BX50 

− REGULAR CASH WITHDRAWALS ……………………………………………….. BX50 

− LOANS ………………………………………………………………………………… BX51 

− INVESTMENT ADVICE AGREEMENT BETWEEN THE PLANHOLDER AND 

THE INTERMEDIARY ……………………………………………………………….. 

BX52 


− BENEFICIARY TO RECEIVE BENEFITS AT DEATH …………………………… BX52 

− PLANHOLDERSHIP ………………………………………………………………… BX52 

− CESSIONS …………………………………………………………………………… BX52 

− TAX ……………………………………………………………………………………. BX52 

STRATUS RETIREMENT ANNUITY .……................................................. BX53 



− INITIAL TERM …….....................................................................................……. BX54 

− THE OPTION DATE ………………………………………………………………… BX54 

− FUND VALUE ………………………………………………………………………… BX54 

− RETIREMENT BENEFIT AVAILABLE ON OPTION DATE …………………….. BX55 

− AVAILABLE INVESTMENT FUNDS …............................................................... BX55 


− STRATUS LIFE TIME INVESTMENT OPTION ………………………………….. BX55 


− PAYMENTS ………………………………………………………………………….. BX56 


− START DATE ………………………………………………………………………… BX58 

− AGE AT ENTRY AND RETIREMENT ………………………………..…………… BX59 

− INVESTMENT ………………………………………………………………………… BX60 

− LOYALTY BONUSES ……………………………………………………………….. BX61 

5/…

STRATUS RETIREMENT ANNUITY (continued) 

- 5 - 

GE 3/2012 BX 

Page 

− SANLAM RETIREMENT BOOSTER ………………………………………………. BX62 

− CHARGES ……………………………………………………………………………. BX63 


THE FUND ……………………………………………………………………………. BX65 

− REDUCTION OR STOPPING OF THE RECURRING PAYMENT …..………… BX65 




− TAX ON BENEFIT AT DEATH ……………………………………………………… BX66 

− RETIREMENT BENEFIT ……………………………………………………………. BX67 

− TAX ON RETIREMENT BENEFIT …………………………………………………. BX67 

− EARLY WITHDRAWAL ……………………………………………………………… BX67 

− TAX AT WITHDRAWAL ………………..……………………………………………. BX68 

− LOANS ………………………………………………………………………………… BX68 

− ALTERATIONS …..…………………………………………………………………… BX68 


STRATUS RETIREMENT ANNUITY CONTINUATION .……..................... BX69 



− INITIAL TERM …………..............................................................................……. BX70 

− FUND VALUE ………………………………………………………………………… BX70 

− AVAILABLE INVESTMENT FUNDS ………........................................................ BX70 


− STRATUS LIFE TIME INVESTMENT OPTION ………………………………….. BX70 


− THE INVESTMENT GUARANTEE DATE …………………………………………. BX70 

− PAYMENTS …………………………………………………………………………… BX71 


− START DATE ………………………………………………………………………… BX72 

− AGE AT ENTRY AND RETIREMENT ………………………………..…………… BX72 

− INVESTMENT ………………………………………………………………………… BX72 

− LOYALTY BONUSES ………….………………………………………………….… BX74 

− CHARGES ……………………………………………………………………………. BX75 


THE FUND ……………………………………………………………………………. 

BX77 

− REDUCTION OR STOPPING OF RECURRING PAYMENTS …………………. BX77 


− LIFE COER DISABILITY BENEFITS ………………………………………………. BX77 


6/…

- 6 - 

STRATUS RETIREMENT ANNUITY CONTINUATION (continued) 

GE 3/2012 BX 

Page 



− TAX ON RETIREMENT BENEFIT …………………………………………………. BX78 

− EARLY WITHDRAWAL ……………………………………………………………… BX79 

− TAX AT WITHDRAWAL ……………………………………………………………... BX79 

− LOANS ………………………………………………………………………………… BX80 

− ALTERATIONS …..…………………………………………………………………… BX80 

STRATUS WITH PRESERVATION FUNDS .……………………................ BX81 



− ALLOWABLE TRANSFERS ………………………………………………………… BX82 

− INTIAL TERM …………………………………………………………………………. BX83 



− INVESTMENT GUARANTEES ……..……………………………………………… BX83 

− PAYMENTS …………………………………………………………………………… BX83 

− ADDITIONAL ONE-OFF PAYMENTS ……………………………………………... BX84 

− START DATE …………………………………………………………………………. BX84 

− AGE AT ENTRY AND RETIREMENT ……………………………………………… BX85 

− INVESTMENT ………………………………………………………………………… BX85 

− FUND VALUE ………………………………………………………………………… BX86 

− LOYALITY BONUS …………………………………………………………………... BX87 

− CHARGES ……………………………………………………………………………. BX87 


THE FUND ………………………………………………………………………….. BX89 

− WITHDRAWAL FORM PRESERVATION FUNDS ………………………………. BX90 

− WITHDRAWAL BENEFIT …………………………………………………………… BX90 


− TAX ON WITHDRAWAL AND RETIREMENT BENEFITS ………………………. BX91 





− LOANS ………………………………………………………………………………… BX94 

− CONVERSIONS ……………………………………………………………………… BX94 

− CESSIONS ……………………………………………………………………………. BX94 


− YEARS OF SERVICE …………………………………..…………………………... BX94 

7/…

- 7- 

GE 3/2012 BX 

Page 

STRATUS WITH PRESERVATION FUNDS CONTINUATIONS ……........ BX95 

− DESCRIPTION …………….…………………………………………………………. BX95 


− INITIAL TERM ………………………………………………………………………… BX95 


− INVESTMENT GUARANTEES …………………………………………………….. BX95 

− THE INVESTMENT GUARANTEE DATE ………………………………………… BX95 

− PAYMENTS …………………………………………………………………………… BX96 

− START DATE ………………………………………………………………………… BX96 


− INVESTMENT ………………………………………………………………………… BX96 

− FUND VALUE ………………………………………………………………………… BX97 

− LOYALTY BONUSES ……………………………………………………………….. BX98 

− CHARGES ……………………………………………………………………………. BX98 

− INVESTMENT ADVICE AGREEMENT BETWEEN THE MEMBER AND THE 

FUND …………………………………………………………………………………. BX100 

− WITHDRAWAL FROM A PRESERVATION FUND ……………………………… BX100 

− WITHDRAWAL BENEFIT …………………………………………………………… BX101 

− RETIREMENT BENEFIT ….………………………………………………………… BX101 

− TAX ON WITHDRAWAL AND RETIREMENT BENEFITS……………………….. BX102 



− LOANS ………………………………………………………………………………… BX104 

− CESSIONS ……………………………………………………………………………. BX104 

− YEARS OF SERVICE ……………………………………………………………….. BX104 

STRATUS ENDOWMENT FOR PROVIDENT FUNDS …………………… BX105 

− FUNCTION OF A PROVIDENT FUND …………………………………………… BX105 

− DESCRIPTION ………………………………………………………………………. BX105 

− WORKING OF THE CENTRAL PROVIDENT FUND ………………………..….. BX105 

− REGISTRATION ……………………………………………………………………… BX105 

− REGISTRATION FORMS …………………………………………………………… BX106 

− MEMBERSHIP ……………………………………………………………………….. BX106 

− LIFE INSURED ……………………………………………………………………….. BX106 

− PLANHOLDER …………………….…………………………………………………. BX106 



− START DATE …………………………………………………………………………. BX107 

8/...

- 8 - 

STRATUS ENDOWMENT FOR PROVIDENT FUNDS (continued) 

GE 3/2012 BX 

Page 

− CONTRIBUTIONS TO THE FUND AND PAYMENTS ON THE PLAN ……..….. BX108 

− MONITORING OF PAYMENTS ……………………………………………………. BX109 

− INVESTMENT ………………………………………………………………………… BX109 

− FUND VALUE ………………………………………………………………………… BX110 


− INVESTMENT ADVICE AGREEMENT BETWEEN THE MEMBER AND THE 

FUND ………………………………………………………………………………….. BX111 

− REDUCTION OF THE RECURRING PAYMENT ………………………………… BX111 

− STOPPING OF THE RECURRING PAYMENT …………………………………... BX111 


− CASH VALUE ………………………………………………………………………… BX112 

− RESIGNATION BENEFIT …………………………………………………………… BX112 

− BENEFIT AT DEATH ………………………………………………………………... BX112 

− APPOINTMENT OF NOMINEE TO RECEIVE THE BENEFIT AT DEATH ….… BX112 



− LIFE TIME INVESTMENT OPTION ……………………………………………….. BX113 




− RETIREMENT ………………………………………………………………………… BX113 

− RESIGNATION OR RETRENCHMENT …………………………………………… BX114 

− LOANS ………………………………………………………………………………… BX114 

− WITHDRAWAL ………….……………………………………………………………. BX114 



− GENERAL AND ADMINISTRATIVE INFORMATION …………………………… BX115 

STRATUS INVESTMENT LINKED PENSION ……………………………… BX119 

− DESCRIPTION ………………………………………………..……………………… BX119 

− ADVANTAGES OF THE PRODUCT ………………………………………………. BX119 

− DISADVANTAGES OF THE PRODUCT ………………………………………….. BX119 


− AVAILABLE INVESTMENT FUNDS ……………………………………………..... BX121 



− PAYMENTS …………………………………………………………………………… BX121 

− START DATE …………………………………………………………………………. BX121 

− AGE AT ENTRY ……………………………………………………………………… BX121 


− PENSION INSTALMENTS ………………………………………………………….. BX122 

9/...

- 9 - 

STRATUS INVESTMENT LINKED PENSION (continued) 

GE 3/2012 BX 

Page 

− PHASING-IN OF ONE-OFF PAYMENT …………………………………………… BX122 

− LIVES INSURED ……………………………………………………………………... BX122 

− APPOINTMENT OF NOMINEES …………………………………………………… BX122 

− CESSIONS ……………………………………………………………………………. BX122 

− PRIVATE PENSION …………………………………………………………………. BX122 

− ADMINISTRATION OF THE PLAN ……………………………………………….... BX123 

− TRANSFER OF PLAN ……………………………………………………………….. BX123 


− TAX ……………………………………………………………………………………. BX123 

STRATUS COMPOSITE ANNUITY …………………………………………. BX124 

− DESCRIPTION ……………………………………………………………………….. BX124 

− ADVANTAGES OF THE PRODUCT ……………..……………………………….. BX124 

− DISADVANTAGES OF THE PRODUCT …………………………………………... BX124 





− PAYMENTS …………………………………………………………………………… BX127 

− AGE AT ENTRY ……………………………………………………………………… BX127 


− LIVES INSURED ……………………………………………………………………... BX127 

− APPOINTMENT OF NOMINEES …………………………………………………… BX127 

− TRANSFER OF PLAN ……………………………………………………………….. BX127 

− TAX ……………………………………………………………………………………. BX127 

STRATUS GUARANTEED INCOME …………………….……………......... BX128 

− DESCRIPTION ………………….……………………………………………………. BX128 

− TERM ………………………………………………………………………………….. BX128 

− PAYMENTS …………………………………………………………………………… BX128 

− START DATE …………………………………………………………………………. BX128 

− AGE AT ENTRY ……………………………………………………………………… BX128 

− RATE DATE ………………………………………………………………………….. BX128 

− INCOME PAYABLE …………………………………………………………………. BX129 


− WITHDRAWAL ………………………………..……………………………………… BX130 

− LOANS ………………………………………………………………………………… BX130 

− BENEFICIARIES ……………………………………………………………………... BX130 

− NOMINEES FOR OWNERSHIP …………………………………………………… BX130 

− CESSIONS ……………………………………………………………………………. BX130 

− TAX ……………………………………………………………………………………. BX130 


10/…

- 10 - 

GE 3/2012 BX 

Page 

STRATUS GUARANTEED RETURN …………………………………......... BX131 

− DESCRIPTION ………………………………………………………………………. BX131 

− TERM ………………………………………………………………………………….. BX131 

− PAYMENTS …………………………………………………………………………… BX131 

− START DATE ………………………………………………………………………… BX131 

− AGE AT ENTRY ……………………………………………………………………… BX131 


− RATE DATE ………………………………………………………………………….. BX131 

− MATURITY BENEFIT ……………………………………………………………….. BX131 


− LOANS ………………………………………………………………………………… BX132 


− APPOINTING OF BENEFICIARIES TO RECEIVE BENEFIT AT DEATH ..…… BX132 

− APPOINTING OF NOMINEES FOR OWNERSHIP ……………………………… BX133 

− CESSIONS ……………………………………………………………………………. BX133 

− TAX …………………………………………………………………………………… BX133 


STRATUS GUARANTEED INVESTMENT …………………………........… BX134 

− DESCRIPTION …………………..…………………………………………………… BX134 

− TERM …………………………………………………………………………………. BX134 

− PAYMENTS …………………………………………………………………………… BX134 

− START DATE …………………………..…………………………………………….. BX134 

− AGE AT ENTRY ……………………………………………………………………… BX135 


− RATE DATE ………………………………………………………………………….. BX135 

− INCOME PAYABLE …………………………………………………………………. BX135 

− MATURITY BENEFIT ……………………………………………………………….. BX136 


− WITHDRAWAL ……………………………………………………………………….. BX137 

− LOANS ………………………………………………………………………………… BX138 


− APPOINTMENT OF BENEFICIARIES TO RECEIVE THE BENEFIT AT 

DEATH ………………………………………………………………………………… BX138 

− NOMINEES FOR OWNERSHIP ……………………….…………………………... BX139 

− CESSIONS …………………………………………………………………………… BX139 

− TAX …………………..………………………………………………………………… BX140 


11/…

- 11 - 

GE 3/2012 BX 

Page 

STRATUS TRADED POLICIES …………………………...……………….… BX141 

− DESCRIPTION …………………………………………………………………..…… BX141 

− ADVANTAGES FOR THE INVESTOR ……………………………………………. BX141 


− AVAILABLE INVESTMENT FUNDS ………………………………………………. BX141 


− INVESTMENT GUARANTEES …………………………………………………….. BX141 

− THE INVESTMENT GUARANTEE DATE ………………………………………… BX141 

− PAYMENTS ………………………………………………………………………….. BX141 

− START DATE (TRANSFER DATE) ……………………………………………….. BX142 

− AGE AT ENTRY ……………………………………………………………………… BX142 


− REGULAR CASH WITHDRAWAL AMOUNTS …………………………………... BX142 

− LOANS ………………………………………………………………………………… BX143 

− LIFE INSUREDS ……………………………………………………………………... BX143 

− CESSIONS AND APPOINTING BENEFICIARIES / NOMINEES ………………. BX143 

− TAX IMPLICATIONS ………………………………………………………………… BX143 

B. STRATUS PREMIER PRODUCTS 

− MINIMUM PAYMENTS …………………………………………………………….. BX144 

− AVAILABLE INVESTMENT FUNDS ……………………………………………… BX144 

C. FEATURES OF STRATUS 

1. AVAILABILITY OF PRICES ……………………………………….……… BX145 

2. SWITCHING AND REDIRECTIONS ……………………………….….… BX145 

3. INVESTMENT GUARANTEES …………………………………….…….. BX145 

4. LIFE TIME INVESTMENT OPTION ………………………..…………….. BX147 

D. STRATUS RIDER BENEFITS 

− WAIVER OF PAYMENT AT DISABILITY (OPG, OGG) ……….……… BX150 

− WAIVER OF PAYMENT AT DEATH (DP, DG) ………………………… BX155 

12/…

E. SUMMARIES 

- 12 - 

1. AVAILABLE INVESTMENT FUNDS PER PRODUCT ACCORDING 

TO THE AMOUNT OF THE PAYMENT …………………………………. 

GE 3/2012 BX 

Page 

BX158 

− ORDINARY INSURANCE …………………………………………………………… BX158 

− RETIREMENT BUSINESS ………………………………………………………….. BX159 

2. MINIMUM PAYMENTS AND PRODUCT CODES …………………..…. BX160 

F. ADDITIONAL INFORMATION ABOUT RETIREMENT 

ANNUITY FUNDS 

− REASONS WHY RA FUNDS ORIGINATED ……………………………. BX164 

− LEGAL REQUIREMENTS FOR RA FUNDS ……………………………. BX164 

− FUNDS UNDERWRITTEN BY SANLAM LIFE …………………………. BX165 

− GENERAL INFORMATION : RETIREMENT ANNUITY FUNDS ……... BX165 

− INCOME TAX ……………………………………………………………….. BX165 

− ESTATE DUTY ……………………………………………………………… BX170

Sanlam Life offers a range of new generation savings products, which enables the client to obtain 

transparent low cost non-risk plans. The products offer the required flexibility so that the client's savings 

needs can be addressed accurately. 

Cobalt for Professionals Retirement Annuity is also available. Only persons in rate group 5 qualify for 

Cobalt for Professionals. 


The following savings products are currently available: 

ENDOWMENT PLANS 

Product name Product code Product name code 

Stratus Endowment E36 PBR 

Stratus Endowment (Conversions) E26 E26 

Stratus International Endowment E17 E17 

Stratus Edufocus E30 PBV 

Stratus Continuation 

− without life insured 

− with life insured 

RETIREMENT ANNUITIES (policies) 

GE 3/2013 BX 1 

SC2 

EC9 

SC2 

PDK 


Stratus Retirement Annuity R19C PBY 

Stratus Retirement Annuity (Conversions) R07C, R04E, R04H, 

R09C 

R07C, R04E, R04H, 

R09C 

Stratus Retirement Annuity as part of combination 

product with Matrix R26C PBO 

Cobalt for Professionals Retirement Annuity R19C PBX 

PPS Retirement Annuity (Conversions)* R04F, R04J, R07P, 

R09P 

R04F, R04J, R07P, 

R09P 

Stratus Retirement Annuity (Continuations) RC9C PDL 

Cobalt for Professionals Retirement Annuity 

(Continuations) RC9C PDM 

PPS Retirement Annuity (Continuations)* RC9P PDN 

*No payment increase allowed 

STRATUS SAVINGS PRODUCTS

PRESERVATION FUNDS 


Stratus Provident Preserver PF3 PCB 

Stratus Pension Preserver PP3 PCF 

Stratus Preservation Fund Continuations 

− Stratus Provident Preserver (Continuations) 

− Stratus Pension Preserver (Continuations) 

PROVIDENT FUNDS 

GE 3/2012 BX 2 

PF2C 

PP2C 

PDP 

PDO 


Stratus Endowment for Provident funds F01C F01C 

Stratus Continuation for Provident funds FC1C FC1C 



Stratus Guaranteed Income J01O J01O 

Stratus Guaranteed Return SG1 SG1 

Stratus Guaranteed Investment SG1P SG1P 

PENSION PRODUCTS 


Stratus Investment Linked Pension - - 

Stratus Composite Annuity - - 

OTHER PRODUCTS 


Stratus Traded Policy EC7, SC7 EC7, SC7

STRATUS PREMIER SERIES PRODUCTS 

Stratus Premier is available in the following products (see "Stratus Premier products" later in this 

section): 


Stratus Premier Endowment (conversions only) E73 E73 

Stratus Premier Continuation 

− without life insured SC7 SC7 

Stratus Premier Retirement Annuity (conversions 

only) 

− CRAF 

− PPS* 

GE 3/2013 BX 3 

R72C 

R72P 

R72C 

R72P 

Stratus Premier Endowment for Provident Funds F70C F70C 

Stratus Premier Continuation for Provident Funds FC7C FC7C 

Stratus Premier Investment Linked Pension - - 

Stratus Premier Composite Annuity - - 

*No payment increase allowed

A. STRATUS PRODUCTS 

STRATUS ENDOWMENT 

DESCRIPTION 

Stratus Endowment is an investment where clients can take out a no-risk plan (without life cover) in one 

or more of the available investment funds (a maximum of 10 funds may be chosen). A Stratus 

endowment must always have at least one life insured. 

With Stratus, Sanlam Life wants to offer clients transparent, good value for money products. After 

certain charges have been subtracted, Sanlam Life purchases units for the client with his net 

investment. 

The client may choose more than one investment fund per plan, and can switch between available funds 

at any time. 

EXPLANATIONS 

Option date 

It is the date which indicates the end of the term, and is indicated in the planholder's statement. 





One-off fund 






in the planholder's statement. A separate date applies for the one-off and recurring funds. 

Working day 


GE 3/2012 BX 4

EXPLANATIONS (continued) 

INITIAL TERM 

• The client chooses an initial term between the minimum and the maximum terms applicable, when 

he or she takes out the plan. 

• The minimum and maximum terms are as follows: 



• A maximum term of 10 years is permitted for lives insured of age 60 next birthday and older for plans 

with recurring payments. 

• For conversions the minimum term is one year. If an investment guarantee is selected, the minimum 

term is, however, five years. The client can inter alia select an option date equal to the maturity date 

of the plan that is being converted. The initial term of the converted plan must, however, be in full 

years. If the outstanding term of the existing plan is for example 8 years and 5 months, the initial 

term of the converted plan will therefore be nine years if the client selects the term equal to the 

outstanding term of his or her existing plan. If the outstanding term of the policy that is being 

converted is less than 5 years, the end date of the converted Stratus plan may not precede the 

maturity date of the policy that is being converted. 


automatically be paid out after the initial term has expired, but that the plan will continue until the 

planholder claims the proceeds or until the death of the life insured. The plan can continue with or 

without future payments. 

• Although a maximum term of 30 years can be chosen, special permission must be obtained for 

terms that exceed 15 years. Reasons must therefore be given for terms longer than 15 years. If a 

term longer than 15 years is granted, the commission term is limited to 15 years. 

If the plan is an Edufocus policy that is converted to a Stratus Endowment, the term is limited to 20 

years with a limited commission term of 15 years. No special permission is required in such a case. 

FUND VALUE 



For the Vesting Bonus Fund the fund value will be equal to the number of units in the Vesting Bonus 

Fund multiplied by its unit price on any of the following dates only: 

• the date on which Sanlam Life receives notice of the death of the (last surviving) life insured, linked 

to the benefit payable at death, or 

• the option date, or 

• a date every five years after the option date. 

On any other date the fund value will be equal to the lower of the number of units in the Vesting Bonus 

Fund multiplied by its unit price and the market value of the underlying assets, which may increase or 

decrease over time. If a benefit is paid at a time when the market value of the underlying assets is the 

lower of the two values, a market value adjustment will be applied to the number of units in the Vesting 

Bonus Fund. This will be done by selling a number of units equal in value to the difference between the 

number of units multiplied by the unit price and the market value of the underlying assets. The 

remaining units in the Vesting Bonus Fund, if any, will therefore be less than they would have been if a 

benefit had been paid at a time when the number of units multiplied by die unit price was lower than or 

equal to the market value of the underlying assets. 


GE 3/2012 BX 5




If the planholder chose the investment guarantee in the case of an investment fund where such a 

guarantee is available, a minimum rate of investment return will be guaranteed on the fund value in each 

investment fund for which an investment guarantee was chosen. 

If the planholder does not take the fund value on the option date, the plan is not terminated. It is 

continued for further capital growth. If the planholder wants to continue with the investment, but he or 

she wants to cease payments after the option date, he or she must at that stage inform us accordingly. 

If the planholder indeed wants to take the value of the plan on the option date, he or she must provide 

us with a completed claim form at least two days before the option date. 


To determine which investment funds are available for a specific product, see the applicable proposal 

form. The relevant quotation system also indicates which investment funds are available for the relevant 

product. 


See section C(2). 

INVESTMENT GUARANTEES 


PAYMENTS 

The client can choose to make one of the following payments: 

• One-off payment (not available for combination product) 


− not available for certain conversions 

− must be chosen when the plan is taken out or is converted – it cannot be added later 



One-off payments may be made, provided that they are allowed by legislation and are not less than 

Sanlam Life's minimum allowed. If the transaction date for a payment, as indicated in the planholder's 

statement, is more than two days later than the payment date, Sanlam Life will adjust the payment to 

allow for the delay from the payment date to the transaction date. 







GE 3/2012 BX 6

PAYMENTS (continued) 

Recurring payments (continued) 


requested day on which Sanlam Life has to collect the payment does not fall on a working day, or a 

month does not have the particular day, Sanlam Life will collect it on the following working day. 



Sanlam Life will not adjust a recurring payment to allow for early payment if it is made before the 



recurring payment stopped, and will then levy the alteration charge for stopping recurring payments, if 

applicable. Also, if waiver of payment benefits are applicable, and a recurring payment is not made in 

full within a 30 day period of grace, these benefits will no longer provide cover. 

Recurring payments can only be payable either monthly or annually. 

No debit order discount applies. If payments for new business are not paid by debit order, a payment 

charge of 3.5% of the payment, excluding the payment charge, will be charged. Debit orders are 

permitted for any day of the month. 


Conversions 3 

Non-conversions: 

One-off payment only: 


recurring payments: 


only: 

One-off 

payment 

R2 500 

R10 000 

R2 500 

N/a 

Ad hoc 

addition 

(one-off 

payment) 1 

R2 500 

R2 500 

R2 500 

R2 500 

GE 3/2012 BX 7 


2 and 4 

month 

Initial term 

10 years or 

more 

R250 

N/a 

R250 

R250 

Initial term 

less than 10 

years 

R250 

N/a 

R400 

R400 

Ad hoc 

recurring 

payment 

increase 1 

R150 

N/a 

R150 

R150 

1 Subject to the restrictions in terms of Section 54 of the Long-term Insurance Act. 

2 The minimum amount that may be invested per investment fund is R50,00. 

3 This relates to the transfer amount from the old (converted) policy. 

4 For debit order payments less than R500 per month payment growth is compulsory. See "Payment 

Growth" later in this section for full particulars regarding when compulsory payment growth applies. 

See "Investment funds" later in the section for higher minimum payments which may apply to certain 

investment fund choices in the case of new business.

START DATE 

The start date is determined by the type of payment that is made and is determined as follows: 

Recurring payment 

• The start date can be any day from the 1 st up to and including the 28 th of the month, subject to the 

payment method. The day on which the first payment is payable, is the start date of the plan. 

• If the mode of payment is per debit order, the start date can be any day up to and including the 28th 

of the month. The debit order date, however, can be any day of the month. For debit order dates 

after the 28 th of the month, the start date will be the first of the next month. 

• If the mode of payment is per stop order, the start date will always be the first of the following month. 

One-off payment 

• The start date is the date on which New Business received the last requirements for issuing of the 

plan. 

• If no requirements were set, the start date for the one-off payment deposited at any contracted-in 

bank branch (currently ABSA or First National Bank) will be determined as follows: 

− If the payment was made before the case was created, the case date will be the start date. 

− If the payment was made after the case was created, the actual payment date will be the start 

date. 

• The start date can be any day up to and including the 31 st of the month. 

Combination of one-off payment and recurring payment 

• This combination may be chosen only when the plan is taken out. 

• The recurring payment will, in accordance with the rules stated under ”Recurring payments” above, 


NB: 

Intermediaries must deposit clients’ cheques as soon as possible (where applicable), since that 

date determines or influences the start date of and price at which units are purchased. If there 

are significant market fluctuations between the day on which the client hands the cheque over to 

the intermediary and the day on which it is deposited, this can lead to claims against the 

intermediary and Sanlam Life. Intermediaries will be held accountable personally for such 

claims. 

In the case of conversions the start date of the conversion (conversion date) is the date on which the 

conversion becomes effective. This date is always on the first of a month, except in the case of 

conversions of Stratus plans that were issued on the old administration system. The start date of such 

plans can be any day of the month. 

AGE AT ENTRY 




GE 3/2012 BX 8





also choose any of the growth options but the Sanlam inflation rate is the default choice. 




• Fixed growth 

The recurring payment will be increased each year by the chosen fixed percentage. Any percentage 

between 5% (minimum) and 20% (maximum) can be chosen. 

• Sanlam inflation 

The recurring payment will be increased each year by the inflation rate, as determined by Sanlam 

Life. In setting the rate, Sanlam Life will take into account the change in the consumer price index, 

or any other commonly accepted method of measuring inflation that may apply at the time. The 

Sanlam inflation rate may differ from official rates, due to differences in calculation methods. A 

minimum and maximum increase apply, which may change from time to time. At present the 

minimum increase every year is 4% and the maximum 20%. 

An illustrative rate of 5% is used to illustrate payments and values when payment growth is chosen 

at Sanlam inflation. 

NB: The limit of R500 per month for compulsory payment growth applies in respect of debit 

order payments. For stop order payments the limit is R517,50 per month (the payment 

charge of (currently) 3,5% included). 

INVESTMENT 

Sanlam Life invests a one-off payment and the savings part of a recurring payment plus an additional 

allocation, if applicable, less charges, in the respective chosen investment funds. The additional 

allocation depends on the level of commission negotiated at the start, and does not apply to 

conversions. 



Unit price 





• the fund's fixed administration charge; 





GE 3/2012 BX 9

INVESTMENT (continued) 

Unit price (continued) 

For the Vesting Bonus Fund the following applies, instead of using the market value directly: 

• Regular fully vesting bonuses are declared to give the fund a smooth growth. 

• A bonus rate is declared monthly and added to the fund by increasing the unit price with the daily 

equivalent of the bonus rate. 

• The bonus rate is calculated according to the expected long-term return of the fund, while taking into 

account the monthly market value change. 

The unit price of the units of the following investment funds is guaranteed not to decrease over time. 

For all other investment funds the unit price is not guaranteed, and may increase or decrease over time. 

• Vesting Bonus Fund 

• Guaranteed Capital Fund 

Closing of an investment fund 

It may occur that an investment fund is closed if, for example, legislation changes or certain classes of 

assets become unavailable. If a relevant plan is affected, Sanlam Life will request the planholder to 

choose another investment fund allowed at that stage for that specific type of plan, and to inform Sanlam 



Switching of investment funds 

Switching of investment funds allowed at the time for the applicable plan may be done on request. 

Sanlam Life will sell units of the investment funds out of which a switch is done, and buy units of the 

investment funds into which a switch is done. Sanlam Life does this on the first working day after 

receiving the switch request. 

Future payments may be allocated to any investment fund allowed for the relevant plan. The payments 


Cost to switch investment funds 


switch in a plan year, Sanlam Life will levy a transaction charge, which will be determined at the time. 

The current transaction charge is indicated in the planholder's statement. Sanlam Life may change the 

number of free switches from time to time. 

GE 3/2013 BX 10

LOYALTY BONUS 

Sanlam Life offers loyalty bonuses on certain plan anniversaries, as well as at death or termination on or 

after the option date – if it falls between two bonus dates. 

Working of the loyalty bonus 


anniversaries indicated below. The amount of the loyalty bonus is calculated as a percentage of some 

of the charges deducted from the plan since the date on which the previous loyalty bonus was added, or 



New Business 

Plan anniversary from 

start date Initial term 

5 years 

GE 3/2012 BX 11 


% 

Initial term 6 years 

up to and including 

10 years 

Initial term more 

than 10 years 

5 30 10 10 

10 52.5 55 50 

15 57.5 57.5 62.5 


thereafter 62.5 62.5 62.5 

Conversions 




% 

5 30 

10 30 

15 30 

20 30 


The charges included in the calculation of the loyalty bonus are: 

• the fixed administration charge, plus 

• the variable administration charge. 

For the purpose of this calculation these charges are adjusted at the same rate as the rate at which the 


Sanlam Life will also add a loyalty bonus when the plan is terminated 


• on request on or after the option date, provided that the plan is not terminated within two years of the 

start date. 



percentage of the rebate.

LOYALTY BONUS (continued) 

Working of the loyalty bonus (continued) 




If the recurring payment in respect of a conversion is reduced or stopped, the calculation of the loyalty 

bonus will be adjusted. The effect of the adjusted calculation is that a part of the potential loyalty bonus 

will be reduced in the same proportion that the payment after the reduction has to the payment at the 

start date of the plan. 

This part involves 

• 50% of all potential loyalty bonuses based on the recurring fund up to and including the alteration 

date and not yet added to the fund value, and 

• 50% of all future potential loyalty bonuses based on the recurring fund up to and including the option 

date. 

CHARGES 

Tax 


Charges on the plan 


• An initial marketing charge, deducted only in the case of new business from a recurring payment 

depending on payment size. 

• An initial marketing charge, deducted from the savings part of each recurring payment made from 

the start date of the conversion. 

• A payment charge, deducted from the savings part of recurring payments, if payments are not 

made by debit order. The charge is calculated as a percentage of the savings part of the recurring 

payment (currently 3,5%). 




− A fixed administration charge, which is a percentage of the fund value and may differ for 

different investment funds. It is taken into account when Sanlam Life calculates the daily price of 

the units. 







For the Vesting Bonus Fund the variable administration charge will always be calculated on a 

fund value equal to the number of units in the Vesting bonus Fund multiplied by its unit price. 

• A yearly guarantee charge, which is a percentage of the fund value, to pay for the cost of the 




GE 3/2012 BX 12

















• Some asset managers pay Sanlam Life a platform management fee for their investment funds. Such 

a fee is taken into account when the fixed and variable administration charges are calculated. The 

impact of this is that the fixed and variable administration charges are lower than what they would 

have been without a platform management fee. The size of the platform management fee as a 

percentage of the market value for each investment fund is indicated in a table in the planholder's 

statement. 






form the investment returns. These deductions are therefore not included in the indicated 

percentage. 





levy an alteration charge if the alteration is done before an alteration charge date. The alteration charge 

date is determined at the start. In the case of new business it does not change at subsequent 

alterations, but in the case of conversions it is indeed recalculated. Separate alteration charge dates 

apply to the one-off and recurring funds. 



well as the current minimum alteration charge, is indicated in the planholder's statement. 

GE 3/2012 BX 13








• An ad hoc withdrawal from the plan 





description, and as indicated in the planholder's statement. This transaction charge will increase in 


Sanlam Life will continue to levy a transaction charge after the alteration date. 




the time are met. Sanlam Life will levy a transaction charge when the recurring payment is reduced or 

stopped before the option date. Sanlam Life will also levy an alteration charge if this happens before the 

alteration charge date. 

One of the conditions for stopping the recurring payment is a minimum fund value, after the alteration 

charge, if applicable, or after the alteration and transaction charges, if applicable, have been deducted. 

If recurring payments are stopped despite this condition not being met, the plan will be terminated. If no 

termination value is available, the plan will lapse. The minimum fund value is indicated in the 

planholder's statement. 


The plan benefits may be realised in one of the ways described below. To realise a benefit, Sanlam Life 

will sell units on the day on which Sanlam Life receives the request. 

Legislative restrictions, as mentioned in this plan description, may apply. 


A plan may be terminated on request. The fund value, less the alteration charge, if applicable, and 

transaction charges, if applicable, will be paid to the planholder when the plan is terminated. 

GE 3/2012 BX 14

REALISING THE PLAN BENEFITS (continued) 

A loan against the plan 


Sanlam Life's conditions at the time are met. 



• The fund value, less the loan amount and the alteration charge, and/or transaction charge (according 

to the case), may not be less than a minimum (currently R3 500). 




The day on which Sanlam Life receives the request for a loan Sanlam Life will switch a number of units, 



Sanlam Life will base the calculation of the alteration charge, if applicable, on the reduction in the fund 

value as a result of the loan amount, and the transaction charge, if applicable. 

An ad hoc withdrawal from the plan 

The planholder may make an ad hoc withdrawal from the plan, provided that Sanlam Life's conditions at 

the time are met. As these conditions will change from time to time, they will be communicated when 

the planholder applies for an ad hoc withdrawal. Sanlam Life will sell the required number of units to 

pay both the alteration charge, and/or transaction charge, if applicable, and the withdrawal amount. The 

fund value will reduce by the value of the units sold. 

Regular withdrawals from the plan 

The planholder may apply to make regular withdrawals from the plan, provided that Sanlam Life's 

conditions at the time are met. One of these conditions is that regular withdrawals may not be made 

while recurring payments are being made. However, as conditions will change from time to time, they 

will be communicated when the planholder applies for regular withdrawals. 

Sanlam Life offers the following types of regular withdrawals: 

• Fixed amount 

A fixed amount of the planholder's choice will be paid each month or year. 

• Growth only 

Available only with Guaranteed Capital Fund. The amount of the actual growth in the fund values of 

the applicable investment funds, less a transaction charge, will be paid each month or year. 

The details of the regular withdrawals will be indicated in the planholder's statement after Sanlam Life 

has accepted the application for making regular withdrawals. 

GE 3/2012 BX 15


Regular withdrawals from the plan (continued) 

Sanlam Life levies a transaction charge for each withdrawal payment made. The charge will vary over 

time. Its current level is indicated in the planholder's statement. 

Sanlam Life will sell the required number of units from the applicable investment funds in proportion to 

their fund values to pay both the transaction charge, and the withdrawal amount. The fund value will 


Sanlam Life will sell the units on the requested withdrawal day. If a month does not have this particular 

day, or if it does not fall on a working day, Sanlam Life will sell the units on the following working day. 

Sanlam Life will pay the withdrawal amount as soon as possible after the units have been sold. 

Sanlam Life will stop the regular withdrawals when they fail to satisfy Sanlam Life's conditions. 



date, as indicated in the planholder's statement. 

During a restricted period, if the planholder wants to terminate the plan, Sanlam Life may not pay more 

at the termination than an amount determined according to legislative restrictions (Section 54). The 

remaining part of the termination value may only be paid after the restricted period end date. Therefore, 

if the termination value is more than this restricted amount, we do not allow the plan to be terminated, 

but an ad hoc withdrawal may be possible. 




date. 

In addition, Sanlam Life may grant only one loan against the plan during a restricted period. The 

amount of such a loan is also limited, as described above. If Sanlam Life has granted a loan during a 

restricted period, Sanlam Life may not do so again before the restricted period end date. 




• waiver of payment with future growth at disability 

• waiver of payment without future growth at disability 


No life cover or lump sum disability benefits are available. If the policy that is converted (in the case of a 

conversion) made provision for life cover and/or lump sum disability benefits, this cover and/or benefits 

will no longer apply after the conversion. 

GE 3/2012 BX 16


The benefit amount is equal to the fund value on the date that Sanlam Life receives notice of the death 

of the (last surviving) life insured, linked to the benefit payable at death. 


accept or reject the appointment after the death of the (last surviving) life insured, linked to the benefit 

payable at death. 


the planholder, and must reach Sanlam Life's head office before the death of the (last surviving) life 

insured, linked to the benefit payable at death. 

The appointment will lapse if the plan is ceded outright. If the plan is ceded as collateral security, the 


beneficiary. 


A person or an entity may be nominated to become the new planholder after the death of the planholder, 

provided the planholder is not the life insured or only life insured. The nominee may only accept or 

reject a nomination after the death of the planholder. 




planholder, and must reach Sanlam Life's head office before the death of the planholder. 


ALTERATIONS 


• Ad hoc additions of one-off payments, subject to the conditions under Section 54 of the Long-term 

Insurance Act. 

• Increases in recurring payments (only on plans issued with recurring payments from start date) 

subject to the conditions under Section 54 of the Long-term Insurance Act and the minimum increase 

in payments required by Sanlam Life at the time. 

• Reductions in payments, provided that the payment after decrease is not below the minimum 

payment required for new business at the date of alteration. 

• Once a plan with recurring payments has been made paid-up, a recurring payment cannot be added 

to the plan again. 

CESSIONS 

The planholder may do a collateral or outright session. 

TAX 

No tax is payable on the proceeds of the plan. Sanlam Life already pays tax in the chosen investment 

fund(s). 



GE 3/2012 BX 17

STRATUS INTERNATIONAL ENDOWMENT 

DESCRIPTION 

Stratus International Endowment is an endowment plan of which the proceeds are paid out in the 

currency of the investor’s choice. This product is currently available for one-off payments only. This 

investment is made in terms of the concession by the SA Reserve Bank to individual South African 

permanent residents to invest a total of R4 000 000 per year overseas. This concession is normally 

used for investment purposes and can include payments on a plan. To meet the requirements to offer 

an investment of which the proceeds may be paid in a foreign currency, Sanlam Life has established a 

branch on the Isle of Jersey. This branch trades as Sanlam Jersey. 

INVESTMENT PROCESS 

• The client invests a one-off payment. 

• This investment is made in rand. According to the choice of the investor the rand amount is 

switched to American (US) dollars, pound sterling or euro to make the payment of the plan. 

• Units are purchased in the relevant currency of the chosen investment fund(s). 

• The assets of the underlying investment fund(s) are 100% internationally based. 

• The proceeds of the plan are paid out in Jersey in the foreign currency/currencies of the chosen 

investment fund(s), or in the foreign currency of the investor’s choice. 

• All feedback to the investor takes place in rand value. 

INITIAL TERM 

• The client chooses an initial term, between the minimum and the maximum terms applicable, when 







planholder claims the proceeds, or until the death of the life insured. 

• The value of the policy investment is available at any stage after the initial term has expired, 

currently without deduction of an alteration fee. 


The client chooses an initial term when he or she takes out the plan. The date at the end of the initial 

term is the option date. 

The plan will automatically continue after the initial term has expired if the planholder does not notify 

Sanlam Life that he or she wants to take the proceeds. The plan can continue with or without further 

payments. 

GE 3/2012 BX 18


On the option date, the value of the policy investment, is available. If the planholder takes the available 

amount, the plan will be terminated. 

If the planholder does not take the value of the policy investment on the option date, the plan is not 

terminated. It is continued for further capital growth. 

If the planholder indeed wants to take the value of the plan on the option date, he or she must provide 

us with a completed claim form at least two days before the option date. 

CONDITIONS TO QUALIFY FOR THE PRODUCT 

See Section AA for conditions to which the clients must comply to qualify for Stratus International 

Endowment. 


To determine which investment funds are available for a specific product, consult the relevant proposal 

form. The relevant quotation system also indicates which investment funds are currently available for 

the specific product. 


Not available. 

START DATE 

The start date is the day on which the one-off payment is deposited in the Sanlam Jersey bank account, 

after being converted to the relevant foreign currency. It can be any day up to and including the 31 st of 

the month. 

AGE AT ENTRY 




NB: The minimum and maximum entry ages apply to both the planholder and the life insured. 

PAYMENTS 

The client can make one-off payments only. 


• One-off payment: R10 000 

• Ad hoc addition (one-off payment): R2 500 

Any ad hoc additions are subject to the restrictions in terms of Section 54 of the Long-term Insurance 

Act. 

The minimum amount that may be invested per investment fund is R50,00. 

GE 3/2012 BX 19

Other aspects: 

• All amounts have to be paid in rands to the nominated Reserve Bank authorised dealer. The dealer, 

acting on instructions of the planholder, will have these amounts converted into the currencies of the 

respective investment funds in which the plan is then invested, and paid into Sanlam Life's bank 

account in Jersey. 

• If the planholder and the premium payer differ, the form “International Plan : Payer is someone other 

than the applicant” must be completed. The form is available on the Brokers and Advisers Web as 

well as on Notes. 

• No back-dating is allowed. 

The one-off payments are the foreign currency equivalent of rand amounts, paid on a one-off basis. 



statement, is later than the payment date, Sanlam Life will not adjust the payment to allow for the delay 

from the payment date to the transaction date. 

INVESTMENT 

Sanlam Life invests a payment, less charges, in the respective chosen investment funds. Due to the 

transfer transaction, the investment normally takes place a few days after the date on which the rand 

amount was paid. 



Unit price 

The unit price is calculated daily, on the basis of the market value of the assets in the investment fund. 


• a service fee; 

• a fund management fee; 

• statutory charges, for example tax, and stockbroker fees; 

• a performance fee for the fund manager, if applicable to the investment fund; 

• initial fees, charged by some fund managers. 



assets become unavailable. If the relevant plan is affected, Sanlam Life will request the planholder to 




GE 3/2012 BX 20


Switching of investment funds allowed at the time for the specific type of plan may be done on request. 


investment funds into which a switch is done. Sanlam Life does this on the day Sanlam Life receives 

the switch request. 

Future payments may be allocated to any investment fund allowed for the relevant type of plan. The 

payments already allocated to the current investment funds, will then remain in these investment funds. 


Currently there is no administration fee for the first four switches in a plan year. For each subsequent 

switch in a plan year, Sanlam Life will levy a administration fee, which will be determined at the time. 

The current administration fee is indicated in the planholder's statement. Sanlam Life may change the 


Each investment fund available is denominated in a specific foreign currency. Sanlam Life currently has 

investment funds denominated in US dollar, pound sterling and euro, but Sanlam Life may add to these 

from time to time. Currently Sanlam Life does not recover a currency charge when a switch involves a 

currency switch. Sanlam Life may change this from time to time. 

Also see Section C(2) for more information regarding switches. 

VALUE OF THE POLICY INVESTMENT 

The value of the policy investment of a specific investment fund is the number of units multiplied by the 

unit price for that investment fund. 

The value of the policy investment of the plan is the total value of all the investment funds for that plan. 









A plan may be terminated on request. The value of the policy investment less the alteration fee, if 



The planholder may not borrow against the plan. 

GE 3/2013 BX 21





pay the alteration fee, if applicable, and the withdrawal amount. The value of the policy investment will 



The planholder may not receive regular withdrawals from the plan. 





at the termination than an amount determined according to legislative restrictions. The remaining part of 

the termination value may only be paid after the restricted period end date. Therefore, if the termination 

value is more than this restricted amount, Sanlam Life does not allow the plan to be terminated, but an 

ad hoc withdrawal may be possible. 




date. 


At the death of the (last surviving) life insured the value of the policy investment at the date on which 

Sanlam Life receives notice of such death, will be payable. 


accept or reject the appointment after the death of the (last surviving) life insured. When a beneficiary 

(who is a South African resident) receives the benefit, he or she must declare it to the South African 

Reserve Bank within 30 days (regulation 7 of exchange control regulations). See also Cessions for 

contents of the declaration. 



insured. 



beneficiary. 


A person or an entity may be nominated to become the new planholder after the death of the planholder. 

The nominee may only accept or reject a nomination after the death of the planholder. When a nominee 

becomes the new planholder, he or she must declare it to the South African Reserve Bank, via a local 

bank, within 30 days (regulation 7 of exchange control regulations. See also Cessions for contents of 

the declaration. 

If a nominee does not accept the nomination, or if nobody has been nominated, the plan will be an asset 

in the estate of the planholder. 




GE 3/2012 BX 22

PAYMENT OF ANY BENEFITS 

The benefits can be payable in one of the following events: 

• on the option date; 

• at the death of the planholder; or 

• if the planholder wants to make a withdrawal (in full or partial) at any stage during the duration of 

the plan. 

Sanlam Life will pay all benefits in Jersey in the currencies of the respective investment funds. 

However, the planholder may request Sanlam Life to pay it in any other currency, into a bank account in 

the country of the planholder's choice. Any currency charges and other bank charges will be deducted 

from the benefit amount. 

If the plan is ceded as collateral security and subsequently terminated by the cessionary, the termination 

value will only be payable in South Africa in rands, after the deduction of any currency charges and 

other bank charges. 

MAXIMUM ALLOWANCE 

An individual South African resident may not invest more than R4 000 000 per year in total overseas. In 

order to ensure that this happens, all investments taken out of the country in terms of the R4 000 000 

per year allowance must be taken into account. This includes international investments such as plans, 

unit trust investments, bank accounts, etc. Where international plans are concerned, the following 

existing and new plans at Sanlam Life and other insurers must be taken into account: 

• Investments with one-off payments. 

• Recurring payments as an annual amount, multiplied by die plan term. 

• Payment growth on recurring payments during the plan term of existing plans (taken out when 

recurring payments were still permitted). 

The above calculation does not include amounts of rand based (local) plans where an offshore 

investment fund (such as the Offshore Equity Fund) has been selected. 

As soon as a client has used the maximum permitted allowance, additions of one-off payments or other 

payments can not be done on existing International plans. 

ALTERATIONS 


• Ad hoc additions of one-off payments*, subject to the conditions under Section 54 of the Long-term 


• Increase in recurring payments* (only on plans issued with recurring payments from start date) 


in payments required at the time. 

• Reduction in payment*, provided that the payment after decrease is not less than the minimum 

payment required for new business at the time of the alteration. 

• Once a recurring payment* plan has been made paid-up, a recurring payment cannot be added to 

the plan again. 

* Where reference is made to recurring payments, it applies to existing plans taken out when recurring 

payments were still allowed. 

GE 3/2012 BX 23

CESSIONS 

The following cessions will be permissible, subject to the approval of the SA Reserve Bank: 

• From one individual to another individual. 

• From an individual to a non-natural foreign entity. 

The following apply if the cession is to another individual (in the RSA): 

When a Stratus International Endowment is ceded outright this means that the plan changes hands. In 

such a case, basically the same process must be followed as for new applications, therefore SARS 

clearance and SA Reserve Bank approval for the value of the plan on the cession date. To the cedent 

(previous planholder) this means that the value of the plan at cession may apply as credit for his/her 

R4 000 000 offshore allowance, and that he or she may therefore in future again take an equivalent 

amount of the value at cession offshore. To facilitate that his/her record with the SA Reserve Bank 

reflects the credit of his/her offshore allowance, the previous planholder should confirm this with ABSA, 

or with his own bank who may confirm this with ABSA. 

• The new planholder, if a SA resident, must submit a letter, addressed to the SA Reserve Bank, 

together with the Notice of Cession, to Sanlam Life. Sanlam Life then gives this letter to ABSA, 

which acts as the authorised dealer for the plan. In terms of the exchange control regulations, the 

new planholder must submit this letter to ABSA within 30 days of obtaining the rights to the plan 

benefits. Sanlam Life therefore requires this to be submitted together with the Notice of Cession. In 

this letter the cessionary (new planholder) must inform the SA Reserve Bank: 

− that he/she has acquired the plan, and indicate the date on which the plan was acquired, as well 

as the value of the plan at that date; 

− how the plan was acquired, for example bought, exchanged, as a gift, etc.; 

− why the plan was acquired (purpose of the plan); 

− where the plan benefits will be received (overseas or in the RSA); 

− how the plan will be maintained (mention whether payments are to be made) in the case of plans 

with recurring payments which were taken out when that was still available; and 

− whether the plan is going to be retained. 

In the letter the new planholder must also undertake to obtain the SA Reserve Bank's prior permission if 

the plan is to be sold, transferred or otherwise dealt with by the new planholder. 

All these requirements are set by regulation 7 of the exchange control regulations. Even if the plan does 

not have any value on the cession date, the above-mentioned requirements must still be provided by the 

new planholder. 

NB: (Also see the last paragraph about cessions below.) Because the exchange control 

regulations require the letter from the person to whom the plan has been ceded, the latter 

(the cessionary) is responsible for its content, and the most Sanlam Life can do is to give 

guidelines on the content of the letter. 

The contract stipulates that in the case of collateral security cessions the collateral security cessionary 

may only receive the benefits in rand in the RSA. 

GE 3/2012 BX 24

CESSIONS (continued) 

Cessions of Stratus International Endowment plans to persons or institutions offshore are allowed only 

if certain guidelines are complied with. These guidelines are as follows: 

Payments The following rules apply to ad hoc one-off payments on a Stratus 

International Endowment: 

Cessionary a foreign 

trust 


individual 


company 

Cedent's foreign 

allowance limit not 

credited 

TAX 

• The planholder must be resident in the RSA. 

GE 3/2012 BX 25 

• The planholder must have obtained permission from the SA Reserve 

Bank and tax clearance from the South African Revenue Services 

(SARS) for payments made, unless he only has a temporary work permit 

in the RSA in which case a declaration from his RSA bank to ABSA is 

required. 

• The payments may only be made via an ABSA account in the RSA, after 

which they are converted into the foreign currency concerned. 

If a Stratus International Endowment is ceded to a foreign trust Sanlam Life 

requires a certified copy of the appointment of the trustees by the foreign 

authorities where the trust is registered. 

If the cessionary is an individual in a foreign country, Sanlam Life requires a 

certified copy of the foreign identity document or passport, as well as written 

proof of the residential address (e.g. a certified copy of a bank statement 

with the cessionary's address on it). 

If the plan is ceded to a foreign company, Sanlam Life requires a certified 

copy of the company's registration certificate in the foreign country, as well 

as a letterhead of the company. 

In case of a cession to a foreign resident the cedent's (previous planholder) 

R4 000 000 foreign allowance is not credited with the value of the plan. A 

credit of the allowance to the cedent only applies when he cedes the plan to 

another RSA resident (who is subject to the R4 000 000 foreign allowance 

limit). 

No tax is payable on the proceeds of the plan. Sanlam already pays tax in the chosen investment fund. 


The normal cooling-off period applies.

STRATUS EDUFOCUS 

DESCRIPTION 

Stratus Edufocus is an investment where a client can take out a no-risk plan (without life cover) on the 

life of a child, e.g. to make financial provision for the child's tertiary education. One or more of the 

available investment funds (maximum 10) may be chosen. 




• waiver of payment with future growth at death 

• waiver of payment without future growth at death 

Such a plan must always have at least one life insured. It is, however, possible to have more than one 

life insured on such a plan. Only one life insured may be linked to the savings benefit, while a maximum 

of 2 lives insured can be linked to each of the two types of waiver of payment benefits (at disability and 

at death). 

With this savings product, Sanlam Life wants to offer clients a transparent, good value for money 

product. After certain charges have been subtracted, Sanlam Life purchases units for the client with his 

net investment. 


at any time. 

EXPLANATIONS 

Option date 






One-off fund 







Working day 


GE 3/2012 BX 26

INITIAL TERM 

• The client chooses an initial term, between the minimum and the maximum terms applicable, when 





• A maximum term of ten years is allowed for lives insured of 60 next birthday and older for plans with 

recurring payments. 



planholder claims the proceeds, or until the death of the child. 

• If a term longer than 15 years is granted, the commission discounting term is limited to 15 years. 

FUND VALUE 



For the Vesting Bonus Fund the fund value will be equal to the number of units of the Vesting Bonus 


• the date on which Sanlam Life receives notice of the death of the life insured, linked to the benefit 

payable at death, or 







Bond Fund. This will be done by selling a number of units equal in value to the difference between the 







The client chooses an initial term when he or she takes out the plan. The date at the end of the initial 

term is the option date. 

The plan will automatically continue after the initial term has expired if the planholder does not notify 

Sanlam Life that he or she wants to take the proceeds. The plan can continue with or without further 

payments. 




If the planholder chose the investment guarantee in the case of an investment fund where such a 

guarantee is available, a minimum rate of investment return will be guaranteed on the fund value in each 


If the planholder does not take the fund value on the option date, the plan is not terminated. It is 

continued for further capital growth. If the planholder wants to continue with the investment, but he or 

she wants to cease payments after the option date, he or she must at that stage inform us accordingly. 

If the planholder indeed wants to take the fund value on the option date, he or she must provide us with 

a completed claim form at least two days before the option date. 

GE 3/2012 BX 27




product. 





PAYMENTS 

The client can choose to make one of the following payments: 


• Recurring payments (must be chosen when the plan is taken out – it cannot be added later) 






















applicable. Also, if waiver of payment benefits are applicable, and a recurring payment is not made in 

full within a 30 day period of grace, these benefits will no longer provide cover. 





GE 3/2012 BX 28






only: 

One-off 

payment 

R10 000 

R2 500 

N/a 

Ad hoc 

addition 

(one-off 

payment) 

1 

R2 500 

R2 500 

R2 500 

GE 3/2012 BX 29 

Initial 

term 

18 

years 

and 

longer 

N/a 

R150 

R150 

2 and 3 

Recurring payment per month 

Initial 

term 15 

years up 

to and 

including 

17 

years 

N/a 

R200 

R200 

Initial 

term 10 

years up 

to and 

including 

14 

years 

N/a 

R250 

R250 

Initial 

term 5 

years up 

to and 

including 

9 

years 

N/a 

R400 

R400 

1 Subject to the restrictions in terms of Section 54 of the Long-term Insurance Act. 


3 For debit order payments less than R500 per month, payment growth is compulsory. See "Payment 

growth" later in this section for full particulars regarding when payment growth applies. 


investment fund choices. 

START DATE 

The start date is determined by the type of payment that is made and is as follows: 


• The start date can be any day from the 1 st up to and including the 28 th of the month, subject to the 

payment method. The day on which the first payment is payable, is the start date of the plan. 

• If the mode of payment is per debit order, the start date can be any day up to and including the 28 th 

of the month. The debit order date, however, can be any day of the month. For debit order dates 

after the 28 th of the month, the start date will be the first of the next month. 

• If the mode of payment is per stop order, the start date day will always be the first of the following 

month. 


• The start date is the date on which New Business received the last requirements for issuing of the 

plan. 

• If no requirements were set, the start date for the one-off payment deposited at any contracted-in 


− If the payment was made before the case was created, the case date will be the start date. 

− If the payment was made after the case was created, the actual payment date will be the start 

date. 

• The start date can be any day up to and including the 31 st of the month. 

Ad hoc 

recurring 

payment 

increase 1 

N/a 

R150 

R150

Combination of one-off payment and recurring payment 

• This combination may be chosen only when the plan is taken out. 

• The recurring payment will, in accordance with the rules stated under “Recurring payment" above, 


NB: 

Intermediaries must deposit clients’ cheques as soon as possible (where applicable), since that 

date determines or influences the start date of and price at which units are purchased. If there 

are significant market fluctuations between the day on which the client hands the cheque over to 

the intermediary and the day on which it is deposited, this can lead to claims against the 

intermediary and Sanlam Life. Intermediaries will be held accountable personally for such 

claims. 

AGE AT ENTRY 

The minimum and maximum entry ages for the child are as follows: 



The minimum and maximum entry ages for the co-insured are as follows: 


• Maximum : 65 anb if only waiver of payment benefits at death are chosen 

: 60 anb if waiver of payment benefits at disability are chosen 





also choose any of the growth options but the Sanlam inflation rate is the default choice. 


















charge of (currently) 3,5% included). 

GE 3/2012 BX 30

INVESTMENT 


allocations, if applicable, less charges, in the respective chosen investment funds. An additional 

allocation depends on the level of commission negotiated at the start. 


investment fund(s) on the transaction date. 

Unit price 






















assets become unavailable. If a specific plan is affected, Sanlam Life will request the planholder to 





Switching of investment funds allowed at the time for the specific type of plan may be done on request. 




Future payments may be allocated to any investment fund allowed for the specific type of plan. The 







GE 3/2013 BX 31

LOYALTY BONUS 

Sanlam Life offers loyalty bonuses on certain plan anniversaries, as well as at death or termination on or 

after the option date – if it falls between two bonus dates. 




of the charges deducted from the plan since the date on which the previous loyalty bonus was added, or 




start date Initial term 

5 years 

GE 3/2012 BX 32 


% 

Initial term 6 years 


10 years 

Initial term more 

than 10 years 

5 30 10 10 

10 52.5 55 50 

15 57.5 57.5 62.5 


thereafter 62.5 62.5 62.5 









start date. 

If the termination date for either of the above termination events falls between any of the plan 





Life will add the units on the first working day thereafter.

CHARGES 

Tax 




• An initial marketing charge, deducted from a one-off payment or deducted from the savings part of 

recurring payments. 

• A payment charge, deducted from the savings part of recurring payments, if payments are made by 

stop order. The charge is calculated as a percentage of the savings part of the recurring payment 

(currently 3,5%). 






the units. 








fund value equal to the number of units in the Vesting Bonus Fund multiplied by its unit price. 











• A performance charge, which may be levied if the investment fund outperforms its benchmark. The 



on the Sanlam website under "Investment funds". 











statement. 

GE 3/2012 BX 33









percentage. 

• Direct investment expenses, for example, collective investment initial fees, brokerage, audit fees, 





date is determined at the start and does not change at subsequent alterations. Separate alteration 

charge dates apply to the one-off and recurring funds. 


A minimum alteration charge applies. The current alteration charge for the most common alterations is 








• An ad hoc withdrawal from the plan 







Sanlam Life will continue to levy a transaction charge after the alteration date. 






alteration charge date. 

One of the conditions for stopping the recurring payment is a minimum fund value after the alteration 


this condition not being met, the plan will be terminated. If no termination value is available, the plan will 

lapse. The minimum fund value is indicated in the planholder's statement. 

GE 3/2012 BX 34






A plan may be terminated on request. The fund value, less the alteration and transaction charges, if 







• The fund value, less the loan amount and the alteration and transaction charges, may not be less 

than a minimum (currently R3 500). 







Sanlam Life will base the calculation of the alteration charge, if applicable, on the reduction in the fund 

value as a result of the loan amount and the transaction charge. 





pay the alteration and transaction charges, if applicable, and the withdrawal amount. The fund value will 















GE 3/2012 BX 35






their fund values to pay the transaction charge, and the withdrawal amount. The fund value will reduce 










at the termination than an amount determined according to legislative restrictions (Section 54). The 


if the termination value is more than this restricted amount, we do not allow the plan to be terminated, 

but an ad hoc withdrawal may be possible. 




date. 

In addition, Sanlam Life may grant only one loan against the plan during a restricted period. The 

amount of such a loan is also limited, as described above. If Sanlam Life has granted a loan during a 

restricted period, Sanlam Life may not do so again before the restricted period end date. 






• waiver of payment with future growth at death 

• waiver of payment without future growth at death 




At the death of the child, the fund value as at the date on which Sanlam Life received notice of the 

death, is payable. If the planholder chose the investment guarantee in the case of an investment fund 

where such a guarantee is available, a minimum rate of return is guaranteed on the investment in each 


GE 3/2012 BX 36

BENEFICIARY TO RECEIVE BENEFITS AT DEATH 

The planholder can appoint any person or institution as beneficiary to receive the benefit at death of the 

life insured. Up to 10 beneficiaries may be appointed in total. The beneficiary(ies) may be revoked or 

changed at any time, as long as it is in writing. 

NOMINEE TO BECOME A NEW PLANHOLDER 

Only one planholder is allowed per plan. Only one nominee for planholdership may be appointed. 

A person or an entity may be nominated to become the new planholder after the death of the planholder, 

provided the planholder is not the life insured or only life insured. The nominee may only accept or 

reject a nomination after the death of the planholder. 



A nomination may be added, cancelled or changed at any time. It must be in writing an signed by the 



ALTERATIONS 


• Ad hoc additions of one-off payments, subject to the conditions under Section 54 of the Long-term 


• Increases in recurring payments (only on plans issued with recurring payments from start date) 


in payments required at the time. 

• Reductions in payments, provided that the payment after decrease is not less than the minimum 

payment required for new business at the date of alteration. 

• Once a recurring payment plan has been made paid-up, a recurring payment cannot be added to the 

plan again. 

CESSIONS 


TAX 




GE 3/2012 BX 37

STRATUS ENDOWMENT CONTINUATION 

DESCRIPTION 

Stratus Endowment continuation is an investment where clients can continue the maturity value or the 

fund value of their non-Stratus Endowment with or without payments in one or more of the available 

investment funds (a maximum of 10 funds may be chosen). 

Clients can also choose to receive regular withdrawal amounts if no further payments are made. 


certain charges have been subtracted, Sanlam Life purchases units for the client with his net 

investment. 


at any time. 

EXPLANATIONS 


There is no fixed term. The plan will continue until the planholder terminates the plan. 

One-off fund 

It is the part of the fund value built up by one-off payments (the continuation amount). 



Working day 


INITIAL TERM 

No initial term applies for continuations. There is no specific date on which the plan will mature. The 

plan will continue until the planholder claims the proceeds or until the death of the life insured, whichever 

is applicable. The plan value is available at any time. 



form. 





THE INVESTMENT GUARANTEE DATE 

• If an investment guarantee is chosen, the plan has one investment guarantee date. 

• The investment guarantee date is five years after the continuation date. 

GE 3/2012 BX 38

PAYMENTS 






















• The continuation amount after deduction of the initial advisory fee (if any), is the one-off payment 

available for the continuation. Minimum R10 000,00. 

• An ad hoc one-off payment is permitted, subject to the restrictions of Section 54 of the Long Term 


• The minimum recurring payment is R150,00 p.m. 

Note: The minimum amount that may be invested per investment fund is R50,00. 


investment fund choices in the case of new business. 


Payment growth on these continuations is optional. The client can choose a fixed rate, or can choose 

that payments increase at Sanlam inflation. 



GE 3/2012 BX 39

PAYMENT GROWTH (continued) 














START DATE 

The start date (continuation date) is the same as the date on which the existing policy matures. 

AGE AT ENTRY 

No minimum or maximum age at entry applies. 

INVESTMENT 

Sanlam Life invests a payment, less charges, in the respective chosen investment funds. 

Sanlam Life uses the amount allocated to a specific investment fund to buy units in that investment fund 

on the transaction date. 

Unit price 
















The unit price of the units of the following investment funds is guaranteed not te decrease over time. 




GE 3/2012 BX 40




assets become unavailable. If a relevant plan is affected, Sanlam Life will request the planholder to 





Switching of investment funds allowed at the time for the applicable plan may be done on request. 




Future payments may be allocated to any investment fund allowed for the relevant plan. The payments 







FUND VALUE 





• the date on which Sanlam Life receives notice of the death of the (last surviving) life insured, linked 

to the benefit payable at death, or 

• a date every five years after the start date of the continuation. 











GE 3/2013 BX 41

LOYALTY BONUS 

Sanlam Life offers loyalty bonuses on certain plan anniversaries, as well as at death. 


Rebates for certain charges are added to the fund value in the form of a loyalty bonus on every 3rd plan 

anniversary. The amount of the loyalty bonus is calculated as a percentage of some of the charges 

deducted from the plan since the date on which the previous loyalty bonus was added, or since the start 

date for the first loyalty bonus. 



continuation date 

GE 3/2012 BX 42 

Rebate 

% 

3 20 

6 30 

9 40 

12 years and every three years thereafter 50 






Sanlam Life will also add a loyalty bonus when the plan is terminated due to a death claim. If for the 

termination event the termination date falls between any of the three yearly loyalty bonus intervals plan 

anniversaries, the next three yearly loyalty bonus interval plan anniversary is used to determine the 





CHARGES 

Tax 




• An initial marketing charge, deducted from each payment. 


charge is calculated as a percentage of the recurring payment (currently 3,5%). 


monthly from the fund value by selling units to the value of the charge.


Charges for the plan (continued) 




the units. 

− A variable administration charge, which is a percentage of the fund value. This charge is 




fund value equal to the number of units in the Vesting bonus Fund multiplied by its unit price. 

























statement. 







percentage. 




A plan may be changed at any stage, provided Sanlam Life agrees to the alteration. Sanlam Life will not 

levy an alteration. 

GE 3/2012 BX 43


INTERMEDIARY 

Initial investment advice 

If the planholder has agreed to pay the intermediary a one-off advisory fee for initial investment advice 

received, this fee will be deducted from the fund value by means of a withdrawal to the value of the fee. 

Ongoing investment advice 

The planholder may request Sanlam Life to pay a fee, including VAT if applicable, for ongoing 

investment advice for his or her investment. Sanlam Life will pay this fee monthly to the intermediary 









value, for example, a fee of 0.50% implies R41,67 per month if the fund value equals R100 000,00. 

For the Vesting Bonus Fund the fund-based fee will always be calculated on a fund value equal to the 

number of units in the Vesting Bonus Fund multiplied by its unit price. 





One of the conditions for stopping the recurring payment is a minimum fund value. If recurring 

payments are stopped despite this condition not being met, the plan will be terminated. If no termination 

value is available, the plan will lapse. The minimum fund value is indicated in the planholder's 

statement. 






A plan may be terminated on request. The fund value, if applicable, will be paid to the planholder when 

the plan is terminated. 

GE 3/2012 BX 44







• The fund value, less the loan amount, may not be less than a minimum (currently R3 500). 











pay the withdrawal amount. The fund value will reduce by the value of the units sold. 









If a fixed amount is withdrawn from more than one investment fund, the withdrawal will be made 

proportionally from the chosen investment funds. 






GE 3/2013 BX 45






their fund values to pay the transaction charge and the withdrawal amount. The fund value will reduce 






The planholder must specify the following information in the application form (item number AEB2009/ 

AEB2013/ AEB2039): 

• Type of regular cash withdrawal (“fixed amount” or “growth only”) 

• The amount constituting the fixed amount that is withdrawn (if a fixed sum is chosen) 

• The frequency of the regular cash withdrawal (only monthly or annually) 

• Date on which first cash withdrawal sum is required. This date may not be more than three months 

in the future for monthly withdrawals. The date for yearly withdrawals may not be more than 12 

months in the future. 

NB: This date is the date that is used to determine the selling price at which units are sold to 

provide the first cash withdrawal sum. However, the payment of the cash withdrawal 

amount takes place at least two working days later. Subsequent amounts are 

determined and paid in the same way every month or year. 

• The name(s) of the chosen investment fund(s) from which the cash withdrawal(s) must be funded 

NB: Only one instruction at a time is possible for regular cash withdrawals. For example, it is 

not possible to request two different amounts from two different investment funds for the 

cash withdrawals. 





GE 3/2012 BX 46



of the (last surviving) life insured. 


accept or reject the appointment after the death of the (last surviving) life insured. 



insured. 



beneficiary. 


A person or an entity may be nominated to become the new planholder after the death of the planholder. 

The nominee may only accept or reject a nomination after the death of the planholder. 






ALTERATIONS 


• Addition of an ad hoc one-off payment after start date (minimum of R2 500). 

• Increase/decrease of recurring payments. The minimum increase is R150,00 per month. The 

payment after a decrease must meet the minimum new business requirement, and must therefore be 

at least R150,00 a month at present. 

CESSIONS 


TAX 

In terms of current legislation the regular cash withdrawal amounts are not taxable in the hands of the 

planholder. Sanlam Life already pays tax on any taxable profits in the investment portfolio. The regular 

cash withdrawal amounts are therefore after-tax money. 

No tax is payable on the proceeds of the plan. Sanlam Life already pays tax in the chosen investment 

fund. 

GE 3/2012 BX 47

STRATUS CONTINUATIONS WITHOUT LIFE INSURED 

DESCRIPTION 

A Stratus Continuation (without life insured) is an investment where clients can continue the maturity 

value or the fund value of their non-Stratus Sinking Fund policy, with or without payments, in one or 

more of the available investment funds (a maximum of 10 funds may be chosen). Clients can also 

choose to receive regular withdrawal amounts if no further payments are made. 

With Stratus, Sanlam Life is trying to offer clients transparent, good value for money products. After 

recovery of certain fees, Sanlam Life purchases units for the client with his net investment. 


at any time. 

INITIAL TERM 

No initial term applies for continuations. There is no specific date on which the plan will mature. The 

plan will continue until the planholder claims the proceeds. The plan value is available at any time. 



form. 





PAYMENTS 

The client can choose to continue the plan with or without the payment of recurring payments provided 

the continuation is done within the restrictions of Section 54. 


Payments are payable by debit order, internal funding or magtape (electronic) stop order. No debit 

order discount applies. Debit orders are permitted any day of the month up to and including the 31st. 

The start date is, however, always between the 1 st and the 28 th of the same month. 

The payments of a continued plan are as follows: 

• The continuation amount, after the deduction of the initial advisory fee (if any), is the one-off 

payment that is available for the continuation. 

• No advisory fee is payable on recurring payments. The full recurring payment is therefore used as a 

payment on the plan. 

GE 3/2012 BX 48


Minimum payments 

• The minimum one-off payment (continuation amount minus initial advisory fee) is R10 000. 

• The minimum recurring payment is R150,00 per month. 

Minimum ad hoc addition 

Ad hoc one-off payment can be added after the start date subject to Section 54. The minimum is 

currently R2 500 per addition. 

START DATE 


AGE AT ENTRY 

Any age is acceptable. 


Payment growth is optional on these plans. The client can choose a fixed rate, or can choose that 

payments increase at the consumer price index (CPI). 

• Fixed growth rate 

Any percentage of payment growth between 5% (minimum) and 20% (maximum) can be chosen. 

• Consumer price index (CPI) 

When the increase is determined on the basis of the inflation rate, the change in the consumer price 

index, or any other commonly accepted method of measuring inflation that may apply at the time, will 

be taken into account. The minimum increase every year will be 4%. This minimum can be 

changed from time to time. 


at CPI. 






No death benefit is payable at the death of the planholder (no life insured is involved). The plan is 

continued until it is surrendered. If the planholder appointed a nominee for planholdership, that nominee 

will become the new planholder after the death of the existing planholder, if he/she accepts the 

nomination at that stage. If there is no such nominee at the death of the planholder, the plan will be an 

asset in the planholder’s estate. 

GE 3/2012 BX 49

WITHDRAWALS 

• Withdrawals can be made. 

• No termination fee is presently charged if a withdrawal is made. 

• Withdrawals can be made at any time. 

• On plans with more than one underlying investment fund the client has two options: 

− withdrawal from one specific fund as a percentage of that fund (must be requested as a 

percentage of the fund value), or 

− proportional withdrawal from all underlying investment funds - the client chooses an amount or a 

percentage proportional to each fund. 

REGULAR CASH WITHDRAWALS 

The planholder can make regular cash withdrawals on a Stratus Continuation if the plan meets the 

minimum requirements. This facility is available only if no payments are made in terms of the plan. This 

means that a plan on which payments are being made currently, must be made fully paid-up before 

regular cash withdrawals can be made in terms of such a plan. 

Types of regular cash withdrawals 

Two types of regular cash withdrawals can be made: 

• A fixed sum can be withdrawn from specified funds ("fixed amount"), or 

• The investment return on the plan investment in the Guaranteed Capital Fund, while the fund value 

remains constant ("growth only"). 

If a fixed amount is withdrawn from more than one investment fund, the withdrawal will be made 

proportionally from the chosen investment funds 

NB: For regular cash withdrawals of investment return the Guaranteed Capital Fund must be 

chosen. This applies only for the withdrawal of investment return, and not for withdrawal of 

a fixed amount. 

Information in the application form 

The planholder must specify the following information in the application form (item number AEB2009/ 

AEB2013/ AEB2039): 

• Type of regular cash withdrawal (“fixed amount” or “growth only”) 

• The amount constituting the fixed amount that is withdrawn (if a fixed sum is chosen) 

• The frequency of the regular cash withdrawal (only monthly or annually) 

• Date on which first cash withdrawal sum is required. This date may not be more than three months 

in the future for monthly withdrawals. The date for yearly withdrawals may not be more than 12 

months in the future. 

NB: This date is the date that is used to determine the selling price at which units are sold to 

provide the first cash withdrawal sum. However, the payment of the cash withdrawal 

amount takes place, at least two working days later. Subsequent amounts are 

determined and paid in the same way every month or year. 

• The name(s) of the chosen investment fund(s) from which the cash withdrawal(s) must be funded 

NB: Only one instruction at a time is possible for regular cash withdrawals. For example, it is 

not possible to request two different amounts from two different investment funds for the 

cash withdrawals. 

GE 3/2012 BX 50

Alterations to regular cash withdrawals 

After the planholder has started to receive regular cash withdrawals, he can request the following 

alterations with regard to the cash withdrawals: 

• The amount of the regular cash withdrawals can be changed. 

• The frequency of the payments can be changed from monthly to annually (and vice versa). 

• The date on which the regular cash withdrawal amounts are paid, can be changed. 

When the planholder makes any change to his regular cash withdrawals, Sanlam Life may again apply 

the minimum requirements that apply for regular cash withdrawals. 

Minimum requirements 

Minimum cash withdrawal 

amount 

Maximum cash withdrawal 

amount 

GE 3/2012 BX 51 

R150,00 per frequency (both monthly and annually) 

If the planholder has chosen to withdraw the growth in the fund 

value monthly/annually, this growth will be paid out only if it is 

R150,00 or more. If the growth is less than R150,00 per 

frequency, the payment will be held over until the date of the 

next payment. Only one such a payment can be skipped. If the 

subsequent payment (together with the skipped payment) is still 

below R150,00, the regular cash withdrawals will be suspended. 

The total cash withdrawal amount per annum may not exceed 

20% of the fund value. 

Minimum fund value R20 000 This minimum applies in respect of the investment 

fund(s) out of which the regular cash withdrawals 

are funded (which is not necessarily the whole plan 

investment). 

Minimum remaining fund value 

after each withdrawal 

Tax 

R3 500 (If at any stage the fund value decreases to below 

this minimum, the cash withdrawals will be stopped 

immediately.) 

In terms of current legislation these regular cash withdrawal amounts are not taxable in the hands of the 

planholder. Sanlam Life already pays tax on any taxable profits in the investment portfolio. The regular 

cash withdrawal amounts are therefore after-tax money. 

LOANS 

• Loans are available two months after the continuation date. 

• No loan administration fee is currently charged. 

• A number of units (in the underlying investment fund(s)) to the value of the loan amount granted, will 

be switched to units in the Stratus Planholder Loan Fund. The latter fund does not participate in any 

growth. Settling the loan would result in a switch of units in the Stratus Planholder Loan Fund to units 

in the plan's investment fund(s) - at the then prevailing selling price of the relevant investment 

fund(s). If the price of the units in the plan's investment fund(s) at that stage is higher than it was 

when the loan was entered into, it means that fewer units will be switched to the plan's investment 

fund(s). The repayment amount may not exceed the loan amount (without the loan levy). If the full 

loan is repaid in one installment, the value of the units on the repayment date will, however, be equal 

to the value of the units that were cancelled when the loan was entered into (loan levy excluded). 

The investment return that the planholder does not get during the loan period, can be regarded as 

“interest paid” over the loan period. 

• The minimum loan amount is R3 000. The remaining fund value must be at least R3 500 after the 

loan has been granted. 

• Repayments can be made at any time.


INTERMEDIARY 

The planholder may request Sanlam Life to pay a fee, including VAT if applicable, for ongoing 

investment advice for his or her investment. Sanlam Life will pay this fee monthly to the intermediary 





The investment review fee for this investment is the chosen percentage per year, including VAT if 

applicable, of the value of the policy investment. Each month Sanlam Life will deduct one-twelfth of the 

fee by means of a withdrawal from the value of the policy investment. The amount of the investment 

review fee is linked to and will therefore fluctuate with the value of the policy investment, for example, a 

fee of 0,50% implies R41,67 per month if the value of the policy investment equals R100 000,00. 

For the Vesting Bonus Fund the investment review fee will always be calculated on a value of the policy 

investment equal to the number of units in the Vesting Bonus Fund multiplied by its selling price. 

ALTERATIONS 


• Addition of an ad hoc one-off payment after start date (minimum of R2 500). 

• Increase/decrease of recurring payments. The minimum increase is R150,00 per month. The 

payment after a decrease must meet the minimum new business requirement, and must therefore be 

at least R150,00 a month at present. 

BENEFICIARY TO RECEIVE BENEFIT AT DEATH 

No beneficiaries may be appointed since there is no life insured. 

PLANHOLDERSHIP 

Only one planholder is allowed per plan. Only one nominee for planholdership is allowed 

CESSIONS 


TAX 


GE 3/2012 BX 52

STRATUS RETIREMENT ANNUITY 

DESCRIPTION 

The Stratus Retirement Annuity is a plan that the Central Retirement Annuity Fund (CRAF) or 

Professional Provident Society Retirement Annuity Fund (PPS-RAF) uses to finance the benefits that it 

must pay to its members. When the word "Fund" is used further in this section, it refers to both above 

mentioned Funds. The Board of Trustees of the PPS-RAF decided to close the Fund for new business 

and for contribution increases on existing business from 1/10/2012. 


fund these benefits, the Fund takes out a plan on the member’s life with Sanlam Life. The Fund is the 

planholder and uses the member’s contribution(s) to make the one-off and/or recurring payments. The 

information below will give an indication of the benefits the member can expect to receive from the Fund. 


certain charges have been subtracted, Sanlam Life uses the net investment to purchase units for the 

client’s benefit. 

The member chooses that the investment be invested in one or more of the available investment funds 

(a maximum of 10 funds may be chosen) in a pure investment plan (without cover). 




See information later in this section for more information regarding the purpose of a retirement annuity, 

income tax and estate duty. 

EXPLANATIONS 

Option date 

It is the date which indicates the end of the term of the plan, and is indicated in the planholder's 

statement. 





One-off fund 







Working day 


GE 3/2013 BX 53

INITIAL TERM 

• The life insured selects a retirement date when taking out the plan. 

• This retirement date can be any date from the life insured's fifty-fifth birthday. No maximum 

retirement age applies. The period from the start date up to and including the chosen retirement 

date is called the initial term. 

• A maximum term of ten years is allowed for lives insured of age 60 next birthday and older for plans 

with recurring payments. 

• For recurring payments a minimum term of two years apply. 

• In the case of conversions, the client may also select the retirement date to be the same as that of 

the plan that is converted, subject to a minimum of one year. Incomplete years are permitted. The 

term may not be shorter than the outstanding term of the plan that is converted, but with a further 

minimum of one year. Otherwise the minimum term for plans with one-off payments are one year 

and for plans with recurring payments two years. However, if the plan is invested in an investment 

fund to which an investment guarantee applies, or if the plan is invested in the Vesting Bonus Fund, 

the minimum term is 5 years. 


automatically be paid out when the initial term has expired, but that the plan will continue until the life 

insured informs Sanlam Life that the plan must be terminated, or until the death of the life insured – 

whichever comes first. 


The life insured chooses an initial term on the conversion date, or when he or she takes out the plan. 

The date at the end of the initial term is the option date. This date cannot be before the life insured's 

55 th birthday. 

The plan will continue automatically after the option date if the life insured or the Fund does not notify 

Sanlam Life that the available retirement benefit must be paid out. The plan can continue with or without 


FUND VALUE 




Fund multiplied by its unit price, on any of the following dates only: 

• the date on which Sanlam Life receives notice of the death of the life insured, or 










benefit had been paid at a time when the number of units multiplied by the unit price was lower than or 



GE 3/2012 BX 54

RETIREMENT BENEFIT AVAILABLE ON OPTION DATE 

On the option date, the amount to which the fund value has grown, will be available for the provision of 

the retirement benefit. If the life insured takes the available amount, the plan will be terminated. 

If no investment guarantee was chosen, the fund value will not be guaranteed. If the life insured chose 

an investment guarantee in the case of an investment fund where such a guarantee is available, a 

minimum rate of return is guaranteed on the investment in each investment fund for which an investment 

guarantee was chosen. 

Sanlam Life, on behalf of the Fund, may pay out up to one-third of the available amount in a lump sum 

to the life insured. The balance must be used to provide the life insured with regular pension payments. 

Or, depending on the member’s choice, the entire amount available can be used to provide the life 

insured with regular pension payments. 

If the benefit amount does not exceed the amount prescribed by legislation from time to time, the life 

insured may take the full benefit amount as a lump sum. 

If the life insured does not take the retirement benefit on the option date, the plan will not be terminated. 

And, except where the life insured or the Fund informs us otherwise, we will continue the fund value in 

the investment fund(s) in which it is invested at that stage, for further growth. If the life insured wants 

the plan to continue, but he or she wants to stop the payments (in the case of recurring payments) after 

the option date, he or she must inform us accordingly at that stage. 

After the initial term has expired (therefore after the option date), the retirement benefits can be taken at 

any time. At present, no alteration charge is applicable after the option date. Sanlam Life may change 

this at any time. 

If the life insured indeed wants to take the fund value on the option date, he or she must, on behalf of 

the Fund, inform Sanlam Life accordingly before or on that date. Sanlam Life will then send the life 

insured the necessary forms to complete and return to Sanlam Life. 




product. 



STRATUS LIFE TIME INVESTMENT OPTION 




GE 3/2012 BX 55

PAYMENTS 

The life insured can choose to make one of the following payments: 


• Recurring payments (must be chosen when converting the plan) 




the transaction date for a payment, as indicated in the planholder's statement, is more than two days 

later than the payment date, Sanlam Life will adjust the payment to allow for the delay from the payment 

date to the transaction date. 





A recurring payment consists of a savings part and a risk part but if there is no waiver of payment 

benefits on the plan, there is no risk part. 










applicable. Also, if waiver of payment benefits is applicable, and a recurring payment is not made in full 

within a 30 day period of grace, these benefits will no longer provide cover. 


No debit order discount applies. If contributions for new business are not paid by debit order, a payment 

charge of 3,5% of the contribution, excluding the payment charge, will be charged. Debit orders are 


GE 3/2012 BX 56



Conversions 2 






Recurring payment only: 

If part of Stratus RA and 

Matrix Topcover 

combination product: 




Recurring payment only: 

One-off 

payment 

R2 500 

R10 000 

R2 500 

N/a 

N/a 

R2 500 

N/a 

Ad hoc 

addition 

(one-off 

payment) 

R2 500 

R2 500 

R2 500 

R2 500 

N/a 

R2 500 

R2 500 

GE 3/2013 BX 57 

1 and 3 

Recurring payment per month 

Initial 

term 

15 years 

or more 

R150 

N/a 

R150 

R150 

N/a 

R150 

R150 

Initial 

term 10 

years or 

more, 

but less 

than 

15 years 

R150 

N/a 

R250 

R250 

N/a 

R250 

R250 

Initial 

term 5 or 

more, 

but less 

than 

10 years 

R150 

N/a 

R400 

R400 

N/a 

R400 

R400 

Initial 

term 

shorter 

than 

5 years 

R150 

N/a 

R500 

R500 

N/a 

R500 

R500 



3 For debit order payments less than R500 per month payment growth is compulsory. See "Payment 

Growth" later in this section for full particulars regarding when compulsory payment growth applies. 

See "Available investment funds" later in this section for higher minimum payments which may apply for 

certain investment fund choices in the case of new business. 


Payment growth on these plans is optional, except where the plan forms part of the combination product 

with Matrix TopCover as well as in cases where the debit order payment is less than R500 per month 

and only recurring payments are payable. The life insured can choose a fixed rate, or can choose that 

payments should increase at Sanlam inflation. Automatic payment growth can only take place on a plan 

anniversary. 



Ad hoc 

recurringpayment 

increase 

R150 

N/a 

R150 

R150 

N/a 

R150 

R150


If the plan is part of a Stratus Retirement Annuity and Matrix TopCover combination product, payment 

growth is compulsory. The client can choose a fixed rate, or can choose that payments increase at 

Sanlam inflation. 

In the case of compulsory growth for smaller payments, the client can also choose any of the growth 

options, but the Sanlam inflation rate is the default choice. 




minimum is 5% and the maximum 20%. 






minimum increase (currently 4% p.a.) applies, which may change from time to time. 

• Flexi growth 

Flexi growth is only available for a plan that forms part of a scheme. The recurring payment will be 

increased on request. Any number of increases per year may be requested. Any amount or 

percentage may be requested for an increase, subject to a minimum (currently 4% per time) which 

may change from time tot time. 

The increase must take place on the same day of the month as the start date of the plan. This type 

of payment growth is available only on plans with a monthly frequency. A requested payment 

increase in terms of Flexi growth may not be cancelled. Flexi growth can be added to an existing 

Stratus plan that forms part of a scheme. 




charge of currently 3,5% included). 

The compulsory payment growth for payments less than R500 per month does not apply 

for yearly payments with retirement annuities for employee schemes. 

START DATE 

The start date is determined by the type of payment made and is as follows: 


− The start date can be any day from the 1 st up to and including the 28 th of the month, subject to 

the payment method. The day on which the first contribution is payable, is the start date of the 

plan. 

− If the mode of payment is per debit order, the start date can be any day up to and including the 

28 th of the month. The debit order date, however, can be any day of the month. For debit order 

dates after the 28 th of the month, the start date will be the first of the next month. 

− If the mode of payment is per stop order, the start date will always be the 1st of the month. 

GE 3/2012 BX 58

START DATE (continued) 


− The start date is the date on which New Business received the last requirements for issuing of 

the plan. 

− If no requirements were set, the start date for the one-off payment deposited at any contracted-in 


• If the payment was made before the case was created, the case date will be the start date. 

• If the payment was made after the case was created, the actual payment date will be the start 

date. 

− The start date can be any day up to and including the 31 st of the month. 

• Combination of one-off payment and recurring payments 

The recurring payment will, in accordance with the rules stated under “Recurring payments” above, 


The plan will not come into being before membership of the Fund is accepted. 

NB: 

• Intermediaries must pay in lives insured's cheques (where applicable) as soon as possible, 

because that date determines or influences the start date and the price at which units are 

purchased. If there are huge market fluctuations between the date on which the life insured 

hands over the cheque to the intermediary and the day on which the cheque is paid in, claims 

could be made against the intermediary and Sanlam Life. Intermediaries will be held 

personally responsible for such claims. 

• The backdating of plans with recurring payments to beyond the beginning of a tax year is not 

permissible. No back-dating for one-off payments is permissible. 

With conversions the start date (conversion date) is the date on which the conversion becomes 

effective. The date is always the 1st of the month. 


The minimum and maximum ages at entry are as follows: 

• Minimum age at entry : 1 anb for CRAF plans (if part of a Stratus Retirement Annuity 

and Matrix Topcover combination product, the minimum age at 

entry is 15 anb) 

: 15 anb for Cobalt for Professionals 


• Minimum age at retirement : the life insured's 55 th birthday 

• Maximum age at retirement : No maximum age at retirement, except for the lives insured of 

60 next birthday and older, for plans with recurring payments 

where a maximum term of 10 years is permitted, or where the 

rules of the Fund stipulate a maximum retirement age. 

GE 3/2013 BX 59

INVESTMENT 


allocations, if applicable, less charges, in the respective chosen investment funds. An additional 

allocation depends on the level of commission negotiated at the start. 


If a life time investment option was chosen, Sanlam Life will actively manage the allocation of the 

investment to the respective investment funds according to the chosen option. As Sanlam Life 

considers necessary, Sanlam Life will select other investment funds for the chosen option, and decide 

on the allocation to them. As the life insured gets older, Sanlam Life will gradually shift the allocation of 

the investment to more stable investment funds. 

Investment of amount allocated to a specific investment fund 



Unit price 



























GE 3/2012 BX 60



Switching of investment funds allowed at the time for the relevant plan may be done on request. 


investment funds into which a switch is done. Sanlam Life does this on the first working after receiving 

the switch request. 










Any switch of investment funds that Sanlam Life does according to the chosen life time investment 

option, will be free of charge. No transaction charge will be levied. 



option date – if it falls between two bonus dates. 


Rebates for certain charges are added to the fund value in the form of loyalty bonus on the plan 

anniversary as indicated below. The amount of the loyalty bonus is calculated as a percentage of some 




New Business 

Conversions 



GE 3/2013 BX 61 


% 

5 25 

10 50 

15 60 




Rebates for charges 

% 

5 30 

10 30 

15 30 

20 30 

25, and every 5 years thereafter 30

LOYALTY BONUSES (continued) 

Working of the loyalty bonus (continued) 




For the purpose of this calculation these charges are adjusted at the same rate at which the unit price of 

each investment fund changes. 




start date. 







If the recurring payment in the case of a conversion is reduced or stopped, the calculation of the loyalty 

bonus will be adjusted. The effect of the adjusted calculation is that a part of the potential loyalty bonus 

will be reduced in the same proportion that the payment after the reduction has to the payment at the 

start date of the plan. This part involves 

• 50% of all potential loyalty bonuses based on the recurring fund up to and including the alteration 

date and not yet added to the fund value, and 

• 50% of all future potential loyalty bonuses based on the recurring fund up to and including the option 

date. 

SANLAM RETIREMENT BOOSTER 

For a Cobalt for Professionals Retirement Annuity an additional rebate on fund charges will be invested 

for the member's benefit as a Sanlam Retirement Booster. This rebate is invested on the same plan 

anniversaries as those indicated for the loyalty bonus. The rebate will also be invested when the plan is 

terminated due to a death claim, or on request on or after the option date, provided that the termination 

is not within five years from the start date. 

The rebate for the Sanlam Retirement Booster amounts to an additional 5% to each rebate percentage 

for the loyalty bonus, as indicated in the planholder's statement. Sanlam Life will add this rebate to the 

plan by buying units in the Sanlam Share Fund. Up to 75% of the assets in this investment fund are 

invested in Sanlam Limited shares. If the date on which the rebate is allocated is not on a working day, 

Sanlam Life will buy the units on the first working day thereafter. The units in this investment fund may 

be switched at any time to any other investment fund allowed at the time for this type of plan. 

GE 3/2012 BX 62

CHARGES 

Tax 






• An initial marketing charge, deducted from the savings part of each recurring payment made from 

the start date of the conversion. 

• A payment charge, deducted from the savings part of recurring payments, if payments are made by 

stop order. The charge is calculated as a percentage of the savings part of the recurring payment. 







the units. 


















current charge for an investment fund is indicated in the policyholder's statement. 





GE 3/2012 BX 63

CHARGES 






value for each investment fund is indicated in a table in the member's statement. 





percentage of the market value for each investment fund is indicated in a table in the member's 

statement. 







percentage. 






date is determined at the start. In the case of new business it does not change at subsequent 

alterations, but in the case of conversions it is indeed recalculated. Separate alteration charge dates 

apply to the one-off and recurring funds. 




well as the current minimum alteration charge, is indicated in the planholder's statement. 















GE 3/2013 BX 64



applicable, for ongoing investment advice for this or her retirement investment. Sanlam Life, as the 






The investment advice fee for this investment advice is specified as a percentage per year of the fund 

value. The life insured must specify the percentage. The fee is calculated on a monthly basis, which 


value of the monthly fee. The amount of the investment review fee is linked to and will therefore 

fluctuate with the fund value, for example, a fee of 0,50% implies R41,67 per month if the fund value 

equals R100 000,00 

For the Vesting Bonus Fund the fund the investment advice fee will always be calculated on a fund 

value equal to the number of units in the Vesting Bonus Fund multiplied by its unit price. 

The current investment advice fee, if applicable, is indicated in the planholder's statement. 





recurring fund's alteration charge date. 

One of the conditions for stopping the recurring payment is that a minimum fund value must remain, 

after the alteration and transaction charges, if applicable, have been deducted. If recurring payments 

are stopped despite this condition not being met, the plan will lapse. The minimum fund value is 

indicated in the statement. 


lump sum* provided that the emigration has been confirmed in writing by an authorised Reserve Bank 

dealer. The termination value is equal to the fund value less the alteration and transaction charges, if 

applicable. 

If the total fund value of a member is less than R7 000 after stopping contributions, such a member may 

also request the fund to terminate his or her membership and pay out his or her benefits*. 

* In both instances it will be taxed as a lump sum withdrawal benefit. 



• waiver of payments with future growth at disability 

• waiver of payments without future growth at disability 

GE 3/2012 BX 65


No life cover or disability benefits are available. If the policy that is converted (in the case of a 

conversion) made provision for life cover and/or disability benefits, this cover and/or benefits will no 

longer apply after the conversion. 





payments. 











insured. 





death. 









GE 3/2012 BX 66


The retirement benefit may be taken at any time from the life insured's 55 th birthday, except in the event 

of ill-health when it may be taken earlier. The retirement benefit amount is equal to the plan's 

termination value, which is the fund value less the alteration charge, and/or transaction charge, if 

applicable. 
























GE 3/2012 BX 67 



R630 000 


R945 000 











fund interest is less than R7 000 (current amount as published in the Government Gazette).







plus severance benefits (received on or after 1 March 2011) previously received by or having accrued to 

that person (before the planned retirement fund lump sum withdrawal benefit). 


benefit 

R0 up to R22 500 * : 0% tax 

GE 3/2012 BX 68 

Tax liability 










planned retirement fund lump sum withdrawal benefit). 

LOANS 


ALTERATIONS 


• Addition of an ad hoc one-off payment. 

• Increase/ decrease of recurring payments. The minimum increase is R150,00 a month. The 

payment after a decrease must comply with the minimum new business requirement, and must 

therefore be at least R150,00 at present. 




receive the money back.

STRATUS RETIREMENT ANNUITY CONTINUATIONS 

DESCRIPTION 

The Stratus Retirement Annuity (Continuation) or Cobalt for Professionals Retirement Annuity 

(Continuation) is a plan that the Central Retirement Annuity Fund (CRAF) uses to finance the benefits 

that it must pay to its members. When the word "Fund" is used further in this section, it refers to both 

above mentioned Funds. The Professional Provident Society Retirement Annuity Fund (PPS-RAF) is 

similarly making use of PPS Retirement Annuity (Continuations) for that purpose. The Board of 

Trustees of the PPS-RAF decided to close the Fund for contribution increases on existing business from 

1/10/2012. 


fund these benefits, the Fund takes out a plan on the member’s life with Sanlam Life. The Fund is the 

planholder and uses the member’s contribution(s) to make the one-off and/or recurring payments. The 

information below will give an indication of the benefits the member can expect to receive from the Fund. 


certain charges have been subtracted, Sanlam Life uses the net investment to purchase units for the 

client’s benefit. 

The member chooses that the investment be invested in one or more of the available investment funds 

(a maximum of 10 funds may be chosen) in a pure investment plan (without cover). 




See information later in this section for more information regarding the purpose of a retirement annuity, 

income tax and estate duty. 

EXPLANATIONS 



One-off fund 




Working day 


GE 3/2013 BX 69

INITIAL TERM 

There is no initial term for continuations. There is also no specific retirement date. The plan will 

continue until the life insured or the Fund claims the proceeds or until the death of the life insured, 

whichever is applicable. The plan value is available any time. 

FUND VALUE 




Fund multiplied by its unit price, on any of the following dates only: 















form. 



STRATUS LIFE TIME INVESTMENT OPTION 







GE 3/2012 BX 70

PAYMENTS 



the transaction date for a payment, as indicated in the planholder's statement, is more than two days 

later than the payment date, Sanlam Life will adjust the payment to allow for the delay from the payment 

date to the transaction date. 

The continuation amount is used as a one-off payment on the plan. 













No debit order discount applies. If contributions for new business are not paid by debit order, a payment 

charge of 3,5% of the contribution, excluding the payment charge, will be charged. Debit orders are 


The minimum payments are as follows: 

• One-off payment : R2 500 

• Recurring payment : R150 a month 


Payment growth on these continuations is optional. The life insured can choose a fixed rate, or can 

choose that payments should increase at Sanlam inflation. Automatic payment growth can only take 

place on a plan anniversary. 



GE 3/2012 BX 71





minimum is 5% and the maximum 20%. 






minimum increase (currently 4% p.a.) applies, which may change from time to time. 

• Flexi growth 

Flexi growth is only available for a plan that forms part of a scheme. The recurring payment will be 

increased on request. Any number of increases per year may be requested. Any amount or 

percentage may be requested for an increase, subject to a minimum (currently 4% per time) which 

may change from time tot time. 

The increase must take place on the same day of the month as the start date of the plan. This type 

of payment growth is available only on plans with a monthly frequency. A requested payment 

increase in terms of Flexi growth may not be cancelled. Flexi growth can be added to an existing 

Stratus plan that forms part of a scheme. 


START DATE 



No minimum or maximum entry and retirement ages apply. 

INVESTMENT 

Sanlam Life invests a payment, less charges, in the respective chosen investment funds. 







Investment of allocated amount to a specific investment fund 



GE 3/2012 BX 72


Unit price 




























Switching of investment funds allowed at the time for the relevant plan may be done on request. 








GE 3/2012 BX 73










Sanlam Life offers loyalty bonuses on certain plan anniversaries, as well as at death. 


Rebates for certain charges are added to the fund value in the form of loyalty bonus on the plan 

anniversary as indicated below. The amount of the loyalty bonus is calculated as a percentage of some 





from start date of continuation 

GE 3/2013 BX 74 


% 

3 20 

6 30 

9 40 





For the purpose of this calculation these charges are adjusted at the same rate at which the unit price of 

each investment fund changes. 

Sanlam Life will also add a loyalty bonus when the plan is terminated due to a death claim. If for the 

above termination event the termination date falls between any of the plan anniversaries in the table 

above, the next plan anniversary in the table is used to determine the percentage of the rebate. 



Life will add the units on the first working day thereafter.

CHARGES 

Tax 






• An initial marketing charge, deducted from each recurring payment. 








the units. 










GE 3/2012 BX 75







current charge for an investment fund is indicated in the policyholder's statement. 















statement. 







percentage. 





levy an alteration charge. 

GE 3/2012 BX 76



applicable, for ongoing investment advice for this or her retirement investment. Sanlam Life, as the 







The life insured must specify the percentage. The fee is calculated on a monthly basis, which means it 



value, for example, a fee of 0,50% implies R41,67 per month if the fund value equals R100 000,00 

For the Vesting Bonus Fund the fund the fund-based fee will always be calculated on a fund value equal 

to the number of units in the Vesting Bonus Fund multiplied by its unit price. 





One of the conditions for stopping the recurring payment is that a minimum fund value must remain. If 

recurring payments are stopped despite this condition not being met, the plan will lapse. The minimum 

fund value is indicated in the planholder's statement. 


lump sum provided that the emigration has been confirmed in writing by an authorised Reserve Bank 

dealer. The termination value is equal to the fund value. 

If the total fund value of a member is less than R7 000 after stopping contributions, such a member may 

also request the fund to terminate his or her membership and pay out his or her benefits. 









payments. 









GE 3/2012 BX 77

BENEFIT PAYABLE AT DEATH (continued) 



insured. 





death. 










The retirement benefit may be taken at any time. The retirement benefit amount is equal to the plan's 

termination value, which is the fund value. 











GE 3/2012 BX 78

TAX ON RETIREMENT BENEFIT (continued) 














GE 3/2012 BX 79 



R630 000 


R945 000 











fund interest is less than R7 000 (current amount as published in the Government Gazette). 










benefit 

R0 up to R22 500 * : 0% tax 

Tax liability 










planned retirement fund lump sum withdrawal benefit).

LOANS 


ALTERATIONS 


• Recurring payments may be decreased. The reduced payment must comply with the minimum new 

business requirement, and must therefore be at least R150,00 a month. 

• Recurring payments may be increased, subject to a minimum increase of R150,00 a month. 

• Ad hoc one-off payments may be added, subject to a minimum of currently R2 500. 

GE 3/2012 BX 80

STRATUS WITH PRESERVATION FUNDS 

DESCRIPTION 

• A pension preservation fund and a provident preservation fund, must be registered with Registrar of 

Pension funds and approved by the SARS. 

• It is a fund in which employees, who leave the service of an employer owing to dismissal (including 

retrenchment) or resignation, or in the event of the dissolution of the employer’s pension or provident 

fund, may invest their accrued fund benefits. 

• The Income Tax Act changed during 2008 to also allow membership to 

− persons to whom a pension interest from a ex-spouse's retirement fund was awarded; 

− employees of an employer whose business was taken over by another employer in terms of 

Section 197 of the Labour Relations Act, 1995; 

− members of one preservation fund who choose to transfer to another preservation fund; 

− members or dependants who do not claim their fund benefits from a pension or provident fund 

within 24 months of becoming entitled to it. 

• A member’s accrued benefit in a specific provident or pension fund may not be transferred to more 

than one preservation fund, but the benefits may be divided between a preservation fund and an RA 

fund. 

• The following are retained (preserved) in a preservation fund until retirement: 

− Accrued retirement benefits 

− Completed years of service (in some cases – see "Years of service" later in this section) 

− The tax-free pre-1 March 1998 portion with the Wealth Protector Pension Preservation Fund and 

Wealth Protector Provident Preservation Fund. 

Sanlam Life's Preservation Funds 

Sanlam Life administers the following preservation funds that make use of the Stratus product range 

that fund members’ benefits by means of plans on the lives of members: 

• The Sanlam Preservation Pension Fund (hereafter called “the Fund”) 

• The Sanlam Preservation Provident Fund (hereafter called “the Fund”) 

Glacier Financial Solutions (Pty) Ltd (Glacier) administers the following: 

• The Personal Portfolios Preservation Pension Fund and 

• The Personal Portfolios Preservation Provident Fund. 

Note: The information that follows applies only to the Sanlam Preservation Pension Fund and the 

Sanlam Preservation Provident Fund regarding Stratus plans. Information on the preservation 

funds of Glacier must be obtained from them. 

Working of a preservation fund 

• The Fund takes out a plan with a one-off payment policy with Sanlam Life on the life of the 

member in order to fund the benefits that the Fund must pay to the member. The Fund (and not 

the member) is the owner of the plan. 

• The Fund pays the benefits to the member (at withdrawal, disability or retirement), or to the 

member’s dependants and/or nominees (at death). 

• Tax concessions as in the case of pension and provident funds are applicable to withdrawal 

benefits, retirement benefits and benefits at death. The concessions applicable to retirement 

benefits also apply in the case of early retirement owing to disability. 



GE 3/2012 BX 81

EXPLANATIONS 

Option date 





continue until the planholder (the Fund) terminates the plan. 


It is the benefits which have been transferred to the Fund (as required by the Pension Funds Act, 

benefits must be paid directly to Sanlam Life, and not to the Fund). 



in the planholder's statement. 

Working day 


ALLOWABLE TRANSFERS 

• Only transfers from an employer’s pension fund or another pension preservation fund to the Sanlam 

Preservation Pension Fund are allowed. 

• Similarly only transfers from an employer’s provident fund or another provident preservation fund to 

the Sanlam Preservation Provident Fund will be accepted. 

• Benefits from a pension or provident fund may be transferred only when 

− an employee leaves the service of an employer owing to resignation, dismissal or retrenchment, 

or when 

− the pension or provident fund is dissolved completely or partially. 

− persons to whom a pension interest from a ex-spouse's retirement fund was awarded 

− employees of an employer whose business was taken over by another employer in terms of 

section 197 of the Labour Relations Act, 1995 

− members of one preservation fund who choose to transfer to another preservation fund 

− members or dependants who do not claim their fund benefits within 24 months of becoming 

entitled to it. 

• A transfer from a preservation fund to an retirement annuity fund. Until 29 February 2012 the 

amount that was transferred was taxed as a lump sum withdrawal benefit and only the remaining 

after taxed portion was carried over to the retirement annuity fund. From 1 March 2012 the transfer 

is, however, tax free. 

• Employees whose retirement provision structure changes from a pension fund to a provident fund 

will not be able to transfer accrued pension benefits to a pension preservation fund in the event of 

such restructuring, except if the pension fund in question is dissolved completely. 

• A transfer between two pension preservation funds or two provident preservation funds respectively 

is allowed. 

• Sometimes after funds have already been transferred, surplus money or interest out of the same 

pension or provident fund (therefore the same transferring fund) becomes available for a 

Preservation fund member. Such additional one-off payments must be added to existing 

Preservation fund plans. If the one allowed withdrawal has already been made, no withdrawal can 

be allowed on the late payment, because the late payment forms part of one transfer with the original 

payment to the preservation fund. 

• Transfers from an RA Fund to a preservation fund are not possible because the definition in the 

Income Tax Act of provident and pension preservation funds respectively does not make provision 

for it. Likewise will no transfers be allowed to a preservation fund from any unapproved fund (funds 

not approved by the SARS). This disqualifies transfers to a preservation fund from a foreign 

retirement fund. 

GE 3/2012 BX 82

INITIAL TERM 

A member can choose a retirement date that falls on any date from the member's 55 th birthday. No 

maximum retirement age applies. The period from the start date up to and including the retirement date 

is called the initial term. 

An exception applies if the investment is made in an investment fund for which an investment guarantee 

was chosen or the Vesting Bonus Fund. Such applications will always be issued with a planned 

retirement age of 55 actual age, except where the initial term is shorter than the minimum investment 

term for guarantee funds (at present five years). For applications with other planned retirement ages, 

there is therefore an issuing requirement to adjust the application to one with a planned retirement age 

of 55 actual age, or a retirement date five years after the start date (whichever is the earliest permissible 

retirement date). 

Applications without investment guarantees can be issued with any planned retirement age, as long as 

such retirement age is not before the member's 55 th birthday. 

After the expiry of the initial term, the term is open ended. This means that the plan is not paid out 

automatically after the expiry of the initial term, but that the plan continues until the member notifies 

Sanlam Life that the plan must be terminated. 

The minimum initial term is one year. However, if the plan is invested in an investment fund to which an 

investment guarantee applies, or if the plan is invested in the Vesting Bonus Fund, the minimum term is 

5 years. 


The date at the end of the initial term is the option date. This date cannot be before the life 

insured's 55 th birthday. 




product. 



PAYMENTS 

Only lump sum payments may be made. The lump sum may not be less than Sanlam Life's minimum 

lump sum allowed. If the transaction date for a payment, as indicated in the planholder's statement, is 

more than two days later than the payment date, Sanlam Life will adjust the payment to allow for the 

delay from the payment date to the transaction date. The minimum one-off payment is R5 000. 

GE 3/2012 BX 83

ADDITIONAL ONE-OFF PAYMENTS 

Sometimes, after funds have already been transferred, surplus money or interest from the same pension 

or provident fund (therefore the same transferring Fund) becomes available for a Preservation fund 

member. Such additional one-off payments must be added to existing Preservation fund plans. See 

"Allowable Transfers" earlier in this section. 

Sanlam Life requires the following: 

• The money must come from the same pension or provident fund as the original one-off payment. 

• Proof of the money (the Fund transfer form) is required, or written confirmation from the transferring 

Fund that the money is in fact going to be transferred. 

Minimum ad hoc one-off payment 

No minimum. 

Existing plan already terminated 

If the existing Preservation fund plan has already been terminated, a blocked plan is issued for the ad 

hoc one-off payment. No withdrawal is therefore available on the new plan. If the ad hoc one-off 

payment is less than the minimum payment for a new Preservation fund plan, Sanlam Life will pay the 

member the surplus payment as a lump sum – after recovering any income tax (if any) by way of an 

IRP3. 

Partial withdrawal already made on existing plan 

If the member has already made a partial withdrawal on the plan, no withdrawal benefit is available on 

the new plan. 

Already retired from the existing plan 

If the member has already retired from the Preservation fund, the following occurs: 

Provident Preservation Fund Pension Preservation Fund 

• If the full available benefit on the original plan 

has already been paid to the member, 

Sanlam Life will request an IRP3 and pay the 

ad hoc one-off payment to the member. 

• If, at retirement from the Preservation 

provident fund, the member chose a lump 

sum and the balance as pension, he or she 

can choose to take the surplus amount in 

cash, or to use it for a new life annuity, 

provided that the life annuity meets the 

minimum requirements for a life annuity 

instalment. 

START DATE 

The start date of the plan is the date on which the one-off payment is received. 

GE 3/2012 BX 84 

• A new life annuity policy is purchased with the 

ad hoc one-off payment. If the life annuity 

instalment is too small to meet Sanlam Life’s 

minimum requirements, the surplus amount – 

after recovery of any income tax – will be paid 

to the member in one amount.


Minimum age at entry : 15 next birthday 

Maximum age at entry : None 

Minimum age at retirement : 56 next birthday 

Maximum age ate retirement : None 

INVESTMENT 

Sanlam Life invests a one-off payment plus an additional allocation, if applicable, less charges, in the 

respective chosen investment funds The additional allocation depends on the level of commission 

negotiated at the start. 

Information about all investment funds we offer, is available on the Sanlam website. 









Unit price 




















GE 3/2012 BX 85






reponse to such a request, Sanlam Life will decide in which investment fund to continue the affected part 

of the plan. 


Switching of investment funds allowed at the time for this type of plan may be done on request. Sanlam 

Life will sell units of the investment funds out of which a switch is done, and buy units of the investment 

funds into which a switch is done. Sanlam Life does this on the first working day after receiving the 













FUND VALUE 


















GE 3/2013 BX 86

LOYALTY BONUS 








GE 3/2012 BX 87 


% 

5 25 

10 50 

15 60 









• on request on or after the option date, provided that the plan is not terminated within two years of 

the start date. 







CHARGES 

Tax 


policyholders' fund for retirement funds.




• An initial marketing charge, deducted from a one-off payment. 






the units. 












the units. 





the benchmark, and how the charge is calculated, is available on the Sanlam website under 

"Investment funds". 











statement. 

GE 3/2012 BX 88









percentage. 





levy an alteration charge if the alteration is done before the alteration charge date. The alteration 

charge date is determined at the start and does not change at subsequent alterations. 




In addition to the above-mentioned alteration charge Sanlam Life will levy a transaction charge for each 



• Taking a withdrawal benefit. 




Sanlam Life will also levy a transaction charge for other transactions, as mentioned in the relevant plan 










This investment advice is an optional service that life insured may request, and is provided by an 



GE 3/2013 BX 89


(continued) 




monthly fee. The amount of the fund-based is linked to and will therefore fluctuate with the fund value, 

for example, a fee of 0,50% implies R41,67 per month if the fund value equals R100 000. 



The current fund-based fee, is applicable, is indicated in the planholder's statement. 


• The rules of a preservation fund allow members (employees) to withdraw from the fund at any stage 

before the chosen retirement age if the rules of the transferring fund do not prohibit this. The 

provisions of the contract indicate whether or not withdrawal is permitted on a relevant plan. 





Fund will: 






Depending on the transfer conditions the full withdrawal benefit amount, or part of it, may be withdrawn 


amount may be withdrawn. The percentage available to be withdrawn is indicated in the planholder's 

statement. The withdrawal benefit amount is equal to the plan's termination value, which is the fund 

value less the alteration and transaction charges, if applicable. 


normal retirement age. 




• Maximum partial withdrawal allowed : Pension preservation fund 

GE 3/2012 BX 90 

The total cash value less R3 500 

: Provident preservation fund 

The total cash value less R3 500


The retirement benefit may be taken at any time from the life insured's 55 th birthday. The retirement 

benefit amount is equal to the plan's termination value, which is the fund value less the alteration and 

transaction charges, if applicable. 

Providing a retirement benefit 

According to current legislation, the life insured in a pension preservation fund may take up to one-third 


Or, the life insured can choose that the full benefit amount be used to provide regular pension 

payments. 

The life insured in a provident preservation fund may take the full benefit amount as a lump sum, or it 



R75 000), the member of a pension preservation fund may also take the full benefit amount as a lump 

sum. 





• regular pension payments will be fully taxable as income, 

in the case of benefits in respect of the Sanlam preservation funds. 

Current tax legislation comprises the following with regard to the Wealth Protector Preservation Funds: 

• The part of the lump sum benefit that represents any money accumulated before 1 March 1998 in a 

retirement fund established by law, will be exempted from tax in the Fund. This tax exemption does 

not apply to any investment return on that money. If the fund value is transferred from the Fund to 

another retirement fund not established by law, this tax exemption will be lost. 

• Depending on the life insured's tax situation, the balance of the lump sum benefit could be tax-free 

within certain limits. 

• Regular pension payments will be fully taxable as income. 

No tax is payable on the transfer of retirement benefits to a preservation fund. 

GE 3/2012 BX 91

TAX ON WITHDRAWAL AND RETIREMENT BENEFITS (continued) 
















GE 3/2012 BX 92 



R630 000 










• Pension payments are fully taxable as gross income. 

Where a member receives benefits from a preservation fund, which had previously been transferred 

from a paragraph (a) or (b) fund (for example public sector funds such as the Government Employees 

Pension Fund, funds for local authorities, etc.) then any portion thereof that accrued before 

1 March 1998, is tax-free since 1 March 2006. For this purpose, the transfer forms indicate the date of 

entry, as well as the date of termination of service, which are used when application is made for a tax 

directive from the SARS. However, benefits resulting from contributions made since 1 March 1998, are 

taxed just as with membership of any private fund (that is, as indicated in the previous paragraph).




be calculated according to the table below on the total amount of the retirement fund lump sum 

withdrawal benefit concerned, plus any retirement fund lump sum withdrawal benefits (received on 

or after 1 March 2009) plus retirement fund lump sum retirement benefits (received on or after 




benefit 

Tax liability 

R0 up to R22 500 * : 0% tax 









and severance benefits (received on or after 1 March 2011) received by or accrued to that person 

previously (before the planned retirement fund lump sum withdrawal benefit). 



of the life insured. If an investment guarantee was chosen, a minimum investment return rate is 

guaranteed on the fund value in the investment fund for which the guarantee was chosen. 


payments. 











insured. 





death. 

GE 3/2012 BX 93














LOANS 


CONVERSIONS 

In order to afford existing preservation fund members the opportunity to share in all the options offered 

by an investment in a Stratus plan existing preservation fund plans issued before the end of April 2002 

may be converted to such a plan in the Sanlam Preservation Pension Fund or Sanlam Preservation 

Provident Fund. 

CESSIONS 






YEARS OF SERVICE 

The member’s years of service with a public sector employer (e.g. government or local authority) from 

whose pension or provident fund the transfer to the preservation fund is made, are transferred to the 

relevant preservation fund. Such member therefore retains the portion of the accrued tax concession in 

respect of lump sums from last-mentioned funds, in respect of service prior to 1 March 1998. Years of 

service is no longer transferred or preserved for members whose benefits were not transferred from a 

public sector retirement fund (as a result of the new method in terms of which retirement benefits are 

taxed). 

For tax purposes no member accumulates years of service in a preservation fund. 

GE 3/2012 BX 94

STRATUS WITH PRESERVATION FUND CONTINUATIONS 

DESCRIPTION 

It is possible to continue – as Stratus plans – preservation fund policies that have reached their maturity 

date after being issued on the old administration system. Thus, these policies can share in all the 

benefits that a Stratus investment offers, for example that an investment can be made in more than one 

investment fund, transparency, etc. 

Products available 

• Stratus Provident Preserver (Continuation) 

• Stratus Pension Preserver (Continuation) 

Please note that the above are product names, and that there are still only two preservation 

funds with Sanlam that are registered with the authorities, of which only the Sanlam Preservation 

Provident Fund and the Sanlam Preservation Pension Fund may accept most transfers. 

EXPLANATIONS 




It is the benefits which have been transferred to the Fund (as required by the Pension Funds Act, 

benefits must be paid directly to Sanlam Life, and not to the Fund). 

Working day 


INITIAL TERM 

No term is involved. The plan continues until the member retires, dies or withdraws from the Fund. 



form. 






GE 3/2012 BX 95

PAYMENTS 

The continuation amount is used as a one-off payment on the plan. Minimum R5 000. 

START DATE 



No minimum and maximum ages at entry or retirement. 

INVESTMENT 

Sanlam Life invests a one-off payment, less charges, in the respective chosen investment funds. 

Information about all investment funds we offer, is available on the Sanlam website. 









Unit price 




















GE 3/2012 BX 96






reponse to such a request, Sanlam Life will decide in which investment fund to continue the affected part 

of the plan. 


Switching of investment funds allowed at the time for this type of plan may be done on request. Sanlam 

Life will sell units of the investment funds out of which a switch is done, and buy units of the investment 

funds into which a switch is done. Sanlam Life does this on the first working day after receiving the 













FUND VALUE 

















GE 3/2013 BX 97

LOYALTY BONUS 

Rebates for certain charges are added to the fund value in the form of a loyalty bonus on every 3rd plan 

anniversary. The amount of the loyalty bonus is calculated as a percentage of some of the charges 

deducted from the plan since the date on which the previous loyalty bonus was added or since the start 

date for the first loyalty bonus. 



from start date of continuation 

GE 3/2012 BX 98 


% 

3 20 

6 30 

9 40 







Sanlam Life will also add a loyalty bonus when the plan is terminated due to a death claim. 

If for the termination event the termination date falls between any of the three yearly loyalty bonus 

intervals plan anniversaries, the next three yearly loyalty bonus interval plan anniversary is used to 

determine the percentage of the rebate. 




CHARGES 

Tax 


policyholders' fund for retirement funds. 



• An initial marketing charge, deducted from a one-off payment. 






the units. 





fund value equal to the number of units in the Vesting Bonus Fund multiplied by its unit price.


Charges for the plan (continued) 







the units. 





the benchmark, and how the charge is calculated, is available on the Sanlam website under 

"Investment funds". 











statement. 







percentage. 





levy an alteration charge. 

GE 3/2012 BX 99






This investment advice is an optional service that life insured may request, and is provided by an 






monthly fee. The amount of the fund-based is linked to and will therefore fluctuate with the fund value, 

for example, a fee of 0,50% implies R41,67 per month if the fund value equals R100 000. 



The current fund-based fee, is applicable, is indicated in the planholder's statement. 


• The rules of a preservation fund allow members (employees) to withdraw from the fund at any stage 

before the chosen retirement age if the rules of the transferring fund do not prohibit this. The 

provisions of the contract indicate whether or not withdrawal is permitted on a relevant plan. 





Fund will: 





GE 3/2012 BX 100


Depending on the transfer conditions the full withdrawal benefit amount, or part of it, may be withdrawn 


amount may be withdrawn. The percentage available to be withdrawn is indicated in the planholder's 

statement. The withdrawal benefit amount is equal to the plan's termination value, which is the fund 

value less the alteration and transaction charges, if applicable. 


normal retirement age, or disability or death. 




• Maximum partial withdrawal allowed : Pension preservation fund 

GE 3/2012 BX 101 


: Provident preservation fund 


If less than the above-mentioned amount remains after a partial withdrawal, the full value of the plan 

must be taken, if allowed by the transferring Fund. 


The retirement benefit may be taken at any time. The retirement benefit amount is equal to the plan's 

termination value, which is the fund value. 

Providing a retirement benefit 

According to current legislation, the life insured in a pension preservation fund may take up to one-third 


Or, the life insured can choose that the full benefit amount be used to provide regular pension 

payments. 

The life insured in a provident preservation fund may take the full benefit amount as a lump sum, or it 




Whichever way the benefit amount is taken, the plan will then end.




















GE 3/2012 BX 102 



R630 000 










• Pension payments are fully taxable as gross income.




be calculated according to the table below on the total amount of the retirement fund lump sum 

withdrawal benefit concerned, plus any retirement fund lump sum withdrawal benefits (received on 

or after 1 March 2009) plus retirement fund lump sum retirement benefits (received on or after 




benefit 

Tax liability 

R0 up to R22 500 * : 0% tax 









and severance benefits (received on or after 1 March 2011) received by or accrued to that person 

previously (before the planned retirement fund lump sum withdrawal benefit). 



of the life insured. If an investment guarantee was chosen, a minimum investment return rate is 

guaranteed on the fund value in the investment fund for which the guarantee was chosen. 


payments. 









GE 3/2012 BX 103




insured. 





death. 









LOANS 


CESSIONS 


YEARS OF SERVICE 

The member’s years of service with a public sector employer (e.g. government or local authority) from 

whose pension or provident fund the transfer to the preservation fund is made, are transferred to the 

relevant preservation fund. Such member therefore retains the portion of the accrued tax concession in 

respect of lump sums from last-mentioned funds, in respect of service prior to 1 March 1998. Years of 

service is no longer transferred or preserved for members whose benefits were not transferred from a 

public sector retirement fund (as a result of the new method in terms of which retirement benefits are 

taxed). 

For tax purposes no member accumulates years of service in a preservation fund. 

GE 3/2012 BX 104

STRATUS ENDOWMENT FOR PROVIDENT FUNDS 

FUNCTION OF A PROVIDENT FUND 

With a provident fund, the employer can secure (additional) retirement provision for his employees. 

Therefore, with the Central Provident Fund, the employer can offer a more competitive and flexible 

remuneration package to his employees. 

DESCRIPTION 

The Stratus Endowment for Provident Funds is a plan used by the Central Provident Fund to finance the 

benefits that it has to pay to its members. 

With Stratus, Sanlam Life strives to offer transparent, good value for money products to its clients. After 

the recovery of certain costs, Sanlam Life purchases units to the member’s advantage with the net 

investment. 

The member chooses that the investment should be invested in one or more of the available investment 

funds (a maximum of 10 funds may be chosen) in a no-risk plan (without cover). 

The member may switch between the available funds at any time. 

WORKING OF THE CENTRAL PROVIDENT FUND 

The Central Provident Fund was established as an umbrella fund. Employers can affiliate with the 

Central Provident Fund. Employees of an employer that participates in the Fund become, under their 

employment conditions, members of the Fund. For each member of the fund (employee), an 

endowment plan (Stratus Endowment for Provident Funds) is taken out at Sanlam Life. 

An employer of a member of the Fund makes contributions to the Fund, in return for retirement benefits 

for the member. To provide for these retirement benefits, the Fund takes out a plan with Sanlam Life on 

the life of the member. The Fund is the owner of the plan. It invests one-off payments made by an 

employer as new one-off payments and it uses recurring contributions to pay the recurring payments of 

the plan. 

Sanlam Personal Finance: Fund Administration administers the fund. 

REGISTRATION 

Before any plan in respect of an employer’s employee will be accepted and processed, the employer 

must be registered with Personal Finance : Fund Administration as a participating employer of the 

Central Provident Fund. 

It is compulsory for employers to provide the information below in the application forms: 

• It is essential for every participating employer to appoint an authorised person. This person will 

negotiate with the Fund on behalf of the employer. 

• The Rules of the Fund stipulate that an employer must determine categories of employees. A 

minimum of one and a maximum of five categories is/are allowed. It is compulsory for all members 

in the chosen categories to participate in the Fund. 

In their applications, employers undertake to: 

• notify the Central Provident Fund of employees in respect of whom they have to make contributions; 

• transfer contributions (payments) according to the rules of the Fund within seven days of the date on 

which they become due to Sanlam Life; 

• comply with the rules of the Central Provident Fund. 

GE 3/2013 BX 105

REGISTRATION FORMS 

The following forms that were filed under the heading Central Provident Fund on the Sanlam Database 

as well as the Brokers’ and Advisers’ Web, must be completed in order to register such a scheme: 

• Form CPF0001E: Application by an institution for participation in the Central Provident Fund 

• Form CPF0001F5E: Alteration of authorised person 

Fund Administration will register the scheme and allocate a registration number. 

The authorised person at the employer involved will be informed in writing when the scheme has been 

registered. 

The letter will also include: 

• an informational brochure for the participating employer and member/members, which will inform 

them how the scheme works, the requirements and the benefits that the Fund offers; 

• a copy of the original plan between the Fund and Sanlam Life Insurance Ltd.; 

• a copy of the Rules of the Fund. 

The purpose of this is to ensure that both the participating employer and his employee(s) that participate 

in the Scheme are well informed. 

It is also important for the designated authorised person to be familiar with the content of the abovenamed 

documentation. 

MEMBERSHIP 

• Employees in the service of the employer on the date on which the employer started participating in 

the Fund and who qualify for membership, have the choice of becoming a member of the fund during 

the first year from that date. 

• After the first fund anniversary, such members may no longer become members. 

• All employees entering the service of the employer after the date on which the employer started 

participating in the Fund and who do qualify for membership are compelled to participate in the fund. 

• An employee who initially did not qualify for participation because he did not fall under one of the 

categories specified by the employer, is compelled to participate in the fund if, at a later stage, he 

does fall within one of the categories owing to promotion, salary increase, etc. 

• The employer himself determines the categories of employees qualifying for membership. 

• Employers may determine more than one category of qualifying employees; for instance, according 

to income groups. A maximum of 5 categories are allowed. 

• The category definition and remuneration are filled in on form 2 of the application form CPF0001E. 

• The employer must pay the current contribution for each participating member of the fund. The 

contribution is recovered from the employee’s remuneration according to the selected fixed 

contribution level. 

• To initially become a member of the fund (i.e. entry to the fund) the employee must: 

− be in the full-time service of a participating employer; 

− fall within one of the categories specified for participation. 

The employer must at least pay the minimum fixed contribution level of the prescribed contribution 

levels. 

LIFE INSURED 

The employee (member) is the life insured. Only one life insured will be allowed on the savings product. 

PLANHOLDER 

The Central Provident Fund is the planholder of the plan. Employees (members) therefore may not deal 

with it until they, for some or other reason (resignation, for instance) take over planholdership. 

GE 3/2012 BX 106

INITIAL TERM 

• The plan has an initial term and after that it is open-ended. 

• The initial term ends on the member’s 55th birthday, subject to a minimum initial term of 5 years, and 

to the longest minimum term prescribed by the chosen investment fund(s). 

• In the case of conversions, the initial term ends on at least the maturity date of the policy that is 

being converted if the period from conversion date up to the member’s 55th birthday does not 

comply with the minimum initial term, as explained above. 

• After expiry of the initial term, the term is open-ended. This means that the plan will not be paid out 

automatically when the initial term has expired, but that the plan will continue until the member or the 

employer notifies Sanlam Life that the plan should be terminated, or until the death of the life insured 

– whichever happens first. 


The minimum and maximum ages at entry and retirement are as follows: 

• Minimum age at entry : 15 anb 


• Minimum age at retirement : The member’s 55 th birthday 

• Maximum age at retirement : None 

START DATE 

The start date in the case of new business is determined by the payment that is made, and is as 

follows: 


− The start date is always the 1 st day of the month. The day on which the first payment is payable, 

is the start date of the plan. 

− Recurring payments (in the case of conversions) must be chosen from start date. 


One-off payments on their own are not allowed (except in the case of a conversion without 

payments). In such a case the date of conversion is the date on which the conversion comes into 

force. This date is always the 1 st of the month. 

• Combination of one-off payment and recurring payments 

NB: 

The recurring payments, in accordance with the rules set out at “Recurring payments” above, will 

determine the start date. The payment date of the one-off payment therefore is not taken into 

account. 

The back-dating of plans with recurring payments further than the beginning of a year of 

assessment is not permissible. Back-dating of one-off payments is not allowed. 

GE 3/2012 BX 107

CONTRIBUTIONS TO THE FUND AND PAYMENTS ON THE PLAN 

The Fund will accept employer contributions only. Each employer selects from a table of contribution 

levels, made available by the Fund, the contribution that he will make to the Fund in respect of each 

employee. 

Only recurring payments, or a one-off payment plus recurring payments are allowed on the plan. 

Recurring payments can be payable only monthly or annually. 

No one-off payment on its own will be allowed. In the case of conversions, however, the transfer value 

will be treated as a one-off payment. 

Recurring payments can be paid by debit order only. No debit order discount applies. Payments are 

made on the 1 st of each month. If the collection day falls on a weekend or public holiday, it will be 

collected on the following working day. 

The recurring payment will be increased according to flexi growth. For flexi growth, the employer 

requests on behalf of the Fund the amount to which the payment must increase, as well as the payment 

increase month. The increase will then take place on the 1 st day of the requested month. 

In special circumstances, Sanlam Life may allow the payment to be made yearly. Flexi growth can then 

only take place on a plan anniversary. 

The minimum payments are as follows: 

One-off 

payment 

GE 3/2012 BX 108 

Recurring 

payment 1 

Increase 

in 

recurring 

payment 

Conversions 

Transfer value²: R2 500 n.a. n.a. 

One-off payment (together with 

recurring payments on the same 

plan): R2 500 - - 

Ad hoc one-off payments ³: R2 500 - - 

Stratus Endowment for Provident 

Funds: 

Monthly 

Annually 

Stratus Premier Endowment for 

Provident Funds: 

Monthly 

Annually 

- 

- 

- 

- 

R150,00 

R1 800 

R255,00 

R3 060 

R 150,00 

R1 800,00 

R 150,00 

R1 800,00 


2 This relates to the transfer value from the old (converted) policy. 

3 Ad hoc one-off payments are allowed only if required as such by the employer or when money is 

transferred from one fund to another, or when the member wishes to purchase years of service. 

Payment growth 

• Payment growth is compulsory. 

• Only Flexi growth is available. 

• Only one increase a year may take place. 

• The increase must be on the first day of the month (the same as the start date of the plan). This 

applies to both monthly and annual frequencies. 

• A payment increase requested in terms of Flexi growth may not be cancelled.

MONITORING OF PAYMENTS 

The Act requires Sanlam Personal Finance to appoint a Monitoring person, who is responsible for the 

following: 

• Monitoring that payments have been paid within the correct period; 

• Monitoring that Sanlam Personal Finance : Fund Administration received the Payment statements; 

• Reporting all late/unpaid payments to the specific role-players, as stipulated in the Regulations, 

namely: 

The Trustees of the Fund 

The Financial Services Board 

The South African Police Service 

• They must also report all interest that is owed on late, unpaid payments, which the participating 

employer has not paid to Fund Administration. 

INVESTMENT 

Sanlam Life first determines the net investment amount of a one-off payment or a recurring payment 

received. The net investment amount is the payment, plus an additional allocation, less a payment 

charge. The additional allocation depends on the size of the payment and the level of commission 

negotiated. 

Sanlam Life invests the net investment amount in the respective investment funds, as chosen by the 

member. 

Sanlam Life uses the amount to buy units in the investment fund at the buying price of the units on the 

date the amount is invested. These units in the respective investment funds are referred to as the policy 

investment. 

Unit price 

The unit price is calculated daily in South African currency, on the basis of the market value of the 

assets in the investment fund. 

The following are taken into account: 

• a service fee; 

• a fund management fee; 

• statutory charges, for example tax, and stockbroker fees; 

• a performance fee for the fund manager, if applicable to the investment fund; 

• initial fees, charged by some fund managers. 





• The calculation of the bonus rate is based on the expected long-term return of the fund, while taking 

into account the monthly market value change. 

The selling price of the units of the following investment funds is guaranteed not to decrease over time. 

For all other investment funds the selling price is not guaranteed, and may increase or decrease over 

time. 



GE 3/2012 BX 109


Closing of investment funds 

It may occur that an investment fund is closed, for example, if legislation changes, or certain classes of 

assets become unavailable. If the plan is affected, Sanlam Life will request the member to choose 

another investment fund allowed at that stage for this type of plan, and to inform Sanlam Life of the 

choice made. If such a request is not fulfilled, Sanlam Life will decide in which investment fund to 

continue the policy investment. 

Switches from one investment fund to another 

Switches may be made between all the investment funds allowed at that stage for this type of plan. A 

switch will be made at the selling price of the units in the investment funds from which and to which a 

switch is made. Sanlam Life may change this from time to time. 

The member may also apply to have future payments allocated to any investment fund allowed for this 

type of plan. The payments already allocated to the current investment funds, will then remain in these 

investment funds. 


Currently Sanlam Life does not charge an administration fee for the first 4 switches in a plan year. For 

each subsequent switch in a plan year, Sanlam Life will charge an administration fee. Sanlam Life may 

change the number of free switches from time to time. 

Depending on the investment fund from which or to which a switch is made, Sanlam Life may also 

charge a switching fee for each switch in a plan year. 

Sanlam Life will inform the Fund and the member of these fees, when the member applies to switch 

from one investment fund to another. 

FUND VALUE 

The fund value of a specific investment fund is the number of units multiplied by the selling price for that 


For the Vesting Bonus Fund, the fund value will be equal to the number of units in the Vesting Bonus 

Fund multiplied by its selling price, on any of the following dates only: 

• the date on which Sanlam Life receives notice of the member's death, or 


• a date every 5 years after the option date. 

On any other date, the fund value will be equal to the lower of the number of units in the Vesting Bonus 

Fund multiplied by its selling price, and the market value of the underlying assets, which may increase or 




number of units multiplied by the selling price and the market value of the underlying assets. The 


benefit had been paid at a time when the number of units multiplied by die selling price was lower than 

or equal to the market value of the underlying assets. 


GE 3/2013 BX 110


The date at the end of the initial term is the option date. 

After the option date, the plan will continue automatically if the member or the employer does not notify 

Sanlam Life that the available retirement benefit must be paid out. The plan can continue with or without 


INVESTMENT ADVICE AGREEMENT BETWEEN THE MEMBER AND THE FUND 

A member of the Fund may request the Fund to pay a fee, including VAT if applicable, for ongoing 

investment advice for his or her retirement investment. Sanlam Life, as the administrator of the Fund 

and on instruction of the Fund, will pay this fee monthly on behalf of the Fund to the intermediary who 

provides this advice. 

This investment advice is an optional service that the member may request, and is provided by an 

intermediary nominated by the member. It is a specialised service which is in addition to and not part of 

the intermediary services for which Sanlam Life pays commission. 

The investment review fee for this investment advice is specified as a percentage per year of the fund 

value. The member must specify the percentage. The fee is calculated on a monthly basis, which 


value of the monthly fee. The amount of the investment review fee is linked to and will therefore 

fluctuate with the fund value, for example, a fee of 0,50% implies R41,67 per month if the fund value 

equals R100 000,00. 

For the Vesting Bonus Fund the investment review fee will always be calculated on a fund value equal to 

the number of units in the Vesting Bonus Fund multiplied by its selling price. 

The current investment review fee, if applicable, is indicated in the planholder's statement. 

REDUCTION OF THE RECURRING PAYMENT 

The recurring payment may be reduced on request. If it is reduced before the option date, Sanlam Life 

will charge an alteration fee. 

Currently Sanlam Life will not charge an alteration fee when the recurring payment is reduced on or after 

the option date. Sanlam Life may, at any time, decide to charge a fee on or after the option date. 

STOPPING OF THE RECURRING PAYMENT 

The recurring payment may be stopped on request. If the fund value of the plan at the time, less the 

alteration fee, exceeds a certain minimum, the plan will be maintained without further payments. If it is 

below the minimum, the plan will lapse. This minimum will increase from time to time. 

Currently Sanlam Life will not charge an alteration fee when recurring payments are stopped on or after 

the option date. Sanlam Life may, at any time, decide to charge a fee on or after the option date. 

GE 3/2012 BX 111


The retirement benefit is available when the member retires from employment. This includes retiring 

due to ill-health. The retirement benefit is equal to the fund value, less the alteration fee. 

If no investment guarantee has been chosen, the fund value will not be guaranteed. Should the 

member, in the case of an investment fund where such guarantee is available, choose an investment 

guarantee, a minimum rate of return will be guaranteed on the investment in each investment fund for 

which an investment guarantee has been chosen. 

A member’s retirement benefit is a pension that is purchased with the value of the plan on his life. The 

member can request that part of the pension (or the entire pension) be converted to a lump sum 

payment. 

If the member does not retire on the option date, the plan may not be terminated and the employer must 

continue with payments. And, except where the member or the employer notifies us otherwise, we will 

continue the plan in the investment fund(s) in which it is invested at that stage. 

At present, no alteration fee is applicable if the member retires after the option date. Sanlam Life may 

change this at any time. 

The member must inform Sanlam Life of his retirement date before he retires. Sanlam Life will then 

send the member the necessary forms to be completed and returned to Sanlam Life. 

CASH VALUE 

The Fund can apply to cash in the plan. Before the option date, the total cash value of the plan is equal 

to the fund value at the time, less the alteration fee. 

Currently Sanlam Life will not charge the alteration fee when the plan is cashed in on or after the option 

date. Sanlam Life may, at any time, decide to charge a fee on or after the option date. 

RESIGNATION BENEFIT 

The resignation benefit is available when the member resigns from employment. It is equal to the cash 

value. 


In the case of an employer who dies, the authorised person at the relevant Employer must inform the 

Fund Administration department of the death of the employee by telephone/fax/e-mail. 

The Fund Administration department will then in turn send a letter to the authorised person at the 

Employer, who requires certain requirements and documentation in order to put the death claim in 

motion. The authorised person must then return this letter to the Death Claims department at Sanlam 

Life. 

• The fund value on the date on which Sanlam Life receives notice of the member's death, will be 

available as a death benefit. It will be paid to the dependants and and/or nominees of the member. 

• If the member chose the investment guarantee in the case of an investment fund where such a 

guarantee was available, the minimum return on the investment in each investment fund for which 

the investment guarantee was chosen is guaranteed. 

• The full return may be taken as a lump sum and/or the benefit can be used to purchase a pension for 

one or more of the nominees and/or dependants. 

• Apart from the tax-free contributions as stipulated by the Income Tax Act, any lump sum payment is 

subject to income tax (see section about income tax under "Dismissal, Retirement, Resignation" later 

in this section. 

APPOINTMENT OF NOMINEE TO RECEIVE THE BENEFIT AT DEATH 

The member may appoint any person as nominee to receive the benefit at death of the life insured 

(member). In total, up to 10 nominees may be appointed. The appointment may be revoked or changed 

at any time, provided this is done in writing. 

GE 3/2012 BX 112



form. 



LIFE TIME INVESTMENT OPTION 





Rider benefits are not available. 


Life cover and disability benefits are not available. In the case of conversions, if the plan being 

converted makes provision for life cover and/or disability benefits, this cover and/or benefits will no 

longer be applicable after the conversion. 

RETIREMENT 

In the case of retirement the authorised person at the relevant Employer must inform the Fund 

Administration department of the retirement by telephone/fax/e-mail. 

The Fund Administration department will then in turn send an option (notification) letter to the authorised 

person at the Employer, which the authorised person as well as the relevant employee must complete 

and sign. 

• Retirement date means 

− the date on which the member really retires at the employer; or 

− in the case of a member whose benefits consist of a paid-up plan, because he or she left the 

services of an employer who participated in the Fund, and who started service again at 

somebody else and who became a member of that person's or institution's registered retirement 

fund, the date on which the member retires from that fund; or 

− in all other cases a date on which the member decides, which must be on or after the member's 

55 th birthday, or on the date on which the assurer pays disability benefits to the member. 

• The fund value less a fee (if applicable) is payable. 

• The retirement benefit is a pension that is purchased with the value of the plan on a member’s life. 

At the member’s request part of the pension (or the entire pension) can be converted to a lump sum 

payment. The member can also take cession of the plan in stead of a lump sum payment. 

• The member pays income tax on a sliding scale, as indicated in the section about income tax under 

"Dismissal, Retirement, Resignation" later in this section, after the tax-free amount for which the 

member qualifies has been taken into calculation. 

Please note the following with regard to cession of the plan: 

After the cession of the plan has been taken at retirement, the member (now planholder) can 

continue with payments, which are no longer tax deductible, or stop payments and have the plan 

made fully paid-up. The member does not pay tax again when the plan is paid out to him/her. 

• Pension instalments will be taxed at the member's marginal tax rate. 

Note: The maturity date must preferably coincide with the envisaged retirement date. 

GE 3/2012 BX 113

RESIGNATION OR RETRENCHMENT 

In the case of resignation/retrenchment the authorised person at the relevant Employer must inform the 

Fund Administration department of the resignation/retrenchment by telephone/fax/e-mail. 

The Fund Administration department will in turn send the authorised person at the Employer an option 

letter again, which the authorised person as well as the relevant employee must complete and sign. 

The options below are available at resignation or retrenchment: 

• If a member accepts a new job and the new employer is registered with the Central Provident Fund, 

the new employer can continue payments for the member’s benefit. There is then no tax 

complication for the member. 

• The plan can be ceded to the member. The portion of the cession value of the plan that exceeds 

the tax-free amount will then be subject to income tax. 

• The Fund can surrender the plan. The cash value is paid to the member and the portion that 

exceeds the tax-free amount will then be subject to income tax. 

• The cash value of the plan can be transferred to another approved retirement fund. There are then 

no tax implications for the member. 

• The plan can be made fully paid-up and left in the Fund until the member’s actual retirement date. 

Tax will then be paid at retirement. 

• A tax-free income option (after tax on the cession) is available at maturity. 

LOANS 

Loans are not allowed. 

WITHDRAWAL 

• A withdrawal will be allowed when the member leaves the service of the employer owing to 

resignation or dismissal, or when the member dies. 

• The fund value less an alteration fee will be payable. 

• The full proceeds must be taken in a lump sum. 

• Over a certain amount, the lump sum will be taxable. 

• Partial withdrawals are not available. 

• Regular withdrawals are not allowed. 

ALTERATIONS 

No alterations can be done on these plans at present. Therefore no ad hoc payment increases or 

decreases are allowed. 


No cooling-off period is involved. 

GE 3/2012 BX 114

GENERAL AND ADMINISTRATIVE INFORMATION 

Dismissal, 

Retirement, 

Resignation 

Options available to the employer 

• For as long as the plan is an asset of the Central Provident Fund, the 

Central Provident Fund may surrender the plan at the request of the 

employer, and the surrender value will be paid direct to the former 

employee. (Tax implications: none for employer). The plan therefore 

need not be ceded to the insured first, but may be surrendered directly by 

the Fund. 

• The plan is ceded to the employee. The employee may surrender it and if 

5 years of the plan term have expired already, Section 54 of the 

Regulations to the Long-term Insurance Act (previously Section 59D) will 

not limit the surrender value (see section AD). 

Options available to the employee 

• A new employer may continue to make payments to the benefit of the 

member, provided that he is also affiliated with the Central Provident 

Fund. (Tax implications: none for the original employer or employee). 

• The plan may be surrendered (by the Central Provident Fund) prior to 

retirement age. The tax-free lump sum is any part of the benefit 

transferred to an approved pension fund, provident fund or RA fund. Any 

balance is taxed as any lump sum withdrawal benefit as follows: 

GE 3/2012 BX 115 

If a retirement fund lump sum withdrawal benefit (in full or partially) 

accrues to a person, the tax will be calculated according to the table below 

on the total amount of the retirement fund lump sum withdrawal benefit 

concerned, plus any retirement fund lump sum withdrawal benefits 

(received on or after 1 March 2009) plus retirement fund lump sum 

retirement benefits (received on or after 1 October 2007) plus severance 

benefits (received on or after 1 March 2011) previously received by or 

having accrued to that person (before the planned retirement fund lump 

sum withdrawal benefit). 


benefit 

R0 up to R22 500 * : 0% tax 

Tax liability 


R600 001 up to R900 000 : R103 950 plus 27% of the amount 

above R600 000 

R900 001 and more : R184 950 plus 36% of the amount 

above R900 000 

* The R22 500 will be increased by any contributions not deductible 

previously. 

The tax amount levied in terms of the above calculation, must be reduced 

by an amount equal to the tax that would have been levied in terms of this 

calculation for this person on taxable income consisting of the total of 

retirement fund lump sum withdrawal benefits (received on or after 

1 March 2009); retirement fund lump sum retirement benefits (received 

on or after 1 October 2007) and severance benefits (received on or after 

1 March 2011) received by or accrued to that person previously (before 

the planned retirement fund lump sum withdrawal benefit).

GENERAL AND ADMINISTRATIVE INFORMATION (continued) 

Dismissal, 

Retirement, 

Resignation 

(continued) 

Board decision/ 

Members’ 

decision for 

joining as 

participating 

employer 

One-man 

companies 

Sole 

proprietorship 

Options available to the employee (continued) 

Lump sum retirement benefits are taxed as follows: 

If a retirement fund lump sum retirement benefit accrues to a person, the tax 

will be calculated in accordance with the table below on the total of that 

retirement fund lump sum retirement benefit, plus retirement fund lump sum 

withdrawal benefits (received on or after 1 March 2009) plus lump sum 

retirement benefits (received on or after 1 October 2007) plus severance 

benefits (received on or after 1 March 2011) received by or accrued to that 

person before the planned retirement fund lump sum retirement benefit 

accrued to him or her. 

GE 3/2012 BX 116 







: 18% of the amount exceeding 

R315 000 

: R56 700 plus 27% of the 

amount exceeding R630 000 

Meer as R945 000 : R141 750 plus 36% of the 

amount exceeding R945 000 

* The R315 000 will be increased by any contributions not previously 

deductible. 

The tax amount calculated in terms of the calculation above, will be reduced 

by an amount equal to the tax that would have been levied for this person 

according to this calculation on a taxable income consisting of the total of 

retirement fund lump sum withdrawal benefits (received on or after 

1 March 2009); retirement fund lump sum retirement benefits (received on or 

after 1 October 2007) plus severance benefits (received on or after 

1 March 2011) previously received by or accrued to that person (before the 


• Should a member wish to take a part of the benefit by way of a pension, the 

full pension as such will be taxable. 

• The plan may be ceded to the employee. The underlying reason for the 

cession (retirement or withdrawal as a result of resignation) will determine the 

tax implications. 

• The surrender value of the plan will be deemed to be a lump-sum benefit 

accruing to the member on the date of such a cession. 

• At retirement, the plan benefits can be paid out as a lump sum, or any part of 

the proceeds can be used to purchase a pension. 

• A Board / member’s’ decision is essential in the case of a company/close 

corporation. 

• An extract from the Minutes of a meeting (Form 3 of the application form 

CPF0001E) held by the Board/members must be completed and signed by 

each employer affiliated with the Central Provident Fund. 

The provident fund can be established as benefit for the sole shareholder, as well 

as all qualifying employees of such company. However, bear in mind that the 

shareholder can only receive a retirement benefit if he/she really retires, and it 

often happens that such persons never really retire. 

The provident fund can indeed be used for one-man businesses, but only in 

respect of employees who are in the service of the owner. The owner of the oneman 

business cannot be an employee of himself. 

Spouse Only employees of the employer will qualify as members of the provident fund. 

Spouses therefore can participate only when they are also employed by the 

relevant employer.


Insolvency • For as long as an insolvent employee remains in the service of the employer, 

or an insolvent employee is rehabilitated prior to receiving the provident fund 

benefit, the insolvency of the employee will have no effect on the provident 

fund, since the plan belongs to the Central Provident Fund. 

Buying back of 

years of service 

Selling of a 

business 

Continuations 

within the Fund 

• The insolvency of the employer will have no direct influence on the provident 

fund plan because the employer is not the owner of the plan. However, those 

concerned must decide on the future of the plan. Payments by a new 

employer or cession to the member, for instance, can be considered. 

The employer can make retroactive contributions to the Fund in respect of the 

member for any period prior to the commencement of the member’s membership. 

Because the number of years of membership no longer determines the tax-free 

lump sum, the purpose of the buying back of years of service is solely to increase 

the retirement fund benefit. 

Membership of the Central Provident Fund can continue as in the past, provided 

that the new planholder has been registered or will be registered with the Central 

Provident Fund as participating employer. 

If the actual retirement date is after the maturity date of the plan, the Fund must 

continue with the plan until the actual retirement date. 

Administration • The new employer continues to make the payments to the benefit of the 

member 

A notice of change of employer (AE1356), as well as the new employer's 

registration number, signed and stamped by the new employer, must be 

sent/faxed to Sanlam Head Office: Fund Administration, fax number (021) 

957-1327 or send the form by e-mail to fundadministrationSL@sanlam.co.za. 

• Death claim 

A death claim must be reported in writing or by telephone at Sanlam Life’s 

Death Claims department, who will then ask for the necessary forms and 

requirements. A death certificate at least will always be required. 

Note: In order to speed up the finalisation of matters, the employee’s tax 

particulars and a written declaration about what the situation is with 

regard to the employee, will be needed at death, retirement, etc. 

Quotation forms • For conversions: AEB2049 

• For continuations: AEB2048 

Application forms • Employer’s application: AEB2037 

Rules of the 

Central Provident 

Fund 

This application is to be completed by the employer for up to 22 employees. 

This application form is valid for three months only. 

• Declaration by employee: AEB2036 

Completed in respect of each employee. 

• Application form for conversions: AEB2046 

• Application form for continuations: AEB2047 

The rules of the fund are available on "Notes" on SL "General Mail : Fund Rules". 

It will be assumed that the participating employer who signed his application for 

participation is familiar with the rules. 

GE 3/2012 BX 117


Enquiries 

Technical 

enquiries 

Registration of 

your employer 

GE 3/2012 BX 118 

Enquiries can be directed to your local legal adviser or to 

Fund Administration – (021) 947-6506. 

– Procedure of registration: Fund Administration 

– To determine whether a specific employer is registered: 

Fund Administration 

Death benefits – If the insured is still alive: 

Client Contact Centre 

– If the insured is deceased: 

Policy Claims : Policy Death Claims (Head Office)

STRATUS INVESTMENT LINKED PENSION 

DESCRIPTION 

Stratus Investment Linked Pension is one of your clients' options for their retirement fund benefits at 

retirement date. 

The Stratus Investment Linked Pension is suitable for people who are retiring and who are prepared to 

carry the investment risk of their retirement capital as well as the risk of outliving their capital, 

themselves. 

Sanlam Life is the owner of the underlying assets of the Stratus Investment Linked Pension. 

ADVANTAGES OF THE PRODUCT 

• The Stratus Investment Linked Pension brings flexibility and investment choice to a compulsory life 

annuity at a member's retirement from a retirement fund. 

• The level of the pension is flexible and can be changed over time to suit the member's needs. 

Members (investors) can adjust their pensions annually within the limits of 2,5% and 17,5%, taking 

into account certain risks. 

• Investors have complete control over the investment choices for their retirement capital. This 

enables them to choose the investment funds in the Stratus range that suit their particular risk 

profile. 

• An appropriate investment mix should ensure a pension that is protected against the erosive effect of 

inflation. 

• With the Stratus Investment Linked Pension all your client's compulsory retirement capital that is 

available on the same date, can be combined. (Additional retirement capital cannot be added later 

to the same plan.) 

DISADVANTAGES OF THE PRODUCT 

The Stratus Investment Linked Pension provides no guarantees. The investor will be exposed to 

investment and longevity risks. These include: 

• the risk that the value of investments may drop and/or the return on investments may be lower than 

expected; 

• the risk that the investor may live longer than expected. 

If the total retirement capital is less than R1 million, the risks mentioned above are magnified and require 

closer management on the investor's part. 

Appropriate withdrawal 

A living annuity allows an investor to determine his/her income level, subject to constraints which the 

authorities impose from time to time, and allows the investor to select a wide range of investments for 

the capital that will generate the annuity. 

The level of income the investor selects is not guaranteed for the rest of his/her life. The level of income 

the investor selected may be too high and may not be sustainable if: 

• he/she lives longer than expected with the result that the capital is significantly depleted before 

his/her death; or 

• the return on the capital is lower than that required to provide a sustainable income for life. 

It is the investor's responsibility (in consultation with his/her financial advisor) to ensure that the income 

that he/she selects is at a level that would be sustainable for the rest of his/her life. The investor needs 

to carefully manage his/her income withdrawal relative to the investment return on the capital in order to 

achieve this. The table below can be used as a guide. 

GE 3/2012 BX 119

Appropriate withdrawal (continued) 

The table below shows indicative initial annual income levels for guaranteed single life annuities, with a 

5% escalation rate and no guaranteed term, for different ages. The investor should compare his/her 

current age to the table below. If his/her selected drawdown percentage is above that reflected in the 

table, he/she is at risk of not having enough capital to support such a level of real income for life. 

Therefore the table indicates after how many years his / her income will begin to reduce rapidly. 

Annual income rate 

selected at inception 

Example: 

GE 3/2012 BX 120 

Investment return per annum (before inflation and 

after all fees) 

2.50% 5.00% 7.50% 10.00% 12.50% 

2.50% 21 30 50+ 50+ 50+ 

5.00% 11 14 19 33 50+ 

7.50% 6 8 10 13 22 

10.00% 4 5 6 7 9 

12.50% 2 3 3 4 5 

15.00% 1 1 2 2 2 

17.50% 1 1 1 1 1 

If an annual income rate of 5% and a 5% per year escalation rate were chosen, the income will reduce 

rapidly after 11 years if the rate of return in the chosen investment fund(s) was 2,5% per year. 

It is important to note that the table above assumes that the investor will adjust his/her percentage 

income selected over time to maintain the same amount of real income (i.e. allowing for inflation of 6% 

per annum). Once the number of years in the table above has been reached, his/her income will 

diminish rapidly in the subsequent years. 

The financial advisor has to explain to the investor the advantages and the risks of the living annuity and 

compare these with conventional annuities (where the insurance company carries the full investment 

risk and the risk of the investor living longer than expected). 

The table is a general guideline to use, and each annuitant's financial situation and all other sources of 

income must be taken into account. It is a guideline only, to assist the investor in making informed 

decisions about his/her annuity. 

Appropriate investments 

The investment return of a living annuity depends on underlying types of assets. These underlying 

assets have different levels of risk and return. The investor should consider the composition of his/her 

living annuity in terms of these underlying assets. Too high a proportion of risky assets means there is a 

risk of losing capital, and too low a proportion of risky assets means there is a risk that investment 

returns will be too low to sustain your income. The following is an overview of the provisions of the 

investment regulations under the Pension Fund Act, and can be used as a general guide to assess the 

asset composition of an annuity: 

• a maximum exposure of 75% to equity investment 

• a maximum exposure of 25% to property investment 

• a maximum combined exposure of 90% to equity and property investments 

• a maximum exposure of 20% to assets outside of South Africa 

The Financial Services Board is of the view that should the investor's asset composition vary from this 

guide, his/her annuity may be at risk as explained above. 

Lifestyle and income requirements should be reviewed on an annual basis.

Transferability 

Where the living annuity is in the form of a long-term insurance policy, the policy may be transferred 

from one insurance company to another at the request of the client. Such transfer will be subject to the 

provisions of Directive 135A (read with Directive 135) issued by the Registrar of Long-term Insurance or 

any replacement thereof or supplement thereto. 

Convertibility 

Where the living annuity is in the form of a long-term insurance policy, it may be converted to a 

conventional life annuity administered by the current insurance company or by another insurance 

company, if the living annuity policy is transferred to such other insurance company for this purpose. 

This is typically a once off option – i.e. the customer cannot reverse this decision. The conversion, if 

another insurance company is to be involved, will be subject to the provisions of Directive 135 issued by 

the Registrar of Long-term Insurance or any replacement thereof or supplement thereto. 

INITIAL TERM 

No term is chosen because the investment has an open term. 


To determine which investment funds are available for a specific product, see the applicable application 

form. 




No investment guarantees are available. 

The normal guarantee in the Guaranteed Capital Fund does not apply because the pension reduces the 

capital in this investment fund. 

PAYMENTS 

The minimum one-off payment is as follows: 

• R100 000 per pensioner (annuitant). 

• A minimum of R20 000 per investment fund applies (subject to the minimum of R100 000 per 

pensioner). 

• Special quotations must be obtained for payments of R10 000 000 or more. 

START DATE 

The start date of the pension is the date on which the one-off payment is received. If the investment 

originates from a Sanlam retirement annuity, for example, the start date will be the same as the date on 

which the retirement capital becomes available. 

AGE AT ENTRY 




GE 3/2012 BX 121


At the death of the investor, the total fund value of the underlying investment funds will be available to 

the nominees in the form of an investment linked (living) annuity. Nominees also have the option to take 

an accelerated annuity to be paid over a minimum period of 5 years. In the case of a minor, the 

minimum term will be the greater of 5 years or the number of years to the age of 18. The annuity may 

be taken as a lump sum at death. Such a lump sum will be taxable as retirement benefits. See 

"Taxability of benefits" later in this section. 

PENSION INSTALMENTS 

• The pension the investor may choose can be anything between 2,5% and 17,5% per year of the total 

value of the client’s capital (invested in all the selected investment fund(s)). This pension is paid by 

regularly cancelling units in the underlying investment funds. 

• The selected pension is calculated as a percentage of all the investment funds invested in. The 

investor therefore cannot choose to have the pension paid out of only part of the total investment 

(out of one of the selected investment funds, for example). 

• The investor may adjust the pension annually. The necessary forms will be provided every year. 

• The full pension instalment is taxable as income in the investor's hands. 

• The pension can be paid monthly, in arrear only. 

• At the application stage the member can choose to have the pension increased automatically at a 

specific rate every year. 

PHASING-IN OF ONE-OFF PAYMENT 

The planholder can choose to have the one-off payment phased in the selected investment funds over a 

period of up to 36 months. In such a case the one-off payment will be invested in the SIM Money Market 

Fund first. 

The phasing-in can take place on a monthly, quarterly or half-yearly basis. 

LIVES INSURED 

Only one life insured (is also the investor/member) is permitted per investment. 

APPOINTMENT OF NOMINEES 

One or more nominees may be appointed to receive the pension after the death of the life insured. The 

investor (life insured) may change such an appointment at any time. Sanlam Life must receive the 

appointment, signed by the investor (life insured), before the life insured's death. 

The nominees can choose to: 

• continue with the Stratus Investment Linked Pension on their own lives; or 

• receive instalments for five years (60 monthly pension instalments) so that the remaining capital is 

used up by the end of the five-year period. If the beneficiary is a child, the term of the term annuity is 

the greater of five years and the number of years until age 18. 

• take the annuity at death as a lump sum. 

Any pension which a nominee receives, is taxable as income in the hands of that nominee. 

CESSIONS 

No cessions are permitted. 


The Stratus Investment Linked Pension is only available as a private pension. 

GE 3/2012 BX 122

ADMINISTRATION OF THE PLAN 

Investors can switch between the available investment funds to suit their changing risk profile. The 

Stratus Investment Linked Pension is administered by Glacier Financial Solutions (Pty) Ltd (Glacier). 

Glacier provides the investor with the contract documents. It comprises a confirmation of investment 

and investment certificate, in which the plan is referred to as the investment plan. Glacier also provides 

the investor with regular investment information. 

TRANSFER OF PLAN 

On request, Glacier will transfer the Stratus Investment Linked Pension to a living annuity policy or 

conventional life annuity policy issued by another insurance company, or to a conventional life annuity 

policy issued by Sanlam Life, provided the requirements of any directive issued by the Registrar for 

Long-term Insurance are met. 


No cooling-off applies. The pension may not be cancelled. 

The plan may not be surrendered, pledged or ceded, and other than at death the benefits cannot be 

commuted. 

TAX 

Currently all interest, dividend or rental income, as well as capital growth within the investment funds are 

exempt from income tax and capital gains tax. 

Tax must be paid on the income received, according to the individual's personal situation. 

GE 3/2012 BX 123

STRATUS COMPOSITE ANNUITY 

DESCRIPTION 

The Stratus Composite Annuity is a combination of a Stratus Investment Linked Pension and a 

conventional guaranteed life annuity. A portion of the gross one-off payment is invested in the Stratus 

investment funds, while the remainder secures a guaranteed income. The investor chooses an income 

from the investment funds, between 2,5% and 17,5% a year. This income is added to the guaranteed 

income and a single income payment is made. 

The Stratus Composite Annuity therefore offers: 

• investments in investment funds, with possible investment growth; 

• a variable income of between 2,5% and 17,5% a year of the value of the investment funds; and 

• a guaranteed income. 

Full commission is paid on the total gross one-off payment. Therefore the life annuity rates used to 

calculate the guaranteed income exclude the effect of commission. Please note that, as with all plans, 

Sanlam Life is the owner of the underlying assets of the Stratus Composite Annuity. The Stratus 

Composite Annuity is suited to fund members who are retiring and need a guaranteed income, but also 

want a degree of investment growth and capital retention. The plan combines the investment 

possibilities of an investment-linked life annuity (living annuity) with the mortality protection of a 

traditional, guaranteed life annuity. 

ADVANTAGES OF THE PRODUCT 

• The investment funds offer fund members as investors the flexibility and range of investment choices 

that are usually available for Stratus. 

• For most clients, a cautious approach to the level of the variable income, together with conservative, 

moderate risk investment funds, provides an opportunity for potentially good returns while the 

variable income is being paid. 

• At death, the remaining capital in the investment portfolio is available as the benefit at death for the 

investor’s nominees. No benefit at death is payable in respect of the guaranteed income if death 

occurs outside the term certain. 

• The level of the variable income is flexible, and over time can change to suit the investor’s needs 

(the variable income can be adjusted each year within the 2,5% and 17,5% limits – this does not 

apply to the guaranteed income). 

• The investor has full control over the choice of investment funds in respect of his or her retirement 

capital. This enables him or her to choose the investment funds of the Stratus range that suits his or 

her risk profile. It is important that a diversified portfolio should be chosen that suits the investor’s 

risk profile. 

• A suitable choice of investment funds should ensure the protection of the variable income against 

the erosive effect of inflation. 

• The investor can switch between available investment funds to suit his or her changing risk profile. 

• The guaranteed income is guaranteed for life. 

• If a growth rate is chosen for the guaranteed income, the growth rate is fixed and the growth in the 

income is also guaranteed. 

DISADVANTAGES OF THE PRODUCT 

The Stratus Composite Annuity provides a guarantee on the Guaranteed Income only (if selected) and 

no guarantees on the variable income. The investor shall be exposed to investment and longevity risks 

for the Variable Income portion. These include: 

• The risk that the value of investments may drop and/or the return on investments may be lower than 

expected; and 

• The risk that the investor may live longer than expected. 

GE 3/2012 BX 124

DISADVANTAGES OF THE PRODUCT (continued) 

Appropriate withdrawal 

A living annuity allows an investor to determine his/her income level, subject to constraints which the 

authorities impose from time to time, and allows the investor to select a wide range of investments for 

the capital that will generate the annuity. 

The level of income the investor selects is not guaranteed for the rest of his/her life. The level of income 

the investor selected may be too high and may not be sustainable if: 

• he/she lives longer than expected with the result that the capital is significantly depleted before 

his/her death; or 

• the return on the capital is lower than that required to provide a sustainable income for life. 

It is the investor's responsibility (in consultation with his/her financial advisor) to ensure that the income 

that he/she selects is at a level that would be sustainable for the rest of his/her life. The investor needs 

to carefully manage his/her income withdrawal relative to the investment return on the capital in order to 

achieve this. The table below can be used as a guide. 

The table below shows indicative initial annual income levels for guaranteed single life annuities, with a 

5% escalation rate and no guaranteed term, for different ages. The investor should compare his/her 

current age to the table below. If his/her selected drawdown percentage is above that reflected in the 

table, he/she is at risk of not having enough capital to support such a level of real income for life. 

Therefore the table indicates after how many years his / her income will begin to reduce rapidly. 

Annual income rate 

selected at inception 

Example: 

GE 3/2012 BX 125 

Investment return per annum (before inflation and 

after all fees) 

2.50% 5.00% 7.50% 10.00% 12.50% 

2.50% 21 30 50+ 50+ 50+ 

5.00% 11 14 19 33 50+ 

7.50% 6 8 10 13 22 

10.00% 4 5 6 7 9 

12.50% 2 3 3 4 5 

15.00% 1 1 2 2 2 

17.50% 1 1 1 1 1 

If an annual income rate of 5% and a 5% per year escalation rate were chosen, the income will reduce 

rapidly after 11 years if the rate of return in the chosen investment fund(s) was 2,5% per year. 

It is important to note that the table above assumes that the investor will adjust his/her percentage 

income selected over time to maintain the same amount of real income (i.e. allowing for inflation of 6% 

per annum). Once the number of years in the table above has been reached, his/her income will 

diminish rapidly in the subsequent years. 

The financial advisor has to explain to the investor the advantages and the risks of the living annuity and 

compare these with conventional annuities (where the insurance company carries the full investment 

risk and the risk of the investor living longer than expected). 

The table is a general guideline to use, and each annuitant's financial situation and all other sources of 

income must be taken into account. It is a guideline only, to assist the investor in making informed 

decisions about his/her annuity.

Appropriate investments 

The investment return of a living annuity depends on the underlying types of assets. These underlying 

assets have different levels of risk and return. The investor should consider the composition of his/her 

living annuity in terms of these underlying assets. Too high a proportion of risky assets means there is a 

risk of losing capital, and too low a proportion of risky assets means there is a risk that investment 

returns will be too low to sustain your income. The following is an overview of the provisions of the 

investment regulations under the Pension Fund Act, and can be used as a general guide to assess the 

asset composition of an annuity: 

• a maximum exposure of 75% to equity investment 

• a maximum exposure of 25% to property investment 

• a maximum combined exposure of 90% to equity and property investments 

• a maximum exposure of 20% to assets outside of South Africa 

The Financial Services Board is of the view that should the investor's asset composition vary from this 

guide, his/her annuity may be at risk as explained above. 

Lifestyle and income requirements should be reviewed on an annual basis. 

Transferability 

Where the living annuity is in the form of a long-term insurance policy, the policy may be transferred 

from one insurance company to another at the request of the client. Such transfer will be subject to the 

provisions of Directive 135A (read with Directive 135) issued by the Registrar of Long-term Insurance or 

any replacement thereof or supplement thereto. 

Convertibility 

Where the living annuity is in the form of a long-term insurance policy, it may be converted to a 

conventional life annuity administered by the current insurance company or by another insurance 

company, if the living annuity policy is transferred to such other insurance company for this purpose. 

This is typically a once off option – i.e. the customer cannot reverse this decision. The conversion, if 

another insurance company is to be involved, will be subject to the provisions of Directive 135 issued by 

the Registrar of Long-term Insurance or any replacement thereof or supplement thereto. 

INITIAL TERM 

• The investment is open (open-ended) with no initial term. This provides capital retention because 

the amounts that are invested in the various funds are transferred to the nominees at the death of 

the investor. 

• The guaranteed income may have a term certain, which means that it will be paid at least for the 

chosen term certain, even if the investor dies before the end of the term certain. In the case of jointlife 

annuities, the guaranteed income will be paid until the death of the surviving life insured, but for 

at least the chosen term certain. 


To determine which investment funds are available for a specific product, see the applicable application 

form. 





GE 3/2012 BX 126

PAYMENTS 

Total minimum one-off payment: R115 000. 

The following further minimums also apply: 

In respect of the investment funds: 

• Minimum: R100 000 

• A minimum of R20 000 applies per investment funds (subject to the R100 000 mentioned above) 

In respect of the guaranteed income: 

The gross income must amount to at least R100 a month. 

AGE AT ENTRY 





At the investor's death, the total value of the underlying investment funds will be available to the 

nominees in the form of an investment linked (living) annuity. Nominees also have the option to take an 

accelerated annuity paid over a minimum period of 5 years. In the case of a minor, the minimum term 

will be the greater of 5 years or the number of years to the age of 18. The annuity may be taken as a 

lump sum at death. Such a lump sum will be taxable as retirement benefits. See "Taxability of Benefits" 


LIVES INSURED 

The plan may have one or two lives insured. The second life insured is – where applicable – called the 

"revocable nominee". 

APPOINTMENT OF NOMINEES 

One or more nominees may be appointed to receive the pension after the death of the life insured. The 

investor (life insured) may change such an appointment at any time. Sanlam Life must receive the 

appointment, signed by the investor (life insured), before the life insured's death. 

The nominees can choose to: 

• continue with the Stratus Composite Annuity on their own lives; or 

• receive instalments for five years (60 monthly pension instalments) so that the remaining capital is 

used up by the end of the five-year period. If the beneficiary is a child, the term of the term annuity is 

the greater of five years and the number of years until age 18. 

• take the annuity at death as a lump sum. 

Any pension which a nominee receives, is taxable as income in the hands of that nominee. 

TRANSFER OF PLAN 

The Stratus Composite Annuity may not be transferred to an annuity plan issued by another insurer, nor 

converted to another type of annuity. 

TAX 

Pension installments are taxed like normal income according to the prevailing income tax scales. 

GE 3/2012 BX 127

STRATUS GUARANTEED INCOME 

DESCRIPTION 

Stratus Guaranteed Income is a lump-sum investment aimed at providing a monthly or annual income to 

the client for the chosen term. 

With the one-off payment, Sanlam Life purchases a guaranteed income for the client for the chosen 

term. This income can be payable monthly or annually. 

The one-off payment could be from a client's own sources or from the net after tax lump sum from 

his/her retirement funds, but not from the compulsory two-thirds of his/her retirement fund benefit. 

TERM 

The minimum and maximum terms are as follows: 



PAYMENTS 

The minimum one-off payment that may be invested: R20 000. 

This payment must be of such nature that the income provided by it meets Sanlam Life’s minimum 

requirements (see “minimum income” below). 

START DATE 

The date on which the one-off payment is deposited at any contracted bank branch (at present those of 

ABSA or First National Bank), determines the start date. The start date can be any day of the month 

from the 2nd up to and including the 29th. Should the date of payment be the 1st, 30th or 31st of a 

month, the start date will be the 29th. If the date of payment is the 2 nd up to and including the 29 th , the 

start date is the same as the date of payment. 

Examples: 

Date of payment Start date 

1 December 2008 29 November 2008 

15 December 2008 15 December 2008 

31 December 2008 29 December 2008 

NB: Intermediaries must deposit clients' cheques as soon as possible (if applicable), as that 

date will determine the start date. 

AGE AT ENTRY 

No minimum and maximum ages at entry will apply. 

RATE DATE 

The rates that are used to determine the income, are the rates that applied on the quotation date, 

subject to it that the one-off payment was deposited at a contracted bank branch within the validity 

period. 

GE 3/2012 BX 128


Frequency 

• Monthly income 

Sanlam Life will pay the monthly income after each month. This payment is not necessarily at the 

end of a calendar month. For example, should the start date of the Stratus Guaranteed Income be 

6 December 2011, the first payment will be on 5 January 2012, and on the 5th day of each month 

after that. Should the term of the plan, in the example, be 5 years, the last payment will be on 

5 December 2016. 

• Annual income 

Sanlam Life will pay the annual income after each year. This payment, however, is not necessarily 

on the last day of a calendar month. For example, should the start date be 6 December 2011, the 

first payment will be on 5 December 2012, and on 5 December each year after that. Should the term 

of the plan, in the example, be 5 years, the last payment will be on 5 December 2016. 


The planholder may choose to let the monthly or annual income grow at a pre-selected rate each year. 

This rate can be any percentage from 5% up to and including 10% a year. The pre-selected growth rate 

must always be a full percentage, for instance 7%, and not 7,5%. Sanlam Life guarantees the amount 

of the income payments. If the income grows annually, Sanlam Life also guarantees the annual growth 

on it. 


The minimum initial income is as follows: 

Monthly : R150,00 a month 

Annually : R900,00 a year 

If Stratus Guaranteed Income is part of a Stratus Guaranteed Investment, the minimum initial income is 

as follows: 

Monthly : R 225,00 a month 

Annually : R3 000,00 a year 


At death of the planholder 

No benefit at death will be payable at death of the planholder. The plan will continue up to the end of 

the plan term, unless the new planholder surrenders it. Should the planholder have appointed a 

nominee for planholdership, that nominee will become the new planholder of the plan after the death of 

the planholder, provided that he/she accepts the nomination at that stage. In such a case the surrender 

value at the time of death is an estate dutiable value in the deceased planholder's estate. Should there 

be no such nomination at death of the planholder, the plan will for inheritance purposes be an asset in 

the planholder's estate. 

At death of the annuitant 

If the annuitant is a natural person, the remaining income payments, as on the date on which Sanlam 

Life receives notice of the death, will be paid to the person(s) of the planholder's choice. 

GE 3/2013 BX 129

WITHDRAWAL 

The plan may be surrendered. The total cash value of the plan is equal to the current value of the 

remaining income payments, discounted at the current interest rate applicable to surrenders, less a 

termination fee, at present R0,00. Sanlam Life may change this fee at any time and adjust it with the 

inflation rate. 

The normal policy restrictions in terms of Section 54 of the Long-term Insurance Act (previously Section 

59D of the old Act) will apply to surrenders. 

Partial surrenders may be done as well. 

A portion of the surrender amount may be subject to income tax. 

LOANS 

Loans are not permitted 

BENEFICIARIES 

No beneficiary can be appointed, because there is no life insured applicable. 

NOMINEES FOR OWNERSHIP 

If the term annuitant and the planholder are two different persons, and the term annuitant dies, the 

planholder becomes the new term annuitant. If the section 10A capital element exemption applied for 

the annuitant until his death, it will continue, provided the new annuitant is the surviving spouse. If the 

annuitant and the planholder is the same person, he can appoint a nominee for planholdership. 

This nominee also becomes the new annuitant. The nominee can then decide to appoint someone else 

as annuitant. If the section 10A capital element exemption applied for the original annuitant until his 

death, it will continue, provided the new annuitant is the surviving spouse of the original annuitant. 

Therefore, the section 10A exemption falls away if the new annuitant is not a spouse of the 

deceased. 

CESSIONS 

The Stratus Guaranteed Income may be ceded. Where the section 10A capital element exemption 

applied prior to the cessions, the exemption will lapse due to the cession, unless one spouse cedes the 

annuity to the other spouse. 

TAX 

Tax must be paid by the planholder on the income. If the section 10A capital exemption applies, the 

capital portion of the income is not taxable in the hands of the planholder. 



GE 3/2012 BX 130

STRATUS GUARANTEED RETURN 

DESCRIPTION 

Stratus Guaranteed Return is a single premium investment with the aim to provide a guaranteed lump 

sum after five years. 

Sanlam Life invests the one-off payment and guarantees a maturity benefit amount at the end of the 

term. 

TERM 

A term of 5 years is available. 

PAYMENTS 

Stratus Guaranteed Return is an investment product with a one-off payment. 

The minimum one-off payment is: R20 000 

START DATE 

The date of payment is the date on which the one-off payment is paid in at any contracted-in bank 

branch (currently of ABSA or First National Bank). It can be any day of the month up to and including 

the 31 st . The start date is the first of the month that follows the date of payment, except if the payment 

date is the first of the month. If the date of payment is the first of a month, the start date is the same 

date. 

AGE AT ENTRY 

No minimum and maximum ages at entry apply in the case of Stratus Guaranteed Return 



RATE DATE 

The rate that are used to determine the guarantee is the rate that applied on the quotation date, subject 

to it that the one-off payment was deposited at a contracted bank branch within the validity period. 

MATURITY BENEFIT 

On the maturity date Sanlam Life will pay a guaranteed amount to the planholder. Sanlam Life may, 

however, reduce this amount under certain circumstances mentioned hereafter. 

Sanlam Life may reduce the maturity benefit if: 

• the planholder's tax changes; 

• a government or governing authority changes or introduces 


− prescribed requirements regarding the underlying assets in the fund Sanlam Life keeps for this 

policy and other similar policies; 

• Sanlam Life changes, because of the impact of an event or circumstance, our interpretation or 




policy and other similar policies. 

GE 3/2012 BX 131

MATURITY BENEFIT (continued) 

For example, in the case of an individual planholder, the maturity benefit currently allows for tax of 10% 

on any capital gains on the underlying assets. Should the effective rate of capital gains tax for long-term 

insurers be increased in future, the maturity benefit will be reduced accordingly. It is important that 

intermediaries ensure planholders understand this possible reduction as such. Should such reduction 

be necessary, it cannot result in a tax deduction in the hands of the planholder to claim in the 

planholder's tax return. 

If the planholder is non-taxable when the plan is taken out, Sanlam Life may also reduce the maturity 

benefit if the planholder’s tax status should change. This is because of the different rates of tax Sanlam 

Life must pay in terms of section 29A of the Income Tax Act, 58 of 1962, in the different policyholder's 

tax funds (namely the Individual Policyholder's Fund, the Company Policyholder's Fund and the Untaxed 

Policyholder's Fund). 


No benefit at death is payable at the death of the planholder (no life insured is involved). The plan will 

continue up to maturity date, unless the new planholder surrenders the plan. If the planholder appointed 

a nominee for planholdership, that nominee will become the planholder of the plan after the death of the 

planholder, provided that the nominee accepts the nomination at that stage. In such a case the 

surrender value at the time of death is an estate dutiable value in the deceased planholder's estate. If 

there is no such nominee at the death of the planholder, the plan will for inheritance purposes be an 


LOANS 

No loans are allowed on these plans. 

ALTERATIONS 

No alterations are allowed on the product. This includes ad hoc one-off payments. 

APPOINTING OF BENEFICIARIES TO RECEIVE BENEFIT AT DEATH 

A beneficiary cannot be appointed to receive the benefit at death, because no life insured is involved. 

Therefore, there is no benefit at death to go to a beneficiary. 

GE 3/2013 BX 132

APPOINTING OF NOMINEES FOR OWNERSHIP 

At the death of the 

original planholder 

More than one 

nominee nominated 

At the death of one of 

the new planholders 

If the nominee(s) accept the nomination for planholdership at the death of 

the original planholder, that nominee or those nominees will become the 

new planholder(s) of the plan concerned. 

GE 3/2012 BX 133 

• If more than one nominee were nominated for planholdership of a plan, 

these nominees become the joint new planholders of the plan concerned 

(provided they accept the nominations). 

• For any dealings with the plan, except the revocation/amendment of a 

planholdership nomination, all the new planholders must reach 

consensus and sign for the deal (e.g. surrender, cession, etc.). A 

nomination for planholdership must be revocable to be contractually 

binding. 

• Sanlam Life will not carry out any instruction or request regarding the 

plan before the permission of all the planholders concerned, has been 

obtained. Sanlam Life will not go to the trouble of obtaining the 

permission of each planholder – the joint permission must accompany 

the request for any dealings with the plan. 

• If the plan is surrendered, it must be a full surrender, and every 

planholder will then receive his/her portion of the surrender value. 

• No partial surrenders are allowed. 

• After a nominee has accepted a nomination for planholdership, he may 

nominate only one nominee for planholdership to become the new 

planholder of his part of the plan at his death. 

• This planholder can also not deal with the plan without the permission of 

all the other planholders. 

• If the new planholder dies without having nominated a nominee for 

planholdership, his part of the plan will be an asset in his estate. In this 

case the estate can only be finalised if the executor of the estate can 

reach consensus with the other owners for the plan to be surrendered. 

At maturity date The guaranteed maturity value will be paid to the nominee(s) for 

planholdership on the maturity date. Should more than one nominee for 

planholdership have been appointed (and there is thus now more than one 

planholder at maturity date), continuation of these plans will not be allowed. 

CESSIONS 

• All the normal rules apply. 

• In the case of an outright cession the tax status of the new planholder can change the tax status of 

the plan. This can bring about a change in the guaranteed maturity benefit 

TAX 

No tax is paid on the maturity proceeds as Sanlam Life pays the tax on the underlying investment. The 

guaranteed amount may be reduced if a government or authority increases an amount of tax or levies or 

requires that the plan assets be invested in another way. It is important that intermediaries ensure 

planholders understand this possible reduction as such. Should such reduction be necessary, it cannot 

result in a tax deduction in the hands of the planholder to claim in the planholder's tax return. 


The normal cooling-off period applies.

STRATUS GUARANTEED INVESTMENT 

DESCRIPTION 

Stratus Guaranteed Investment is a lump-sum investment aimed at providing a guaranteed lump sum 

after 5 years, as well as providing a monthly or annual income for the five year period. 

Sanlam Life invests the one-off payment and guarantees the planholder a maturity benefit amount at the 

end of the term, as well as a monthly or annual income for the term. 

Stratus Guaranteed Investment simply comprises Stratus Guaranteed Return (to provide the guaranteed 

lump sum at the end of the term), plus Stratus Guaranteed Income (to provide the monthly or annual 

income during the term). 

The one-off payment could be from a client's own sources or from the net after tax lump sum from 

his/her retirement funds, but not from the compulsory two-thirds of his/her retirement fund benefit. 

TERM 

A term of 5 years is available. 

PAYMENTS 

Minimum one-off payment of the Stratus Guaranteed Return portion : R75 000 

Furthermore, the minimum one-off payment that may be invested in respect of the Stratus Guaranteed 

Income portion, must be of such nature that the income payments will meet Sanlam Life's minimum 

requirements (see “minimum income” below). 

START DATE 

The date of payment is the date on which the one-off payment is deposited at any contracted bank 

branch (currently those of ABSA or First National Bank). It may be any day of the month, from the 2nd up 

to and including the 29th. The date of payment determines the start date of the Stratus Guaranteed 

Income component (annuity portion) of the investment. If the date of payment is the 1st, the start date is 

the 29th of the previous month. The start date of the Stratus Guaranteed Return component 

(investment portion) of the investment is then one month later (when the first term annuity instalment is 

allocated as a payment). If the date of payment is on the 2nd to the 29th of a month, the start date of 

the term annuity component corresponds with the date of payment, and the start date of the investment 

component is a month later. 

GE 3/2012 BX 134

START DATE (continued) 

Stratus Guaranteed 

Return component of 

the investment 


Income component of 

the investment 

Note: 

GE 3/2012 BX 135 

Date of payment Start date 

Day of 

month 

Example Rule Example 

1 1 November # 29th of the previous month + 

one month later 

29 November 

2 – 29 * 20 November One month later 21 December 

30 + 31 30 November # 29th of the same month + 

one month later 

29 December 

1 1 November # 29th of the previous month 29 October 

2 – 29 * 20 November Corresponds with the date of 

payment 

21 November 

30 + 31 30 November # 29th of the same month 29 November 

• * = If the date of payment falls on a Sunday, the SanQuote quotation will automatically change 

the date of payment to the Monday. The start date will therefore be determined according to 

the date on the Monday. 

• # = As February only has 28 days, the start date for dates of payment 1, 30 and 31 will not be 

the 29th, but the 28th. When February has 29 days, it will in fact be the 29th. 

• The first instalment is paid 1 day earlier than the date one month after the start date. 

NB: Intermediaries must deposit clients' cheques as soon as possible (where applicable), as 

that date determines the start date. 

AGE AT ENTRY 

No minimum and maximum ages at entry will apply. 



RATE DATE 

The rates used to determine the guarantee in the case of Stratus Guaranteed Return and the income in 

the case of Stratus Guaranteed Income, are the rates that applied on the quotation date, subject to it 

that the one-off payment was deposited at a contracted bank branch within the validity period. 


An income is payable in terms of the Stratus Guaranteed Income. 

Frequency 

Depending on the frequency of the income, payments will take place as follows: 

• Monthly income 

Sanlam Life will pay the monthly income after each month. This payment will not necessarily be at 

the end of a calendar month. For instance, if the start date of the Stratus Guaranteed Income 

portion of the Stratus Guaranteed Investment is 6 December 2008, then the first payment will be on 

5 January 2009, and on the 5th day of each month after that. The last payment will be on 

5 December 2013.

INCOME PAYABLE (continued) 

Frequency (continued) 

• Annual income 

Sanlam Life will pay the annual income after each year. This payment, however, will not necessarily 

be the last day of a calendar month. For instance, if the start date of the Stratus Guaranteed Income 

portion of the Stratus Guaranteed Investment is 6 December 2011, then the first payment will be on 

5 December 2012, and on 5 December each year after that. The last payment will be on 

5 December 2016. 


The planholder may choose to have the monthly or annual income grow at a pre-selected rate each 

year. This rate could be any percentage from 5% up to and including 10% a year. The chosen growth 

rate must always be a full percentage, for instance 7% and not 7,5%. Sanlam Life guarantees the 

amount 


The minimum income is as follows: 

Monthly : R 225,00 a month 

Annually : R3 000,00 a year 

MATURITY BENEFIT 

On the maturity date, Sanlam Life in terms of the Stratus Guaranteed Return will pay a guaranteed 

amount to the planholder. Sanlam Life may, however, reduce this amount under certain circumstances 

mentioned hereafter. 

Sanlam Life may reduce the maturity benefit if: 

• the planholder's tax changes; 

• a government or governing authority changes or introduces 



policy and other similar policies; 

• Sanlam Life changes, because of the impact of an event or circumstance, our interpretation or 




policy and other similar policies. 

For instance, in the case of an individual planholder the maturity benefit currently allows for tax of 10% 

on any capital gains on the underlying assets. Should the effective rate of capital gains tax for long-term 

insurers be increased in future, the maturity benefit will be reduced accordingly. It is important that 

intermediaries ensure planholders understand this possible reduction as such. Should such reduction 

be necessary, it cannot result in a tax deduction in the hands of the planholder to claim in the 

planholder's tax return. 

Should the planholder not be liable for tax when a plan is taken out, Sanlam Life may also reduce the 

maturity benefit if the planholder's tax status changes. This is because of the different rates of tax 

Sanlam Life must pay in terms of section 29A of the Income Tax Act, 58 of 1962, in the different 

policyholder's tax funds (namely the Individual Policyholder's Fund, the Company Policyholder's Fund 

and the Untaxed Policyholder's Fund). 

GE 3/2013 BX 136


The benefit at death is as follows: 

Stratus Guaranteed Return 

No benefit at death will be payable at death of the planholder (no life insured is involved). The plan will 

continue until maturity date, unless the new planholder surrenders the plan. Should the planholder have 

appointed a nominee for planholdership, that nominee will become the planholder of the plan after the 

death of the planholder, provided that that nominee accepts the nomination at that stage. Should there 

be no such nominee at death of the planholder, the plan will be an asset in the planholder's estate. 

Stratus Guaranteed Income 

• At death of the planholder 

No benefit at death will be payable at death of the planholder. The plan will continue until the end of 

the plan term, unless the new planholder surrenders the plan. Should the planholder have appointed 

a nominee for planholdership, that nominee will become the new planholder of the plan after the 

death of the planholder, provided that he/she accepts the nomination at that stage. In such a case 

the surrender value at the time of death is an estate dutiable value in the deceased planholder's 

estate. Should there be no such nomination at death of the planholder, the plan will for inheritance 

purposes be an asset in the planholder's estate. 

• At death of the annuitant 

If the annuitant is a natural person, the remaining income payments, as on the date on which 

Sanlam Life receives notice of the death, will be paid to the person(s) of the planholder's choice. 

WITHDRAWAL 

Stratus Guaranteed Investment may be surrendered in full or partially. The planholder must specify 

whether only one part of the plan (for instance, the Stratus Guaranteed Return portion) must be 

surrendered, or whether the total investment plan (Stratus Guaranteed Investment) must be 

surrendered. 


Return 


Income 

• A withdrawal can be made. Sanlam Life charges a termination fee for any 

withdrawal. The termination fee is currently as follows: 

− R325,00, which Sanlam Life may increase each year with the inflation 

rate (Sanlam Life will determine this inflation rate). 

− A percentage of the value of the plan as calculated at the time. This 

percentage depends on when the cashing in takes place. 

Sanlam Life may, in addition to the increase with the inflation rate, change 

the fee from time to time. 

• Withdrawals may be made at any time. 

• The normal policy restrictions in terms of regulations in terms of Section 

54 of the Long-term Insurance Act (previously Section 59D of the old Act) 

will apply to cash withdrawals in the case of these plans. 

• The plan may be surrendered. The total cash value of the plan will be 

equal to the current value of the remaining income payments, discounted 

at the prevailing interest rate applicable to surrenders, less a termination 

fee, at present R0,00. Sanlam Life may change this fee at any time and 

adjust it with the inflation rate. 

• The normal policy restrictions in terms of the Long-term Insurance Act 

(previously Section 59D) will apply to surrenders. 

• Partial surrenders may be made as well. 

• A portion of the surrender amount could be subject to income tax. 

GE 3/2013 BX 137

LOANS 

Loans are not permissible in the case of these plans. 

ALTERATIONS 

No alterations are permitted with this product. This includes ad hoc one-off payments. 

APPOINTMENT OF BENEFICIARIES TO RECEIVE THE BENEFIT AT DEATH 

No beneficiary can be appointed, because there is no life insured applicable. 

If the term annuitant and the planholder are two different persons, and the term annuitant dies, the 

planholder becomes the new term annuitant. If the section 10A capital element exemption applied for 

the annuitant until his death, it will continue, provided the new annuitant is the surviving spouse. 

Therefore, the section 10A exemption falls away if the new annuitant is not a spouse of the 

deceased. 

If the annuitant and the planholder is the same person, he can appoint a nominee for planholdership. 

This nominee also becomes the new annuitant. The nominee can then decide to appoint someone else 

as annuitant. 

GE 3/2012 BX 138

NOMINEES FOR OWNERSHIP 

The planholder can nominate a person or persons to become the planholder of the plans at the death of 

the planholder. 

At the death of the 

original planholder 

More than one 

nominee nominated 


Income part 

At the death of one of 

the new planholders 

If the nominee(s) accept the nomination for planholdership at the death of 

the original planholder, that nominee or those nominees will become the 

new planholder(s) of the plan concerned. 

GE 3/2012 BX 139 

• If more than one nominee were nominated for planholdership of a plan, 

these nominees become the joint new planholders of the plan concerned 

(provided they accept the nominations). 

• For any dealings with the plan, except the revocation/amendment of a 

planholdership nomination, all the new planholders must reach 

consensus and sign for the deal (e.g. surrender, cession, etc.). A 

nomination for planholdership must be revocable to be contractually 

binding. 

• Sanlam Life will not carry out any instruction or request regarding the 

plan before the permission of all the planholders concerned, has been 

obtained. Sanlam Life will not go to the trouble of obtaining the 

permission of each planholder - the joint permission must accompany 

the request for any dealings with the plan. 

• If the plan is surrendered, it must be a full surrender, and every 

planholder will then receive his/her portion of the surrender value. 

• No partial surrenders are allowed. 

The annuity instalment paid from the Stratus Guaranteed Income part, 

cannot be divided between new planholders. As a result, this part of the 

investment must be surrendered at the death of the original planholder. The 

surrender value will then be divided between the new planholders in the 

same ratio as the allocated percentages of the various nominees. 

• After a nominee has accepted a nomination for planholdership, he may 

nominate only one nominee for planholdership to become the new 

planholder of his part of the plan at his death. 

• This planholder can also not deal with the plan without the permission of 

all the other planholders. 

• If the new planholder dies without having nominated a nominee for 

planholdership, his part of the plan will be an asset in his estate. In this 

case the estate can only be finalised if the executor of the estate can 

reach consensus with the other owners for the plan to be surrendered. 

At maturity date The guaranteed maturity value will be paid to the nominee(s) for 

planholdership on the maturity date. Should more than one nominee for 

planholdership have been appointed (and there is thus now more than one 

planholder at maturity date), continuation of these plans will not be allowed. 

CESSIONS 

The planholder may cede the Stratus Guaranteed Return, or the Stratus Guaranteed Income, or both 

Stratus Guaranteed Return and Stratus Guaranteed Income. 

Stratus Guaranteed Return • All normal rules will apply. 

• In the case of outright cessions the tax status of the new 

planholder could change the tax status of the plan. This could 

result in a change in the guaranteed maturity benefit. 

Stratus Guaranteed Income • The Stratus Guaranteed Income may be ceded. Where the 

section 10A capital element exemption applied prior to the 

cessions, the exemption will lapse due to the cession, unless 

one spouse cedes the annuity to the other spouse.

TAX 

Tax on income 

Tax must be paid by the planholder on the income. If the section 10A capital exemption applies, the 

capital portion of the income is not taxable in the hands of the planholder. 

Tax on maturity proceeds 

No tax is paid on the maturity proceeds as Sanlam Life pays the tax on the underlying investment. The 

guaranteed amount may be reduced if a government or authority increases an amount of tax or requires 

that the plan assets be invested in another way. It is important that intermediaries ensure planholders 

understand this possible reduction as such. Should such reduction be necessary, it cannot result in a 

tax deduction in the hands of the planholder to claim in the planholder's tax return. 



GE 3/2012 BX 140

STRATUS TRADED POLICIES 

DESCRIPTION 

Traded plans are endowment policies (on the old administration system) and Stratus Guaranteed Return 

plans (sinking fund plans) which have reached maturity and on which the policyholder/ planholder does 

not wish to exercise the continuation option. Sanlam Endowment Options (Pty) Ltd takes over the 

policies / plans, pays the maturity value to the original policyholders/ planholders and offers the policies/ 

plans for sale to new investors. A combination of endowment and sinking fund plans are not permitted. 

Sanlam Life in future refers to products on the old administration system (Legacy) as "policies", while 

Stratus products are referred to as "plans". For Legacy products we refer to "policyholder/ policyowner" 

in future and for Stratus products to "planholder". Where referred to "plan" and "planholder" 

further in this section, "policy" and "policyholder" is implied in the case of any reference to the Legacy 

policy that was bought over as a Stratus Traded Policy. 

ADVANTAGES FOR THE INVESTOR 

The traded plan offers the new investor the following advantages: 

• The investor gains immediate access to an after-tax return (However, see Tax implications below). 

• The investor can cash the plan in at any time. 

• After the two-month waiting period, the investor can apply for an interest-free loan against the plan. 

• The investor has the following options: 

− Full capital growth in any one or more of the available investment funds; or 

− Regular withdrawals from any available investment fund (see Tax implications below). 

INITIAL TERM 

No term is applicable. However, the value of the plan is available at any time. 



form. 








PAYMENTS 

No payments are permitted in addition to the investment amount. 

The minimum one-off payment (amount paid less initial advisory fee) is as follows: 

• For capital growth : R 7 500 

• For regular cash withdrawals in the Guaranteed Capital Fund : R15 000 

GE 3/2012 BX 141

START DATE (TRANSFER DATE) 

The start date (transfer date) is the date on which the money for the plan is received from the new 

planholder. 

NB: 

Intermediaries must deposit clients’ cheques (where applicable) as soon as possible, since that 

date determines the start date and price at which units are purchased. If there are significant 

market fluctuations between the day on which the client hands the cheque to the intermediary 

and the day on which the cheque is deposited, claims could arise against the intermediary and 

Sanlam Life. Intermediaries will be held personally liable for such claims. 

AGE AT ENTRY 

The minimum and maximum ages at entry are: 




If traded plan is an endowment plan 

At the death of the last surviving life insured, the fund value as on the date on which Sanlam Life 

receives notice of the death, is payable. If the planholder chose the investment guarantee in the case of 

an investment fund where such a guarantee is available, a minimum rate of return is guaranteed on the 

investment in each investment fund for which an investment guarantee was chosen. 

At the death of the planholder, the plan will continue if there are other surviving co-insureds on the plan. 

The cash value of the plan is an asset in the deceased’s estate if the planholder did not nominate 

anyone for planholdership. If the planholder did nominate someone for planholdership, the cash value 

of the plan will not be an asset of the estate for executor fee purposes, but an asset for estate duty 

purposes (because it is property of which the deceased was immediately prior to his/her death 

competent to dispose for his/her own benefit or for the benefit of his/her estate). 

If traded plan is a sinking fund plan 

At death of the planholder the plan will continue, as there are no lives insured. The cash value of the 

plan is an asset in the deceased’s estate if the planholder did not nominate anyone for planholdership. 

If the planholder did nominate someone for planholdership, the cash value of the plan will not be an 

asset of the estate, but a deemed asset for estate duty purposes (because it is property of which the 

deceased was immediately prior to his/her death competent to dispose for his/her own benefit or for the 

benefit of his/her estate). 

REGULAR CASH WITHDRAWAL AMOUNTS 

The planholder can choose to receive regular cash withdrawal amounts on a Stratus Traded policy. 

The planholder chooses any income rate. The regular cash withdrawal amounts will then be equal to 

the chosen percentage of the fund value in the chosen investment fund(s). 

The planholder cannot choose a fixed cash withdrawal amount. 

GE 3/2012 BX 142

LOANS 

• Loans are available two months after the date of transfer. 

• A loan charge levied. 

• A number of units (in the underlying investment fund) to the value of the loan amount granted, will be 

switched to units in the Stratus Planholder Loan Fund. The latter fund does not participate in any 

growth. Settling the loan would result in a switch of units in the Stratus Planholder Loan Fund to 

units in the plan's investment fund - at the then prevailing selling price of the relevant investment 

fund. If the price of the units in the plan's investment fund at that stage is higher than it was when 

the loan was entered into, it means that fewer units will be switched to the plan's investment fund. 

The repayment amount may not exceed the loan amount (without the loan levy). If the full loan is 

repaid in one installment, the value of the units on the repayment date will, however, be equal to the 

value of the units that were cancelled when the loan was entered into (loan levy excluded). The 

investment return that the planholder does not get during the loan period, can be regarded as 

“interest paid” over the loan period. 

• The minimum loan amount is R3 000. Once the loan has been granted, the remaining fund value 

must be at least R10 000. 

• Repayments may be made at any time. 

• The minimum repayment amount is the smaller of the outstanding loan amount and R10 000. 

• The terms of the loan will be determined when the loan is made. 

LIFE INSUREDS 

If the plan purchased is an endowment plan, additional lives insured (maximum of three) must be added 

to the plan to ensure that it is not terminated at the death of the investor (new owner). The plan is 

terminated at the death of the last surviving life insured. 

If the traded plan is a sinking fund plan (Stratus Guaranteed Return plan), no lives insured are added on 

the plan. 

CESSIONS AND APPOINTING BENEFICIARIES / NOMINEES 

• All the normal rules apply (as applicable to Sanlam Life’s other endowment plans and sinking fund 

plans). 

• In the case of outright cessions, the tax status of the new planholder could change the tax status of 

the plan. This will result in a switch to the correct policyholders' tax fund. 

• There is no limit on the number of beneficiaries (in the case of endowment plans) who may be 

appointed. However, only one nominee may be appointed for planholdership. 

TAX IMPLICATIONS 

• According to current tax practice, cash withdrawals from continued policy (plan) are not taxed as 

income in the hands of the planholder, since Sanlam Life pays the tax on any profits in the 

investment fund of the plan. 

• On a traded plan the planholder will be taxed on the capital gains portion of every withdrawal. 

• As there are capital gains tax implications it is therefore necessary for the client to sign a declaration 

that he or she is aware of the tax implications. 

• The SARS will assess the tax status according to each buyer’s reasons for acquiring a traded plan to 

establish whether there is an income tax or capital gains tax implication. For instance does the 

planholder trade in the buying and selling of policies, in which case the policy benefits may be taxed 

as income in the hands of such planholder. 

GE 3/2012 BX 143

B. STRATUS PREMIER PRODUCTS 

Stratus Premier is available in the following products: 

Stratus Premier Endowment (conversions only) 

Stratus Premier Continuation Without Life Insured 

Stratus Premier Retirement Annuity (conversions only, PPS included) 

Stratus Premier Endowment for Provident Funds 

Stratus Premier Provident Fund Continuation 

Stratus Premier Investment Linked Pension 

Stratus Premier Composite Annuity 

For these products the only differences between Stratus and Stratus Premier are: 

• minimum payments 

• available investment funds 


The minimum payments for Premier products are as follows: 


One-off payment only 

(endowments): 

One-off payment only 

(RA's): 


recurring payment: 

Recurring payment only 

(upfront commission): 

Recurring payment only 

(recurring commission): 

Conversions: 

One-off 

payment 

R10 000 

R10 000 

R10 000 

N/a 

N/a 

R2 500 2 

Ad hocaddition 

(one-off 

payment) 

R2 500 

R2 500 

R2 500 

R2 500 

R2 500 

R2 500 

GE3/2012 BX 144 


month 1 

Initial term 

10 years or 

more 

N/a 

N/a 

R350 

R350 

R350 

R350 3 

Initial term 

less than 

10 years 

N/a 

N/a 

R500 

R500 

R350 

R350 3 

Ad hocrecurring 

payment 

increase 2 

N/a 

N/a 

R150 

R150 

R150 

R150 



3 If the plan is a conversion, and the conversion involves a payment increase, the new payment have to 

meet both the minimum payment increase requirement of R150 per month and the minimum payment 

requirement of R350 per month. 




product.

C. FEATURES OF STRATUS 

1. AVAILABILITY OF PRICES 

For all Offshore and International Funds, as well as the Multi-Manager Balanced Fund (High Equity), the 

actual price on a specific day is known only two working days later. For all other investment funds the 

actual price on a specific day is known on the following day. 

2. SWITCHING AND REDIRECTIONS 

• A member can switch between investment funds at any time. 

• The first two switches between investment funds each year are currently free. For the third and 

further switches in the same plan year, Sanlam Life currently charges an administration charge of 

R500,00 for each switch. Switches are made at the selling prices of the funds from and to which the 

switches are made. 

• Depending on the investment fund from which or to which the switch is done, Sanlam Life will also 

charge a switching fee for each switch during a plan year. At present, no switching fee is payable, 

except when a switch is done to any of the Offshore investment funds or International investment 

funds (where available). For these cases Sanlam Life currently charges a switching fee of 1%. This 

switching fee is charged on each switch, including the first and second in a plan year. 

Sanlam Life can at any stage start charging switching fees in cases where such fees are not yet 

charged, and also change the fee of 1%. 

3. INVESTMENT GUARANTEES 

The following investment guarantees are available: 

Absolute Return Fund (CPI + 3%) : 0% guarantee 

Multi Manager Absolute Return Fund (CPI + 3%) : 0% guarantee 

Absolute Return Fund (CPI + 5%) : 0% guarantee 

Multi Manager Absolute Return Fund (CPI + 5%) : 0% guarantee 

Balanced Fund (Low equity) : 0% guarantee 

Multi Manager Balanced Fund (Low equity) : 0% guarantee 



guaranteed amount of an investment fund is equal to the amounts or payments (as applicable), less 

payment charges (if applicable), or in the event of a preservation fund the one-off payment, allocated to 

that investment fund, accumulated each year by the guaranteed rate for the investment fund. 

The investment guarantee only applies on the earlier of the investment guarantee date and the date on 

which Sanlam Life receives notice of the death of the (last surviving) life insured linked to the benefit 

payable at death. If the fund value of an investment fund is then less than the guaranteed amount of 

that investment fund, Sanlam Life will add more units to that investment fund, to give the value required. 


be reduced accordingly. And if in the case of an Endowment continuation a one-off advisory fee for 

initial investment advice has been agreed upon, the guaranteed amount will be reduced proportionally. 

However, for withdrawals made to pay an intermediary for ongoing investment advice, if applicable, the 

guaranteed amount will not be reduced. 

GE 3/2013 BX 145

INVESTMENT GUARANTEES AFTER THE GUARANTEE DATE 

If the investment guarantee date is before the option date and Sanlam Life still offers this investment 

guarantee for new plans at that time, the investment guarantee will continue beyond the investment 

guarantee date. Sanlam Life will then determine the new investment guarantee date. Currently, if the 

option date is less than 15 years after the investment guarantee date, the new investment guarantee 

date will be equal to the option date. However, if the option date is 15 years or more after the 

investment guarantee date, the new investment guarantee date will be 10 years after the current 

investment guarantee date. 

For continuations with or without lives insured the investment guarantee date is five years after the 

continuation date. The investment guarantee ceases on this date. Sanlam Life indicates in the 

planholder's statement what the guarantee date is. 

CANCELLATION OF THE INVESTMENT GUARANTEE 


or withdrawn, the guaranteed amount of that investment fund will be reduced to zero and the investment 

guarantee of that investment fund will be cancelled. This cancellation will not take place if the savings 

part of the recurring payment (if applicable) less charges, continues to be allocated to that investment 

fund at that stage. 

INCREASE OF INVESTMENT GUARANTEE 

If an investment in an investment fund for which an investment guarantee was chosen, should be 

increased within 60 months before an investment guarantee date, Sanlam Life will charge a 

participation fee. The amount of the fee is determined at the time of such an increase. 

An investment guarantee cannot be added after the plan’s inception. 

NB: The investment guarantee rate of 0% applies to new business. For plans already issued 

with another investment guarantee rate, the investment guarantee rate that applied when 

the plan was issued, will apply. 

GE3/2012 BX 146

4. LIFE TIME INVESTMENT OPTION 

Description 

Although clients today are much more informed about investments than in the past, many of them don’t 

have the necessary knowledge or inclination to switch their investments from one investment fund to 

another. Particularly in the case of retirement annuity plans and other retirement business with longer 

terms, a facility is required where the distribution of underlying investments is managed expertly for the 

duration of the plan. Sanlam Life will be making such a facility available with Stratus Retirement Annuity 

and Stratus plans with preservation funds. 

Life Time Investment Option is an automatic switching facility that gives members the peace of mind that 

the investments being held for their benefit in a Stratus Retirement Annuity, or Stratus Provident/ 

Pension Preserver, are being managed effectively at all times. It gives the client the option of choosing 

an investment strategy when taking out the plan – after which it ensures that the investment is invested 

in suitable investment funds, depending on the member’s risk profile and age. Close to retirement, the 

investment is therefore gradually moved from more volatile investments to more stable ones. These 

moves take place automatically. 

Benefits for the client 

• By adding this option to the plan, clients reduce the risk of losing a large amount of their capital close 

to retirement. 

• Clients do not have to study the market themselves to make investment decisions. 

• The option provides a facility that makes it easier for the intermediary to meet the investment profile 

of his client. 

The facility therefore gives clients peace of mind for the duration of the plan. 

Life time investment options available 

Three programmes will be available, two of which make provision for different risk categories. Only one 

programme can be chosen for each plan. 

The three programmes are: 

Sanlam Aggressive Life 

Time Investment Option 

Sanlam Moderate Life Time 

Investment Option 

Absa Life Time Investment 

Option (only available for 

Absa brokers) 

GE3/2012 BX 147 

This programme gives the client, for longer periods, increased 

exposure to equity and offshore investment funds, as well as 

diversification in investment funds such as offshore hedge funds and 

absolute return funds. 

The Sanlam Moderate Life Time Investment Option offers less 

exposure to equity and offshore investment funds, with a large portion 

of the investment in the Vesting Bonus Fund. 

For this programme, the combination of investment funds was 

compiled in conjunction with Absa, according to their own view.

This is what the proposed asset allocations for the Sanlam options look like: 

Fund allocation 

Fund allocation 

100% 

80% 

60% 

40% 

20% 

0% 

Aggressive Life Time Option 

GE3/2012 BX 148 

Age 

Sanlam Equity MM Equity 

Bond Property 

MM Absolute Return (CPIX+5%) Guaranteed Capital 

100% 

80% 

60% 

40% 

20% 

0% 

Moderate Life Time Option 

30 

33 

36 

39 

42 

45 

48 

51 

54 

57 

60 

63 

30 

66 

33 

69 

36 

39 

42 

45 

48 

51 

54 

57 

60 

63 

66 

69 

Age 

Sanlam Equity Multi-Manager Equity Vesting Bonus 

Bond Property Guaranteed Capital 

The graphs indicate how the degree of risk decreases closer to retirement if the Lifestyle Investment 

Option has been chosen. 

All proposed asset allocations can be revised and adjusted from time to time.

Minimum payment 

If the Life Time Investment Option is chosen, the minimum savings part of the payment for retirement 

annuities with recurring payments is presently R400 per month or R4 800 per annum. This also applies 

if the Stratus Retirement Annuity is taken as part of a Stratus and Matrix Topcover combination product. 

The normal minimum one-off payments apply for plans with one-off payments. 

The Life Time Investment Option is available for all preservation fund plans. 

Minimum term 

If the Vesting Bonus Fund is part of the selected programme – as with the Sanlam Moderate Life Time 

Investment Option – a minimum initial term of five years applies. If the facility is added to an existing 

plan and the Vesting Bonus Fund is part of the selected programme, the outstanding term must also be 

at least five years. 

Amendments 

The following amendments will be permitted: 

• addition of the programme to an existing plan 

• switching from one programme to another 

• removal of the facility 

No costs are involved in any of the above amendments. 

If the option is selected with a new plan, or if it is added to a plan at any stage, the fund distribution as 

on the client’s next birthday will be taken into account if the client’s birthday is within six months from the 

quotation date (in the case of new business) or the effective date (in the case of an addition). It will 

therefore not be necessary to adjust the investment funds within six months after the start date or the 

effective date of the addition. 

Switches 

Any switched programme made in terms of the Life Time Investment Option is free – irrespective of the 

number of switches made. 

If at any stage the client initiates a switch on a plan on which the Life Time Investment Option has been 

chosen, the facility is automatically cancelled and the normal switching rules apply. 

No regular switches will be made at younger ages while the proposed asset allocations remain 

unchanged. When they start changing, switches will take place annually. 

Investment performance 

Although the objective of the Lifestyle Investment Option is mainly to reduce investment risks, it 

does not completely exclude the possibility of capital loss. The option also does not guarantee 

an above-average investment performance. 

GE3/2012 BX 149

D. STRATUS RIDER BENEFITS 

WAIVER OF PAYMENT AT DISABILITY (OPG, OGG) 

Waiver of payments without future growth at disability and waiver of payments with future growth at 

disability are waiver of payment benefits in the case of disability of the relevant life insured or the 

member. When a disability claim is admitted, Sanlam Life will waive the recurring payments on the plan 

on which the benefit was taken. This means Sanlam Life will treat the future payments as having been 

paid when payments becomes due. 

These rider benefits are available in the case of the following Stratus products with recurring payments: 

• Stratus Endowment 

• Stratus Retirement Annuity 

• Stratus Edufocus 

In this chapter, where further reference is made to the “insured”, the same will apply to the member (in 

the case of the Stratus Retirement Annuity). 

OPG AND OGG 

OPG – waiver of payments without future growth at disability 

OGG – waiver of payments with future growth at disability 

A claim will be considered for recognised disability, personal disability, and/or if the insured is 

unable to follow his/her regular occupation. 

After 24 months (after a claim has been admitted), the insured must also be unable to follow an 

alternative occupation in order to have the claim continue. 

DEFINITIONS 

OPG : In the case of plans with payment growth, the payment will grow until a claim arises. The 

payment growth will cease when a waiver of premium claim has been admitted. 

OGG : The payment will grow before and after a waiver of payment claim has been admitted. After 

a claim has been admitted, growth in terms of OGG will take place at the current inflation 

rate, with a maximum of 15% a year. Should payment growth be cancelled, no further 

growth in terms of OGG will take place, and when a claim is admitted, the level payment (as 

payable at that stage) will be waived. 

AVAILABILITY 

OPG : OPG is available as rider benefit on plans with or without payment growth. 

OGG : OGG is available as rider benefit only on plans with inflation payment growth. 

All occupational classes and rate groups qualify for this rider benefit. See Section BZ for information 

regarding occupational underwriting. 

AGE ON START DATE 

15 to 60 next birthday (for women as well) 

GE3/2012 BX 150

BENEFIT TERM 

The benefit term is the shortest of 

• the term up to the option date, and 

• the term up to plan anniversary before or on age 65. 

RATES 

OPG or OGG benefits must be taken on the full payment. Rates are a percentage of the recurring 

payment of the plan after the payment charge has been deducted (if applicable). Sanlam Life may 

change this percentage from time to time. 

CLAIM EVENTS 

A benefit can be claimed if a life insured becomes disabled, and the disability amounts to one of the 

following: 

• total, permanent and irrecoverable loss of 

− the vision in two eyes, or 

− the use of two hands, or 

− the use of two feet, or 

− the use of one hand and one foot, 

• functional impairment to the extent that the life insured is 

− totally, permanently and continuously unable to take care of his or her body or personal interests, 

or 

− totally and continuously unable to fulfil the occupational demands of the occupation he or she 

engaged in for income immediately before the functional impairment, resulting in a loss of such 

income. 

It is important to note that Sanlam Life will not waive the recurring payments for more than one waiver of 

payment claim at the same time. 

Besides the other conditions for admittance of a claim, Sanlam Life will admit a claim only if the disability 

• is caused directly and solely by a bodily injury or by an illness; 

• lasted continuously for the entire waiting period. 


Sanlam Life will admit a claim only if Sanlam Life is satisfied that all of the following conditions are met: 

• The claim meets the description and requirements of the claim event. 

• Sanlam Life receives all information Sanlam Life reasonably may require. 

• The life insured obtained and followed medical advice immediately after the bodily injury took place 

or the illness had started. 

• All aspects of the claim are proved by medical and other evidence Sanlam Life reasonably may 

require. 

• The recurring payments of the plan have been made in full. 

• The disability is caused directly and solely by a bodily injury or by an illness. 

• The disability has lasted continuously for the entire waiting period. 

• The bodily injury took place, or the cause of the claim was diagnosed for the first time, or the 

symptoms of the cause of the claim first presented, while the cover for the benefit was in force. 

This benefit will be cancelled, and the risk part of all recurring payments made for this benefit will be 

forfeited, if a claim fraudulent in any aspect is submitted for this benefit, or if false information is 

supplied. 

GE3/2012 BX 151


The waiting period is currently 6 months from the date on which Sanlam Life receives the disability 

claim. Recurring payments must still be made during the waiting period. 

The waiting period is waived for insureds who are terminally ill. 

EXCLUSIOINS 

Sanlam Life will not admit a claim if the disability of the life insured can be substantially removed or 

improved by surgery or other medical treatment, which Sanlam Life can reasonably expect him or her to 

undergo, taking into account the risks involved and the chances of success of such surgery or 

treatment. 

If the life insured at any time engages in sport as an occupation, or works as a pilot, and becomes 

continuously unable to fulfil the occupational demands of that occupation, Sanlam Life will not admit a 

claim as a result of such inability. 

Sanlam Life insures the ability to work, and not the availability of work. 

Sanlam Life will not admit a claim if it resulted directly or indirectly from any of the following, whereby the 

life insured: 


• commits or attempts to commit a crime of murder, assault, housebreaking, theft, robbery, 


crimes; 






gain; 

• participates in motorized racing, speed contests or acrobatic flights; 


parachuting or sky surfing; 


Specific exclusions, if any, are set out in the planholder's statement under special provisions. 

GE3/2012 BX 152

TEMPORARY EXCLUSIONS FOR SPECIFIC CONDITIONS 

During the first three years after cover for the benefit has started, Sanlam Life will not admit a claim if 

the disability of the life insured directly or indirectly resulted from any of the following: 

• depression or dysthymia, whether as an episode or disorder, or as part of the symptom complex of 

another psychiatric diagnosis; 

• post traumatic stress disorder; 

• fibromialgia; 

• chronic fatigue syndrome and its synonyms; 

• a back condition, unless it qualifies as one of the following: 

− paraplegia; 

− quadruplegia; 

− malignant tumours of the spinal cord and vertebral column; 

− failed back syndrome after multiple spinal surgery, provided that the extent of the functional 

impairment arising therefrom is verified by a specialist that Sanlam Life will nominate; 

• an injury or illness that directly or indirectly resulted from, or is traceable to, any of the above causes; 

• a complication that directly or indirectly is attributable to any of the above causes, or to such an 

injury or illness; 

• a side-effect of treatment for any of the above causes, or for such an injury or illness, or for such a 

complication. 

The definitions for these conditions appear in the contract document. Three years after waiver of 

payments with or without future growth at disability takes effect, any back condition and psychiatric 

conditions that causes the life insured to experience disability as defined in the contract document, is 

covered. All psychiatric conditions other than those mentioned above are covered from the start date of 

the disability benefit. 

It is, however, possible that a particular life insured's specific situation may necessitate these conditions 

being excluded permanently. 

WAIVER OF PAYMENTS 

Sanlam Life will waive the recurring payments from the first payment due date on or after the date 

Sanlam Life admits the claim. . 

Sanlam Life will waive the recurring payments for as long as the disability continues, but only up to 

midnight before the cover end date, as indicated in the planholder's statement. From the cover end 

date, the recurring payments must be resumed. 

If Sanlam Life admits the claim because the life insured, as a result of the disability, is unable to fulfil the 

occupational demands of the occupation he or she engaged in for income immediately before he or she 

became disabled, Sanlam Life will waive the recurring payment for 24 months only. Thereafter, Sanlam 

Life will only continue waiving the recurring payments if the life insured is also unable to fulfil the 

occupational demands of another occupation Sanlam Life may reasonably expect of him or her to 

engage in despite his or her disability, taking into account his education, training and experience. 

While the recurring payments are being waived, Sanlam Life may from time to time ask for proof that the 

life insured is still disabled. Sanlam Life may require the life insured to be examined for this purpose, at 

Sanlam Life's cost. If the life insured recovers to such an extent that he or she is no longer disabled, 

Sanlam Life will stop waiving the recurring payments. 

GE3/2012 BX 153

WAIVER OF PAYMENTS (continued) 

Sanlam Life will also stop waiving the recurring payments if 

• Sanlam Life do not receive the required proof of the life insured's continued disability, or 

• the life insured 

− refuses to be examined, or 

− refuses to undergo reasonable treatment on a regular basis, at his or her cost, by a medical 

doctor, other than the life insured if he or she is a medical doctor, or 

− dies. 

If Sanlam Life stops waiving the recurring payments, the recurring payments must be resumed. 

START DATE FOR COVER 

It will start on the last of 

• the date of Sanlam Life's written acceptance of the planholder's application, 

• the cover start date for the benefit, as indicated in the planholder's statement, and 

• the date on which Sanlam Life receives the first recurring payment, or on which arrangements to our 

satisfaction have been made for the first recurring payment. 

END DATE FOR COVER 

It will end 

• at midnight before the cover end date, as indicated in the planholder's statement, or 

• if the plan ends for any reason before the cover end date. 

Subject to Sanlam Life's new business requirements at the time, cover for the benefit can be extended 

on request, provided that the life insured is still alive and Sanlam Life receives the request before the 

cover end date. However, Sanlam Life will not extend cover for the benefit if, during the year ending at 

midnight before the cover end date, a claim for a waiver of payment benefit for the life insured was 

submitted to Sanlam Life, or Sanlam Life waived the recurring payments. 

LIMITING COVER 

The cover for the benefit will not be limited. However, if there is other existing insurance with Sanlam 

Life which provides for payment of benefits if the life insured should suffer disability, those benefits may 

be limited as set out in that other existing insurance, as a result of the payment of the benefit under the 

specific plan. Sanlam Life will only be able to determine this at the time a disability claim is admitted. 

ALTERATIONS 

OGG may be changed to OPG but not vice versa. 

GE3/2012 BX 154

WAIVER OF PAYMENT AT DEATH (DP, DG) 

Waiver of payments with future growth at death (DG) as well as waiver of payments without future 

growth at death (DP) is available. If a claim is admitted, payments of the plan will be waived. This 

means Sanlam Life will treat the future payments as having been paid when payment becomes due. 

DP AND DG 

DP – waiver of payments without future growth at death 

DG – waiver of payments with future growth at death 

PRODUCTS WHERE AVAILABLE 

Stratus Edufocus 


Payment growth is available according to the choice of growth selected by the planholder. If DG is 

taken, the plan MUST have future payment growth at Sanlam inflation. 

Waiver of payments with future growth at death (DG) 

If Sanlam Life admits a claim, Sanlam Life will waive the recurring payment of the plan. Each year the 

recurring payment will continue to increase by the growth type that applied when the claim was 

admitted, but subject to the current maximum increase each year. Every time the recurring payment is 

due, Sanlam Life will regard that payment as paid. 

If the type of payment growth has been changed or the payment growth has been cancelled, Sanlam 

Life will change this benefit to a similar benefit without future growth. 

Waiver of payments without future growth at death (DP) 

If Sanlam Life admits a claim, Sanlam Life will waive the recurring payment of the plan payable at the 

time of the claim. Every time the recurring payment is due, Sanlam Life will regard that payment as 

paid. If payment growth is applicable to the specific plan, even if the recurring payment was increased 

before a claim was admitted, the payment Sanlam Life will regard as paid, will no longer be increased 

thereafter. 


• Minimum : 15 age next birthday 

• Maximum : 65 age next birthday 

BENEFIT TERM 

The benefit term is the shortest of 

• the term up to the option date 

• the term up to the plan anniversary just before or on age 80 

QUALIFYING LIVES 

Persons who qualify for rate groups 2, 3, 4 and 5 can apply for waiver of payments benefits. 

GE3/2012 BX 155

RATE DIFFERENTIATION 

There is only one set of rates for each benefit. At present there is no differentiation on the grounds of 

rate group, smoking habits or sex. 

LIMITS 

None (subject to financial underwriting). 

CLAIM EVENT 

A benefit may be claimed at death of the life insured. 

It is important to note that Sanlam Life will not waive the recurring payments for more than one waiver of 

payment claim at the same time. 


Sanlam Life will admit a claim only if Sanlam Life is satisfied that all of the following conditions are met: 

• The claim meets the description and requirements of the claim event. 

• Sanlam Life receives all information Sanlam Life reasonably may require. 

• All aspects of the claim are proved by medical and other evidence Sanlam Life reasonably may 

require. 

• The recurring payments of the plan have been made in full. 

• The claim event took place while the cover for the benefit was in force. 

This benefit will be cancelled, and the risk part of all recurring payments made for this benefit will be 

forfeited, if a claim fraudulent in any aspect is submitted for this benefit, or if false information is 

supplied. 

EXCLUSIONS 

Sanlam Life will not admit a claim if the death of the life insured is caused by suicide, also during 

insanity, committed within 24 months after cover for the benefit has started, or after the plan has been 

re-instated after an earlier lapse. The person or entity who claims the benefit, must prove that the life 

insured did not commit suicide. 

Specific exclusions, if any, are set out in the planholder's statement under special provisions. 

WAIVING OF PAYMENTS 

Sanlam Life will start waiving the recurring payments from the first payment due date on or after the date 

Sanlam life admits the claim. 

Sanlam Life will waive the recurring payments up to midnight before the cover end date, as indicated in 

the policyholder's statement. From the cover end date, the recurring payments must be resumed. 

START OF COVER 

It will start on the last of 

• the date of Sanlam Life's written acceptance of the planholder's application, 

• the cover start date for the benefit, as indicated in the planholder's statement, and 

• the date on which Sanlam Life receives the first recurring payment, or on which arrangements to 

Sanlam Life's satisfaction have been made for the first recurring payment. 

GE3/2012 BX 156

END DATE OF COVER 

It will end 

• at midnight before the cover end date, as indicated in the planholder's statement, or 


Subject to Sanlam Life's new business requirements at the time, cover for the benefit can be extended 

on request, provided that the life insured is still alive and Sanlam Life receives the request before the 

cover end date. 

AMENDMENTS 

DG can be changed to DP, but not vice versa. 

GE3/2012 BX 157

E. SUMMARIES 

AVAILABLE INVESTMENT FUNDS PER PRODUCT FOR STRATUS PRODUCTS 

To determine which investment funds are available for the specific products, consult the relevant application form. The relevant quotation system also indicates which 

investment funds are currently available for the relevant product. 

For descriptions, risk levels, charges, benchmarks, etc. for the available SIM, SMMI, Sanlam Unit Trust and external unit trust investment funds, please visit the Sanlam 

website. For this information on brokers house investment funds available for accredited brokers for marketing, the relevant brokers have to consult the websites of the 

respective broker houses. 

For certain products Stratus Premier products are available for higher minimum payments. 

1. AVAILABLE INVESTMENT FUNDS PER PRODUCT ACCORDING TO THE AMOUNT OF THE PAYMENT 

The available investment funds for a specific product are determined by the amount of the payment for the relevant plan. This is determined as follows: 

Minimum payments for ordinary insurance 


Terms 15 years and longer* 

Only SIM/ 

SMMI 

investment 

funds 

All available 

investment 

funds 

GE3/2012 BX 158 

Minimum payment for relevant plan 

Terms 10 years up to and 

including 14 years 

Only SIM/ 

SMMI 

investment 

funds 

All available 

investment 

funds 

Terms 5 up to and including 

9 years 

Only SIM/ 

SMMI 

investment 

funds 

All available 

investment 

funds 

Terms shorter than 5 years 

Only SIM/ 

SMMI 

investment 

funds 

All available 

investment 

funds 

Stratus Endowment R250 R400 R250 R400 R400 R600 n.a. n.a. 

Stratus Edufocus R250 R400 R250 R400 R400 R600 n.a. n.a. 

NB: 




3) If only recurring payments are payable on the plan, and the debit order payment is less than R500,00 per month, payment growth is compulsory. This rule does 

not apply to continuations. 

* For EduFocus a minimum of R200 per month applies for terms of 15 to 17 years, and a minimum of R150 per month applies for terms 18 years and longer.

AVAILABLE INVESTMENT FUNDS PER PRODUCT ACCORDING TO THE AMOUNT OF THE PAYMENT (continued) 

Minimum payments for retirement business 


GE 3/2013 BX 159 

Terms 15 years or more 

Only SIM/ 

SMMI 

investment 

funds 

All 

available 

investment 

funds 

Minimum payment for the relevant plan 



Only SIM/ 

SMMI 

investment 

funds 

All 

available 

investment 

funds 



Only SIM/ 

SMMI 

investment 

funds 

All 

available 

investment 

funds 

Terms shorter than 5 

years 

Only SIM/ 

SMMI 

investment 

funds 

All 

available 

investment 

funds 

Stratus / Cobalt for Professionals Retirement 

Annuity R150 R300 R250 R400 R400 R600 R500 R600 

Stratus Retirement Annuity as part of a 

combination product R150 n.a. R250 n.a. R400 n.a. R500 n.a. 

Stratus Pension/Provident Preserver n.a. (See note 4 below) 

NB: 




3) Only Sanlam Life investment funds are available for the combination products. 

4) For Stratus Pension/ Provident Preserver one-off payments always apply, therefore all available investment funds are available with the relevant plan (see note 

2 above). 

5) If only recurring payments are payable on the plan, and the debit order payment is less than R500,00 per month, payment growth is compulsory. This rule does 

not apply to continuations.

2. MINIMUM PAYMENTS AND PRODUCT CODES 

Product Product code 

GE 3/2013 BX 160 

Initial monthly 

payment 

Stratus Endowment E36 R250 for term 10 

years or more 

R400 for term less 

than 10 years 

One-off 

payment 

R10 000 if oneoff 

payment 

only 


payment 

plus recurring 

payment 

Stratus Endowment (conversions) E26 R250 R2 500 

Stratus International Endowment E17 n.a. R10 000 

Stratus Edufocus E30 R150 for term 18 

years or more 

Stratus Continuation 

− without insured life 

− with insured life 

SC2 

EC9 

R200 for terms 15 


17 years 

R250 for term 10 

years up to and 

including 14 years 

R400 for term less 

than 10 years 

R150 

R150 

Stratus Retirement Annuity R19C R150 for initial 

term 15 years or 

more 

Stratus Retirement Annuity 

(conversions) 

R250 for initial 


more, but less 

than 15 years 




than 10 years 


term shorter than 5 

years 


payment 

only 


payment 


payment 

R10 000 

R10 000 


payment 

only 


payment 


payment 

R07C R150 R2 500

MINIMUM PAYMENTS AND PRODUCT CODES (continued) 


Stratus Retirement Annuity as part of 

combination product with Matrix 

Cobalt for Professionals Retirement 

Annuity 

GE 3/2013 BX 161 


payment 

R26C R150 for initial 


more 




than 15 years 




than 10 years 



years 

R19C R150 for initial 


more 




than 15 years 




than 10 years 



years 

One-off 

payment 

R2 500 (can be 

taken with 

recurring 

payments only) 


payment 

only 


payment 


payment


Stratus Retirement Annuity 

Continuation: CRAF 


GE 3/2013 BX 162 


payment 

One-off 

payment 

RC9C R150 R2 500 

Cobalt for Professionals Retirement 

Annuity (Continuations) RC9C R150 R2 500 

Stratus Provident Preserver PF3 n.a. R5 000 

Stratus Pension Preserver PP3 n.a. R5 000 

Stratus Preservation Fund 

Continuations 

− Stratus Provident Preserver 

(Continuation) 

− Stratus Pension Preserver 

(Continuation) 

Stratus Endowment for Provident 

Funds 

PF2C 

PP2C 

n.a. 

n.a. 

R5 000 

R5 000 

F01C R150,00 p.m. R2 500 if oneoff 

payment plus 

recurring 

payment only 

Stratus Continuations for Provident 

funds FC1C R150,00 p.m. R2 500 

Stratus Guaranteed Income J01O R150 income p.m. / 

R900 p.a. 

R20 000 

Stratus Guaranteed Return SG1 n.a. R20 000 

Status Guaranteed Investment SG1 + J01P R225 income p.m. / 

R3 000 p.a. 

R75 000, 

subject to 

minimum 

income 

Stratus Investment Linked Pension - n.a. R100 000 

Stratus Composite Annuity - n.a. R115 000 

(total minimum)


Stratus Traded Policy 


Stratus Premier Continuation: with life 

insured 

Stratus Premier Retirement Annuity 

(conversions only) 

Stratus Premier Endowment for 

Provident Funds 

Stratus Premier Continuations for 

Provident Funds 

GE 3/2013 BX 163 

SC7 

R72C 


payment 

n.a. 


years and more 

R500 for term 

less than 10 

years 


years and more 

R500 for term 

less than 10 

years 

F70C R255,00 p.m. 

One-off 

payment 

For capital 

growth : R7 500 

For regular cash 

withdrawals : 

R15 000 

R10 000 

R2 500 


payment plus 

recurring 

payment only 

FC7C R255,00 p.m. R2 500 

Stratus Premier Investment Linked 

Pension - n.a. R100 000 

Stratus Premier Composite Annuity 

- n.a. 

R115 000 

(total minimum)

F. ADDITIONAL INFORMATION ABOUT RETIREMENT ANNUITY 

FUNDS 

REASONS WHY RA FUNDS ORIGINATED 

If people do not make provision for their old age, the State has to look after them when they can no longer work. 

The State grants tax concessions to encourage people to make their own provision for old age. 

Tax concessions with regard to the following contributions are granted currently: 

• Contributions made to retirement annuity funds, the State allows a certain amount to be deducted from a 

person’s taxable income (see maximum deductible contributions). 

• Contributions a person makes to an approved pension scheme can be deducted from his taxable income 

up to a certain maximum. 

• Contributions made by an employer to such a pension scheme for employees can again, within certain 

limits, be deducted from his own taxable income. In this way employers are encouraged to assist their 

employees in making provision for their old age. 

PROTECTION OF BENEFITS 

Except to the extent permitted by the Pension Funds Act, the Income Tax Act and the Maintenance Act, RA 

benefits for a member and his/her dependants/nominees are protected against their creditors. 

LEGAL REQUIREMENTS FOR RA FUNDS 

The Income Tax Act has provided for the deduction of contributions to retirement annuity funds since 1960. The 

most important requirements set by the State may be summarised as follows: 

A permanent fund must be established for the sole purpose of providing pensions (life annuities) for members 

of the fund or their dependants/ nominees. The rules of the fund must inter alia provide that: 

− members make contributions including contributions by way of transferring funds from a member’s approved 

pension fund, provident fund or other RA funds; 

− not more than one-third of the total value of a pension (life annuity) to which the person at retirement may 

become entitled may be commuted (converted) to a lump sum. (If the benefit amount does not exceed the 

amount prescribed by legislation from time to time, the member may take the full benefit amount as a lump 

sum.); 

− the retirement age must not be attained before the 55 th birthday; 

− the full commutation of benefit in the event of death before retirement will be done; 

− except for certain exceptions listed in the Income Tax Act, no member's rights to benefits shall be capable of 

surrender or commutation; and 

− the rules of the fund, as well as amendments to them, must be submitted for approval to the Commissioner 

for South African Revenue Services. 

GE 3/2013 BX 164

FUNDS UNDERWRITTEN BY SANLAM LIFE 

The following funds are underwritten by Sanlam Life: 

CRAF : CENTRAL RETIREMENT ANNUITY FUND 

Sanlam Life employees together with an equal number of independent trustees form the Board of Trustees. A 

person who applies for a retirement annuity plan (RA) must be a member of the Fund or must at the same time 

apply for membership of the Fund. 

PPS-RAF : PROFESSIONAL PROVIDENT SOCIETY RETIREMENT ANNUITY FUND 

The Fund was established by the Professional Provident Society (PPS). Professional people form the Board of 

Trustees and they decide who the underwriter will be. Despite strong competition Sanlam Life has succeeded in 

becoming the underwriter of this Fund. Please note that The Board of Trustees of the PPS-RAF decided to close 

the Fund for new business and contribution increases on existing business from 1/10/2012. 

Only professional people qualify as members of the PPS-RAF. 

GENERAL INFORMATION : RETIREMENT ANNUITY FUNDS 

PLANS 

When a person becomes a member of a fund underwritten by Sanlam Life, he receives a copy of the plan. 

Sanlam Life issues the original plan to the trustees for their safekeeping. The Fund is the planholder of the plan. 

CHANGE IN OCCUPATION : EFFECT ON MEMBERSHIP 

Once a person has acquired membership of a fund, he will retain his membership of that fund even if he should 

later change his occupation (e.g. a professional person leaves his profession to start farming). 

INCOME TAX – IT ACT (s.11(n)) 

MAXIMUM DEDUCTIBLE CONTRIBUTIONS (s.11 (n)) 

Contributions to an RA fund by a member will be deductible from his/her income. 

The maximum deduction allowed in respect of the current contributions made by a taxpayer to an RA during a 

year of assessment is the greatest of: 

(i) 15% of the amount remaining after the permissible deductions have been made from the "income"* of 

the taxpayer, but excluding deductions in respect of certain farming expenses, medical expenses, 

donations to public benefit organizations; or 

(ii) R3 500 minus any deductions allowed to the taxpayer regarding current contributions to a pension fund; 

or 

(iii) R1 750. 

* Excluded from "income" is: • income from "retirement funding employment"; 

• retirement fund lump sum withdrawal benefits; and 

• retirement fund lump sum retirement benefits. 

• severance benefits from an employer 

The deduction in respect of an RA contribution may not exceed the taxable income for the fiscal year concerned. 

GE 3/2013 BX 165

Retirement funding service 

The maximum deductible contribution to a pension fund per year is limited to the greater of R1 750 and 7,5% of 

pensionable income per person. Since 1 March 1999 this limit also applies to individual contributions to any 

pension fund established by law (e.g. government and associated institutions) or for employees of any local 

authority (IT Act (s.11(k)). 

The Act refers to pensionable income as income received from retirement funding employment. Income from 

retirement funding employment is that portion of the tax-payer’s remuneration which is taken into account for the 

calculation of his contribution (by himself or for his benefit) to a pension or provident fund. 

Reinstating contributions 

Maximum deduction : R1 800 p.a. 

MARRIED PERSONS 

A husband and a wife may each be a member of an RA fund in his or her own right. 

Examples: 

1) A taxpayer has a pensionable income of R50 000. Contribution to pension fund is 7,5%. His 

maximum deductible contribution will be: 

− R3 750 to pension (7,5% of R50 000), and 

− R1 750 to RA funds. 

2) If above-mentioned taxpayer makes no contribution to a pension fund, he will be able to contribute R3 

500 to RA. 

3) If his contribution to a pension fund is 10%, he will be able to contribute: 

− R5 000 to pension of which R3 750 (maximum 7,5%) will be deductible, and 

− R1 750 to RA funds. 

4) If the contribution to a pension fund is 6% and his pensionable income is R20 000, he will be able to 

contribute: 

− R1 200 to pension, and 

− R2 300 to RA (3 500 - 1 200). 

5) If the wife of this taxpayer (in (4)) also has a pensionable income of R5 000 and her contribution to the 

fund is 6%, they will be able to contribute in total: 

− R1 500 to pension (1 200 + 300), and 

− R5 500 to RA (3 500 - 1 200) and (3 500 - 300). 

6) A taxpayer’s net taxable trade income amounts to R50 000 (he does not belong to a pension fund). 

He also received R5 000 taxable interest as well as tax-free allowances amounting to R2 000. His 

maximum deductible contribution will be: 

− R8 250 to RA funds (15% of R55 000). 

7) A taxpayer’s net taxable trade income amounts to R50 000 (he does not belong to a pension fund). 

His maximum deductible contribution will be: 

− R7 500 (15%) to RA funds. 

8) If his net taxable income amounts to R20 000, he will be able to deduct: 

− R3 500 to RA funds (even though it is more than 15% of taxable income). 

9) A taxpayer’s pensionable income is R25 000 and his net trade income from his farm is R30 000. 

Contribution to his pension fund is 8%. 

His maximum deductible contribution will be: 

− R1 875 to pension (the greater of R1 750 and 7,5% of R25 000), and 

− R4 500 to RA funds (15% of R30 000). 

GE3/2012 BX 166

CONTRIBUTIONS TO MORE THAN ONE FUND 

A member can contribute to one or more funds. However, no more than the maximum contribution under the 

Income Tax law will be allowed. 

NB: It may, however, be better for the client to use a non-deductible contribution rather for 

endowment assurance and to either continue it at maturity date/option date with regular 

withdrawals or to use the proceeds for acquiring an annuity. 

EXCEEDING DEDUCTIBLE CONTRIBUTIONS 

Any current contributions or part thereof which did not qualify for deduction in the current tax year, may be carried 

forward to the next tax year (or years), in which case it will be considered as a current contribution. The total 

deductible amount for a current tax year will, however, still be subject to the maximum as discussed above. 

Lump sum contributions to retirement annuity funds will be treated as current contributions. 

Example 

Suppose a person made a contribution of R7 500 per year to an RA fund and his income (which does not include 

pensionable income) in year 1 was R40 000 and in year 2, R60 000 (For purposes of this example ignore the tax 

theshold): 

Year 1 

Maximum allowable contribution (15% of R40 000) = R6 000 

Actual contribution = R7 500 

Only R6 000 will be allowed and R1 500 may be carried forward to year 2. 

Year 2 

Maximum allowable contribution (15% of R60 000) = R9 000 

Current contribution = R7 500 

Contribution carried forward = R1 500 

= R9 000 

R9 000 will be allowed in year 2. 

CONTRIBUTIONS IN ARREARS 

Fully paid-up plan and (VOP) reinstatement 

A taxpayer who has discontinued contributions to an RA fund prematurely, but who contributes in a subsequent 

tax year in such a manner that he is reinstated as a full member, is entitled to claim a maximum deduction of 

R1 800 of such contributions over and above his current contributions in the year in which he resumes normal 

contributions (i.e. those contributions which were discontinued prematurely). 

Both husband and wife may deduct R1 800 in respect of reinstatement contributions individually made. 

For reinstatement contributions no deduction will be allowed unless it would have qualified as a current 

contribution in the tax year in which it ought to have been paid. 

Example: 

A taxpayer is a member of CRAF and his contribution is R3 500 per annum (maximum deductible according 

to income). During a specific year no contribution was made and the plan was automatically made paid-up. 

− At reinstatement he must pay R3 500 (plus interest - if applicable) to Sanlam Life to effect 

reinstatement and he must continue his contribution of R3 500. 

− He will only be allowed R3 500 (current) plus R1 800 (arrears) as deductions for the year of 

reinstatement. 

− In the next year he will be allowed to claim R3 500 plus R1 700 for the reinstatement (R3 500 – 

R1 800). 

GE3/2012 BX 167

YEAR OF ASSESSMENT 

The year of assessment for individuals ends on 28/29 February of each year. This includes all individuals 

regardless of whether they derive their income from, for instance, a business concern, farming, a salary, 

investments, or a combination of any of these. 

If a taxpayer has a farm, or is in business and finds it inconvenient to close his accounts on 28/29 February he 

may, with the approval of the South African Revenue Service, close his accounts on another date. 

If such a taxpayer contributes to a retirement annuity fund, only those contributions paid-up to and including 

28/29 February of the year concerned can be taken into account when the taxable income is calculated. If a 

businessman or a farmer obtains the approval of the South African Revenue Service to close his account on, say, 

30 June, a contribution to a retirement annuity which was paid before 28 February 2011 can be deducted from 

his trade income for the year 1 July 2010 to 30 June 2011. 

A contribution paid on 1 April 2011 (i.e. before he closes his accounts on 30 June 2011 but after the end of the 

tax year which ended on 28 February 2011) will only be deductible for the year 1 July 2011 to 30 June 2012. The 

year of assessment will, however, end on 29 February 2012. 

TAX CERTIFICATES 

Sanlam Life provides an annual payment certificate to each RA fund member, indicating particulars of all the 

member’s RA contributions and payments for Income Protectors (where applicable), and in terms of which the 

member would possibly qualify for a tax deduction. The member also receives a benefit statement. 

These certificates and statements are prepared and posted to the members at the end of the tax year together 

with an indication of the fund contributed to. 

TAXABILITY OF BENEFITS 

Benefits paid from RA funds are taxable at various instances such as retirement, death or disability of a 

member. The benefits can be divided into 2 classes, namely lump sum benefits and compulsory annuity benefits 

(the pension). 

Pension instalment 

Pension payments are regarded as gross income and are fully subject to income tax in the year in which the 

drawer becomes entitled to them. 

The lump sum 

Certain concessions, however, are made regarding lump sums: 

• A certain amount is specifically exempted from income tax as shown below. 

The maximum tax-free lump sum is the amount of R315 000 plus any contributions not deductible for income 

tax purposes in the past, but minus any tax-free amounts from other retirement funds already paid out. To 

the tax-free amount can be added any tax-free benefit previously transferred from a paragraph (a) and (b) 

fund (e.g. Government Employees Pension Fund), for membership before 1 March 1998. 

The R1 800 tax-free on an early withdrawal, if taken before 1 March 2009, will not be deducted from the 

R315 000. 

GE3/2012 BX 168

TAXABILITY OF BENEFITS (continued) 

The lump sum (continued) 

− Lump sum retirement benefits 













GE3/2012 BX 169 



R630 000 


R945 000 



tax that would have been levied for this person according to this calculation on a taxable income 


1 March 2009); retirement fund lump sum retirement benefits (received on or after 1 October 2007) and 

severance benefits (received on or after 1 March 2011) previously received by or accrued to that person 

(before the planned retirement fund lump sum retirement benefit). 

− Lump sum withdrawal benefit 








benefit 

R0 up to R22 500 * : 0% tax 

Tax liability 


R600 001 up to R900 000 : R103 950 plus 27% of the amount above 

R600 000 

R900 001 and more : R184 950 plus 36% of the amount above 

R900 000 



that would have been levied in terms of this calculation for this person on taxable income consisting of the 

total of retirement fund lump sum withdrawal benefits (received on or after 1 March 2009); retirement fund 

lump sum retirement benefits (received on or after 1 October 2007) and severance benefits (received on 

or after 1 March 2011) received by or accrued to that person previously (before the planned retirement 

fund lump sum withdrawal benefit).

TAXABILITY OF BENEFITS (continued) 

The lump sum (continued) 

Notes: 

1) The exemption applies to the combined benefits from all retirement funds (including pension, RA, 

preservation and provident funds). 

2) The lump sum payable out of pension funds established according to law or for employees of local authorities 

and boards of control will be free of IT for the portion accumulated up to 28 February 1998. The balance may 

or may not be taxed subject to the other exemptions of the IT Act (Second Schedule) as discussed above. 

The tax-free lump sum from RA funds will be applicable in respect of such employees regardless of this 

concession. 

3) The tax-free lump sum is available per individual. 

At retirement and disablement 

A maximum of one-third of the claim value may be taken in a lump sum, except if the fund value is (for all fund 

products of the member at one retirement fund) does not exceed R75 000, in which case the full fund value can 

be taken in cash. 

At death before retirement − IT Act (Second Schedule) 

The full benefit at death may be commuted. The maximum tax-free lump sum, and tax on the balance according 

to the sliding scale rate as at retirement, applies at death. 

ESTATE DUTY – ED ACT (s.3(3)(a)bis.) 

The lump sum taken under any retirement fund is exempted from estate duty. 

GE3/2012 BX 170

SECTION BY 

SANLAM NIMBUS INVESTMENTS 

GE 3/2013 BY 

Page 

DESCRIPTION ……………………………………………………………………….... BY 1 

LICENCE ………………………………………………………………………………... BY 1 

EXPLANATIONS ……………………………………………………………………... BY 1 

PLANHOLDER ……………………………………………………………………..….. BY 1 

INITIAL TERM…………………………………………………………………………... BY 1 

AVAILABLE INVESTMENT FUNDS………………………………………………. BY 1 

SWITCHING BETWEEN INVESTMENT FUNDS………………………........ BY 2 

PAYMENTS……………….……………………………………………………... BY 2 

AGE AT ENTRY…………………………………………………………………. BY 2 

INVESTMENT……………………………………………………………........... BY 2 

LOYALTY BONUS……………………………………………………………… BY 3 

CHARGES…………………………………………………………………........ BY 3 

INVESTMENT ADVICE AGREEMENT BETWEEN THE PLANHOLDER 

AND THE INTERMEDIARY…………………………………………………… 

BY 5 

REALISING THE PLAN BENEFITS………………………………………….. BY 5 

BENEFIT PAYABLE AT DEATH……………………………………………… BY 6 

NOMINEE TO BECOME THE NEW PLANHOLDER……………………….. BY 7 

PAYMENTS……………………………………………………………………… BY 7 

CONTINUATIONS AND CONVERSIONS…………………………………… BY 7 

ALTERATIONS……………………………………………………………........ BY 7 

CESSIONS……………………………………………………………………….. BY 7 

TAX…………………………………………………………………………......... BY 7 

COOLING-OFF PERIOD……………………………………………………….. BY 7

DOMENT 

DESCRIPTION 

Sanlam Nimbus Investments is a one-off investment product that offers investors a cost-effective 

investment solution on a select range of quality investment funds. 

The one-off payment is enhanced with an additional allocation, thus ensuring faster investment growth. 

The investor can choose one or more of the available investment funds. Any combination of the funds is 

allowed. 

Sanlam Nimbus Investments is issued by the Safrican Insurance Company (Safrican), and administered 

by Sanlam Life. 

LICENCE 

Sanlam Nimbus Investments is issued under the Safrican Insurance Company’s licence. 

EXPLANATIONS 

OPTION DATE 

It is the date which indicates the end of the term, and is indicated in the planholder’s statement. 






It is the date until which an alteration charge will be levied for certain alterations, and is indicated in the 

planholder’s statement. 

WORKING DAY 


PLANHOLDER 

Only individuals and trusts, of which all the beneficiaries are natural persons, may take out this product. 

INITIAL TERM 

The initial term is 5 years, with an open term thereafter. 


SANLAM NIMBUS INVESTMENTS 

The available investment funds are indicated on the quotation system. 

The funds are available in Safrican’s Individual Planholder Fund (IPF) only and not in any of the non-IPF 

funds. 

GE 3/2013 BY1

The funds were opened specifically for Sanlam Nimbus Investments and are available for Sanlam 

Nimbus Investments only. 

Information about all investment funds offered, is available on the Sanlam website at 

http://www.sanlam.co.za. 


The planholder may at any time switch between any of the available investment funds. 

Switches to non-Safrican funds, however, are not allowed. 

Units of the investment funds out of which a switch is done will be sold, and units of the investment 

funds into which a switch is done, will be bought. 

This will be done on the first working day after receiving the switch request. 

COST TO SWITCH INVESTMENT FUNDS 


switch in a plan year, a transaction charge will be levied, which will be determined at the time. The 

current transaction charge is indicated in the statement. The number of free switches may be changed 


PAYMENTS 

Only one-off payments may be made, provided that they are allowed by legislation and are not less than 

the minimum allowed. If the transaction date for a one-off payment, as indicated in the statement, is 

more than two days later than the payment date, the payment will be adjusted to allow for the delay from 

the payment date to the transaction date. 


• New business: R100 000 (There is no maximum amount) 

• Ad hoc one-off payments: R25 000 

AGE AT ENTRY 




INVESTMENT 

AMOUNT INVESTED 

A one-off payment plus an additional allocation, if applicable, is invested in the respective chosen 

investment funds. The additional allocation depends on the level of commission negotiated at the start. 

The amount allocated to a specific investment fund is used to buy units in that investment fund on the 


UNIT PRICE 





• the marketing charge; 

GE 3/2013 BY2


• platform fees received from the fund manager, if applicable to the investment fund; 




It may occur that an investment fund will be closed if, for example, legislation changes or certain classes 

of assets become unavailable. If the plan is affected, the planholder will be requested to choose another 

investment fund allowed at that stage for that specific type of plan, and to inform Safrican of the choice 

made. If no response to such a request is received, Safrican will decide in which investment fund to 

continue the affected part of the plan. 

FUND VALUE 




LOYALTY BONUS 

On certain plan anniversaries rebates for certain charges are added to the fund value in the form of a 

loyalty bonus, as reward for maintaining the plan. Loyalty bonuses are also added at termination after 

the option date – if it falls between two bonus dates. The amount of the loyalty bonus is calculated as a 

percentage of some of the charges deducted from the plan. More detail of the calculation of the loyalty 

bonus, if applicable, is provided in the planholder’s statement. 




GE 3/2013 BY3 


% 

5 0 

10 40 

15 50 

20 60 


A loyalty bonus will also be added if the plan is terminated after more than five years from the start 

date: 


• on request. 




The loyalty bonus will be added to the fund value of the plan by adding units to the plan. If the plan 

anniversary or termination date on which the loyalty bonus is payable, is not on a working day, the units 

will be added on the first working day thereafter. 

CHARGES 

TAX 

Tax is levied according to the rate applicable to the Individual policyholder's fund.



An initial marketing charge, if applicable, deducted from a one-off payment. 

A yearly marketing charge, which is a percentage of the fund value and may differ for different 

investment funds. It is taken into account when the daily price of the units is calculated. 

A yearly variable administration charge, which is a percentage of the fund value. This charge is 

calculated on a monthly basis, which means it is divided by 12. The charge is deducted monthly from 

the fund value by selling units to the value of the charge. 



price of the units: 

A yearly asset management charge, which is a percentage of the market value of the assets in an 


current charge for an investment fund is indicated in the planholder’s statement. 

A performance charge, which is levied if the investment fund outperforms its benchmark. The 



from the asset manager. 

Some asset managers pay Safrican a platform management fee for some of their investment funds. 

Such a fee is taken into account when the yearly marketing charge is calculated. The impact of this 

is that the yearly marketing charge is lower than what it would have been without a platform 

management fee. If the platform management fee changes, the yearly marketing charge will be 

adjusted accordingly. The size of the platform management fee as a percentage of the market value 

for each investment fund is indicated in a table in the planholder's statement. 

Direct investment expenses, for example collective investment initial fees, brokerage, audit fees, 



A plan may be changed at any stage, provided Safrican agrees to the alteration. An alteration charge 

will be levied if the alteration is done before the alteration charge date. The alteration charge date is 

determined at the start, and does not change at subsequent alterations. 




In addition to the above-mentioned alteration charge, a transaction charge will be levied for each of the 

following alterations: 

Termination of the plan; 

A loan against the plan; 

An ad hoc withdrawal from the plan. 



This transaction charge will not be levied on or after the option date. 

A transaction charge will also be levied for other transactions, as mentioned in the planholder's plan 

description and as indicated in the statement. This transaction charge will increase in future to allow for 

inflation. 

A transaction charge will still be levied after the alteration charge date. 


GE 3/2013 BY4


INTERMEDIARY 

After the option date, the planholder may request Safrican to pay a fee, including VAT if applicable, for 

ongoing investment advice for his or her investment. Safrican will pay this fee monthly to the 

intermediary who provides this advice. 



of, the intermediary services for which Safrican pays commission. 


The planholder must specify the percentage. The fee is calculated on a monthly basis, which means it is 

divided by 12. It is deducted monthly from the fund value by means of a withdrawal to the value of the 


value, for example, a fee of 0.50% implies R41.67 per month if the fund value equals R100 000.00. 

The current fund-based fee, if applicable, is indicated in the planholder’s statement. 


The plan benefits may be realised in one of the ways described below. To realise a benefit, units will be 

sold on the day on which the request is received. 

Legislative restrictions, as mentioned in the plan description, may apply. 

TERMINATION OF THE PLAN 

A plan may be terminated on request. The fund value less the alteration and transaction charges, if 


A LOAN AGAINST THE PLAN 


Safrican's conditions at the time are met. 


• The loan amount may not be less than a minimum amount. 

• The fund value, less the loan amount and the alteration and transaction charges, if applicable, may 

not be less than a minimum. 

• The loan amount may not exceed a certain percentage of the termination value. 



The day on which the request for a loan is received, a number of units will be switched, equivalent in 

value to the approved loan amount, to units in the Stratus Loan Fund for planholders. This fund does not 

participate in any growth. 

The calculation of the alteration charge, if applicable will be based, on the reduction in the fund value as 

a result of the loan amount and the transaction charge. 

AN AD HOC WITHDRAWAL FROM THE PLAN 

The planholder may make an ad hoc withdrawal from the plan, provided that Safrican’s conditions at the 


planholder applies for an ad hoc withdrawal. The required number of units will be sold to pay the 



GE 3/2013 BY5

REGULAR WITHDRAWALS FROM THE PLAN 

The planholder may apply to make regular withdrawals from the plan after the option date, provided that 

conditions at the time are met. As conditions will change from time to time, they will be communicated 

when the planholder applies for regular withdrawals. 

The details of the regular withdrawals will be indicated in the planholder’s statement after the application 

has been accepted for making regular withdrawals. 

A transaction charge is levied for each withdrawal payment made. The charge will vary over time. Its 

current level is indicated in the planholder’s statement. 

The required number of units will be sold from the applicable investment funds in proportion to their fund 

values to pay the transaction charge and the withdrawal amount. The fund value will reduce by the value 

of the units sold. 

The units will be sold on the requested withdrawal day. If a month does not have this particular day, or if 

it does not fall on a working day, the units will be sold on the following working day. The withdrawal 

amount will be paid as soon as possible after the units have been sold. 

The regular withdrawals will be stopped when they fail to satisfy Safrican’s conditions. 



date, as indicated in the planholder’s statement. 

During a restricted period, if the planholder wants to terminate the plan, Safrican may not pay more at 

the termination than an amount determined according to legislative restrictions (Article 54). The 


if the termination value is more than this restricted amount, the plan may not be terminated, but an ad 

hoc withdrawal may be possible. 




date. 

In addition, only one loan may be granted against the plan during a restricted period. The amount of 

such a loan is also limited, as described above. If a loan has been granted during a restricted period, 

another loan may not be granted before the restricted period end date. 





The benefit amount is equal to the fund value on the date that notice of the death of the last surviving life 

insured is received. 

One or more beneficiaries may be appointed by a natural person as planholder to receive the benefit 

amount. A beneficiary may only accept or reject the appointment after the death of the last surviving life 

insured. 


the planholder, and must reach the Sanlam Life head office before the death of the last surviving life 

insured. 

An appointment will lapse if the plan is ceded outright. If the plan is ceded as collateral security, the 


beneficiary. 

GE 3/2013 BY6


Only a natural person as planholder may nominate a planholder. A person may be nominated to 

become the new planholder after the death of the planholder. The nominee may only accept or reject a 

nomination after the death of the planholder. 




planholder, and must reach the Sanlam Life head office before the death of the planholder. 

A nomination will lapse if the plan is ceded, whether outright or as collateral security. 

PAYMENTS 

All payments must be made in South Africa in South African currency. 


Continuations and conversions to Sanlam Nimbus Investments will not be allowed. 

ALTERATIONS 

Ad-hoc one-off payments are allowed, subject to the conditions under Section 54 of the Long-term 


CESSIONS 


TAX 

No tax is payable on the proceeds of the plan. Safrican already pays tax in the chosen investment 

fund(s). 



GE 3/2013 BY7

SECTION BZ 

SANLAM LIFE RISK PRODUCTS 

GE 8/2011 BZ 

Page 

OVERVIEW OF PRODUCTS …………………….……….……………………….. BZ 1 

− WHOLE LIFE ………………….………………………….………………………..………. BZ 1 

− TERMCOVER ………….….…………………………………………………………….…. BZ 1 

− INCOME PROTECTOR ………..……………………………......................................... BZ 1 

− PRODUCT NAME CODES ...………………………………..…………………………… BZ 1 

− WHOLE LIFE PRODUCTS ……………………………………………………………….. BZ 2 

− TERM COVER PRODUCTS …………………………………………………..…………. BZ 2 

− INCOME PROTECTOR PRODUCTS …………………………………………………… BZ 2 

PAYMENT PATTERNS ……………..……………………………………….…….. BZ 2 

− LEVEL: GROWTH OPTIONAL ………………………………..………………………… BZ 2 

− FIXED COMPULSORY GROWTH ………………………………………………………. BZ 3 

− AGE-RELATED COMPULSORY GROWTH ……………………………………………. BZ 4 

− STEPPED: GROWTH OPTIONAL ………………………………………………………. BZ 4 

− YEARLY RATED GROWTH ……………………………………………………………… BZ 5 

− AVAILABLE PAYMENT PATTERNS ……………………………………………………. BZ 5 

GROWTH CHOICES AVAILABLE ……………………………………………….. BZ 5 

GUARANTEE PERIOD ……………………………………………………….…….. BZ 9 

INITIAL TERM ……………………………………………………………………….. BZ 12 

COVER END DATE …………………………………………………………….…… BZ 12 

LIVES INSURED ………………………………………………………………..…… BZ 12 

START DATE ……….……………………………………………………………….. BZ 12 

IMMEDIATE LIFE COVER ………………………………………………………… BZ 13 

FREE COVER ……………………………………………………………………….. BZ 13 

PAYMENTS ………………………………………………………………………….. BZ 14 

PAYMENT CHARGE ……………..………………………………………………… BZ 14 

ACCELERATOR BENEFITS VERSUS STAND-ALONE BENEFITS ………… BZ 14 

2/…

- 2 - 

GE 8/2011 BZ 

Page 

CHOICE OF BENEFITS ……………………………………………………………… BZ 16 

GENERAL CONDITIONS FOR ADMITTANCE OF A CLAIM …………………… BZ 16 

PLAN BENEFITS AND PAYMENTS AFTER ADMISSION OF A CLAIM .…….. BZ 17 

HANDLING OF TWO OR MORE SIMULTANEOUS CLAIMS …………………… BZ 17 

RATE DIFFERENTIATION ………………………………………………………..…. BZ 17 

PLAN CHARGE …………..………………………………………………………..…. BZ 17 

CASH, LOAN AND PAID-UP VALUES ……………………………………….……. BZ 17 

ALTERATIONS ………………….……………………………………………….……. BZ 18 

PLANHOLDER ………..……………………………………………………..……….. BZ 18 

CESSIONS …………………………………………………………………………..… BZ 18 

CHANGE OF PLANHOLDER ………………………………………………………. BX 19 

APPOINTMENT OF BENEFICIARIES TO RECEIVE A DEATH BENEFIT ……. BZ 19 

NOMINATION OF A NOMINEE TO BECOME THE NEW PLANHOLDER ……. BZ 20 

CONTRACT DOCUMENTS …………………………………………………………. BZ 20 

COOLING-OFF PERIOD …………………………………………………………….. BZ 20 

LAPSES AND REINSTATEMENT ………………………………………….………. BZ 20 

INTERMEDIARY'S REMUNERATION …………………………………………….. BZ 21 


DEATH (DS) …………………….……………………………………………………... BZ 22 

FIRST DEATH (DS80) …………………….…………..……………………………... BZ 24 

FINAL EXPENSES (DSF1) ………………………………………………………….. BZ 26 

DISABILITY FOR REGULAR OCCUPATION (OAR, OSR) ……………………... BZ 27 

DISABILITY FOR REGULAR AND REASONABLE ALTERNATIVE 

OCCUPATION (OAS, OSS) …………………………………………………………. 

BZ 31 

FUNCTIONAL IMPAIRMENT (OAF, OSF) ………………………………………… BZ 35 

PHYSICAL IMPAIRMENT (OAP, OSP) …………………………………………….. BZ 44 

WHOLE LIFE PHYSICAL IMPAIRMENT (OAP2, OSP2) ……………………….. BZ 48 

FUNCTIONAL IMPAIRMENT PLUS DISABILITY FOR REGULAR 

OCCUPATION (CAR, CSR) ………………………………………………………... 

FUNCTIONAL IMPAIRMENT PLUS DISABILITY FOR REGULAR AND 

REASONABLE ALTERNATIVE OCCUPATION (CAS, CSS) …………………. 

BZ 52 

BZ 64 

3/…

BENEFIT DESCRIPTIONS (Continued) 

- 3 - 

GE 8/2011 BZ 

Page 

CORE DREAD DISEASE (TAC, TSC) ……………………………………….…….. BZ 77 

COMPREHENSIVE DREAD DISEASE (TAW, TSW) …………………………….. BZ 82 

WHOLE LIFE CORE DREAD DISEASE (TAC2, TSC2) ……………………….. BZ 93 

WHOLE LIFE COMPREHENSIVE DREAD DISEASE (TAW2, TSW2) ………… BZ 98 

ACCIDENTAL DEATH (ASC) …………………………………………………..…… BZ 109 

ACCIDENTAL INJURY (ASW) ……………………………………………………… BZ 111 

ACCIDENTAL DISABILITY (ASO) …………………………………………………. BZ 116 

FUTURECOVER (FS1, FS2) ………………………………………………………… BZ 122 

WAIVER OF PAYMENT AT DISABILITY (OPG1, OGG1) ……………………….. BZ 127 

WAIVER OF PAYMENT AT DEATH (DP, DG) ……………………………………. BZ 131 

SICKNESS (IS1) ………………………………………………………………………. BZ 133 

INCOME PROTECTOR PRODUCTS (OIB, OIO, OIT) ………………………….. BZ 137 

…………………………………………………………………………………………….. GENERAL EXCLUSIONS 

BZ 151 

SUMMARY 

SUMMARY 1: COMBINATIONS OF BENEFITS NOT AVAILABLE (PER 

LIFE INSURED) ON ONE MATRIX TOPCOVER, MATRIX TERMCOVER, 

COBALT FOR PROFESSIONALS OR GLACIER TOPCOVER PLAN (PER 

LIFE INSURED) ………………………………….…………………………………. 

BZ 152 

− COMBINATIONS OF BENEFITS NOT AVAILABLE ON GLACIER 

TOPCOVER PLAN (WITH SERVICE COMMISSION)(PER LIFE INSURER) BZ 154 

SUMMARY 2: LIMITS PER BENEFIT (WHOLE LIFE AND TERM COVER 

PRODUCTS) ………………………………………………………………………… 

BZ 155 

3/…

UNDERWRITING 

- 4 - 

GE 8/2011 BZ 

Page 

OCCUPATIONAL UNDERWRITING ……………………………………………….. BZ 157 

− RATE GROUP 5 …………………………………….….……………………………………. BZ 157 

− RATE GROUP 4, 3, 2, AND 1 …………………….….……………………………………. BZ 157 

− STUDENTS …………………………………………………………………………………… BZ 158 

− ACCIDENT AND DISABILITY CLASSES …………………………………….………….... BZ 158 

− CLASSES …………………………………………………………………………………….. BZ 158 

− DEFINITION OF ADMINISTRATIVE WORK ……………………………………………… BZ 158 

− DEFINITION OF MANUAL LABOUR ……………………………………………………… BZ 159 

− RATE DIFFERENTIATION WITH REGARD TO SPOUSE ……………………………… BZ 159 

− DEFINITION OF INCOME ………………………………………………………………….. BZ 159 

− AVERAGE MONTHLY INCOME …………………………………………………………… BZ 159 

− INCOME FOR LIVES INSURED IN FORMAL EMPLOYMENT OF AN EMPLOYER … BZ 159 

− INCOME FOR PROFESSIONAL LIVES INSURED IN PRACTICE ……………………. BZ 159 

− INCOME FOR OTHER SELF-EMPLOYED LIVES INSURED …………………………. BZ 159 

− INCOME FOR PENSIONERS ……………………………………………………………… BZ 159 

CHANGE IN OCCUPATION/ACTIVITY ……………………………………………. BZ 159 

− CLAUSES …………………………………………………………………………………….. BZ 160 

MEDICAL UNDERWRITING …………………………………………………………. BZ 160 

− MEDICAL LIMITS …………………………………..……………………………………….. BZ 161 

− LIFEREWARDS ® ……………………………………………………………………………. 

BZ 165 

− DETERIORATION OF INSURANCE RISK ……………………………………………….. BZ 167 

− NOTES REGARDING MEDICAL REQUIREMENTS ……………………………………. BZ 167 

MEDICAL REPORTS / QUESTIONNAIRES ………………………..……………. BZ 170 

− VALIDITY PERIOD OF MEDICAL REPORTS …………………………………………… BZ 170 

− QUESTIONNAIRES : SPECIFIC CONDITIONS ………………………………………… BZ 170 

− OTHER "QUESTIONNAIRES" (not printed forms) ……………………………………… BZ 170 

− CONDITIONS FOR WHICH NO SPECIFIC QUESTIONNAIRES ARE AVAILABLE … BZ 171 

− PHYSICAL HANDICAPS ……………………………………………………………………. BZ 173 

FINANCIAL UNDERWRITING ………………………………………………………. BZ 174 

REGIONAL UNDERWRITING ………………………………………….…………… BZ 175 

PART-TIME ACTIVITY UNDERWRITING ………………………….……………… BZ 176 

ADMINISTRATIVE INFORMATION ………………………………………………… BZ 176

Sanlam Life offers a range of new generation risk products, which enables the client to obtain transparent, low 

cost risk cover. The products offer the required flexibility to accurately address the client's requirements for 

cover. 

This range of products does not offer an underlying savings benefit. The full payment is used to pay for risk 

cover. 

One or more lives may be insured on a plan in the case of the whole-life and term cover products. Various 

benefits are available on these plans. Unique benefits may be selected for each life insured in terms of the 

plan that is insured. These benefits are designed to satisfy the risk benefit needs of the modern day client. 

For Income Protector products only one life insured per plan is permitted. Only income benefits are permitted 

with the Income Protector products. A waiver of payment benefit at disability is automatically included in these 

benefits. 


According to the client's cover needs the following products are available where he or she qualifies for it: 

WHOLE LIFE 

• Matrix Topcover 

• Cobalt for Professionals Topcover 

• Glacier Topcover (with service commission) 

• Glacier Topcover 

TERM COVER 

• Matrix Termcover 

INCOME PROTECTOR 

• Matrix Income Protector 

• Cobalt for Professionals Income Protector 

• Glacier Income Protector 

PRODUCT NAME CODES 

Product name codes apply according to the need for which the cover is bought, for example the product name 

code for a whole life product for purposes of buy and sell insurance differs from that of key person insurance, 

and is so indicated on the proposal form. 

Whole life 


GE 8/2011 BZ 1 

SANLAM LIFE RISK PRODUCTS 


code 

Product name code(s) 

Matrix Topcover T02W PCA, PCR, PCS and PCT 

Matrix Topcover as part of combination product 

with Stratus T15W PCM 

Glacier Topcover (with sales commission) T02W PCZ 

Glacier Topcover (with service commission) M02W PDA 

Cobalt for Professionals Topcover T02W PCP, PCI, PCN and PCO

PRODUCUT NAME CODES (continued) 

Termcover 

Product name Product code Product name code(s) 

Matrix Termcover T02 PCK, PCU, PCV and PCW 

Income Protector 

Product name Product code Product name code(s) 

Matrix Income Protector T03W PCC, PCQ 

Glacier Income Protector T03W PCG 

Cobalt for Professionals Income Protector T03W PAP 

WHOLE LIFE PRODUCTS 

The whole life products offer cover for every chosen benefit up to that benefit's maximum benefit age. For 

benefits such as death and whole life dread disease, cover is provided until the death of the life insured. The 

maximum benefit ages of the other risk benefits are set out later in this section. 

TERM COVER PRODUCTS 

The term cover products offer cover for each chosen benefit, for the chosen initial guarantee term. 

The planholder selects the initial guarantee period when the plan is taken out. At the end of the chosen 

guarantee term, the plan ends. If the planholder requires further benefits for the insured life/lives, a new plan 

must be taken out. The normal new business requirements and underwriting requirements apply. 

INCOME PROTECTOR PRODUCTS 

The income protector products offer a variety of different disability income benefits. 

Cover is provided, for every chosen income benefit, up to the cover end date for that chosen benefit. 

PAYMENT PATTERNS 

The following payment patterns are available: 

LEVEL: GROWTH OPTIONAL 

The planholder can choose to make a level payment for a level amount of cover over the term of the risk 

benefit. 

With a level payment pattern, the insurance company effectively takes the mortality or morbidity curve over the 

future lifetime of the insured, and flatten it out. The planholder therefore makes a payment that is initially more 

than the true underlying risk, but less later on, as indicated in the graph below. 

GE 8/2011 BZ 2

LEVEL: GROWTH OPTIONAL (continued) 

Rate 

GE 8/2011 BZ 3 

Level: Growth Optional 

Age 

Risk Level pattern 

The advantage of the level payment pattern is that it provides stability to the planholder. Apart from possible 

adjustments at the end of a guarantee period, payments will remain the same over the long term. 

Different payment and cover growth options may be added to the plan. 

FIXED COMPULSORY GROWTH 

Under this pattern, payments are contractually required to increase annually at a fixed rate, to maintain the 

chosen level amount of cover. The fixed compulsory growth payment pattern offers a cheaper initial payment 

than the level payment pattern, but gets more expensive over time. A higher compulsory increase percentage 

is required to secure cover growth. 

Payment increases are contractual. If the payment growth is cancelled, skipped or lowered, the cover growth 

will be cancelled, and in addition the cover amount of a benefit may be reduced. 

The underlying risk typically increases by a lower percentage than the payment at younger ages, and a higher 

percentage than the payment at older ages. The fixed compulsory growth pattern mimics the risk curve with a 

fixed increase percentage. 

Rate 

Fixed Compulsory Growth 

Age 

Risk Fixed Compulsory Growth pattern

AGE-RELATED COMPULSORY GROWTH 

The compulsory annual payment increases required to maintain the chosen level amount of cover are fixed 

upfront, for the duration of the plan. In this case, the annual payment increases follow the shape of the risk 

curve more closely. This requires lower compulsory increases at younger ages, and higher increases at older 

ages, as indicated in the graph below. 

The age-related payment pattern also offers a cheaper initial payment than the level payment pattern. This 

pattern also gets more expensive over time. A higher set of age-related growth percentages is required to 

secure cover growth. 

The payment growth is compulsory to maintain the contractual cover amount of a benefit and the cover growth. 

If the payment growth is cancelled, skipped or lowered, the cover growth will be cancelled, and in addition the 

cover amount of a benefit may be reduced. 

Rate 

STEPPED: GROWTH OPTIONAL 

GE 8/2011 BZ 4 

Age-related Compulsory Growth 

Age 

Risk Age-related pattern 

The plan provides cover for as long as a benefit allows, but it is initially priced for a fixed period of 10, 15, 20 or 

25 years only. At the end of this term, the plan is extended for a further term, and the payment is automatically 

re-calculated for the next period, or until the benefit cease age is reached. No underwriting or intervention by 

the planholder is required at that stage, i.e. the insurability of the life insured is guaranteed for the full duration 

of the contract. The increase in payment is determined by the life insured's age at the time of the increase. 

Rate 

Stepped: Growth Optional 

Age 

Risk Stepped pattern 

Different payment and cover growth options may be added to the plan.

YEARLY RATED GROWTH 

Yearly rated growth is available only for persons who qualify for rate groups 4 or 5. 

The payment increase each year is based on the rates applicable for the planholder's age at that time, i.e. the 

planholder's payments will be adjusted yearly. 

On the yearly rated growth payment pattern, rates are not guaranteed and can change from time to time. The 

expected payment increases, will be indicated on the quotations, calculated based on the rate set applicable 

on the start date. The payment rates for this pattern will completely differ from those of the age-related 

compulsory growth payment pattern. 

The recalculation of the payment is compulsory to maintain the contractual cover amount of a benefit and the 

cover growth. If you request us to continue with the payment as before the increase, the cover growth will be 

cancelled, and in addition the cover amount of a benefit will be reduced. 

No guarantee term is available on a plan with a yearly rated payment pattern. 

Different payment and cover growth options may be added to the plan. 

AVAILABLE PAYMENT PATTERNS 

Whole life products • All payment patterns 

Term Cover products • Optional growth 

• Level : Fixed compulsory growth 

Income Protector products • Level : Optional growth 

GROWTH CHOICES AVAILABLE 

• Fixed compulsory growth 

• OPTIONAL GROWTH (level, yearly rated or stepped payment patterns): 

Growth option Percentage payment growth Percentage cover growth 

No growth 0% 0% 

Payment growth and 

specified cover 

growth 

GE 3/2013 BZ 5 

Not specified in advance * 5% 

Not specified in advance * 10% 

Not specified in advance * 

CPI, with a minimum of 0% and a 

maximum of 15% 

Not specified in advance * Change in the R/ US$ exchange rate 

over the plan year, with a minimum of 

CPI, and a maximum of 35% in RSA 

monetary terms. 

Not specified in advance * Change in the R/ Pound Sterling 

exchange rate over the plan year, with a 

minimum of CPI and a maximum of 35% 

in RSA monetary terms. 

Not specified in advance * Change in the R/ Euro exchange rate 

over the plan year, with a minimum of 

CPI and a maximum of 35% in RSA 

monetary terms.

GROWTH CHOICES AVAILABLE (continued) 

• FIXED COMPULSORY GROWTH: 

Growth option Percentage payment growth Percentage cover growth 

Compulsory payment growth 

GE 8/2011 BZ 6 

5% 0% 

10% 3,5% 

12% 5% 

7% with whole life guarantee 0% 

11% with whole life guarantee 3,5% 

13% with whole life guarantee 5% 

* Payment increase will depend on cover growth and payment rates for new business at the time of the 

increase. 

• AGE-RELATED COMPULSORY GROWTH: 

Payments grow according to age and cover grows at 0%, 3,5% or 5% per year, according to the client's 

choice.

The table below indicates the payment growth rates for the standard and aggressive options: 

Age next 

birthday 

GE 8/2011 BZ 7 

Aggressive option Standard option 

Annual payment growth %: Annual payment growth %: 

0% cover growth 3,5% cover growth 5% cover growth 0% cover growth 3,5% cover growth 5% cover growth 

15 to 25 3% 7.5% 9.5% 0% 4.5% 6.5% 

26 3% 7.5% 9.5% 0% 4.5% 6.5% 

27 3% 7.5% 9.5% 0% 4.5% 6.5% 

28 3% 7.5% 9.5% 0% 4.5% 6.5% 

29 4% 8.5% 10.5% 0% 4.5% 6.5% 

30 4% 8.5% 10.5% 0% 4.5% 6.5% 

31 5% 9.5% 11.5% 2% 6.5% 8.5% 

32 5% 9.5% 11.5% 2% 6.5% 8.5% 

33 6% 10.5% 12.5% 2% 6.5% 8.5% 

34 6% 10.5% 12.5% 2% 6.5% 8.5% 

35 7% 11.5% 13.5% 2% 6.5% 8.5% 

36 7% 11.5% 13.5% 3% 7.5% 9.5% 

37 8% 12.5% 14.5% 3% 7.5% 9.5% 

38 8% 12.5% 14.5% 3% 7.5% 9.5% 

39 9% 13.5% 15.5% 3% 7.5% 9.5% 

40 9% 13.5% 15.5% 3% 7.5% 9.5% 

41 10% 14.5% 16.5% 4% 8.5% 10.5% 

42 10% 14.5% 16.5% 4% 8.5% 10.5% 

43 10% 14.5% 16.5% 4% 8.5% 10.5% 

44 10% 14.5% 16.5% 5% 9.5% 11.5%

Age next 

birthday 

GE 8/2011 BZ 8 

Aggressive option Standard option 

Annual payment growth %: Annual payment growth %: 

0% cover growth 3,5% cover growth 5% cover growth 0% cover growth 3,5% cover growth 5% cover growth 

45 10% 14.5% 16.5% 5% 9.5% 11.5% 

46 10% 14.5% 16.5% 6% 10.5% 12.5% 

47 10% 14.5% 16.5% 6% 10.5% 12.5% 

48 10% 14.5% 16.5% 6% 10.5% 12.5% 

49 10% 14.5% 16.5% 6% 10.5% 12.5% 

50 10% 14.5% 16.5% 6% 10.5% 12.5% 

51 10% 14.5% 16.5% 7% 11.5% 13.5% 

52 10% 14.5% 16.5% 7% 11.5% 13.5% 

53 10% 14.5% 16.5% 7% 11.5% 13.5% 

54 10% 14.5% 16.5% 7% 11.5% 13.5% 

55 10% 14.5% 16.5% 7% 11.5% 13.5% 

56 10% 14.5% 16.5% 8% 12.5% 14.5% 

57 10% 14.5% 16.5% 8% 12.5% 14.5% 

58 10% 14.5% 16.5% 9% 13.5% 15.5% 

59 10% 14.5% 16.5% 9% 13.5% 15.5% 

60 10% 14.5% 16.5% 9% 13.5% 15.5% 

61 and older 10% 14.5% 16.5% 10% 14.5% 16.5%

GUARANTEE PERIOD 

• Whole life products 

The guarantee period is as follows: 

Growth choice Guarantee period 

For payment growth of 7%, 11% or 13% with 

whole life guarantee 

GE 8/2011 BZ 9 

For life * 

Stepped The initial guarantee period is equal to the chosen 

stepped term of 10, 15, 20 or 25 years. Thereafter the 

recalculated payment applies for 5 years. 

For all other growth choices The client selects the guarantee period. 

Minimum: 5 years 

Maximum: 15 years 

* On compulsory payment growth at 7%, 11% or 13%, Sanlam Life offers a whole life guarantee. The 

payment for the full term of the contract is guaranteed not to increase, except for the contractual growth. 

• Term cover products 

Growth choice Guarantee period 

For all growth choices The client selects the guarantee period. 

• Income protector products 

Minimum: 5 years 

Maximum: 25 years 

With Income Protector products the guarantee period is always 5 years. 

The guarantee period applies to the total plan, and not to individual benefits. However, if the last expiry date of 

a benefit is before the end of the guarantee period (including guarantee periods after the initial guarantee 

period), cover for that specific benefit will cease on the expiry date of that relevant benefit. 

No guarantee period applies for the yearly rated payment growth option. 

The payment indicated in the contract document does not include a LifeRewards ® discount. However, Sanlam 

Life may apply a discount to qualifying benefits that will result in a smaller monthly payment. The monthly 

payment will change if a discount changes. An applied discount is not guaranteed for the full guarantee period, 

but only for one year from the date it becomes effective. See the the part on LifeRewards ® later in this 

chapter. 

WHOLE LIFE PRODUCTS 

Except in the case of the whole-life guarantee, the guarantee period works as follows: 

All payment patterns except stepped 

The initial payment has been calculated for the full term of the benefits and is based on Sanlam Life’s best 

estimate assumptions of claims and other factors. When a guarantee period ends, a new guarantee period of 

5 years will start. At the end of each guarantee period, Sanlam Life will review the payment. Sanlam Life may 

then adjust it, but only if Sanlam Life’s assumptions of claims and other factors have changed, and not 

because a life insured is older at that time.

All payment patterns except stepped (continued) 

When Sanlam Life reviews our assumptions, Sanlam Life looks at the expected experience relating to claims, 

investment returns on payment income, the incidence of taxation, the cost of reinsurance, and lapses. Sanlam 

Life will analyse Sanlam Life's actual experience as well as industry experience of these factors for similar 

plans, the expected impact of future medical advances and practices, and other trends and/or practices that 

are expected to influence these factors. Sanlam Life will then compare the assumptions applicable at the time 

of the payment review with those that were previously used and, by reference to that comparison, use a fair 

and reasonable method of calculating any adjustment to the payment. 

The payment may increase at each payment review as a result of the revised assumptions. An adjustment to 

the payment will not depend on the life insured's individual circumstances, for example the life insured's health, 

at the time of the payment review. If an adjustment is made at the end of the first guarantee period and the 

payment is increased, the increase in the payment will not be more than the percentage indicated below: 

Initial guarantee period Maximum % increase in payment 

5 years 20% 

6 years 21% 

7 years 22% 

8 years 23% 

9 years 24% 

10 years 25% 

11 years 26% 

12 years 27% 

13 years 28% 

14 years 29% 

15 years 30% 

This increase applies in addition to any contractual predetermined payment growth on the same date. 

The above-mentioned does not apply if the whole-life guarantee was chosen. 

Any adjustment to the payment as a result of a review will become effective from the end of a guarantee 

period. Sanlam Life will notify the planholder in writing at least two months before the adjustment. If the 

payment increases as a result of a review, the planholder can choose to continue paying the amount before 

the increase, instead of the increased amount. Sanlam Life will then reduce the cover amount of a benefit 

proportionally. 

After expiry of the initial guarantee period consecutive further guarantee periods of five years apply. 

Sanlam Life does not guarantee any maximum increases at the end of subsequent guarantee periods. 

Stepped payment pattern 

The initial payment is calculated for the guarantee period only, and is based on Sanlam Life's best estimate 

assumptions of claims and other factors. When a guarantee period ends, a new guarantee period of 5 years 

will start. At the end of each guarantee period, Sanlam Life will review the payment. Sanlam Life will then 

increase the payment because a life insured will be older at that time. Sanlam Life may also adjust the 

payment to reflect, if applicable, changes in our assumptions of claims and other factors. 

GE 8/2011 BZ 10

Stepped payment pattern (continued) 

When Sanlam Life reviews its assumptions, it looks at the expected experience relating to claims, investment 

returns on payment income, the incidence of taxation, the cost of reinsurance, and lapses. Sanlam Life will 

analyse its actual experience as well as industry experience of these factors for similar plans, the expected 

impact of future medical advances and practices, and other trends and/or practices that are expected to 

influence these factors. Sanlam Life will then compare the assumptions applicable at the time of the payment 

review with those that were previously used and, by reference to that comparison, use a fair and reasonable 

method of calculating any adjustment to the payment. 

The increase in the payment will depend on the life insured's age at the time of the payment review, and not on 

the life insured's individual circumstances, for example the life insured's health. There will be no limit to the 

increase. This increase applies in addition to any contractual predetermined payment growth on the same 

date. 

The increase in the payment as a result of a review will become effective from the end of a guarantee period. 

Sanlam Life will notify the planholder in writing at least 2 months before the increase. The planholder can 

choose to continue paying the amount before the increase. Sanlam Life will then reduce the cover amount of a 

benefit proportionally. 

After expiry of the initial guarantee period consecutive further guarantee periods of 5 years apply. 

If Sanlam Life admits a waiver of payment claim, Sanlam Life will not increase the payment at the end of a 

guarantee period because a life insured is older. However, if a waiver of payment claim continues after the 

end of a guarantee period, Sanlam Life may reduce the cover amount of a benefit instead of increasing the 

payment. 

If the planholder resumes payments after the waiver of payment claim has ended, Sanlam Life will adjust the 

payment at the end of a future guarantee period only if Sanlam Life's assumptions of claims and other factors 

have changed, and not because a life insured is older at that time. 

TERM COVER PRODUCTS 

The initial guaranteed period of a term cover plan is the same as the initial term. 

The initial payment has been calculated for the guarantee period, and is based on Sanlam Life's best estimate 

assumptions of claims and other factors. When a guarantee period ends, the benefit ends. 

If the planholder requires further benefits for the insured life/lives, a new plan must be taken out, with the 

normal new business requirements and underwriting requirements which apply. 


The initial payment has been calculated for the full term of the benefits and is based on Sanlam Life’s best 

estimate assumptions of claims and other factors. When a guarantee period ends, a new guarantee period of 

5 years will start. At the end of each guarantee period Sanlam Life will review the payment. Sanlam Life may 

then adjust it, but only if Sanlam Life’s experience has changed, and not because a life insured is older at that 

time. If an adjustment is made at the end of the first guarantee period and the payment is increased, the 

increase in the payment will not be more than 20%. 

This increase is applicable in addition to any contractual predetermined payment growth on the same date. 

Sanlam Life does not guarantee any maximum increases at the end of subsequent guarantee periods. 

GE 8/2011 BZ 11

INITIAL TERM 

The initial term of a term cover plan is the same as the initial guarantee period. 

COVER END DATE 

The cover end date for every chosen benefit is set out in the contract document. In the case of a whole life 

product this is the plan anniversary before or on the maximum benefit age of the benefit. For a term cover 

product it is indicated as the earliest of the plan anniversary before or on the maximum benefit age of the 

benefit, and the end of the chosen term. In the case of an income protector product it is the plan anniversary 

before the chosen cessation age of the benefit. 

Cover for a benefit ends at midnight before the cover end date as indicated. The plan will end if all benefits 

have reached their cover end dates. 

LIVES INSURED 

WHOLE LIFE AND TERM COVER PRODUCTS 

More than one life may be insured per plan. A maximum of ten lives can be insured on one plan. 

Different benefits may be selected for each of the lives insured. 

The planholder must have an insurable interest in each life insured. 

Minimum age at entry : 15 next birthday (for combination product included) 

INCOME PROTECTOR PRODUCT 

Only one life insured per plan is permitted. 

START DATE 

The start date can be any day of the month and is determined by the debit order date. 

The cover for each benefit begins on the last of 

• the date on Sanlam's written acceptance of the application, 

• the cover start date for that benefit set out in the contract documents, and 

• the date on which the first payment is received, or on which arrangements to Sanlam's satisfaction have 

been made for the first payment. 

Immediate life cover or free cover may be available before this date, subject to certain conditions (see below). 

If the cover amount of a benefit is changed, other then through benefit growth, the cover start date for that 

benefit will be the effective date. 

GE 8/2011 BZ 12

IMMEDIATE LIFE COVER 

For any life insured for whom a Death or First Death benefit is applied for, immediate life cover will be given 

under that death benefit, provided that: 

• the life insured is not yet aged 60 at the application date; and 

• the first payment is made together with the application, or, had it not been for the death of the applicant, a 

debit or stop order for the first payment would have been honoured. 

Immediate life cover will apply from the date Sanlam receives the application form, with all questions correctly 

and fully answered and signed by both the life insured and the applicant (if different parties), until the earliest 

of: 

• the final underwriting decision being made that the application is accepted, declined, or deferred for the life 

insured; 

• 30 days after the signing of the application form; 

• Sanlam cancelling the cover in writing. 

The immediate life cover will apply only in respect of death from unnatural causes. The normal contractual 

exclusions will apply. No immediate life cover will be payable if death is directly or indirectly caused by: 

• the life insured participating in any dangerous pursuits; 

• exposure to risks beyond the borders of the RSA and which are, in the opinion of Sanlam, not generally 

found in the RSA, or are more severe than corresponding risks in the RSA. 

The consideration of a claim will be subject to the then prevailing terms of the type of plan applied for, and 

Sanlam’s usual practices. 

The amount payable will be limited to the smaller of the initial death benefit amount and R500 000. 

FREE COVER 

Free cover will be given on all benefits accepted by Sanlam, provided that: 

• the plan’s start date is not later than the first of the month after the date of acceptance, and 

• the first payment is made together with the application, or, had it not been for the death of the applicant, a 

debit or stop order for the first payment has been made. 

It will apply from the date following the date on which the final underwriting decision is made that the risk is 

accepted, to the day before the start date of the plan. The normal contractual exclusions will apply. If a 

waiting period applies, the benefit amount will only be paid at the end of the waiting period and payments will 

be payable during the waiting period. 

The consideration of a claim will be subject to the then prevailing terms of the type of plan applied for, and 

Sanlam’s usual practices. Free cover will not be given if any information which in Sanlam's reasonable opinion 

and which is relevant to the insurance risk, is not provided completely and correctly. 

GE 8/2011 BZ 13

PAYMENTS 


The planholder may select to make payments monthly or annually. Only recurring payments are allowed. 

Payments must be made regularly to keep the plan in force. If payments cease, the plan will lapse. 

The minimum payment for a plan, covering only one life insured, is R100 per month. If the plan covers more 

than one life insured, the required minimum payment increases by R75 per month for every additional life, i.e. 

R175 for two lives insured, R250 for three lives insured etc. 

Likewise, the minimum annual payment for a plan, covering only one life insured, is R1 140. This required 

minimum payment increase by R855 per annum for every additional life. 

If the Stratus/ Matrix combination product (Matrix Topcover + Stratus Linked Investment: Committed Plan/ 

Stratus Retirement Annuity) is chosen, the minimum payment for the Matrix part of the package is R100 p.m. 

Monthly payments may be paid by debit order or stop order. Annual payments must be paid per debit order. 

The payment may not be chosen. The chosen cover amounts for the respective benefits determine the 

payment. If the payment for the chosen benefits is less than the minimum payment that is required at the time, 

more benefits (whole life and term cover products) must be added to the plan, or the cover amounts of the 

benefits must be increased in order to comply with the minimum requirements. 


The minimum payment is R100 per month. 

PAYMENT CHARGE 

There is no debit order discount. 

For payments made by stop-order the payment charge is currently calculated as 3,5% of the total monthly 

payment, excluding the payment charge. Sanlam Life may change this percentage from time to time. If 

Sanlam Life increases the percentage, the total monthly payment will increase. 

When payment growth takes place, the payment charge will also increase. 

ACCELERATOR BENEFITS VERSUS STAND-ALONE BENEFITS 

Risk cover benefits with the whole life and term cover products are available in 2 forms, namely accelerator 

benefits and stand-alone benefits. 

Income protector benefits, which may only be taken on the income protector plans are available only as standalone 

benefits. 

With accelerator benefits an early payment of the benefit at death for the life insured concerned takes place in 

the event of a claim. Therefore, if Sanlam Life admits a claim for an accelerator benefit, the death benefit 

cover amount for the life insured will reduce by the accelerator benefit amount paid. Where the cover amount 

of another accelerator benefit for the life insured exceeds the reduced death benefit cover amount for the life 

insured, the cover amount of the accelerator benefit reduces to the same level as the death benefit cover 

amount. 

A claim on a stand-alone benefit has no effect on any other benefit. 

Various benefits are available as either accelerator or stand alone benefits. Others are available in standalone 

form only, while waiver of payment benefits are available as an additional benefit on whole life and term 

cover plans. 

GE 8/2011 BZ 14

The following table is a summary of which benefits are available as stand-alone, and which as accelerator on 

the whole life and term cover products. This table is further subject to the fact that certain benefits with key 

person cover, buy and sell cover and debt cover are only available as accelerator benefits (please see note 

with table earlier in this section). 

Benefit Benefit code Stand alone Accelerator 

Death DS X 

First death DS80 X 

Final expenses DSF1 X 

Disability for regular and 

reasonable alternative 

occupation 

Disability for regular 

occupation 

GE 3/2013 BZ 15 

OSS, OAS X X 

OSR, OAR X X 

Functional impairment OAF, OSF X X 

Physical impairment OAP, OSP X X 

Whole life physical impairment OAP2, OSP2 X X 

Functional impairment plus 

disability for regular 

occupation 

Functional impairment plus 

disability for regular and 

reasonable alternative 

occupation 

CAR, CSR X X 

CAS, CSS X X 

Core dread disease TAC, TSC X X 

Comprehensive dread disease TAW, TSW X X 

Whole life core dread disease TAC2, TSC2 X X 

Whole life comprehensive 

dread disease 

TAW2, TSW2 X X 

Accidental death ASC X 

Accidental injury ASW X 

Accidental disability ASO X 

FutureCover: Death FS1 X 

FutureCover: Comprehensive FS2 X 

Waiver of payment with future 

growth at death 

Waiver of payment without 

future growth at death 

Waiver of payment with future 

growth at disability 

Waiver of payment without 

future growth at disability 

Sickness IS1 X 

Additional 

benefit 

DG X 

DP X 

OGG1 X 

OPG1 X

The following benefits are available only as stand-alone benefits on the income protector products. 

Benefit Benefit code 

Disability income OIO 

Temporary disability income OIT 

Overhead Expenses Protector OIB 

A waiver of payment benefit at disability is automatically included with every income protector benefit variation. 

CHOICE OF BENEFITS 


• It is not compulsory to take a death benefit on any life insured. 

• Any permissible combination of benefits may be taken. Each life insured may have a unique combination 

of benefits on the same plan. 

• Accelerator benefits are available only if the death benefit is also taken for that same life insured. 

• The choice of waiver of payment benefits for a specific life means that the claim event for the selected 

benefit (e.g. death or disability) must take place on the life of that life insured. After a claim is admitted, the 

payment for the total plan is waived, in other words, it is waived for all the lives insured on that plan and all 

the benefits. 

• Waiver of payment without future growth may be taken with plans with payment growth. After admission of 

a claim the waived payment does not increase. 

• Waiver of payment with future growth may only be taken if the plan has contractual payment and cover 

growth. If the growth is cancelled, the waiver of payment benefit will be changed to the waiver of payment 

without future growth. 

• If waiver of payment at death is taken, there must be more than one life insured on the plan. 

• Accelerator and stand-alone variations of the same benefit is not available on the same life insured 

on the same plan. 

• If both the waiver of payment at death and waiver of payment at disability is taken on the same plan, only 

the following combinations are permitted: 

− both with growth (DG and OGG1), or 

− both without growth (DP and OPG1) 

The one benefit can therefore not be with growth and the other without it. 

• Sickness benefit is only available for persons in rate group 5. 

• A maximum of 8 benefits per life insured are permitted per plan. 


• Any combination of the three available benefits can be taken on the same plan. 

• Income protector products can not be taken with the benefits available on a whole life or term cover 

product. 

GENERAL CONDITIONS FOR ADMITTANCE OF A CLAIM 

Sanlam Life will admit a claim only if we are satisfied that all of the following conditions are met: 

• The claim meets the description and requirements of the claim event; 

• Sanlam Life receives all information that it reasonably may require; 

• The life insured obtained and followed medical advice immediately after the bodily inury occurred or the 

illness began. This condition does not apply to the following benefits: 

− Death 

− First death 

− Final expenses 

− Waiver of payment at death 

• All aspects of the claim are proved by medical and other evidence Sanlam Life reasonably may require; 

GE 3/2013 BZ 16

GENERAL CONDITIONS FOR ADMITTANCE OF A CLAIM (continued) 

• The payments of the plan have been made in full; 

• The bodily injury took place, or the cause of the claim was diagnosed for the first time, or the symptoms of 

the cause of the claim first presented, while the cover for the benefit was in force. For a benefit taken out 

when a FutureCover option was exercised, the claim event must have happened, or the description and 

requirements of a claim event must first have been met, while the cover for this benefit was in force. 

Conditions for the admittance of claims that only apply to specific benefits, are set out in the benefit annexures. 

PLAN BENEFITS AND PAYMENTS AFTER ADMISSION OF A CLAIM 


If the benefit is an accelerator benefit, the death benefit amount of the life insured will be reduced with the 

amount paid out. Where the cover amount of another accelerator benefit of the life insured exceeds the 

remaining amount of the death benefit, the cover amount of that accelerator benefit of the life insured will be 

reduced to an amount equal to the reduced death benefit amount. 

If the benefit is a stand-alone benefit, the cover amounts of the other benefits will not be reduced. 

The payment will be reduced to reflect any decrease in benefit amounts. 


The payment and cover amounts are not influenced by the payment of a claim. 

HANDLING OF TWO OR MORE SIMULTANEOUS CLAIMS 

Simultaneous claims for a life insured will be treated as consecutive claims. 

Where these claims are on different benefits, they will follow the order in which the benefits are set out in the 

plan overview. For accelerator benefits, the effect of this is that the total of all the benefits to be paid for a life 

insured cannot exceed the death benefit cover amount for this life insured. 

If simultaneous claims are on the same benefit, the order in which the claim events are set out in the applicable 

benefit annexure will be followed. 


The age, gender, smoking habits, occupation, part-time activities and medical history determines a person's 

cost of cover. 

PLAN CHARGE 

A monthly plan charge of R20 is payable, and is added to the payments for the chosen risk benefits to 

determine the total monthly payment. However, the monthly plan charge for the Matrix part of a Matrix/Stratus 

combination product is R17.50. 

CASH, LOAN AND PAID-UP VALUES 

A Risk cover plan provides pure risk benefits, and consequently offers no cash values, loan and paid-up 

values. The whole life and term cover plans may, however, be offered to banks as security for loans. 

The Stratus Endowment /Stratus Retirement Annuity part of a combination product does offer cash 

/accelerated values, loan values (in the case of non-RA only) and paid-up values. 

GE 3/2013 BZ 17

ALTERATIONS 

The following alterations can be done: 

• Cover decreases and cancellations 

• Addition of or increase in a benefit 

• Cancellation of or decrease in payment and/or cover growth 

• Addition of or increase in payment and/or cover growth 

• Removal of lives insured (only whole life and term cover products) 

• Change in waiting period (only income protector products) 

• Decrease in or cancellation of benefits 

• Change in type of benefit (cancellation of one benefit and addition of another one in place of the benefit 

removed) 

• Addition of lives insured 

Alterations on the Sickness benefit and Accidental disability are not available electronically yet. 

PLANHOLDER 

Only one planholder per plan is allowed. The planholder specifies which lives insured and benefits must be 

included on a plan, and is also responsible for the payments. Another party may make the payments, but the 

planholder remains responsible for payments. 

With the whole life and term cover products the planholder does not have to be a life insured on the plan. The 

following may all be planholders on these plans: 

• Individual 

• Trustees of a Trust in their capacity as such 

• Company 

• Non-taxable institution 

With the income protector products the planholder can be an individual or an institution. If the planholder is an 

individual, the planholder and life insured must be the same person. 

CESSIONS 


The planholder can cede the plan as security. The planholder must notify Sanlam Life of the cession in writing. 

The notice will take effect when Sanlam Life receives it. 

After the plan has been ceded, Sanlam Life's assumptions for lapses, for example, may change. As a result 

Sanlam Life may then increase the payment at the end of a guarantee period. 

An appointment of a beneficiary to receive the benefits payable at the life insured's death will not be cancelled, 

but the person or entity to whom the plan is ceded, will have the first right to benefits when they become 

payable. 

Where such a nomination is permitted, a nomination of a person or an entity to become the planholder at the 

planholder's death, will then be cancelled. 


Only outright cessions from one employer of the life insured to another are permitted. No other outright 

cessions or colateral cessions are permitted. This is allowed only after the plan had been issued. 

GE 8/2011 BZ 18

CHANGE OF PLANHOLDER 

The planholder can cede his/her rights as planholder to another person or entity (or employer in the case of 

Death or disability income benefits), who will then become the new planholder. The planholder must notify 

Sanlam Life of the cession in writing. The notice will take effect when Sanlam Life receives it. 

After the plan has been ceded, Sanlam Life's assumptions for lapses, for example, may change, and this could 

result in a payment increase at the end of a guarantee period. 

Where appointments of beneficiaries and nominees are permitted, an appointment of a beneficiary to receive 

the benefits payable at the planholder's death, and a nomination of a person or an entity to become the 

planholder at the planholder's death, will then be cancelled. 

APPOINTMENT OF BENEFICIARY/BENEFICIARIES TO RECEIVE A DEATH BENEFIT 


All benefits are payable to the planholder or his/her estate. However, the planholder may appoint one or more 

beneficiaries to receive the benefits payable at the planholder's death. Sanlam Life will pay the benefits to a 

beneficiary only if the last-mentioned accepts the appointment as a beneficiary. A beneficiary can, however, 

accept the appointment only after the planholder’s death. A maximum of 10 beneficiaries may be appointed 

per plan. 

Beneficiaries may only be appointed if the planholder took out the death benefit, First death benefit, final 

expenses benefit, and/or the accidental death benefit on his own life. 

For each type of death benefit, separate beneficiary(ies) and percentage(s) can be appointed. 

This means that for the following death benefits a separate beneficiary can be appointed for each type of death 

benefit: 

• Death benefit (DS) or First Death (DS80) 

• Final expenses (DSF1) 

• Accidental death (ASC) 

The applicant (who is also a life insured) 

• appoints the same person for all benefits, or 

• appoints another person for each of the benefits, or 

• appoints different persons for different benefits. 

The percentage allocation for each benefit, also if more than one beneficiary has been appointed for the same 

benefit, can be less than or equal to 100%. The rest of the benefit amount will be paid to the applicant's estate 

automatically if it is less than 100%. 

The appointment of a beneficiary can be cancelled or changed at any time. The appointment, cancellation or 

change must be in writing and must be signed by the planholder, and must reach Sanlam Life’s head office 

before the planholder’s death. 

The appointment of beneficiaries will lapse in the event of an outright cession of the plan. If the plan is ceded 

as collateral security the appointment will not lapse, but the rights of the cessionary will have preference over 

any rights of a beneficiary. 


No benefit is payable at death, therefore no beneficiary can be appointed with this product. 

GE 8/2011 BZ 19

NOMINATION OF A NOMINEE TO BECOME THE NEW PLANHOLDER 


The planholder may nominate a person or an entity to become the new planholder in the event of the 

planholder's death. 

Only one nominee may be appointed per plan. 

The nominated person must accept the nomination in order to become the new planholder. The nominee, as 

the new planholder, will then be responsible for payments. The nominee can, however, accept the nomination 

only after the planholder's death. 

If the nominee does not accept the nomination or if no one was nominated, the plan will form an asset in the 

planholder’s estate. 

The nomination can be cancelled or changed at any stage. The nomination or the cancellation or changing of 

the nomination must be in writing and must be signed by the planholder and must reach Sanlam Life’s head 

office before the death of the planholder. 

The nomination will lapse if the planholder cedes the plan, whether outright or as collateral security. 


No appointment of a nominee for plan ownership is permitted. 

CONTRACT DOCUMENTS 

The contract documents that will be sent to the planholder after the plan had been issued, consists of the 

following: 

• A plan overview, which is a summary of the plan. It contains information such as the lives insured on the 

plan, with each life insured's benefits, and also any special conditions applicable to the plan, 

• The general plan provisions, which sets out the general working of the plan, and 

• Benefit annexures for each benefit included on the plan, and which sets out the working of each benefit. 

The contract document between the planholder and Sanlam Life consists of the following: 

• the quotation, 

• the application for the plan, 

• the declaration form, 

• Sanlam's acceptance of the application, 

• the plan overview, 

• the accompanying general plan provisions, 

• the benefit annexure(s), 

• other documents, correspondence and information, if any, that by implication forms part of the contract. 


Planholders who take out new plans, or do changes to existing plans, have the right to cancel their contract 

documents or the plan amendment within 30 days (the cooling off period) from the date they receive their 

contract documents. Sanlam consequently allows this within 40 days from the date of the Notice of 

Acceptance. 

LAPSES AND REINSTATEMENT 

A plan lapses and offers contractually no insurance benefits if payments are not made within the periods of 

grace. A plan that was lapsed may be reinstated. This may include proof of insurability. 

GE 8/2011 BZ 20

INTERMEDIARY'S REMUNERATION 

Up front commission is paid on the monthly or annual payments. 

The intermediary agrees with the client on the commission payable. Any percentage between 0% and 100% of 

standard commission may be chosen. The standard commission is the maximum which is allowed in terms of 

legislation. Commission may be divided between a maximum of four intermediaries. 

For the various whole life products the commission is calculated as for whole life plans. 

For the term cover product commission is calculated for the selected term only. 

For the various income protector products the commission is calculated for the term until the chosen benefit 

cessation age. 

Commission that becomes payable during the term of the plan as a result of automatic payment growth, will be 

paid in accordance with the existing rule and product dispensation to the intermediary who rendered service 

when the plan was taken out. The rule is, however, being revised and can be amended shortly. 

For the Sickness benefit commission is limited to a percentage of the normal commission. The relevant 

percentage will depend on the life insured's age. 

GE 8/2011 BZ 21

DESCRIPTION 

Sanlam will pay the cover amount as a lump sum if the life insured dies before the benefit cease age. 

TERMINAL ILLNESS 

If the life insured is diagnosed with a medical condition that, according to Sanlam's Chief Medical Officer, will 

result in death within 12 months, the client may apply for an early payment of the death benefit. 

Sanlam Life may then pay an early death benefit. The amount of the early death benefit will be equal to the 

cover amount for this benefit. 

After Sanlam Life has made this payment, the death benefit, as well as all other benefits on the life of the 

insured, will end. However, if the life insured has a waiver of payment at death benefit, Sanlam Life will 

consider a claim for that benefit. 

PAYMENT AND COVER GROWTH 

Payment and cover growth is available according to the choice of growth selected by the planholder. 


• Minimum : When fixed compulsory payment growth is chosen, the minimum inception age is 

30 next birthday. Otherwise a minimum of 15 next birthday applies. 


BENEFIT CEASE EVENTS 

Term cover product 

This benefit will end: 

• at midnight before its cover end date as set out in the plan overview, or 

• if the plan is ended for any reason before the cover end date, or 

• if a claim is paid. 

Whole life products 

Whole life cover is provided. However, the benefit will end earlier if: 

• the plan ends for any reason before the cover end date, or 

• a claim is paid. 


Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for death benefits. 


Rate differentiation for the calculation of payments takes place on the grounds of: 

• Rate group 

• Smoking habits 

• Sex 


DEATH (DS) 

GE 8/2011 BZ 22

LIMITS 

Minimum : R150 000 life insured if for personal cover (i.e. non-business assurance purposes) 

: R50 000 per life insured if for business assurance purposes 

Maximum : None (subject to financial underwriting) 

Housewives, scholars, students and pensioners only qualify for a limited amount of death benefit, namely: 

• Housewives : Rate groups 1 and 2: Greater of R400 000 and 3 x income of spouse 

GE 8/2011 BZ 23 

Rate groups 3, 4 and 5: Greater of R500 000 and 3 x income of 

spouse 

• Scholars : Rate groups 1 and 2: R400 000 

Rate groups 3, 4 and 5: R500 000 

• Students : Greater of R1 000 000 and 1 x yearly income of guardian 

• Pensioners : Greater of R350 000 and maximum amount calculated according to 

formula at financial underwriting according to income (of the insured 

life) 

All death benefit amounts (with Sanlam Life and all other companies), accident-related death benefits (with 

Sanlam Life), Final expenses benefit amounts and First death benefits already provided on the life of the 

insured, will be taken into account to determine the maximum death benefits allowed. 

EXCLUSIONS 

Sanlam Life will not admit a claim if death is caused by suicide, also during insanity, committed within 

24 months after cover for the benefit has started, or after the plan has been re-instated after an earlier lapse. If 

the cover amount is increased, other than through benefit growth, this period will apply to the increase in the 

cover amount from the date of alteration. 

The person or entity who claims the benefit must prove that the life insured did not commit suicide. 

Specific exclusions, if any, are set out in the plan overview, in the special provisions for the life insured 

concerned.

DESCRIPTION 

Sanlam Life will pay the cover amount as a lump sum if the life insured dies before the cover end date. A 

benefit can be claimed at the death of the life insured linked to this benefit, who dies first. 


If a life insured is diagnosed with a medical condition that, according to Sanlam Life’s Chief Medical Officer, will 

result in death within the next 12 months, the client may apply for an early payment of the death benefit. 

Sanlam Life may then pay an early death benefit. The amount of the early benefit will be equal to the cover 

amount for this benefit. 

After Sanlam Life has made this payment, this benefit, as well as all other benefits on the life of the insured 

with the terminal illness, will end. However, if the life insured with a terminal illness has waiver of payment 

benefit at death, Sanlam Life will consider a claim for that benefit as well. 

For the remaining lives insured linked to this benefit, this benefit, as well as all accelerator benefits, will cease. 



AGES AT ENTRY 

• Minimum : When fixed compulsory payment growth is chosen, the minimum age at entry is 

30 next birthday. Otherwise a minimum of 15 next birthday will apply. 




The benefit will end: 

• at midnight before the cover end date set out in the plan review, or 

• if the plan ends for any reason before the cover end date, or 



Whole-life cover is provided. However, the benefit will end earlier if: 



LIVES QUALIFYING 

Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for First death benefits. 





• Sex 

GE 8/2011 BZ 24 

FIRST DEATH (DS80)

LIMITS 

Minimum : R150 000 life insured if for personal cover (i.e. non-business assurance purposes) 

: R50 000 per life insured if for business assurance purposes 

Maximum : None (subject to financial underwriting) 

Housewives, scholars, students and pensioners only qualify for a limited amount of the First Death benefit, 

namely: 


GE 8/2011 BZ 25 


spouse 






life) 

All death benefit amounts (at Sanlam Life and all other companies), accident-related death benefits (at Sanlam 

Life), Final expenses benefit amounts and First Death benefits already provided on the relevant life insured are 

taken into account with the determination of the maximum permissible First Death benefits. 


Sanlam Life will admit a claim only once for this benefit. 

If Sanlam Life admits a claim, this benefit as well as all accelerator benefits for the remaining lives insured 

linked to this benefit, will end. However, the remaining lives insured linked to this benefit have the option, for 

only two months after Sanlam Life admitted the claim, to take out death cover and accelerator benefits not 

exceeding the respective cover amounts as at the time of the claim, without proof of health and subject to 

Sanlam Life’s new business requirements. 

EFFECT OF A CLAIM FOR AN ACCELERATOR BENEFIT 

If, for a life insured linked to this benefit, Sanlam Life admits a claim for an accelerator benefit, Sanlam Life, 

despite anything to the contrary in the plan, reduce the First Death cover amount for all the lives insured linked 

to this benefit by the amount that Sanlam Life has paid. 

Where the cover amount of an accelerator benefit for any life insured linked to this benefit exceeds the reduced 

First Death cover amount, Sanlam Life will reduce the cover amount of the accelerator benefit to an amount 

equal to the reduced First Death cover amount. 

EXCLUSIONS 

Sanlam Life will not admit a claim if death is caused by suicide, also during insanity, committed within 24 

months after cover for the benefit has started, or after the plan has been reinstated after an earlier lapse. If the 

cover amount is increased, other than through benefit growth, this period will apply to the increase in the cover 

amount from the date of alteration. 



concerned.

DESCRIPTION 

Sanlam Life will pay the cover amount as a lump sum if the life insured dies before the cover end date. A 

benefit can be claimed at the death of the life insured. Sanlam Life aims to pay the cover amount within 48 

hours after its requirements having been met. 



AGES AT ENTRY 

• Minimum : When fixed compulsory payment growth is chosen, the minimum age at entry is 

30 next birthday. Otherwise a minimum of 15 next birthday will apply. 




The benefit will end: 

• at midnight before the cover end date set out in the plan review, or 




Whole-life cover is provided. However, the benefit will end earlier if: 



LIVES QUALIFYING 

Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for Final expenses benefits. 





• Sex 

LIMITS 

Minimum : R50 000 per life insured 

Maximum : R100 000 per life insured 

Housewives, scholars, students and pensioners also qualify for the Final Expenses benefit. 

EXCLUSIONS 


months after cover for the benefit has started, or after the plan has been reinstated after an earlier lapse. If the 

cover amount is increased, other than through benefit growth, this period will apply to the increase in the cover 

amount from the date of alteration. 



concerned. 

GE 8/2011 BZ 26 

FINAL EXPENSES (DSF1)

DESCRIPTION 

Sanlam will pay the cover amount as a lump sum if the life insured becomes disabled. 

TYPE OF BENEFIT 

This benefit may be selected as an accelerator (OAR) or stand-alone benefit (OSR). 







BENEFIT CEASE AGE 

65 next birthday 



• at midnight before the cover end date as set out in the plan overview, or 




Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for disability benefits. 

Lives are further divided into 5 disability classes (A, B, C, D and E) (see Classes). Persons classified in any of 

these classes A, B, C, D and E, qualify for disability for regular occupation, subject to some exceptions. 

Housewives, scholars, students and unemployed persons, however, do not qualify for disability for regular 

occupation. 


Rate differentiation for the calculation of payments takes place according to: 

• Disability class (Occupation) 


• Sex 

DISABILITY FOR REGULAR OCCUPATION (OAR, OSR) 

GE 8/2011 BZ 27

LIMITS 


Maximum : R25 000 000 per life insured 

The sum total of all the following benefits is taken into account when the permissible maximum amount for 

disability benefits is determined: 

• functional impairment plus disability benefits (with Sanlam Life and all other insurers); 

• physical impairment (with Sanlam Life); 

• functional impairment (with Sanlam Life); 

• disability benefits (lump sum, income benefits – temporary disability income excluded – and waiver of 

payment)(with Sanlam Life and all other insurers); and 

• accidental disability benefits (with Sanlam Life and all other insurers). 

Sanlam also restricts the available disability amounts according to income, as follows: 

Age next birthday 

(males and females) 

GE 8/2011 BZ 28 

Multiple of monthly income 

Up to and including 30 anb 225 x average monthly income 

31 anb up to and including 35 anb 210 x average monthly income 





56 anb 67,5 x average monthly income 

57 anb 60 x average monthly income 








65 anb 0 

The total disability benefit amount, payable from all sources, may not exceed the above limit. Income Protector 

benefits (excluding temporary disability income and sickness benefits) and waiver of payment benefits at 

disability are also taken into account to determine the above limit. Existing monthly benefits are converted with 

a conversion factor to a lump sum benefit and taken into consideration when available lump sum disability 

benefits are calculated. 

The conversion of a monthly benefit to a lump sum amount is done by using a conversion factor, which is 

determined as follows: 

Multiple of monthly income (in table above) 

0,75 

The lump sum benefit = monthly income benefit x conversion factor (as calculated above).

LIMITS (continued) 

Example 

Life insured 56 anb 

Monthly income = R40 000 

Existing disability income = R20 000 per month 

Maximum available disability benefit = (67,5 x 40 000) – (20 000 x 67,5 ÷ 0,75) 

= R900 000 

CLAIM EVENTS 

A benefit may be claimed if the life insured becomes disabled, and the disability amounts to one of the 

following: 





− the use of one hand and one foot 

• disability to the extent that the life insured 

− is totally, permanently and continuously unable to take care of his or her body, or take care of his or her 

personal interests, or 

− is totally, permanently and continuously unable to fulfil the occupational demands of the occupation he 

or she engaged in for income immediately before the disability, or 

− will be, if he or she is a full-time student when he or she becomes disabled, totally, permanently and 

continuously unable to fulfil the occupational demands of an occupation that Sanlam Life may 

reasonably expect him or her to engage in, taking into account his or her education, training, and 

experience. 

Sanlam Life may reduce the benefit amount if the life insured is over insured. 


Besides the conditions for admittance of a claim as set out in the general plan provisions, Sanlam Life will 

admit a claim only if 

• the disability is caused directly and solely by a bodily injury or by an illness; 


EXCLUSIONS 

Sanlam Life will not admit a claim if the disability of the life insured can be substantially removed or improved 

by surgery or other medical treatment, which we can reasonably expect him or her to undergo, taking into 

account the risks involved and the chances of success of such surgery or treatment. 


continuously unable to fulfil the occupational demands of that occupation, Sanlam Life will not admit a claim as 

a result of such inability. 


Other general exclusions are set out in the general plan provisions. See the section regarding general 

exclusions, which is also applicable to these benefits. 


concerned. 

GE 8/2011 BZ 29

EXCLUSIONS FOR SPECIFIC CONDITIONS 

If the benefit with exclusion of certain conditions is chosen, Sanlam Life will not admit a claim if the disability 

directly or indirectly results from any of the following: 

• depression or dysthymia, whether as an episode or disorder, or as part of the symptom complex of another 

psychiatric diagnosis; 

• post-traumatic stress disorder; 

• fibromyalgia; 



− paraplegia 

− quadruplegia 

− malignant tumors of the spinal cord and vertebral column 

− failed back syndrome after multiple spinal surgery, provided the extent of the functional impairment 

arising therefrom is verified by a specialist nominated by Sanlam Life; 


• a complication that directly or indirectly is attributable to any of the above causes, or to such an injury or 

illness; 

• a side effect of treatment for any of the above causes, or for such an injury or illness, or for such a 

complication. 

The benefit, however, is available as a comprehensive benefit without these exclusions. 

LIMITATION OF OCCUPATIONAL DISABILITY CLAIM 

The cover amount can be limited in the event of a claim, but only if that is necessary to eliminate overinsurance. 

For this purpose, Sanlam Life will follow the guidelines in the Code of good practice for disability 

insurance of the Association for Savings and Investment South Africa (ASISA), applicable on the date a 

disability claim is admitted, or a code or guidelines that replace it. This Code asks of all insurers to take care 

that over-insurance does not occur, and to limit disability benefits on a proportional basis to the extent that this 

is reasonably necessary. 

When Sanlam Life receives a claim, Sanlam Life will ask for full information of all disability benefits the life 

insured has received or will receive because of the disability in question. 

The cover amount will not be limited if a claim is admitted as a result of any of the following: 






• disability to the extent that the life insured is totally, permanently and continuously unable to take care of 

his or her body, or take care of his or her personal interests. 

LIMITATION OF CLAIM AMOUNT 

The benefit can be taken with or without the tapering of the cover amount during the last four plan years before 

the plan anniversary before the life insured's 65 th birthday. A more expensive rate will apply if the benefit 

without any tapering of the cover amount is taken. 

If Sanlam Life, in the event of a benefit with tapering of the cover amount, admits a claim during any of the 4 

plan years before the plan anniversary before the life insured’s 65 th birthday, Sanlam Life will pay only a 

percentage of the cover amount as set out below. After payment is made, the benefit will end. 

Plan year that begins on the plan anniversary before 

or on the life insured’s … 

GE 8/2011 BZ 30 

% of the cover amount 

61 st birthday 80 

62 nd birthday 60 

63 rd birthday 40 

64 th birthday 20

DISABILITY FOR REGULAR AND REASONABLE ALTERNATIVE OCCUPATION 

(OAS, OSS) 

DESCRIPTION 

Sanlam will pay the cover amount as a lump sum if the life insured becomes disabled as defined before the 

benefit cease age. 


This benefit may be selected as an accelerator (OAS) or stand-alone benefit (OSS). 















Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for disability benefits. 

Lives are further divided into 5 disability classes (A, B, C, D and E) (see Classes). Persons classified in any of 

these classes A, B, C, D and E qualify for disability for regular and reasonable alternative occupation. 

Housewives, scholars, students and unemployed persons do not qualify for disability for regular and 

reasonable alternative occupation. 





• Sex 

GE 8/2011 BZ 31

LIMITS 




disability benefits is determined: 







Sanlam also restricts the available disability amounts according to income, as follows: 



GE 8/2011 BZ 32 

















65 anb 0 



disability are also taken into account to determine the above limit. Existing monthly benefits are adjusted with 






0,75 



Example 





= R900 000 

CLAIM EVENTS 


following: 






• disability to the extent that the life insured 

− is totally, permanently and continuously unable to take care of his or her body, or take care of his or her 

personal interests, or 

− is totally, permanently and continuously unable to fulfil the occupational demands of the occupation he 

or she engaged in for income immediately before the disability, as well as an occupation Sanlam Life 

may reasonably expect him or her to engage in, taking into account his or her education, training and 

experience, or 

− will be, if he or she becomes a full-time student when he or she becomes disabled, totally, permanently 

and continuously unable to fulfil the occupational demands of an occupation that Sanlam Life may 

reasonably expect him or her to engage in, taking into account his or her education, training, and 

experience. 



Besides the conditions for admittance of a claim as set out in the general plan provisions, Sanlam Life will 


• the disability is caused directly and solely by a bodily injury or by an illness; 


EXCLUSIONS 

Sanlam Life will not admit a claim if the disability of the life insured can be substantially removed or improved 

by surgery or other medical treatment, which we can reasonably expect him or her to undergo, taking into 

account the risks involved and the chances of success of such surgery or treatment. 

If the life insured engages at any time in sport as an occupation, or works as a pilot, and becomes 

continuously unable to fulfil the occupational demands of that occupation, Sanlam Life will not admit a claim as 






concerned. 

GE 8/2011 BZ 33


If the benefit with exclusion of certain conditions is chosen, Sanlam Life will not admit a claim if the disability 

directly or indirectly results from any of the following: 

• depression or dysthymia, whether as an episode or disorder, or as part of the symptom complex of another 

psychiatric diagnosis; 








− failed back syndrome after multiple spinal surgery, provided the extent of the functional impairment 

arising therefrom is verified by a specialist nominated by Sanlam Life; 


• a complication that directly or indirectly is attributable to any of the above causes, or to such an injury or 

illness; 

• a side effect of treatment for any of the above causes, or for such an injury or illness, or for such a 

complication. 

The benefit, however, is available as a comprehensive benefit without these exclusions. 

LIMITATION OF OCCUPATIONAL DISABILITY CLAIM 
























Plan year that begins on the plan anniversary before or 

on the life insured’s … 

GE 8/2011 BZ 34 





64 th birthday 20

DESCRIPTION 

Sanlam Life will pay the percentage of the cover amount linked to the particular claim event as set out below. 


This benefit may be selected as an accelerator (OAF) or stand-alone benefit (OSF). 












• if the plan is ended for any reason before the cover end date, or 

• when the full cover amount is paid. 


Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for functional impairment benefits. 

Lives are also divided into 5 disability classes (A, B, C, D and E) (see Classes). Persons classified in any of 

these classes A, B, C, D and E qualify for disability for functional impairment. 


Rate differentiation for the calculation of payments takes place on account of: 



• Sex 

LIMITS 



FUNCTIONAL IMPAIRMENT (OAF, OSF) 


functional impairment benefits is determined: 







GE 8/2011 BZ 35


Housewives, scholars, students and pensioners only qualify for a limited amount of functional impairment 

benefits, namely: 


GE 8/2011 BZ 36 


spouse 






life) 

For housewives and pensioners only Sanlam assurance is taken into account. 


Besides the general conditions for admittance of a claim as set out earlier in this chapter, Sanlam Life will 


• the functional impairment is permanent, after the life insured has undergone optimal, reasonable treatment; 

• Sanlam Life has not previously admitted a claim for the same claim event; 

• the life insured survived the diagnosis of the claim event, or the incident causing the claim event, 

− by more than 30 days without life support, or 

− in cases where life support was used, by more than 30 days after he or she has been taken off life 

support. 

If Sanlam Life has admitted a claim, Sanlam Life will reduce the cover amount of the benefit for the life insured 

by the claim amount. 

CLAIM EVENTS 

A claim will be admitted only if the claim event is a permanent condition. 

The functional impairment benefit covers valvular heart disease, cardiomyopathy, ischaemic heart disease, 

arrhythmia, hypertension, peripheral arterial disease, haematopoitic system, peripheral venous disease, 

diabetes mellitus, endocrine system, impairment of the respiratory system, central nervous system, upper and 

lower digestive tract of the digestive system, liver, biliary tract, urinary tract, diabetes mellitus (type I or II with 

target organ complications), locomotor system, spine, visual system, hearing system, speech disorder, 

psychiatric conditions and cancer (malignancies). 

If a claim is admitted, a percentage of the cover amount will be paid, depending on the claim event. 

The claim events and percentages payable for the various claims events are set out in this section. 

Besides the conditions for admittance of a claim set out in the general plan provisions, Sanlam Life will admit a 

claim only if the claim event is a permanent condition. 

EXCLUSIONS 

Sanlam Life will not admit a claim if the functional impairment of the life insured can be substantially removed 

or improved by surgery or other medical treatment, which Sanlam Life can reasonably expect him or her to 

undergo, taking into account the risks involved and the chances of success of such surgery or treatment. 




concerned.


If Sanlam Life admits a claim, a percentage of the cover amount, linked to the particular claim event as set out 

below, will be paid. 

The functional impairment must be permanent, and evaluated according to principles and ratings of the latest 

edition of the American Medical Association's Guides to the Evaluation of Permanent Impairment. The 

functional impairment, and whether it is permanent, will be evaluated only after the life insured has undergone 

optimal, reasonable treatment, based on generally accepted medical protocols for treatment of the condition in 

question at the time of the claim. Treatment already undergone, as well as treatment still to be undergone, will 

be taken into account. 

Claim event 

Valvular heart disease, cardiomyopathy 

• New York Heart Association (NYHA) class III on optimal treatment, and 

− maximal effort test of 4 to 6 metabolic equivalents (METS), or 

− valve gradient and/or valve area classified as severe 

• NYHA class IV on optimal treatment, and 

− maximal effort test of less than 4 METS, or 


Ischaemic heart disease 

• NYHA Class III on optimal treatment, and 

• maximal effort test of 4 to 6 METS, and 

− left ventricular ejection fraction (LVEF) of less than 45%, or 

− moderate diastolic dysfunction as determined by a cardiologist, taking 

into account the 

− cause of the dysfunction, 

− extent of ventricular hypertrophy, and 

− mitral inflow pattern as determined by echocardiography 

• NYHA Class IV on optimal treatment, and 

• maximal effort test of less than 4 METS, and 

− LVEF of less than 40%, or 

− severe diastolic dysfunction as determined by a cardiologist, taking into 

account the 




Arrhythmia 

• Arrhythmia on optimal treatment that results in 

− NYHA Class III shortness of breath, and 

− 4 or less METS with maximal effort test; or 

• documented arrhythmia that fails to respond to optimal treatment, and leads 

to frequent fainting spells 


− NYHA class IV shortness of breath, and 

− 2 or less METS with maximal effort test 

Hypertension 

• Stage II hypertension despite optimal treatment, and 

• creatinine clearance of less than 50% of normal 

• Stage III hypertension despite optimal treatment, and 


GE 8/2011 BZ 37 

% of the cover 

amount 

50 

100 

50 

100 

50 

100 

50 

100

Peripheral arterial disease 

Claim event 

GE 8/2011 BZ 38 


amount 

• Abnormal Doppler readings, cold leg, rubor and pain on exercise 50 

• No palpable pulses, confirmed by absent Doppler readings, or 

• severe vascular ulceration, or 

• gangrene 

Peripheral venous disease 

• Severe deep and widespread vascular ulceration 50 

Haematopoitic system 

• Symptoms due to anaemia with the need for two to three units of blood every 

two weeks on a permanent basis 

Respiratory system 

• Impaired airflow with 

− forced expiratory volume in one second (FEV1) of less than 50%, or 

− forced vital capacity (FVC) of less than 50% 


− FEV1 of less than 40%, or 

− FVC of less than 40% 

• Impaired diffusion with diffusion capacity (DCO) of less than 50% 50 

• Impaired diffusion with DCO of less than 40% 100 

• Impaired exercise tolerance with maximal effort test of 4 to 6 METS 50 

• Impaired exercise tolerance with maximal effort test of less than 4 METS 100 

Central nervous system 

• Coma 100 

• Hemiplegia 100 

• Epilepsy 50 

• Clinical dementia rating in severe category 50 

• Cranial nerve VII paralysis with severe unilateral upper motor neuron facial 

paralysis, involving more than 75% of the face muscles, and inability to 

control eyelid closure 

• Cranial nerve VIII paralysis or imbalance with moderately severe equilibrium 

impairment, with limitations of all activities of daily living (ADL), and requiring 

permanent assistance with self-care 

• Cranial nerve VIII paralysis or imbalance with moderately severe equilibrium 

impairment, with limitations of all ADL, requiring permanent assistance with 

self-care, plus permanent confinement 

• Cranial nerves IX, X or XII paralysis or dysarthria or dysphagia, with 

moderately severe dysarthria or dysphagia with hoarseness, nasal 

regurgitation and aspiration of fluids 

• Cranial nerves IX, X or XII paralysis or dysarthria or dysphagia, with severe 

inability to swallow without choking, with need for assistance and suctioning 

• Neurologic impairment of respiration where the life insured is capable of 

spontaneous respiration, but is restricted to sitting, standing or limited 

ambulation 

100 

100 

50 

100 

50 

50 

75 

25 

75 

50

Central nervous system (continued) 

Claim event 

• Neurologic impairment of respiration where the life insured is capable of 

spontaneous respiration, but to such a limited degree that he or she is 

permanently confined to bed 

• Neurologic impairment of respiration where the life insured has no capacity 

for spontaneous respiration 

• Neurologic impairment of the bladder where the life insured has no reflex or 

voluntary control of the bladder due to permanent neurologic impairment 

• Neurologic anorectal impairment where the life insured has no reflex 

regulation or voluntary control of the anus or rectum due to permanent 

neurologic impairment 

Gastro-intestinal system : upper and lower digestive tract 

• Anatomic loss or alteration in gastro-intestinal tract with 

− medical evidence of organic disease, and 

− symptoms uncontrolled by adequate treatment, and 

− 25% weight loss below accepted desirable weight; or 

• complete faecal incontinence 




− 15% weight loss below accepted desirable weight for a period exceeding 

a year, despite optimal treatment; or 

• permanent stoma; or 

• persistent, irreducible and irreparable protrusion of a hernia after surgery with 

bowel dysfunction and limitation in activities of daily living 

Gastro-intestinal system : liver 

• Progressive chronic liver disease, and 

• objective evidence of jaundice, and 

• ascites or bleeding oesophageal varices within the last year, and 

• 25% weight loss below accepted desirable weight 

Gastro-intestinal system : biliary tract 

GE 8/2011 BZ 39 


amount 

• Irreparable biliary tract obstruction with persistent jaundice 100 

Endocrine system 

• Disorders of the hypothalamic pituitary axis, with permanent whole person 

impairment (WPI) exceeding 26% 

• Hypoadrenalism, with permanent WPI exceeding 30% 50 

• Hyperadrenocorticism, with permanent WPI exceeding 40% 50 

• Phaeochromocytoma, with permanent WPI exceeding 30% 50 

Urinary tract 

• Reduction in urinary tract function, with creatinine clearance of 28 to 42 ml 

per minute, or 

• bladder or urethral disease resulting in complete urinary incontinence 

• Urinary tract functional impairment, 

− with creatinine clearance of less than 28 ml per minute, or 

− constant dialysis 

75 

100 

25 

25 

100 

50 

100 

50 

50 

100

Claim event 

Diabetes mellitus : type I or II with target organ complications 

GE 8/2011 BZ 40 


amount 

• Kidney functions impaired See urinary tract 

• Retinopathy with visual impairment See visual system 

• Ischaemic heart disease 

Locomotor system : upper extremity 

See ischaemic 

heart disease 

• 60% or more impairment of the limb 50 

• 90% impairment of the limb 75 

Locomotor system : lower extremity 



Spine 

• Chronic back and neck pain – per region 25 

• Malignant tumors of the spinal cord and vertebral column 50 

• Paraplegia 100 

• Quadruplegia 100 

Visual system 

• Blindness of one eye 25 

• Blindness of two eyes 100 

• Bilateral visual impairment of 50% 25 

Hearing 

• Permanent binaural hearing loss of 60% or more 50 

• Total and permanent hearing loss in two ears 100 

Speech 

• Total, permanent and irrecoverable loss of the ability to speak 100 

Psychiatric conditions 

• Certifiable mental conditions which results in permanent institutionalisation 100 

Note: 

Any permanent functional impairment caused by cancer (malignancies) will be rated according to the 

applicable criteria for the claim event concerned, as set out above. The cancer must have been optimally 

treated, and must have reached the stage of maximal medical improvement, before functional impairment can 

be assessed and a claim be considered. 

If the amount Sanlam Life pays for a claim event is less than the full cover amount, Sanlam Life will reduce the 

cover amount with the amount paid. Any amount Sanlam Life pays thereafter for a subsequent claim event, 

will be based on the reduced cover amount. If, however, the subsequent claim event and the preceding claim 

event are based on the same cause, and the percentage of the cover amount linked to the subsequent claim 

event is higher than the percentage linked to the preceding claim event, Sanlam Life will calculate the amount 

for payment of the subsequent claim event on the cover amount before it was reduced. From the amount so 

calculated, Sanlam Life will deduct the amount paid for the preceding claim, and pay the balance.

EXPLANATIONS 

NEW YORK HEART ASSOCIATION (NYHA) FUNCTIONAL CLASSIFICATION OF CARDIAC 

DISEASE 

A specialist physician or cardiologist must do the classification during a clinical examination according to the 

following criteria: 

Class Description 

I 

II 

III 

IV 

• Individual has cardiac disease, not resulting in limitation of physical activity. 

• Ordinary physical activity does not cause undue fatigue, palpitation, shortness of 

breath or anginal pain. 

• Individual has cardiac disease, resulting in slight limitation of physical activity. 

• Is comfortable at rest and in the performance of ordinary, light, daily activities. 

• Greater than ordinary physical activity, such as heavy physical exertion, results in 

fatigue, palpitations, shortness of breath or anginal pain. 

• Individual has cardiac disease, resulting in marked limitation of physical activity. 

• Is comfortable at rest. 

• Ordinary physical activity results in fatigue, palpitations, shortness of breath or anginal 

pain. 

• Individual has cardiac disease, resulting in inability to carry on any physical activity 

without discomfort. 

• Symptoms of inadequate cardiac output, pulmonary congestion, systemic congestion, 

or anginal syndrome may be present, even at rest. 

• If physical activity is undertaken, discomfort is increased. 

SEVERITY OF VALVE STENOSIS ACCORDING TO VALVE GRADIENT OR VALVE AREA 

A specialist physician or cardiologist must do the classification with an echocardiogram. 

Severity of stenosis 

Aortic valve 

Mean valve gradient 

(mm/Hg) 

GE 8/2011 BZ 41 

Valve area ± (cm 2 ) 

• Mild < 25 > 1.5 

• Moderate 25 – 50 1.0 – 1.5 

• Severe > 50 < 1.0 

Mitral valve 

• Mild < 5 > 1.5 

• Moderate 5 - 10 1.0 – 1.5 

• Severe > 10 < 1.0 

HYPERTENSION IN ADULTS 

A specialist physician must do the classification according to the following average blood pressure recordings: 

Blood pressure 

Hypertension categories 

recording Stage I Stage II Stage III 

Systolic 140 – 159 160 – 179 > 180 

Diastolic 90 – 99 100 – 109 > 110

PERIPHERAL ARTERIAL AND VENOUS DISEASE 

For peripheral arterial and venous disease, only one claim will be allowed, irrespective of whether one or two 

legs are affected. No subsequent claims are allowed for the same condition if it re-occurs, or manifests in 

another limb, or if the disease progresses to the stage of amputation. 

RESPIRATORY SYSTEM 

Impaired exercise tolerance must be caused by proven respiratory disease, and be accompanied by either 

impaired airflow or impaired diffusion. 

For impairment due to a respiratory disease, parameters must be measured after reasonable and adequate 

therapy, which comprises 

• bronchodilator on demand, and 

• daily high dose inhaled cortico-steroid (more than 100 mg beclomethasone or equivalent), and 

• daily, or every other day, systemic cortico-steroid. 

Lung function testing must be done only once the disease has stabilised, became chronic and is permanent. 

At least three abnormal lung function tests, taken at least one month apart, must be submitted. The average of 

the values submitted will be used in the assessment of the validity of the claim. 

To optimise patient co-operation and ensure reliable and consistent results, all lung function measurements 

must 

• be done by a registered pulmonologist, 

• be done on a calibrated apparatus, and 

• include at least three flow volume curves with less than 5% inter-test variability. 

To evaluate permanent impairment due to asthma, lung function testing must be done between acute attacks, 

and not during an attack. Post-bronchodilator reversibility must also be measured. 

COMA 

Irreversible permanent condition of unconsciousness, presenting with a Glascow Coma Scale of 8 or less, and 

requiring total medical support. 

HEMIPLEGIA 

The affected limbs must be permanently paralised. 

EPILEPSY 

Documented epileptic attacks confirmed by an abnormal electro-encephalogram (EEG) reading. Attacks must 

be observed to be more than 3 per week, and be resistant to optimal therapy as confirmed by drug serum-level 

testing. 

CLINICAL DEMENTIA 

All of the following criteria must be met: 

• severe memory loss, with only fragments remaining 

• oriented to person only 

• unable to make judgements to solve problems 

• no independent function outside home 

• too ill to be taken to functions outside home 

• no significant functioning in home 

• requires frequent help with self-care 

• frequent incontinence. 

GE 8/2011 BZ 42

WHOLE PERSON IMPAIRMENT (WPI) 

Any organ, system or limb may have impaired function after a bodily injury or illness. These impairments can 

be rated as percentages of impaired function according to the American Medical Association's Guides to the 

Evaluation of Permanent Impairment. Whole person impairment reflects the combined impact of the 

impairments on the individual's overall ability as a person to perform activities of daily living. 

CHRONIC BACK AND NECK PAIN 

The neck and back are part of the spine. Only one claim for spinal pain will be allowed per spinal region. The 

spinal regions are 

• the cervical region (C1 to C7), 

• the thoracic region (T1 to T12), and 

• the lumbosacral region (L1 to S1). 

The C7 to T1 joint will be classified in the cervical region, and the T12 to L1 joint in the lumbosacral region. 

One of the following four diagnoses must be made as the cause of chronic pain: 

• 50% compression of a vertebral body 

• clinically significant radiculopathy, verified by an imaging study that confirms a herniated disc at the level 

and side as found clinically, and verified by electrodiagnostic testing 

• alteration of motion segment integrity (instability), using flexion and extension radiographs 

• a back or cervical operation comprising laminectomy, discectomy or fusion, or a combination thereof. 

In all four of the above diagnoses the clinical findings, pain distribution and findings on special examinations, 

must make pathophysiological sense. 

The chronic pain will be evaluated by the following criteria: 

• pain questionnaire 

• pain diagram 

• analgesic medication usage. 

MALIGNANT TUMORS OF THE SPINAL CORD AND VERTEBRAL COLUMN 

The incontrovertible presence of uncontrolled growth and spread of malignant cells, the invasion of normal 

tissue, and the definite histological evidence of malignant growth in the spinal cord and vertebral column. 

PARAPLEGIA 

Total, permanent and irrecoverable loss of function of both lower extremities, with or without loss of bowel or 

bladder function. 

QUADRUPLEGIA 

Total, permanent and irrecoverable loss of function of all four limbs. 

BLINDNESS 

Total, permanent and irrecoverable loss of the vision of an eye as a result of illness or injury, or the certification 

of the life insured as legally blind by a registered ophthalmic surgeon. 

GE 8/2011 BZ 43

DESCRIPTION 



This benefit may be selected as an accelerator (OAP) or stand-alone benefit (OSP). 













• when the full cover amount has been paid. 


Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for physical impairment. 


these classes A, B, C, D and E qualify for physical impairment. 





• Sex 

LIMITS 



PHYSICAL IMPAIRMENT (OAP, OSP) 

All physical impairment benefits (both whole life and non whole life physical impairment benefits), already 

provided by Sanlam Life on the life of the insured, will be taken into account to determine the maximum 

physical impairment benefits allowed. 

GE 8/2011 BZ 44


The sum total of all the following benefits may not exceed R20 million: 



• combination of functional impairment plus disability (with Sanlam Life and all other insurers); 

• disability benefits (lump sums, income benefits – temporary disability income excluded – and waiver of 



Housewives, scholars, students and pensioners only qualify for a limited amount of physical impairment 



GE 8/2011 BZ 45 


spouse 






life) 




• the physical impairment is permanent, after the life insured has undergone optimal, reasonable treatment; 





support. 

− in cases of confinement to a bed or a wheelchair due to cancer, by more than 6 months. 

The planholder is responsible for payments during the waiting period. 



EXCLUSIONS 

Sanlam Life will not admit a claim if the physical impairment of the life insured can be substantially removed or 

improved by surgery or other medical treatment, which we can reasonably expect him or her to undergo, taking 

into account the risks involved and the chances of success of such surgery or treatment. 




concerned. 

CLAIM EVENTS 

The physical impairment benefit covers the total and permanent loss of one or both feet, legs, hands, arms, 

eyes, permanent loss of speech or hearing, amputation of fingers, permanent confinement to a bed or 

wheelchair and burns. 



claim only if the claim event is a permanent condition.


The physical impairment must be permanent, and evaluated according to principles and ratings of the latest 


physical impairment, and whether it is permanent, will be evaluated only after the life insured has undergone 




If Sanlam Life admits a claim, a percentage of the cover amount, as set out below, will be paid, depending on 

the claim event. 


Claim event % of cover amount 










• One ear 10 


Amputation 

• One thumb 15 

• Three fingers, other than thumb 15 

• Three fingers plus thumb 30 





Loss of function, or amputation, of any 2 of the following 



• a foot 

• a leg 

• a hand 

• an arm 




• two feet 

• two legs 

• two hands 

• two arms 


GE 8/2011 BZ 46 

100 

100

FULL DESCRIPTION OF CLAIM EVENTS (continued) 

Third degree burns covering at least … 







event based on the same cause, and the percentage of the cover amount linked to the subsequent claim event 

is higher than the percentage linked to the preceding claim event, Sanlam Life will calculate the amount for 

payment of the subsequent claim event on the cover amount before it was reduced. From the amount so 

calculated, Sanlam Life will deduct the amount paid for the preceding claim, and pay the balance. 

EXPLANATIONS 

FOOT 

• Loss of function refers to the permanent loss of more than 90% of the use of a foot. For this purpose a foot 

includes the ankle joint. 

• Amputation refers to the complete physical severence of a leg below the knee. 

LEG 

• Loss of function refers to the permanent loss of more than 90% of the use of a leg. For this purpose a leg 

includes the hip joint. 

• Amputation refers to the complete physical severence of a leg through or above the knee. 

HAND 

• Loss of function refers to the permanent loss of more than 90% of the use of a hand. For this purpose a 

hand includes the wrist joint. 

• Amputation refers to the complete physical severence of an arm below the elbow. 

ARM 

• Loss of function refers to the permanent loss of more than 90% of the use of an arm. For this purpose an 

arm includes the shoulder joint. 

• Amputation refers to the complete physical severence of an arm above the elbow. 

TOTAL VISION LOSS 


LOSS OF SPEECH 


TOTAL HEARING LOSS 

Total, permanent and irrecoverable loss of hearing in an ear. 

FINGER 

Complete physical severence of a finger through the metacarpo-phalangeal (MP) joint. 

GE 8/2011 BZ 47

DESCRIPTION 



This benefit may be selected as an accelerator (OAP2) or stand-alone benefit (OSP2). 








Whole life 







Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for whole life physical impairment. 


these classes A, B, C, D and E qualify for whole life physical impairment. 





• Sex 

LIMITS 



WHOLE LIFE PHYSICAL IMPAIRMENT (OAP2, OSP2) 

All physical impairment benefits (both whole life and non whole life physical impairment benefits), already 

provided by Sanlam Life on the life of the insured, will be taken into account to determine the maximum whole 

life physical impairment benefits allowed. 

GE 8/2011 BZ 48


The sum total of all the following benefits may not exceed R20 million: 



• combination of functional impairment plus disability (with Sanlam Life and all other insurers); 


payment)(with Sanlam Life and all other insurers; and 


Housewives, scholars, students and pensioners only qualify for a limited amount of whole life physical 

impairment benefits, namely: 


GE 8/2011 BZ 49 


spouse 






life) 




• the physical impairment is permanent, after the life insured has undergone optimal, reasonable treatment; 





support. 

− in cases of confinement to a bed or a wheelchair due to cancer, by more than 6 months. 




EXCLUSIONS 

Sanlam Life will not admit a claim if the impairment of the life insured can be substantially removed or 

improved by surgery or other medical treatment, which we can reasonably expect him or her to undergo, taking 

into account the risks involved and the chances of success of such surgery or treatment. 




concerned. 

CLAIM EVENTS 

The whole life physical impairment benefit covers the permanent loss of function of one or both feet, legs, 

hands, arms, eyes, permanent loss of speech or hearing, amputation of fingers, feet, legs, hands and arms, 

permanent confinement to a bed or wheelchair and burns. 



claim only if the claim event is a permanent condition.


The physical impairment must be permanent, and evaluated according to principles and ratings of the latest 


physical impairment, and whether it is permanent, will be evaluated only after the life insured has undergone 




If Sanlam Life admits a claim, a percentage of the cover amount, as set out below, will be paid, depending on 

the claim event. 














Amputation 

• One thumb 15 


• Three fingers plus thumb 30 





Loss of function, or amputation, of any 2 of the following 



• a foot 

• a leg 

• a hand 

• an arm 




• two feet 

• two legs 

• two hands 

• two arms 


GE 8/2011 BZ 50 

100 

100


Third degree burns covering at least … 




From the life insured's 70th birthday, we will admit a claim for permanent confinement to a bed or a wheelchair 

only if the confinement results from an accident. 




event based on the same cause, and the percentage of the cover amount linked to the subsequent claim event 

is higher than the percentage linked to the preceding claim event, Sanlam Life will calculate the amount for 

payment of the subsequent claim event on the cover amount before it was reduced. From the amount so 


EXPLANATIONS 

FOOT 

• Loss of function refers to the permanent loss of more than 90% of the use of a foot. For this purpose a foot 

includes the ankle joint. 

• Amputation refers to the complete physical severence of a leg below the knee. 

LEG 

• Loss of function refers to the permanent loss of more than 90% of the use of a leg. For this purpose a leg 

includes the hip joint. 

• Amputation refers to the complete physical severence of a leg through or above the knee. 

HAND 

• Loss of function refers to the permanent loss of more than 90% of the use of a hand. For this purpose a 

hand includes the wrist joint. 

• Amputation refers to the complete physical severence of an arm below the elbow. 

ARM 

• Loss of function refers to the permanent loss of more than 90% of the use of an arm. For this purpose an 

arm includes the shoulder joint. 

• Amputation refers to the complete physical severence of an arm above the elbow. 



LOSS OF SPEECH 




FINGER 

Complete physical severence of a finger through the metacarpo-phalangeal (MP) joint. 

GE 8/2011 BZ 51

DESCRIPTION 



This benefit may be selected as an accelerator (CAR) or stand-alone benefit (CSR). 















Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for functional impairment plus disability benefits. 


these classes A, B, C, D and E, qualify for functional impairment plus disability for regular occupation, subject 

to some exceptions. 

Housewives, scholars, students and unemployed persons, however, do not qualify for functional impairment 

plus disability for regular occupation. 


FUNCTIONAL IMPAIRMENT PLUS DISABILITY FOR REGULAR 

OCCUPATION (CAR, CSR) 




• Sex 

GE 8/2011 BZ 52

LIMITS 




functional impairment plus disability benefits is determined: 







Sanlam also restricts the available benefit amounts according to income, as follows: 



GE 8/2011 BZ 53 

















65 anb 0 



disability are also taken into account to determine the above limit. Existing monthly benefits are converted with 






0,75 



Example 





= R900 000 




• the functional impairment is caused directly and solely by a bodily injury or by an illness; 

• the functional impairment is permanent, after the life insured has undergone optimal, reasonable treatment; 





support. 



EXCLUSIONS 

Sanlam Life will not admit a claim if the functional impairment of the life insured can be substantially removed 

or improved by surgery or other medical treatment, which Sanlam Life can reasonably expect him or her to 

undergo, taking into account the risks involved and the chances of success of such surgery or treatment. 

If the life insured at any time engages in sport as an occupation, or works as a pilot, and becomes continuously 

unable to fulfil the occupational demands of that occupation, Sanlam Life will not admit a claim as a result of 

such inability. 




concerned. 

GE 8/2011 BZ 54

CLAIM EVENT 

The functional impairment must be permanent, and evaluated according to principles and ratings of the latest 


functional impairment, and whether it is permanent, will be evaluated only after the life insured has undergone 





GE 8/2011 BZ 55 

Claim event % of the cover amount 

• New York Heart Association (NYHA) class III on optimal treatment, 

and 










− moderate diastolic dysfunction as determined by a cardiologist, 

taking into account the 







− severe diastolic dysfunction as determined by a cardiologist, 





Arrhythmia 




• documented arrhythmia that fails to respond to optimal treatment, and 

leads to frequent fainting spells 


− NYHA Class IV shortness of breath, and 


Hypertension 





50 

100 

50 

100 

50 

100 

50 

100


GE 8/2011 BZ 56 





• gangrene 




• Symptoms due to anaemia with the need for two to three units of 

blood every two weeks on a permanent basis 



− forced expiratory volume in one second (FEV1) of less than 50%, 

or 








• Impaired exercise tolerance with maximal effort test of less than 4 

METS 


• Coma 100 




• Cranial nerve VII paralysis with severe unilateral upper motor neuron 

facial paralysis, involving more than 75% of the face muscles, and 

inability to control eyelid closure 

• Cranial nerve VIII paralysis or imbalance with moderately severe 

equilibrium impairment, with limitations of all activities of daily living 

(ADL), and requiring permanent assistance with self-care 


equilibrium impairment, with limitations of all ADL, requiring 

permanent assistance with self-care, plus permanent confinement 





severe inability to swallow without choking, with need for assistance 

and suctioning 

• Neurologic impairment of respiration where the life insured is capable 

of spontaneous respiration, but is restricted to sitting, standing or 

limited ambulation 

100 

100 

50 

100 

100 

50 

50 

75 

25 

75 

50


GE 8/2011 BZ 57 



of spontaneous respiration, but to such a limited degree that he or she 

is permanently confined to bed 

• Neurologic impairment of respiration where the life insured has no 

capacity for spontaneous respiration 

• Neurologic impairment of the bladder where the life insured has no 

reflex or voluntary control of the bladder due to permanent neurologic 

impairment 













− 15% weight loss below accepted desirable weight for a period 

exceeding a year, despite optimal treatment; or 


• persistent, irreducible and irreparable protrusion of a hernia after 

surgery with bowel dysfunction and limitation in activities of daily living 









• Disorders of the hypothalamic pituitary axis, with permanent whole 

person impairment (WPI) exceeding 26% 




Urinary tract 

• Reduction in urinary tract function, with creatinine clearance of 28 to 

42 ml per minute, or 


• Urinary tract functional impairment 



75 

100 

25 

25 

100 

50 

100 

50 

50 

100

GE 8/2011 BZ 58 







See ischaemic heart 

disease 






Spine 





Visual system 




Hearing 



Speech 



• Certifiable mental conditions which results in permanent 

institutionalisation 

Occupational disability 

• Functional impairment to the extent that the life insured is totally, 

permanently and continuously unable to fulfil the occupational 

demands of the occupation he or she engaged in for income 

immediately before the functional impairment. If the life insured is a 

full-time student when he or she becomes functionally impaired, he 

or she must be totally, permanently and continuously unable to fulfil 

the occupational demands of an occupation we may reasonably 

expect him or her to engage in, taking into account his or her 

education, training and experience. 

Note: 

100 

100 

(subject to limitation 

discussed below) 

Cancer in itself is not covered. Any permanent functional impairment caused by cancer (malignancies) will be 

rated according to the applicable criteria for the claim event concerned, as set out above. The cancer must 

have been optimally treated, and must have reached the stage of maximal medical improvement, before 

functional impairment can be assessed and a claim be considered.

CLAIM EVENT (continued) 




event are based on the same cause, and the percentage of the cover amount linked to the subsequent claim 

event is higher than the percentage linked to the preceding claim event, Sanlam Life will calculate the amount 

for payment of the subsequent claim event on the cover amount before it was reduced. From the amount so 


Please note that whenever a benefit is admitted for occupational disability, a benefit for any of the other claim 

events will not also be admitted at the same time. 

LIMITATION OF DISABILITY CLAIM 


























GE 8/2011 BZ 59 





64 th birthday 20

EXPLANATIONS 

NEW YORK HEART ASSOCIATION (NYHA) FUNCTIONAL CLASSIFICATION OF CARDIAC 

DISEASE 

A specialist physician or cardiologist must do the classification during a clinical examination according to the 

following criteria: 


I 

II 

III 

IV 











pain. 









Aortic valve 


(mm/Hg) 

GE 8/2011 BZ 60 


• Mild < 25 > 1.5 

• Moderate 25 – 50 1.0 – 1.5 

• Severe > 50 < 1.0 

Mitral valve 

• Mild < 5 > 1.5 

• Moderate 5 - 10 1.0 – 1.5 

• Severe > 10 < 1.0 


A specialist physician must do the classification according to the following average blood pressure recordings: 




Systolic 140 – 159 160 – 179 > 180 

Diastolic 90 – 99 100 – 109 > 110


For peripheral arterial and venous disease, only one claim will be allowed, irrespective of whether one or two 

legs are affected. No subsequent claims are allowed for the same condition if it re-occurs, or manifests in 

another limb, or if the disease progresses to the stage of amputation. 


Impaired exercise tolerance must be caused by proven respiratory disease, and be accompanied by either 

impaired airflow or impaired diffusion. 

For impairment due to a respiratory disease, parameters must be measured after reasonable and adequate 

therapy, which comprises 




Lung function testing must be done only once the disease has stabilised, became chronic and is permanent. 

At least three abnormal lung function tests, taken at least one month apart, must be submitted. The average of 

the values submitted will be used in the assessment of the validity of the claim. 

To optimise patient co-operation and ensure reliable and consistent results, all lung function measurements 

must 




To evaluate permanent impairment due to asthma, lung function testing must be done between acute attacks, 

and not during an attack. Post-bronchodilator reversibility must also be measured. 

COMA 

Irreversible permanent condition of unconsciousness, presenting with a Glascow Coma Scale of 8 or less, and 

requiring total medical support. 

HEMIPLEGIA 


EPILEPSY 

Documented epileptic attacks confirmed by an abnormal electro-encephalogram (EEG) reading. Attacks must 

be observed to be more than 3 per week, and be resistant to optimal therapy as confirmed by drug serum-level 

testing. 



• severe memory loss, with only fragments remaining; 

• oriented to person only; 

• unable to make judgements to solve problems; 

• no independent function outside home; 

• too ill to be taken to functions outside home; 

• no significant functioning in home; 

• requires frequent help with self-care; 


GE 8/2011 BZ 61


Any organ, system or limb may have impaired function after a bodily injury or illness. These impairments can 

be rated as percentages of impaired function according to the American Medical Association's Guides to the 

Evaluation of Permanent Impairment. Whole person impairment reflects the combined impact of the 

impairments on the individual's overall ability as a person to perform activities of daily living. 


The neck and back are part of the spine. Only one claim for spinal pain will be allowed per spinal region. The 

spinal regions are 




The C7 to T1 joint will be classified in the cervical region, and the T12 to L1 joint in the lumbosacral region. 


• 50% compression of a vertebral body 

• clinically significant radiculopathy, verified by an imaging study that confirms a herniated disc at the level 

and side as found clinically, and verified by electrodiagnostic testing 

• alteration of motion segment integrity (instability), using flexion and extension radiographs 


In all four of the above diagnoses the clinical findings, pain distribution and findings on special examinations, 

must make pathophysiological sense. 


• pain questionnaire 

• pain diagram 



The incontrovertible presence of uncontrolled growth and spread of malignant cells, the invasion of normal 

tissue, and the definite histological evidence of malignant growth in the spinal cord and vertebral column. 

PARAPLEGIA 

Total, permanent and irrecoverable loss of function of both lower extremities, with or without loss of bowel or 

bladder function. 

QUADRUPLEGIA 


BLINDNESS 

Total, permanent and irrecoverable loss of the vision of an eye as a result of illness or injury, or the certification 

of the life insured as legally blind by a registered ophthalmic surgeon. 

BACK CONDITION 

A disease, disorder, or dysfunction of the vertebrae, spinal cord, intervertebral discs, nerve roots and 

supporting muscles or ligaments, as well as the direct or indirect consequences of, or the side-effects of any 

treatment applied for, such disease, disorder, or dysfunction. 

GE 8/2011 BZ 62

FAILED BACK SYNDROME AFTER MULTIPLE SPINAL SURGERY 

When the life insured, after the cover for the benefit has began, must undergo more than one spinal operation 

on two or more intervertebral disc spaces in the lumbar or cervical area, and despite those operations, still 

suffers severe back pain as verified by a multidisciplinary pain clinic. Such operations may include discectomy, 

vertebral fusion and internal fixation. 

GE 8/2011 BZ 63

DESCRIPTION 


below. 


This benefit may be selected as an accelerator (CAS) or stand-alone benefit (CSS). 




• Minimum : When fixed compulsory payment growth is chosen, the minimum inception age 

is 30 next birthday. Otherwise a minimum of 15 next birthday applies. 










FUNCTIONAL IMPAIRMENT PLUS DISABILITY FOR REGULAR AND 

REASONABLE ALTERNATIVE OCCUPATION (CAS, CSS) 

Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for functional impairment plus disability 

benefits. 

Lives are also divided into 5 disability classes (A, B, C, D and E) (see Classes). Persons classified in 

classes A, B, C, D and E, qualify for functional impairment plus disability for regular and reasonable 

alternative occupation. 

Housewives, scholars, students and unemployed persons do not qualify for functional impairment plus 

disability for regular and reasonable alternative occupation. 





• Sex 

GE 8/2011 BZ 64

LIMITS 



The sum total of all the following benefits is taken into account when the permissible maximum amount 

for functional impairment plus disability benefits is determined: 




• disability benefits (lump sums, income benefits – temporary disability income excluded – and waiver 

of payment)(with Sanlam Life and all other insurers); and 


Sanlam also restricts the available benefit amounts according to income, as follows: 



GE 8/2011 BZ 65 

















65 anb 0 

The total disability benefit amount, payable from all sources, may not exceed the above limit. Income 

Protector benefits (excluding temporary disability income and sickness benefits) and waiver of payment 

benefits at disability are also taken into account to determine the above limit. Existing monthly benefits 

are converted with a conversion factor to a lump sum benefit and taken into consideration when 

available lump sum disability benefits are calculated. 

The conversion of a monthly benefit to a lump sum amount is done by using a conversion factor, which 

is determined as follows: 


0,75 



Example 





= R900 000 


Besides the general conditions for admittance of a claim as set out earlier in this chapter, Sanlam Life 

will admit a claim only if 

• the functional impairment is caused directly and solely by a bodily injury or by an illness; 

• the functional impairment is permanent, after the life insured has undergone optimal, reasonable 

treatment; 




− in cases where life support was used, by more than 30 days after he or she has been taken off 

life support. 

If Sanlam Life has admitted a claim, Sanlam Life will reduce the cover amount of the benefit for the life 

insured by the claim amount. 

EXCLUSIONS 

Sanlam Life will not admit a claim if the functional impairment of the life insured can be substantially 

removed or improved by surgery or other medical treatment, which Sanlam Life can reasonably expect 

him or her to undergo, taking into account the risks involved and the chances of success of such surgery 

or treatment. 







concerned. 

GE 8/2011 BZ 66

CLAIM EVENT 

The functional impairment must be permanent, and evaluated according to principles and ratings of the 

latest edition of the American Medical Association's Guides to the Evaluation of Permanent Impairment. 

The functional impairment, and whether it is permanent, will be evaluated only after the life insured has 

undergone optimal, reasonable treatment, based on generally accepted medical protocols for treatment 

of the condition in question at the time of the claim. Treatment already undergone, as well as treatment 

still to be undergone, will be taken into account. 


GE 8/2011 BZ 67 


• New York Heart Association (NYHA) class III on optimal 

treatment, and 










− moderate diastolic dysfunction as determined by a cardiologist, 








− severe diastolic dysfunction as determined by a cardiologist, 





Arrhythmia 




• documented arrhythmia that fails to respond to optimal treatment, 

and leads to frequent fainting spells 


− NYHA Class IV shortness of breath, and 


50 

100 

50 

100 

50 

100

Hypertension 






GE 8/2011 BZ 68 





• gangrene 




• Symptoms due to anaemia with the need for two to three units of 

blood every two weeks on a permanent basis 



− forced expiratory volume in one second (FEV1) of less than 50%, 

or 








• Impaired exercise tolerance with maximal effort test of less than 

4 METS 


• Coma 100 




• Cranial nerve VII paralysis with severe unilateral upper motor neuron 

facial paralysis, involving more than 75% of the face muscles, and 

inability to control eyelid closure 


equilibrium impairment, with limitations of all activities of daily living 

(ADL), and requiring permanent assistance with self-care 

50 

100 

100 

100 

50 

100 

100 

50 

50


GE 8/2011 BZ 69 



equilibrium impairment, with limitations of all ADL, requiring 

permanent assistance with self-care, plus permanent confinement 





severe inability to swallow without choking, with need for assistance 

and suctioning 


of spontaneous respiration, but is restricted to sitting, standing or 

limited ambulation 


of spontaneous respiration, but to such a limited degree that he or she 

is permanently confined to bed 

• Neurologic impairment of respiration where the life insured has no 

capacity for spontaneous respiration 

• Neurologic impairment of the bladder where the life insured has no 

reflex or voluntary control of the bladder due to permanent neurologic 

impairment 













− 15% weight loss below accepted desirable weight for a period 

exceeding a year, despite optimal treatment; or 


• persistent, irreducible and irreparable protrusion of a hernia after 

surgery with bowel dysfunction and limitation in activities of daily living 








75 

25 

75 

50 

75 

100 

25 

25 

100 

50 

100


GE 8/2011 BZ 70 


• Disorders of the hypothalamic pituitary axis, with permanent whole 

person impairment (WPI) exceeding 26% 




Urinary tract 

• Reduction in urinary tract function, with creatinine clearance of 28 to 

42 ml per minute, or 


• Urinary tract functional impairment 








50 

50 

100 

See ischaemic heart 

disease 






Spine 





Visual system 




Hearing 



Speech 



• Certifiable mental conditions which results in permanent 

institutionalisation 

100

Occupational disability 

GE 8/2011 BZ 71 


• Functional impairment to the extent that the life insured is totally, 

permanently and continuously unable to fulfil the occupational 

demands of the occupation he or she engaged in for income 

immediately before the functional impairment as well as an 

occupation we may reasonably expect him or her to engage in, taking 

into account his or her education, training and experience. If the life 

insured is a full-time student when he or she becomes functionally 

impaired, he or she must be totally, permanently and continuously 

unable to fulfil the occupational demands of an occupation we may 

reasonably expect him or her to engage in, taking into account his or 

her education, training and experience. 

Note: 

100 

(subject to limitation 

discussed below) 

Cancer in itself is not covered. Any permanent functional impairment caused by cancer (malignancies) 

will be rated according to the applicable criteria for the claim event concerned, as set out above. The 

cancer must have been optimally treated, and must have reached the stage of maximal medical 

improvement, before functional impairment can be assessed and a claim be considered. 

If the amount Sanlam Life pays for a claim event is less than the full cover amount, Sanlam Life will 

reduce the cover amount with the amount paid. Any amount Sanlam Life pays thereafter for a 

subsequent claim event, will be based on the reduced cover amount. If, however, the subsequent claim 

event and the preceding claim event are based on the same cause, and the percentage of the cover 


event, Sanlam Life will calculate the amount for payment of the subsequent claim event on the cover 



Please note that whenever a benefit is admitted for occupational disability, a benefit for any of the other 

claim events will not also be admitted at the same time. 

LIMITATION OF DISABILITY CLAIM 


For this purpose, Sanlam Life will follow the guidelines in the Code of good practice for 

disability insurance of the Association for Savings and Investment South Africa (ASISA), applicable on 

the date a disability claim is admitted, or a code or guidelines that replace it. This Code asks of all 

insurers to take care that over-insurance does not occur, and to limit disability benefits on a proportional 

basis to the extent that this is reasonably necessary. 

When Sanlam Life receives a claim, Sanlam Life will ask for full information of all disability benefits the 

life insured has received or will receive because of the disability in question. 







• disability to the extent that the life insured is totally, permanently and continuously unable to take 

care of his or her body, or take care of his or her personal interests.


The benefit can be taken with or without the tapering of the cover amount during the last four plan years 

before the plan anniversary before the life insured's 65 th birthday. A more expensive rate will apply if the 

benefit without any tapering of the cover amount is taken. 

If Sanlam Life, in the event of a benefit with tapering of the cover amount, admits a claim during any of 

the 4 plan years before the plan anniversary before the life insured’s 65 th birthday, Sanlam will pay only 

a percentage of the cover amount as set out below. After payment is made, the benefit will end. 



GE 8/2011 BZ 72 





64 th birthday 20

EXPLANATIONS 

NEW YORK HEART ASSOCIATION (NYHA) FUNCTIONAL CLASSIFICATION OF 

CARDIAC DISEASE 

A specialist physician or cardiologist must do the classification during a clinical examination according to 

the following criteria: 


I 

II 

III 

IV 











pain. 









Aortic valve 


(mm/Hg) 

GE 8/2011 BZ 73 


• Mild < 25 > 1.5 

• Moderate 25 – 50 1.0 – 1.5 

• Severe > 50 < 1.0 

Mitral valve 

• Mild < 5 > 1.5 

• Moderate 5 - 10 1.0 – 1.5 

• Severe > 10 < 1.0 


A specialist physician must do the classification according to the following average blood pressure 

recordings: 




Systolic 140 – 159 160 – 179 > 180 

Diastolic 90 – 99 100 – 109 > 110


For peripheral arterial and venous disease, only one claim will be allowed, irrespective of whether one or 

two legs are affected. No subsequent claims are allowed for the same condition if it re-occurs, or 

manifests in another limb, or if the disease progresses to the stage of amputation. 


Impaired exercise tolerance must be caused by proven respiratory disease, and be accompanied by 

either impaired airflow or impaired diffusion. 

For impairment due to a respiratory disease, parameters must be measured after reasonable and 

adequate therapy, which comprises 




Lung function testing must be done only once the disease has stabilised, became chronic and is 

permanent. At least three abnormal lung function tests, taken at least one month apart, must be 

submitted. The average of the values submitted will be used in the assessment of the validity of the 

claim. 

To optimise patient co-operation and ensure reliable and consistent results, all lung function 

measurements must 




To evaluate permanent impairment due to asthma, lung function testing must be done between acute 

attacks, and not during an attack. Post-bronchodilator reversibility must also be measured. 

COMA 

Irreversible permanent condition of unconsciousness, presenting with a Glascow Coma Scale of 8 or 

less, and requiring total medical support. 

HEMIPLEGIA 


EPILEPSY 

Documented epileptic attacks confirmed by an abnormal electro-encephalogram (EEG) reading. 

Attacks must be observed to be more than 3 per week, and be resistant to optimal therapy as confirmed 

by drug serum-level testing. 



• severe memory loss, with only fragments remaining 

• oriented to person only 

• unable to make judgements to solve problems 

• no independent function outside home 

• too ill to be taken to functions outside home 

• no significant functioning in home 

• requires frequent help with self-care 


GE 8/2011 BZ 74


Any organ, system or limb may have impaired function after a bodily injury or illness. These 

impairments can be rated as percentages of impaired function according to the American Medical 

Association's Guides to the Evaluation of Permanent Impairment. Whole person impairment reflects the 

combined impact of the impairments on the individual's overall ability as a person to perform activities of 

daily living. 


The neck and back are part of the spine. Only one claim for spinal pain will be allowed per spinal 

region. The spinal regions are 




The C7 to T1 joint will be classified in the cervical region, and the T12 to L1 joint in the lumbosacral 

region. 


• 50% compression of a vertebral body; 

• clinically significant radiculopathy, verified by an imaging study that confirms a herniated disc at the 

level and side as found clinically, and verified by electrodiagnostic testing; 

• alteration of motion segment integrity (instability), using flexion and extension radiographs; 


In all four of the above diagnoses the clinical findings, pain distribution and findings on special 

examinations, must make pathophysiological sense. 


• pain questionnaire; 

• pain diagram; 



The incontrovertible presence of uncontrolled growth and spread of malignant cells, the invasion of 

normal tissue, and the definite histological evidence of malignant growth in the spinal cord and vertebral 

column. 

PARAPLEGIA 

Total, permanent and irrecoverable loss of function of both lower extremities, with or without loss of 

bowel or bladder function. 

QUADRUPLEGIA 


BLINDNESS 

Total, permanent and irrecoverable loss of the vision of an eye as a result of illness or injury, or the 

certification of the life insured as legally blind by a registered ophthalmic surgeon. 



supporting muscles or ligaments, as well as the direct or indirect consequences of, or the side-effects of 

any treatment applied for, such disease, disorder, or dysfunction. 

GE 8/2011 BZ 75


When the life insured, after the cover for the benefit has began, must undergo more than one spinal 

operation on two or more intervertebral disc spaces in the lumbar or cervical area, and despite those 

operations, still suffers severe back pain as verified by a multidisciplinary pain clinic. Such operations 

may include discectomy, vertebral fusion and internal fixation. 

GE 8/2011 BZ 76

DESCRIPTION 


below. 


This benefit may be selected as an accelerator (TAC) or stand-alone benefit (TSC). 













• when the full cover amount has been paid (in the case of accelerator benefit), or 

• when the full cover amount has been paid for claims involving each organ, system or body part, or 

related group of organs, systems or body parts (in the case of stand-alone benefit). 


Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for core dread disease benefits. 





• Sex 

CORE DREAD DISEASE (TAC, TSC) 

GE 8/2011 BZ 77

LIMITS 



All dread disease and trauma benefits already provided by Sanlam Life, and all other insurers, on the life 

of the insured, will be taken into account to determine the maximum amount of dread disease benefits 

allowed. 

Housewives, scholars, students and pensioners only qualify for a limited amount of dread disease 



GE 8/2011 BZ 78 


spouse 






life) 




• the life insured survived the diagnosis of the claim event, or the incident causing the claim event, by 

more than 14 days 

• the benefit is an acceleration benefit and Sanlam Life has not previously admitted a claim for the 

same claim event, except if the claim event is coronary artery bypass graft (CABG). 

If Sanlam Life has admitted a claim in the case of an accelerator benefit, Sanlam Life will reduce the 

cover amount of the benefit for the life insured by the claim amount. 

If Sanlam Life admitted a claim in the case of a stand alone benefit, Sanlam Life will not reduce the 

cover amount of the benefit for the life insured by the claim amount. However, Sanlam Life will not allow 

claims involving any one organ, system or body part, or related group of organs, systems or body parts, 

to exceed 100% of the cover amount, except if the causes for the claims are totally unrelated according 

to the opinion of our Chief Medical Officer. The table below indicates which organ, system or body part, 

or related group of organs, systems or body parts, is involved for each specific claim event. 

Claim event Organ involved 

Cancer Organ, system or body part where cancer 

originated, and organs, systems or body parts to 

which it subsequently spreads 

Myocardial infarction Cardiovascular system 

Stroke Cardiovascular system 

Coronay artery bypass graft (CABG) Cardiovascular system 

CLAIM EVENT 

The core dread disease benefit covers cancer, myocardial infarction, stroke and coronary artery bypass 

graft. The claim events and percentages payable for the various claim events covered is set out below.

EXCLUSIONS 

Sanlam Life will not admit a claim for 

• cancer if it is 

− any premalignant condition, or 

− any cancer in situ, except cancer in situ of the breast or fibrocystic disease of the breasts in the 



− any skin cancer, other than malignant melanoma that has been histologically classified as having 


invasion, or 

− any tumour of the prostate unless histologically classified as having a Gleason score greater 

than 6 or having progressed to at least clinical TNM classification T2N0M0; 

• acute coronary syndromes, including but not limited to angina; 

• a stroke if it is 

− a transient ischaemic attack (TIA), or 

− a vascular disease affecting the eye or optic nerve, or 

− migraine and vestibular disorders; 

• coronary artery bypass graft if it is only an insertion of a stent. 




concerned. 


Cancer 

Claim event 

GE 8/2011 BZ 79 


amount 

• Cancer, except the cancers excluded under "Exclusions" 100 

• Cancer in situ of the breast or fibrocystic disease of the breasts in the 

presence of a strong family history, that according to best medical practice 

at the time, requires a total unilateral or bilateral mastectomy 

Myocardial infarction 100 

Stroke 

• Stroke resulting in permanent impairment 100 

• Stroke with full recovery 25 

Coronary artery bypass graft (CABG) 100 

The table below indicates the percentage of the cover amount that Sanlam Life will pay for a claim for 

the severity levels of the following claim events as identified by the Standardised Critical Illness 

Definitions Project (SCIDEP) of the Association for Savings and Investment South Africa (ASISA). 

Claim event 

Level A 

Most 

severe 

30 

% of the cover amount for a severity level 

Level B Level C Level D 

Least 

severe 

Cancer, except the cancers excluded 

under "Exclusions" 100 100 100 100 

Myocardial infarction 100 100 100 100 

Stroke resulting in permanent 

impairment 100 100 100 100 

Coronary artery bypass graft (CABG) 100 100 100 100

EXPLANATIONS 

CANCER 




CARDIOVASCULAR SYSTEM 

The cardiovascular system includes the heart and its structural components, and the arterial and venous 

blood system, including the blood supply system of the brain, where a stroke is usually caused. 

MYOCARDIAL INFARCTION 

A heart attack is the death of a portion of the heart muscle, due to the inadequate supply of blood as 

evidenced by all of the following three criteria: 

• compatible clinical symptoms, and; 

• characteristic electrocardiographical (ECG) changes, which can be either of the following: 

− new pathological Q waves, or 

− ST segment and T wave changes indicative of myocardial injury, but only when accompanied by 

diagnostic raised cardiac markers, and; 

• raised cardiac markers, which include the following: 

− Troponin T greater than 0.5 ng/ml or Troponin I greater than 0.25 ng/ml, or 

− CK-MB mass above the normal reference values, or 

− total CPK elevation of more than 2 times the normal values, with at least 6% being CK-MB. 

The evidence must show a definite acute myocardial infarction. 

ECG, ST segment and T wave changes indicative of myocardial ischaemia that may progress to 

myocardial infarction in an insured life 

• with ST segment elevation, are new or presumed new ST segment elevation at the J point in two or 

more contiguous leads with the cut-off points greater than or equal to 0.2 mV in leads V1, V2 or V3, 

and greater than or equal to 0.1 mV in other leads. Contiguity in the frontal plane is defined by the 

lead sequence AVL, I and II, AVF and III. 

• without ST segment elevation, are 

− ST segment depression of at least 0.1 mV, or 

− T wave abnormalities only. 

New pathological Q waves refer to 

• any new Q wave in leads V1 through V3, or 

• a new Q wave greater than or equal to 40 ms (0.04 s) in leads I, II, AVL, AVF, V4, V5 or V6, or 

• the appearance of a new complete bundle branch block. 

Both the first two new Q waves must be present in any two contiguous leads, and must be greater than 

or equal to 1 mm in depth. 

STROKE RESULTING IN PERMANENT IMPAIRMENT 

The death of brain tissue due to inadequate blood supply or haemorrhage within the skull resulting in 

neurological deficit lasting longer than 24 hours, confirmed by neuro-imaging investigation and 

appropriate clinical findings by a neurologist. 

A full neurological examination by a neurologist three months or later after the event must confirm that 

the life insured has a whole person impairment (WPI) of class 1 (1% - 10%) or more. 

WPI figures are calculated according to the principles and ratings of the latest edition of the American 

Medical Association's Guides to the Evaluation of Permanent Impairment. 

GE 8/2011 BZ 80

STROKE WITH FULL RECOVERY 




A full neurological examination by a neurologist after the event must confirm the diagnosis of a stroke 

and not a transient ischaemic attack (TIA), and that the life insured has recovered fully. 

CORONARY ARTERY BYPASS GRAFT (CABG) 

The undergoing of surgery to correct the narrowing of, or blockage to, any one coronary artery by 

means of a bypass graft. 

GE 8/2011 BZ 81

DESCRIPTION 


below. 


This benefit may be selected as an accelerator (TAW) or stand-alone benefit (TSW). 













• if Sanlam Life admitted a claim for accidental HIV infection, or 





Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for comprehensive dread disease 

benefits. 





• Sex 

COMPREHENSIVE DREAD DISEASE (TAW, TSW) 

GE 8/2011 BZ 82

LIMITS 





allowed. 




GE 8/2011 BZ 83 


spouse 






life) 






• the benefit is an accelerator benefit and Sanlam Life has not previously admitted a claim for the 

same claim event, except if the claim event is one of the following: 

− arrhythmia; 

− angioplasty, which is limited to 2 claims per life insured. 


cover amount of the benefit for the life insured by the claim amount, except if the claim has been for 

accidental HIV infection. However, Sanlam Life will not allow claims involving any one organ, system or 

body part, or related group of organs, systems or body parts, to exceed 100% of the cover amount, 

except if the causes for the claims are totally unrelated according to the opinion of our Chief Medical 

Officer.

The table below indicates which organ, system or body part, or related group of organs, systems or 

body parts are involved for each specific claim event. 


Cancer Organ, system or body part, where cancer 

originated, and organs, systems or body parts 

to which it subsequently spreads 


Heart valve surgery Cardiovascular system 

Valvotomy by endoscopic procedures Cardiovascular system 

Aortic artery surgery Cardiovascular system 

Arrhythmia Cardiovascular system 

Cardiomyopathy Cardiovascular system 


Vision loss Eyes 

Organ transplant Specific organ that is transplanted 

Renal failure Kidneys 

Liver failure Liver 

End-stage lung disease Lungs 

Coronary artery surgery Cardiovascular system 

Sero-positive rheumatoid arthritis Joints 

Multiple sclerosis Brain 

Parkinson's disease Brain 

Loss of limb function Limbs and cardiovascular system 

Paraplegia Limbs and kidneys 

Quadruplegia Limbs, kidneys, heart and lungs 

Benign brain tumour Brain 

Pulmonary embolism Lungs 

Hearing loss Ears 

Burns Skin, limbs and kidneys 

Coma Brain 

Alzheimer's disease Brain 

Motor neurone disease Brain and limbs 

Muscular dystrophy Limbs 

Aplastic anaemia Bone marrow 

GE 8/2011 BZ 84

EXCLUSIONS 









invasion, or 

− any tumour of the prostrate unless histologically classified as having a Gleason score greater 



• aortic surgery if it is done on the branches of the aorta; 





• liver failure if cirrhosis is due to alcohol or substance abuse; 

• Alzheimer's disease if dementia is induced by other conditions and substances. 

Also see section regarding general exclusions, which is also applicable to these benefits. 


concerned. 


Cancer 

Claim event 

GE 8/2011 BZ 85 

% of the 

cover amount 



presence of a strong family history, that according to best medical practice at 

the time, requires a total unilateral or bilateral mastectomy 


Heart valve surgery 100 

Valvotomy by endoscopic procedures 25 

Aortic artery surgery 100 

Arrhythmia 25 

Cardiomyopathy 

• Any type of cardiomyopathy on optimal treatment with functional impairment to 

the degree of New York Heart Association (NYHA) class IV shortness of breath 


the degree of NYHA class III shortness of breath, and 

• 4 or less metabolic equivalents (METS) on a maximal effort test 

Stroke 



30 

100 

75


Vision loss 

Claim event 

• Total and irreversible loss of vision in two eyes, or 

• irreversible visual acuity loss in two eyes with Snellen equivalent of 6/30 after 

correction, or worse 

GE 8/2011 BZ 86 

% of the 

cover amount 

• Total and irreversible loss of vision in one eye 25 

Organ transplant 100 

Renal failure 100 

Liver failure 100 

End-stage lung disease 100 

Coronary artery surgery 

• Bypass graft 100 

• Angioplasty 25 

Sero-positive rheumatoid arthritis 100 

Multiple sclerosis 100 

Parkinson’s disease 100 

Loss of limb function 

• Permanent loss of more than 90% of the use of each of any two limbs 100 

• Permanent loss of more than 90% of the use of a limb 50 

Paraplegia 100 

Quadruplegia 100 

Benign brain tumour 

• A brain tumour that is inoperable or recurrent, or which causes permanent 

neurological impairment, excluding cognitive impairment 

• A brain tumour that is only partially removable, or that is treated with 

chemotherapy or radiotherapy 

Pulmonary embolism 30 

Hearing loss 



Burns 100 

Coma 100 

Accidental HIV infection 100 

Alzheimer’s disease 100 

Motor neurone disease 100 

Muscular dystrophy 100 

Aplastic anaemia 100 

100 

100 

50





Claim event 

Level A 

Most 

severe 

GE 8/2011 BZ 87 



Least 

severe 





impairment 100 100 100 100 

Coronary artery bypass graft (CABG) 100 100 100 100 

EXPLANATIONS 

CANCER 


















− total CPK elevation of more than 2 times the normal values, with at least 6% being CK-MB.

MYOCARDIAL INFARCTION (continued) 

The evidence must show a definite acute myocardial infarction. 
















HEART VALVE REPLACEMENT 

Open-heart surgery to replace or repair a diseased heart valve. 

VALVOTOMY BY ENDOSCOPIC PROCEDURES 

Surgery to replace or repair a diseased heart valve by endoscopic procedures. 

AORTIC ARTERY SURGERY 

The excision and replacement of a portion of the thoracic or abdominal aorta with a graft, due to an 

aneurism or damage to the aorta. Catheter or keyhole techniques to repair the aneurism or damage are 

included. 

ARRHYTHMIA 

Documented arrhythmia that requires 

• the insertion of a permanent pacemaker or defibrillator, or 

• ablation surgery by a cardiothoracic surgeon or cardiologist. 

GE 8/2011 BZ 88






I • Individual has cardiac disease, not resulting in limitation of physical activity. 

• Ordinary physical activity does not cause undue fatigue, palpitations, shortness 

of breath or anginal pain. 

II • Individual has cardiac disease, resulting in slight limitation of physical activity. 


• Greater than ordinary physical activity, such as heavy physical exertion, results 

in fatigue, palpitations, shortness of breath or anginal pain. 

III • Individual has cardiac disease, resulting in marked limitation of physical activity. 


• Ordinary physical activity results in fatigue, palpitations, shortness of breath or 

anginal pain. 

IV • Individual has cardiac disease, resulting in inability to carry on any physical 

activity without discomfort. 

• Symptoms of inadequate cardiac output, pulmonary congestion, systemic 

congestion, or anginal syndrome may be present, even at rest. 
















ORGAN TRANSPLANT 

As recipient of a kidney, heart, lung, liver, pancreas or bone marrow. 

GE 8/2011 BZ 89

RENAL FAILURE 

Chronic irreversible end-stage renal failure, as a result of which regular peritoneal dialysis or 

haemodialysis is required on a long-term basis. 

LIVER FAILURE 

End-stage liver failure due to cirrhosis or chronic progressive liver disease, with objective evidence of 

jaundice, esophageal varices and ascites. 

END-STAGE LUNG DISEASE 

Diagnosis by a pulmonologist of end-stage chronic obstructive lung disease, interstitial lung disease or 

pneumoconiosis, requiring home oxygen therapy, and one of the following: 

• cor pulmonale, or 

• diffusion capacity (DCO) of less than 40%, or 

• forced expiratory volume in one second (FEV1) or forced vital capacity (FVC) of less than one litre. 






CORONARY ARTERY SURGERY 



Angioplasty is a balloon dilatation procedure, with or without insertion of stents, performed on one or 

more coronary arteries for critical narrowing of the arteries. 

SERO-POSITIVE RHEUMATOID ARTHRITIS 

Rheumatoid arthritis causing pain and deformity in at least three major joints, excluding joints in hands 

and feet, despite optimal treatment such as long-term corticosteroid therapy, disease modifying drugs 

and cytotoxics. 

MULTIPLE SCLEROSIS 

A neurologist must diagnose multiple sclerosis. There must be a reliable history of at least two episodes 

of neurological deficit, and objective clinical signs of lesions at more than one different anatomical region 

within the central nervous system. Special investigations, like magnetic resonance imaging, must 

support the diagnosis. 

PARKINSON’S DISEASE 

A neurologist must confirm a clinical diagnosis of Parkinson’s disease, with advanced stage of rigidity, 

abnormal gait and uncontrollable tremor despite optimal treatment. 

LOSS OF LIMB FUNCTION 

All percentages of loss of function are calculated per limb according to principles and ratings of the 


GE 8/2011 BZ 90

PARAPLEGIA 



QUADRUPLEGIA 


PULMONARY EMBOLISM 

A blood clot in the lung, confirmed by ventilation-perfusion (VQ) scan. 

BURNS 

Third-degree burn wounds, full thickness of the skin, that cover at least 20% of the body surface. 

COMA 

A condition of unconsciousness where the life insured 

• presents with a Glascow Coma Scale of 8 or less, and 

• is dependent on life-sustaining aids, such as a ventilator and intravenous infusion, for an 

uninterrupted period of at least 96 hours. 

ACCIDENTAL HIV INFECTION 

Infection by the Human Immunodeficiency Virus or the diagnosis of immunodeficiency syndrome. 

The infection must be proved to Sanlam Life's satisfaction as being due to one of the following: 

• the transfusion of infected blood or blood products from a transfusion service that Sanlam Life 

recognises, on or after the cover start date; 

• an accidental needlestick injury or cut in the execution of the life insured’s duties as a full time 

medical student, or normal professional duties as a medical or dental practitioner or nurse, 

registered with the Health Professions Council of South Africa (HPCSA), or the South African 

Nursing Council. The incident must have been recorded in writing in the workplace, for example with 

the Superintendent if in a hospital. An HIV test must have been performed within 24 hours to 

confirm the HIV negative status of the life insured at the time of the incident, as well as the HIV 

status of the patient with whom the incident took place. There must be proof that the life insured has 

been started on a course of anti-retroviral drugs. A subsequent HIV test must have been performed 

within 6 months after the incident to confirm the change in the life insured's HIV status from negative 

to positive; 

• receiving a transplanted organ where the organ has previously been infected with the HI virus; 

• any other medical or dental procedure, recognised by the HPCSA, performed on the life insured by a 

medical or dental practitioner, registered with the HPCSA. An HIV test must have been performed, 

but no longer than 12 months before the medical or dental procedure, to confirm the HIV negative 

status of the life insured at the time of the incident. A subsequent HIV test must have been 

performed within at least 12 months after the incident to confirm the change in the life insured's HIV 

status from negative to positive; 

• rape or indecent assault. The offence must have been reported to the South African Police Services 

(SAPS) and a case number and/or a criminal case must have been opened. An HIV test must have 

been performed within 24 hours to confirm the HIV negative status of the life insured at the time of 

the assault. A medical examination must have been performed within 24 hours after the incident 

confirming the rape or indecent assault. There must be proof that the life insured has been started 

on a course of anti-retroviral drugs. A subsequent HIV test must have been performed within 6 

months after the incident to confirm the change in the life insured's HIV status from negative to 

positive; 

GE 8/2011 BZ 91

ACCIDENTAL HIV INFECTION (continued) 

• a violent crime. The offence must have been reported to the SAPS and a case number and/or 

criminal case must have been opened. A medical examination must have been performed within 24 

hours after the incident, confirming the crime. Medically documented proof of acute trauma and 

suspicion of HIV infection must have been submitted, as well as an HIV test that proves that the life 

insured was HIV negative at the time of the crime. There must be proof that the life insured has been 

started on a course of anti-retroviral drugs. A subsequent HIV test must have been performed 


to positive; 

• a road traffic accident. The accident must have been reported to the SAPS and a case number 

and/or criminal case must have been opened. A medical examination must have been performed 

within 24 hours after the incident, confirming the accident. Medically documented proof of acute 

trauma and suspicion of HIV infection must have been submitted, as well as an HIV test that proves 

that the life insured was HIV negative at the time of the accident. The must be proof that the life 

insured has been started on a course of anti-retroviral drugs. A subsequent HIV test must have 

been performed within 6 months after the incident to confirm the change in the life insured's HIV 

status from negative to positive. If the accidental HIV infection is a result of emergency assistance 

at the scene of the accident, an affidavit by the SAPS or an eyewitness to prove the assistance of 

the life insured must have been submitted. 

ALZHEIMER’S DISEASE 

A specialist must diagnose Alzheimer’s disease according to the latest version of the Diagnostic and 

Statistical Manual of Mental Disorders (DSM) criteria. Memory and cognitive impairment must be to 

such a degree that the life insured needs constant supervision and help in self-care. 

MOTOR NEURONE DISEASE 

The progressive, irreversible degeneration of corticospinal tracts, and either anterior horn cells or bulbar 

efferent neurones. This includes the following 

• spinal muscular atrophy; 

• progressive bulbar palsy; 

• amyotrophic lateral sclerosis; 

• primary lateral sclerosis. 

MUSCULAR DYSTROPHY 

Diagnosis of a recognised muscular dystrophy, which is progressive in nature, by a consultant 

neurologist, and which cause the irreversible inability to perform, without assistance, three or more of 

the following activities of daily living: 

• bathing; 

• dressing; 

• using the toilet; 

• eating; 

• moving in or out of bed or a chair. 

APLASTIC ANAEMIA 

An acquired abnormality of blood production with total aplasia of the bone marrow as confirmed by a 

consultant haematologist, requiring one of the following: 

• transfusion with whole blood or other blood products; 

• bone marrow transplantation. 

GE 8/2011 BZ 92

DESCRIPTION 


below. 


This benefit may be selected as an accelerator (TAC2) or stand-alone benefit (TSC2). 








Whole life core dread disease is available on whole life products only. Whole life cover is supplied. This 

benefit will end: 


• if the plan ends for any reason, or 





Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for whole life dread disease. 





• Sex 

WHOLE LIFE CORE DREAD DISEASE (TAC2, TSC2) 

GE 8/2011 BZ 93

LIMITS 





allowed. 




GE 8/2011 BZ 94 


spouse 






life) 







same claim event, except if the claim event is coronary artery bypass graft (CABG). 

If Sanlam Life has admitted a claim in the case of an accelerator benefit, Sanlam Life will reduce the 

cover amount of the benefit for the life insured by the claim amount. 


cover amount of the benefit for the life insured by the claim amount. However, Sanlam Life will not allow 

claims involving any one organ, system or body part, or related group of organs, systems or body parts, 

to exceed 100% of the cover amount, except if the causes for the claims are totally unrelated according 

to the opinion of our Chief Medical Officer. The table below indicates which organ, system or body part, 

or related group of organs, systems or body parts, is involved for each specific claim event. 


Cancer Organ, system or body part where cancer 

originated, and organs, systems or body parts to 

which it subsequently spreads 



Coronay artery bypass graft (CABG) Cardiovascular system 

CLAIM EVENTS 

The whole life dread disease benefit covers cancer, myocardial infarction, stroke and coronary artery 

bypass graft (CABG). The claim events and percentages payable for the various claim events covered 

is set out below.

EXCLUSIONS 









invasion, or 

− any tumour of the prostate unless histologically classified as having a Gleason score greater 







• coronary artery bypass graft if it is only an insertion of a stent. 




concerned. 


Cancer 

Claim event 

GE 8/2011 BZ 95 


amount 



presence of a strong family history, that according to best medical practice 

at the time, requires a total unilateral or bilateral mastectomy 


Stroke 



Coronary artery bypass graft (CABG) 100 

30





Claim event 

Level A 

Most 

severe 

GE 8/2011 BZ 96 



Least 

severe 





impairment 100 100 100 100 


EXPLANATIONS 

CANCER 



















The evidence must show a definite acute myocardial infarction.































CORONARY ARTERY BYPASS GRAFT (CABG) 



GE 8/2011 BZ 97

DESCRIPTION 


below. 


This benefit may be selected as an accelerator (TAW2) or stand-alone benefit (TSW2). 








Whole life comprehensive dread disease is available on whole life products only. Whole life cover is 

supplied. This benefit will end: 



• if Sanlam Life admitted a claim for accidental HIV infection, or 


• when the full cover amount has been paid for claims involving each organ, system or body part or 



WHOLE LIFE COMPREHENSIVE DREAD DISEASE (TAW2, TSW2) 

Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for whole life comprehensive dread 

disease benefits. 





• Sex 

GE 8/2011 BZ 98

LIMITS 





allowed. 




GE 8/2011 BZ 99 


spouse 






life) 







same claim event, except if the claim event is one of the following: 

− arrhythmia; 

− angioplasty, which is limited to 2 claims per life insured. 


cover amount of the benefit for the life insured by the claim amount, except if the claim has been for 

accidental HIV infection. However, Sanlam Life will not allow claims involving any one organ, system or 

body part, or related group of organs, systems or body parts to exceed 100% of the cover amount, 

except if the causes for the claims are totally unrelated according to the opinion of our Chief Medical 

Officer.

ADMITTANCE OF A CLAIM (continued) 

The table below indicates which organ, system or body part, or related group of organs, systems or 

body parts is involved for each specific claim event. 


Cancer Organ, system or body part, where cancer 

originated, and organs, systems or body parts 

to which it subsequently spreads 


Heart valve surgery Cardiovascular system 

Valvotomy by endoscopic procedures Cardiovascular system 

Aortic artery surgery Cardiovascular system 

Arrhythmia Cardiovascular system 

Cardiomyopathy Cardiovascular system 


Vision loss Eyes 

Organ transplant Specific organ that is transplanted 

Renal failure Kidneys 

Liver failure Liver 

End-stage lung disease Lungs 

Coronary artery surgery Cardiovascular system 

Sero-positive rheumatoid arthritis Joints 

Multiple sclerosis Brain 

Parkinson's disease Brain 

Loss of limb function Limbs and cardiovascular system 

Paraplegia Limbs and kidneys 

Quadruplegia Limbs, kidneys, heart and lungs 

Benign brain tumour Brain 

Pulmonary embolism Lungs 

Hearing loss Ears 

Burns Skin, limbs and kidneys 

Coma Brain 

Alzheimer's disease Brain 

Motor neurone disease Brain and limbs 

Muscular dystrophy Limbs 

Aplastic anaemia Bone marrow 

GE 8/2011 BZ 100

EXCLUSIONS 









invasion, or 

− any tumour of the prostrate unless histologically classified as having a Gleason score greater 



• aortic surgery if it is done on the branches of the aorta; 





• liver failure if cirrhosis is due to alcohol or substance abuse; 

• Alzheimer's disease if dementia is induced by other conditions and substances. 



concerned. 


Cancer 

Claim event 

GE 8/2011 BZ 101 

% of the 

cover amount 



presence of a strong family history, that according to best medical practice at 

the time, requires a total unilateral or bilateral mastectomy 


Heart valve surgery 100 

Valvotomy by endoscopic procedures 25 

Aortic artery surgery 100 

Arrhythmia 25 

Cardiomyopathy 


the degree of New York Heart Association (NYHA) class IV shortness of breath 


the degree of NYHA class III shortness of breath, and 

• 4 or less metabolic equivalents (METS) on a maximal effort test 

30 

100 

75

Stroke 

Claim event 

GE 8/2011 BZ 102 

% of the 

cover amount 



Vision loss 

• Total and irreversible loss of vision in two eyes, or 

• irreversible visual acuity loss in two eyes with Snellen equivalent of 6/30 after 

correction, or worse 

• Total and irreversible loss of vision in one eye 25 

Organ transplant 100 

Renal failure 100 

Liver failure 100 

End-stage lung disease 100 

Coronary artery surgery 

• Bypass graft 100 

• Angioplasty 25 

Sero-positive rheumatoid arthritis 100 

Multiple sclerosis 100 

Parkinson’s disease 100 

Loss of limb function 

• Permanent loss of more than 90% of the use of each of any two limbs 100 

• Permanent loss of more than 90% of the use of a limb 50 



Benign brain tumour 

• A brain tumour that is inoperable or recurrent, or which causes permanent 

neurological impairment, excluding cognitive impairment 

• A brain tumour that is only partially removable, or that is treated with 

chemotherapy or radiotherapy 

Pulmonary embolism 30 

Hearing loss 



Burns 100 

Coma 100 

Accidental HIV infection 100 

Alzheimer’s disease 100 

Motor neurone disease 100 

Muscular dystrophy 100 

Aplastic anaemia 100 

100 

100 

50





Claim event 

Level A 

Most 

severe 

GE 8/2011 BZ 103 



Least 

severe 





impairment 100 100 100 100 


EXPLANATIONS 

CANCER 



















The evidence must show a definite acute myocardial infarction.

















HEART VALVE REPLACEMENT 

Open-heart surgery to replace or repair a diseased heart valve. 

VALVOTOMY BY ENDOSCOPIC PROCEDURES 

Surgery to replace or repair a diseased heart valve by endoscopic procedures. 

AORTIC ARTERY SURGERY 

The excision and replacement of a portion of the thoracic or abdominal aorta with a graft, due to an 

aneurism or damage to the aorta. Catheter or keyhole techniques to repair the aneurism or damage are 

included. 

ARRHYTHMIA 

Documented arrhythmia that requires: 

• the insertion of a permanent pacemaker or defibrillator, or 

• ablation surgery by a cardiothoracic surgeon or cardiologist. 

GE 8/2011 BZ 104






I • Individual has cardiac disease, not resulting in limitation of physical activity. 

• Ordinary physical activity does not cause undue fatigue, palpitations, shortness 

of breath or anginal pain. 

II • Individual has cardiac disease, resulting in slight limitation of physical activity. 


• Greater than ordinary physical activity, such as heavy physical exertion, results 

in fatigue, palpitations, shortness of breath or anginal pain. 

III • Individual has cardiac disease, resulting in marked limitation of physical activity. 


• Ordinary physical activity results in fatigue, palpitations, shortness of breath or 

anginal pain. 

IV • Individual has cardiac disease, resulting in inability to carry on any physical 

activity without discomfort. 

• Symptoms of inadequate cardiac output, pulmonary congestion, systemic 

congestion, or anginal syndrome may be present, even at rest. 
















ORGAN TRANSPLANT 

As recipient of a kidney, heart, lung, liver, pancreas or bone marrow. 

RENAL FAILURE 

Chronic irreversible end-stage renal failure, as a result of which regular peritoneal dialysis or 

haemodialysis is required on a long-term basis. 

LIVER FAILURE 

End-stage liver failure due to cirrhosis or chronic progressive liver disease, with objective evidence of 

jaundice, esophageal varices and ascites. 

GE 8/2011 BZ 105

END-STAGE LUNG DISEASE 

Diagnosis by a pulmonologist of end-stage chronic obstructive lung disease, interstitial lung disease or 

pneumoconiosis, requiring home oxygen therapy, and one of the following: 

• cor pulmonale, or 

• diffusion capacity (DCO) of less than 40%, or 

• forced expiratory volume in one second (FEV1) or forced vital capacity (FVC) of less than one litre. 






CORONARY ARTERY SURGERY 



Angioplasty is a balloon dilatation procedure, with or without insertion of stents, performed on one or 

more coronary arteries for critical narrowing of the arteries. 

SERO-POSITIVE RHEUMATOID ARTHRITIS 

Rheumatoid arthritis causing pain and deformity in at least three major joints, that is other than joints in 

hands and feet, despite optimal treatment such as long-term corticosteroid theraphy, disease modifying 

drugs and cytotoxics. 

MULTIPLE SCLEROSIS 

A neurologist must diagnose multiple sclerosis. There must be a reliable history of at least two episodes 

of neurological deficit, and objective clinical signs of lesions at more than one different anatomical region 

within the central nervous system. Special investigations, like magnetic resonance imaging, must 

support the diagnosis. 

PARKINSON’S DISEASE 

A neurologist must confirm a clinical diagnosis of Parkinson’s disease, with advanced stage of rigidity, 

abnormal gait and uncontrollable tremor despite optimal treatment. 

LOSS OF LIMB FUNCTION 

All percentages of loss of function are calculated per limb according to principles and ratings of the 


PARAPLEGIA 



QUADRUPLEGIA 


PULMONARY EMBOLISM 

A blood cot in the lung, confirmed by ventilation-perfusion (VQ) scan. 

BURNS 


GE 8/2011 BZ 106

COMA 





ACCIDENTAL HIV INFECTION 














to positive; 







status from negative to positive; 




the assault. A medical examination must have been performed within 24 hours after the incident 




positive; 








to positive; 





that the life insured was HIV negative at the time of the accident. The must be proof that the life 






GE 8/2011 BZ 107

ALZHEIMER’S DISEASE 

A specialist must diagnose Alzheimer’s disease according to the latest version of the Diagnostic and 

Statistical Manual of Mental Disorders (DSM) criteria. Memory and cognitive impairment must be to 

such a degree that the life insured needs constant supervision and help in self-care. 

MOTOR NEURONE DISEASE 

The progressive, irreversible degeneration of corticospinal tracts, and either anterior horn cells or bulbar 

efferent neurones. This includes the following 

• spinal muscular atrophy; 

• progressive bulbar palsy; 

• amyotrophic lateral sclerosis; 

• primary lateral sclerosis. 

MUSCULAR DYSTROPHY 

Diagnosis of a recognised muscular dystrophy, which is progressive in nature, by a consultant 

neurologist, and which cause the irreversible inability to perform, without assistance, three or more of 

the following activities of daily living: 

• bathing; 

• dressing; 

• using the toilet; 

• eating; 

• moving in or out of bed or a chair. 

APLASTIC ANAEMIA 

An acquired abnormality of blood production with total aplasia of the bone marrow as confirmed by a 

consultant haematologist, requiring one of the following: 

• transfusion with whole blood or other blood products; 

• bone marrow transplantation. 

GE 8/2011 BZ 108

DESCRIPTION 

Sanlam Life will pay the benefit as a lump sum in the event of the life insured's death, resulting directly 

and solely from a bodily injury. 


This benefit is available only as a stand-alone benefit. 

DECREASE OF COVER AMOUNT 

If Sanlam Life has already admitted a claim for the accidental injury benefit, and thereafter as a result of 

the bodily injury which gave rise to that claim, death happens within a period of 6 months after that 

bodily injury took place, Sanlam Life will reduce the cover amount for the accidental death benefit with 

the amount of the accidental injury claim Sanlam Life admitted. 















Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for accidental death benefits. 

Lives are also divided into 5 accident classes (A, B, C, D and E) (see Classes). Persons classified in 

any of these classes A, B, C, D and E qualify for accidental death. 



• Accident class (Occupation) 

• Sex 

ACCIDENTAL DEATH (ASC) 

GE 8/2011 BZ 109

LIMITS 



Housewives, scholars, students and pensioners only qualify for a limited amount of the accidental death 

benefit, namely: 


GE 8/2011 BZ 110 


spouse 






life) 

All accidental death benefits already provided by Sanlam Life on the life of the life insured concerned will 

be taken into account to determine the maximum amount of accidental death benefits allowed. 

An absolute maximum amount of R5 million applies for death benefits, accident related death benefits, 

Final expenses benefit amounts and First death benefits for the above occupations. All death benefit 

amounts (with Sanlam Life and all other companies) and accident death benefits (with Sanlam Life) 

already provided on the life of the insured, will be taken into account to determine the maximum death 

benefits allowed. 

CLAIM EVENTS 

A benefit may be claimed when the death of the life insured resulted directly and solely from a bodily 

injury. 



will admit a claim only if the claim event takes place within 12 months after the bodily injury. 

EXCLUSIONS 



concerned.

DESCRIPTION 

Sanlam Life will pay the benefit in the form of a defined percentage of the cover amount linked to the 

particular claim event as set out below. 

















Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for accidental injury benefits. 

Lives are also divided into 5 accident classes (A, B, C, D and E) (see Classes). Persons classified in 

any of these classes A, B, C, D and E qualify for accidental injury. 




• Sex 

ACCIDENTAL INJURY (ASW) 

GE 8/2011 BZ 111

LIMITS 



Housewives, scholars, students and pensioners only qualify for a limited amount of accidental injury 



GE 8/2011 BZ 112 


spouse 






life) 

All accidental injury benefits already provided by Sanlam Life on the life of the insured will be taken into 

account to determine the maximum amount of accidental injury benefits allowed. 

EXCLUSIONS 


• total vision loss if it is 

− due to genetic factors, or 

− part of a disease process; 

• total hearing loss if it is 

− due to genetic factors, or 

− due to the use of chemical substances (drugs), or 

− part of a disease process; 

• a coma which is artificially induced for purposes of ventilation, such as applied for a flail chest; 

• a post-operative lung embolism. 




concerned. 




• the claim event 

− is caused directly and solely by a bodily injury; 

− manifested within 12 months after the bodily injury; 




− in cases where life support was used, by more than 30 days after he or she has been taken off 

life support. 

For the purpose of this benefit, Sanlam Life will not recognise any intra- or post-operative complication, 

or any complication following a medical procedure, as an accident, unless the operation or procedure 

• is a direct result of a bodily injury that took place after cover for the benefit has started, and 

• takes place within six months of such a bodily injury.

If Sanlam Life has admitted a claim, Sanlam Life will reduce the cover amount of the benefit for the life 

insured by the claim amount. 









Burns 100 

Coma 100 

Amputations 

• Thumb 30 

• One finger, other than thumb 5 

• Two fingers, other than thumb 10 


• Four fingers, other than thumb 40 

• Hand 70 

• Arm 80 

• Foot 50 

• Leg below knee 60 

• Leg above knee 70 



Gunshot-wounds or penetrating stab-wounds 

• Head 60 

• Chest with under water drain 25 

• Chest with thoracotomy 50 

• Abdomen 40 

• Neck, with damage to one or more of the 

following: 

− subclavian or carotid artery 

− oesophagus 

− trachea 

Multiple rib fractures 80 

Unstable pelvis fractures 60 

Loss of bowel or bladder function, with 

permanent stoma or indwelling catheter 

GE 8/2011 BZ 113 

40 

50



Loss of function of a limb, excluding amputation 

• 50% loss of upper arm 50 

• 80% loss of upper arm 80 

• 50% loss of lower leg 40 

• 75% loss of lower leg 70 

Fracture dislocation of the spine 

• Without neurological deficit 50 

• With incomplete neurological deficit 75 

Post-traumatic fat-embolism of the lungs 30 

Liver or spleen rupture 40 

EXPLANATIONS 





BURNS 


COMA 





AMPUTATION 

Complete physical severance of the applicable part of the body. Surgical reconstruction after 

amputation will not affect the benefit. 

PARAPLEGIA 



QUADRUPLEGIA 


GUNSHOT-WOUND 

Penetration of the skull, chest or abdomen, requiring surgical exploration under general anaesthetic. 

GE 8/2011 BZ 114

PENETRATING STAB-WOUND 

Penetration by a sharp object through the skull, or into the chest or abdominal cavities, resulting in 

surgical exploration of the skull, or cavity concerned, under general anaesthetic. 

MULTIPLE RIB FRACTURES 

Numerous rib fractures, requiring ventilation in an intensive care unit in order to sustain a stable bloodgas 

profile. 

UNSTABLE PELVIS FRACTURES 

More than one fracture of the pelvic framework, resulting in instability, and requiring surgical 

intervention. 

LOSS OF BOWEL OR BLADDER FUNCTION, WITH PERMANENT STOMA OR 

INDWELLING CATHETER 

Total, permanent and irrecoverable loss of function of the bowel or bladder, resulting in a permanent 

stoma or indwelling catheter. 

LOSS OF FUNCTION OF A LIMB, EXCLUDING AMPUTATION 

Total, permanent and irrecoverable loss of function of a limb. Maximum medical improvement must 

have been reached with little or no chance of significant further improvement. The loss of function will 

be estimated after all medical, surgical and rehabilitation measures have been applied. 

FRACTURE DISLOCATION OF THE SPINE 

Objective radiological evidence of a fracture dislocation of the spine, with or without neurological deficit. 

POST-TRAUMATIC FAT-EMBOLISM OF THE LUNG 

Fat-embolism of the lungs, confirmed by a ventilation-perfusion (VQ) scan. 

LIVER OR SPLEEN RUPTURE 

Rupture of the liver or spleen, necessitating emergency laparotomy and surgical repair or splenectomy. 

GE 8/2011 BZ 115

DESCRIPTION 

Sanlam Life will pay the cover amount as a lump sum if the life insured becomes disabled as a result of 

an accident. 


This benefit is available only as a stand-alone benefit (ASO). 













• if Sanlam Life admits a claim. 


Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for accidental disability benefits. 

Lives are further divided into 5 accident classes (A, B, C, D and E) (see Classes). Persons classified in 

any of these classes A, B, C, D and E, qualify for accidental disability benefits, subject to some 

exceptions. 

Housewives, scholars, students (students with a 4 year qualification excluded) and unemployed 

persons, however, do not qualify for accidental disability. 




• Sex 

ACCIDENTAL DISABILITY (ASO) 

GE 8/2011 BZ 116

LIMITS 


Maximum : R10 000 000 per life insured (students excluded) 

: R1 000 000 for students who qualify 

The sum total of all the following benefits is taken into account when the permissible maximum amount 

for accidental disability is determined: 




• disability benefits (lump sum, income benefits – temporary disability income excluded – and waiver 

of payment)(with Sanlam Life and all other insurers); and 


Sanlam also restricts the available disability amounts (accidental disability included) according to 

income, as follows: 



GE 8/2011 BZ 117 

















65 anb 0 

The total disability benefit amount, payable from all sources, may not exceed the above limit. Income 

Protector benefits (excluding temporary disability income and sickness benefits) and waiver of payment 

benefits at disability are also taken into account to determine the above limit. Existing monthly benefits 

are converted with a conversion factor to a lump sum benefit and taken into consideration when 

available lump sum disability benefits are calculated. 

The conversion of a monthly benefit to a lump sum amount is done by using a conversion factor, which 

is determined as follows: 


0,75 



Example 




Maximum available accidental disability benefit = (67,5 x 40 000) – (20 000 x 67,5 ÷ 0,75) 

= R900 000 

CLAIM EVENTS 


following: 






• disability to the extent that the life insured is totally, permanently and continuously 

− unable to take care of his or her body, or take care of his or her personal interests, or 

− unable to fulfil the occupational demands of the occupation he or she engaged in for income 

immediately before the disability, or 

− will be, if he or she is a full-time student when he or she becomes disabled, unable to fulfil the 

occupational demands of the occupation that Sanlam Life may reasonably expect him or her to 

engage in, taking into account his or her education, training, and experience. 

A benefit may also be claimed for accidental HIV infection. 



Besides the conditions for admittance of a claim as set out in the general plan provisions, Sanlam Life 


• the claim event 

− is caused directly and solely by a bodily injury; 

− manifested within 12 months after the bodily injury; 



more than 14 days. 

For the purpose of this benefit, Sanlam Life will not recognise any intra- or post-operative complication, 

or any complication following a medical procedure, as an accident, unless the operation or procedure 

• is a direct result of a bodily injury that took place after cover for this benefit has started, and 

• takes place within 6 months of such a bodily injury. 

GE 8/2011 BZ 118

EXCLUSIONS 


improved by surgery or other medical treatment, which we can reasonably expect him or her to undergo, 

taking into account the risks involved and the chances of success of such surgery or treatment. 




Sanlam Life insure the ability to work, and not the availability of work. 




concerned. 


Sanlam Life will not admit a claim if the disability directly or indirectly results from any of the following: 










− failed back syndrome after multiple spinal surgery, provided the extent of the functional 


• an injury that directly or indirectly resulted from, or is traceable to, any of the above causes; 


injury; 

• a side effect of treatment for any of the above causes, or for such an injury, or for such a 

complication. 

LIMITATION OF BENEFIT 


For this purpose, Sanlam Life will follow the guidelines in the Code of good practice for 

disability insurance of the Association for Savings and Investment SA (ASISA), applicable on the date a 

disability claim is admitted, or a code or guidelines that replace it. This Code asks of all insurers to take 

care that over-insurance does not occur, and to limit disability benefits on a proportional basis to the 

extent that this is reasonably necessary. 

When Sanlam Life receives a claim, Sanlam Life will ask for full information of all disability benefits the 

life insured has received or will receive because of the disability in question. 







• disability to the extent that the life insured is totally, permanently and continuously unable to take 

care of his or her body, or take care of his or her personal interests. 

GE 8/2011 BZ 119


The benefit can be taken with or without the tapering of the cover amount during the last four plan years 

before the plan anniversary before the life insured's 65 th birthday. A more expensive rate will apply if the 

benefit without any tapering of the cover amount is taken. 

If Sanlam Life, in the event of a benefit with tapering of the cover amount, admits a claim during any of 

the 4 plan years before the plan anniversary before the life insured’s 65 th birthday, Sanlam Life will pay 

only a percentage of the cover amount as set out below. After payment is made, the benefit will end. 



AMENDMENTS 

The following amendments can be done: 

• the benefit can be added to an existing plan 

• benefits can be removed 

• benefit amounts can be changed 

EXPLANATIONS 

Accidental HIV infection 

GE 8/2011 BZ 120 





64 th birthday 20 














to positive; 







status from negative to positive;

Accidental HIV infection (continued) 




the assault. A medical examination must have been performed within 24 hours after the incident, 




positive; 








to positive; 





that the life insured was HIV negative at the time of the accident. There must be proof that the life 






Back condition 


supporting muscles or ligaments, as well as die direct or indirect consequences of, or the side-effects of 


Paraplegia 



Quadruplegia 


Malignant tumours of the spinal cord and vertebral column 


normal tissue, and the definite histological evidence of a malignant growth in the spinal cord and 

vertebral column. 

Failed back syndrome after multiple spinal surgery 

When the life insured, after the cover for the benefit has begun, must undergo more than one spinal 




GE 8/2011 BZ 121

DESCRIPTION 

In terms of FutureCover the planholder has the option to purchase additional cover on the life of the life 

insured for certain events without proof of good health, but subject to financial underwriting, 

occupational underwriting and underwriting for dangerous part-time activities. 



BENEFITS AVAILABLE 

Two different FutureCover benefits are available. The planholder can choose one or both of these 

benefits on the same plan. Only one of each of the benefits can be chosen on one plan at new business 

stage. 

FutureCover benefits available: 

• FutureCover : Death (FS1) 

• FutureCover : Comprehensive (FS2) 


FutureCover : Death 

• Minimum : 15 next birthday 

• Maximum : 55 next birthday 

FutureCover : Comprehensive 






The benefit will end 

• at midnight before the cover end date set out in the plan overview, or 


• when the full cover amount has been exercised or forfeited. 


FUTURECOVER (FS1, FS2) 

Cover growth may be added to FutureCover. The FutureCover amount, and thereafter the available 

option amounts, will grow according to the cover growth on the plan. 

When exercising an option, payment and cover growth is available on the new and increased benefit 

(depending on the planholder's choice during exercising of the option) without any underwriting. 

GE 8/2011 BZ 122


Persons who qualify for rate groups 2, 3, 4 and 5 can apply for FutureCover. Persons in rate group 1 do 

not qualify for FutureCover. 

However, housewives, children, pensioners and unemployed persons do not qualify for FutureCover. 

Certain high risk occupations also do not qualify for FutureCover. Scholars and students, however, also 

qualify for FutureCover. 


Rate differentiation for the calculation of payments are based on: 


• Occupational class (only for the Comprehensive option) 


• Gender 

LIMITS 



The sum total of all FutureCover and death cover with Sanlam Life is taken into account when the 

permissible maximum amount for FutureCover is determined. 

BENEFITS AVAILABLE FOR EXERCISING AN OPTION 

The planholder may purchase additional cover under one or more of the following benefits when he or 

she exercises an option: 

FutureCover : Death 

• Death 

• First death 

• Final expenses 

FutureCover : Comprehensive 

• Death 



• Functional impairment 

• Physical impairment 

• Whole life physical impairment 

• Disability for regular occupation 

• Disability for regular and reasonable alternative occupation 

• Accidental disability 

• Functional impairment plus disability for regular occupation 

• Functional impairment plus disability for regular and reasonable alternative occupation 

• Waiver of payment benefit at disability 

• Matrix Income Protector 

Both stand-alone and accelerator benefits are available if applicable. 

If waiver of payment benefit or Income Protector products are chosen, the income amount is converted 

to lump sum benefit amounts to calculate the effective amount. 

The list of available benefits will change if Sanlam Life discontinues a benefit, or make other benefits 

available. 

The planholder may choose to do one of the following when he or she exercises an option: 

• purchase a new plan 

• increase an existing benefit 

• add a new benefit to an existing risk cover plan on Lamda. 

GE 8/2011 BZ 123

OPTION EVENT 

The events at which an option may be exercised and the available maximum option amounts are set out 

below. The available option amounts will be limited to ensure that the total option amounts exercised 

and forfeited does not exceed the cover amount. 

Option Event Available maximum option amount 

Every 3rd plan anniversary from the date 

the plan begins 

GE 8/2011 BZ 124 

25% of cover amount 

Marriage 25% of cover amount 

Birth or adoption of a child 25% of cover amount 

The life insured purchasing a home The smaller of 

The life insured starting employment in a 

chosen field of study for the first time after 

successful completion of tertiary education 

• 50% of the cover amount, and 

• the value of the bond or the increase in the value of 

the bond. 

25% of the cover amount 

Child's tertiary education The smaller of 

Increase in the life insured's personal 

liability as a result of business activities 

Increase in the life insured's interest in a 

partnership 

Increase in the life insured's value to a 

company as a key individual 


• the number of years of future attendance at an 

institution multiplied by the sum of the 1st year's 

tuition fees plus the 1st year's accommodation fees 

provided by the institution. 

The smaller of 


• the amount of the increase in the life insured's 

liability. 



• the amount of the increase in the life insured's 

interest in the partnership. 



• the amount of the increase in the life insured's value 

to the company as a key individual. 

Plan anniversary at expiry of the benefit The remaining percentage of the cover amount. This 

amount should still comply with the minimum new 

business requirements applicable at that stage.

EXERCISING OF AN OPTION 

The planholder must apply to exercise an option within two months of the date the option event occured. 

To exercise an option, the planholder may take out a new plan. The planholder may also increase the 

cover amount of an existing benefit which is on the list of available benefits, except if a claim has been 

submitted for that benefit or if a waiver of payment claim is being paid on the plan. A third possibility is 

to add one or more benefits to an existing plan, provided that a benefit is allowed for the type of product 

and that no waiver of payment claim is being paid on the plan. 

There are regular option dates on every 3 rd plan anniversary from the date the plan begins. The 

planholder must exercise at least one option to the value of at least 25% of the cover amount during a 

period of 3 years that ends on an option date. If the cover start date of this benefit is later than the date 

the plan begins, the first period may be less than 3 years. If, within 2 months after an option date, the 

planholder has not exercised any options, or the planholder has exercised one or more options with a 

total value of less than 25% of the cover amount, the planholder will forfeit the percentage that he or she 

did not exercise. The forfeited percentage will not be available for future options. 

The planholder will receive a letter three months before the regular option date to notify him / her of the 

upcoming option date and available option amount. 

The cover amount and payment will not be reduced when an option is exercised or forfeited. The cover 

amount therefore represents the total option amount available during the term of the benefit, not the 

option amount still available. 

When the planholder exercises an option, Sanlam Life will still require the following for the life insured: 

• a cotinine test for non-smokers; 

• financial underwriting; 

• occupational underwriting; 

• underwriting for dangerous part-time-activities. 

The available option amount may be reduced due to financial underwriting. 

NOTATIONS 

FutureCover with a risk cover plan on Lamda may be added, removed or decreased. 

DECREASE OF PAYMENTS 

The payment does not reduce when exercising of an option. Only once the FutureCover benefit comes 

to an end, the payment for this benefit will reduce to zero and will the total payment for the plan be 

reduce for the FutureCover benefit. 

EXPLANATIONS 

MARRIAGE 

A marriage, civil or customary union as recognised by the laws of the Republic of South Africa, or a 

union recognised as marriage in accordance with the principles of any religion. The life insured must be 

a party to the marriage. 

BIRTH OR ADOPTION OF A CHILD 

The birth or legal adoption of a child where the life insured is the parent of the child. 

GE 8/2011 BZ 125

CHILD'S TERTIARY EDUCATION 

The child must be financially dependent on the life insured and must be registered for study at a 

recognized tertiary education institution. 

TERTIARY EDUCATION 

An educational qualification with a rating of level 5 and above according to the National Qualifications 

Framework, or its replacement. This includes a university degree, a national higher diploma from a 

recognized university of technology, or a teaching diploma from a recognised teaching college. 

INCREASE IN THE LIFE INSURED'S PERSONAL LIABILITY AS A RESULT OF 

BUSINESS ACTIVITIES 

The life insured incurs additional monetary liability as a result of starting a new business, or increases 

his or her personal liability for business debts by at least 33%. 

INCREASE IN THE LIFE INSURED'S INTEREST IN A PARTNERSHIP 

The life insured enters into a professional partnership, or increases his or her share in a partnership or 

other business by at least 33%. 

INCREASE IN THE LIFE INSURED'S VALUE TO A COMPANY AS A KEY INDIVIDUAL 

The life insured's value to a company as a key individual increases by at least 33%. 

GE 8/2011 BZ 126

DESCRIPTION 

If Sanlam Life admits a claim, we will waive payment of the plan. This means Sanlam Life will treat the 

future payments as having been paid when they become due. 


Waiver of payment without future growth at disability (OPG1) as well as waiver of payment with future 

growth at disability (OGG1) is available. If a claim is admitted, payments of the plan will be waived. 


Payment and cover growth is available according to the choice of growth selected by the planholder. If 

OGG1 is taken, the plan MUST have future payment growth. 

Waiver of payment with future growth at disability (OGG1) 

After a claim is admitted, the cover amount of the benefits and the payments will continue to increase 

each year at the rates as set out in the plan overview. 

If payment and cover growth are ceased before a claim has been admitted, the benefit will be changed 

to a similar benefit without future growth. This means that, if a claim is admitted, the benefits and 

payments will not be increased anymore. 

If cover growth takes place at exchange rate movements, and a claim for waiver of payment is admitted, 

the cover amounts will not continue to increase according to these rates. Instead the cover amounts will 

increase at the same rate as the then prevailing South African CPI rate, or any other commonly 

accepted method which may be applicable at the time to determine the South African inflation rate. 

Waiver of payment without future growth at disability (OPG1) 

After a claim is admitted, there will be no regular increases in benefits and payments. 









WAIVER OF PAYMENT AT DISABILITY (OPG1, OGG1) 



It will also end if, due to a claim or reaching their cover end date, all non-waiver of payment benefits are 

removed from the plan, and waiver of payment benefits are the only remaining benefits on the plan. 

GE 8/2011 BZ 127


Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for waiver of payment benefits. 

Lives are further divided into 5 disability classes (A, B, C, D and E) (see Classes). Persons classified in 

any of these classes A, B C, D and E qualify for waiver of payment benefits. 

Housewives, scholars, students and unemployed persons do not qualify for waiver of payment benefits 

at disability. 

This benefit may only be taken on the life of one life insured covered by the plan. 


Rate differentiation for the calculation of payments takes place according to the person's disability class 

(occupation). There is no differentiation on the grounds of smoking habits and sex. 

LIMITS 

None. 

However, waiver of payment benefits will be taken into account to determine the maximum lump sum 

disability benefits allowed. 


The waiting period before a claim is admitted is 6 months from the date on which the claim is received. 

CLAIM EVENTS 


following: 






• functional impairment to the extent that the life insured is 

− totally, permanently and continuously unable to take care of his or her body, or take care of his or 

her personal interests, or 

− totally and continuously unable to fulfil the occupational demands of the occupation he or she 

engaged in for income immediately before the functional impairment, resulting in a loss of such 

income. 



will admit a claim only if the disability 


• has lasted continuously for the entire waiting period. 


The waiting period is 6 months from the date Sanlam Life receives the claim. 

GE 8/2011 BZ 128

DURATION OF PAYMENT WAIVING 

Sanlam Life will waive payments for as long as the disability continues, but only up to midnight before 

the cover end date as set out in the plan overview. From the cover end date the payments must be 

resumed. 

If Sanlam Life admits the claim because the life insured, as a result of the disability, is unable to fulfil the 

occupational demands of the occupation he or she engaged in for income immediately before he or she 

became disabled, Sanlam Life will waive payments for only 24 months. Thereafter, Sanlam Life will 

continue waiving payments only if the life insured is also unable to fulfil the occupational demands of 

another occupation Sanlam Life may reasonably expect him or her to engage in despite his or her 

disability, taking into account his or her education, training and experience. 

While payments are being waived, Sanlam Life may from time to time ask for proof that the life insured 

is still disabled. Sanlam Life may require the life insured to be examined for this purpose at Sanlam 

Life's cost. If the life insured recovers to such an extent that he or she is no longer disabled, Sanlam 

Life will stop waiving payments. 

Sanlam Life will also stop waiving payments if 

• Sanlam Life does not receive the required proof of the life insured's continued disability, or 





− dies. 

If Sanlam Life stops waiving payments, payments must be resumed. 

EXCLUSIONS 


improved by surgery or other medical treatment, which Sanlam Life can reasonably expect him or her to 

undergo, taking into account the risks involved and the chances of success of such surgery or 

treatment. 





See also the section regarding general exclusions, which is also applicable to these benefits. 


concerned. 

GE 8/2011 BZ 129

TEMPORARY EXCLUSIONS FOR SPECIFIC CONDITIONS 

During the first 3 years after cover for the benefit has started, Sanlam Life will not admit a claim if the 

disability directly or indirectly resulted from any of the following: 











impairment arising there from is verified by a specialist that Sanlam Life will nominate; 





complication. 

EXPLANATIONS 



supporting muscles or ligaments, as well as the direct or indirect consequences of, or the side-effects of 


PARAPLEGIA 



QUADRUPLEGIA 




normal tissue, and the definite histological evidence of a malignant growth in the spinal cord and 

vertebral column. 


When the life insured, after the cover for the benefit has began, must undergo more than one spinal 




GE 8/2011 BZ 130

DESCRIPTION 

If Sanlam Life admits a claim, we will waive payments of the plan. This means Sanlam Life will treat the 

future payments as having been paid when it becomes due. 


Waiver of payment without future growth at death (DP) as well as waiver of payment with future growth 

at death (DG) is available. If a claim is admitted, payments of the plan will be waived. 


If both the death benefit and waiver of payment at death were taken on the life of an insured, and this 

life insured is diagnosed with a medical condition which according to Sanlam Life’s Chief Medical Officer 

results in death within the next 12 months, the client can apply for early payment of the death benefit as 

well as waiver of payment. The waiver of payment benefit in itself does not contain a clause for terminal 

disease. 

If the application is granted, the following takes place: 

• The reduced death benefit (because the benefit is paid before death) is payable. 

• Payments for the rest of the plan (excluding the benefits that take effect, i.e. death benefit and 

waiver of payment benefit at death for the relevant life insured) are waived in terms of the waiver of 

payment benefit at death. 

• Payments for the expected period till death, plus interest, are deducted from the already reduced 

death benefit. 

• The rest of the plan (without the death benefit and waiver of payment benefit at death for the 

relevant life insured) continues. 


WAIVER OF PAYMENT AT DEATH (DP, DG) 

Payment and cover growth is available according to the choice of growth selected by the planholder. If 

DG is taken, the plan MUST have future payment growth. 

Waiver of payment with future growth at death (DG) 

After a claim is admitted, the cover amount of the benefits and the payments will continue to increase 

each year at the rates as set out in the plan overview. 

If payment and cover growth is ceased before a claim has been admitted, the benefit will be changed to 

a similar benefit without future growth. This means that, if a claim is admitted, the benefits and 

payments will not be increased anymore. 

If cover growth takes place at exchange rate movements, and a claim for waiver of payment is admitted, 

cover amounts will not continue to increase according to these rates. Instead the cover amounts will 

increase at the same rate as the then prevailing South African CPI rate, or any other commonly 

accepted method which may be applicable at the time to determine the South African inflation rate. 

Waiver of payment without future growth at death (DP) 

After a claim is admitted, there will be no regular increases in benefits and payments. 

GE 8/2011 BZ 131











It will also end if, due to a claim or reaching their cover end date, all non-waiver of payment benefits are 

removed from the plan, and waiver of payment benefits are the only remaining benefits on the plan. 


Persons who qualify for rate groups 1, 2, 3, 4 and 5 can apply for waiver of payment at death benefits. 


There is only one set of rates for each benefit. There is no differentiation on the grounds of rate group, 

smoking habits or sex. 

LIMITS 

None (subject to financial underwriting). 

DURATION OF PAYMENT WAIVING 

Payments are waived up to midnight before the cover end date of this benefit, as set out in the plan 

overview. From the cover end date payments must be resumed. 

EXCLUSIONS 


months after cover for the benefit has started, or after the plan has been re-instated after an earlier 

lapse. If the cover amount is increased, other than through benefit growth, this period will apply to the 

increase in the cover amount from the date of alteration. 



concerned. 

GE 8/2011 BZ 132

This benefit is currently available only for persons who qualify for rate group 5. 

DESCRIPTION 

If Sanlam Life admits a claim, Sanlam Life will make a benefit payment equal to the cover amount set 

out in the planholder's plan overview, with a maximum of 24 full months' benefit payments per claim 

event resulting from the same cause. 

A benefit may be claimed if the life insured is on sick leave, irrespective of whether the insured life still 

earns an income. 

If Sanlam Life admits a claim, the planholder must continue to make payments for this benefit as set out 

in the planholder's plan overview, during the life insured's sick leave or extended sick leave. 


This benefit can only be chosen as a stand-alone benefit with Cobalt for Professionals Topcover. 

The Sickness benefit is not available in terms of the FutureCover: Comprehensive benefit. 

BENEFIT CODE 

The benefit code is IS1. 


If Sickness benefit is added to a plan, the guarantee period for the specific plan is limited to 5 years. 


Payment and cover growth is available. 







Cover for this benefit will cease: 

• at midnight before the cover end date set out in die plan overview, or 



Persons who qualify for rate group 5 can apply for the Sickness benefit. 


Rate differentiation for the calculation of payments takes place on the basis of: 


• Gender 

SICKNESS (IS1) 

GE 8/2011 BZ 133

LIMITS 

Minimum : R3 000 per life insured per month 

Maximum : R200 000 per life insured per month 

All existing disability, disability income, temporary disability income and overhead expenses benefits 

already with Sanlam and other companies on the specific life insured's life, are taken into account at 

determining the maximum permissible Sickness benefit. 


Besides the conditions for admittance of a claim set out in the general plan provisions, Sanlam Life will 

admit a claim only if the sick leave has lasted continuously for the entire waiting period. However, if the 

period between consecutive periods of sick leave for the same cause is shorter than 7 days, Sanlam 

Life will consider the consecutive periods of sick leave to be continuous. 

The Sickness benefit is not reduced on account of other disability income benefits which possibly will be 

payable simultaneously. 


A waiting period of 7 days starts on the date the sick leave starts. 

Sanlam Life will make the benefit payments for as long as the life insured is on sick leave. If Sanlam 

Life has not yet made 24 full months' benefit payments for a specific cause of the claim event, and, 

within 3 months after Sanlam Life has made the last benefit payment, we admit another claim for this 

benefit based on the same cause, Sanlam Life will waive the waiting period. 

Sanlam Life will then continue with the remainder of the maximum number of 24 full months' benefit 

payments for a specific cause of the claim event, for as long as the planholder has the right to claim. 

EXCLUSIONS 

If the life insured at any time engages in sport as an occupation, and becomes continuously unable to 

fulfil a substantial and material part of the duties of that occupation, Sanlam Life will not admit a claim as 


Sanlam Life will also not admit a claim if it directly or indirectly resulted from: 

• normal pregnancy, or 

• normal childbirth. 

If the life insured is on special leave, Sanlam Life will not admit a claim for the following conditions: 









− malignant tumours of the spinal cord and vertebral column 







complication. 

GE 8/2011 BZ 134

EXCLUSIONS (continued) 

Other general exclusions are set out in the planholder's general plan provisions. See the section 

regarding general exclusions, which is also applicable to these benefits. 

Specific exclusions, if any, are set out in the planholder's plan overview, in the special provisions for the 

life insured. 

BENEFIT PAYMENTS 

Sanlam Life will make the first benefit payment, for the number of days the life insured has been on sick 

leave, at the end of the plan month in which Sanlam Life admits the claim or at the end of the sick leave, 

whichever occurs first. The first benefit payment will include payments from the start date of the sick 

leave to the date of this first payment. Sanlam Life will not pay any interest on this amount. 

The maximum benefit amount payable, is 66% of the life insured's professional income. 

Thereafter, Sanlam Life will make a benefit payment at the end of each subsequent plan month or at the 

end of the sick leave, whichever occurs first, for as long as the planholder has the right to claim 

payment. 

Sanlam Life will make the benefit payments for as long as the life insured is on sick leave, but only: 

• with a maximum of 24 full months' benefit payments for a specific cause of the claim event, or 

• until midnight before the cover end date as set out in the plan overview. 

If, before Sanlam Life has made 24 full months' benefit payments for a specific cause of the claim event, 

or before the cover end date, the planholder no longer have the right to claim payment, Sanlam Life will 

make the last benefit payment at the end of the sick leave. This last payment will only be for the number 

of days the life insured has been on sick leave in the last plan month. 

After Sanlam Life has started making the benefit payments, Sanlam Life may from time to time ask for 

proof that the life insured's sick leave is still warranted. Sanlam Life may require the life insured to be 

medically examined for this purpose. Sanlam Life will cover the cost of such a medical reassessment 

only after the life insured's sick leave has lasted for at least one month. 

If the life insured travels or lives outside South Africa while a claim is in payment, and Sanlam Life 

requires proof that the life insured's sick leave or extended sick leave is still warranted, Sanlam Life will 

require the medical proof issued in a foreign country to be in English. The planholder will be responsible 

for the cost of all medical proof. Sanlam Life will refund the planholder in South African currency for an 

amount equal to what Sanlam Life usually pays for such medical proof in South Africa. 

The maximum period of sick leave or extended sick leave in a foreign country will be limited to 

12 months. Thereafter, Sanlam Life will consider the continuation of benefit payments only after the life 

insured has been medically assessed by a doctor nominated by Sanlam Life, which may require the life 

insured to travel to South Africa for such an assessment. Sanlam Life will cover the cost of such an 

assessment, but not the travel, accommodation and related costs involved. 

If the life insured's sick leave is no longer warranted, Sanlam Life will stop making the benefit payments. 

However, if the life insured returns to work after his or her sick leave, but is unable to fulfil his or her 

usual professional duties, Sanlam Life may at Sanlam Life's discretion, make partial benefit payments 

for the remainder of the maximum number of 24 full months' benefit payments for a specific cause of the 

claim event, for as long as the planholder has the right to claim payment. 

GE 8/2011 BZ 135

BENEFIT PAYMENTS (continued) 

Sanlam Life will also stop making the benefit payments if 

• Sanlam Life do not receive the payments for this benefit as set out in die plan overview during the 

life insured's sick leave or extended sick leave, or 

• Sanlam Life do not receive the required proof of the life insured's sick leave or extended sick leave, 

or 


TAX 




− dies. 

Contributions to the Sickness benefit are not deductible for income tax purposes, but the benefit is not 

taxable in the hands of the planholder. 

ALTERATIONS 

The following alterations can be done: 

• the benefit can be added 

• benefits can be removed 

• benefit amounts can be changed 

EXPLANATIONS 

PLAN MONTH 

The first plan month starts on the day when the plan begins. Each following plan month will start on the 

same day as the first one. A plan month ends at midnight on the day before the next plan month starts. 

SICK LEAVE 

A medically recommended period of time during which the life insured, as a result of a bodily injury, 

illness or other cause or condition necessitating medical or dental treatment, is totally and continuously 

unable to fulfil his or her usual professional duties, including during any period of normal leave or special 

leave. The period of sick leave may not exceed, unless Sanlam Life agrees otherwise in writing, the 

midrange data in the latest edition of the Official Disability Guidelines of the Work Loss Data Institute of 

the United States of America that we will use as a reference to determine the average period of sick 

leave for the claim event in question. 

NORMAL LEAVE 

The periods of annual and maternity leave during which the life insured is entitled to full pay as specified 

in chapter 3 of the Basic Conditions of Employment Act, 75 of 1997. If the life insured is entitled to more 

leave for a category than prescribed in the Act, then such longer periods will apply. 

SPECIAL LEAVE 

Any period of up to 12 months during which the life insured does not fulfil his or her usual professional 

duties. This may be with or without pay, and may be an extension of normal leave or not. 

GE 8/2011 BZ 136

DESCRIPTION 

The Income Protector products (eg. Matrix Income Protector) offer the client cover in the event of loss of 

income due to injury or illness, from his or her regular occupation and/or for the overhead expenses of 

his or her business. Sanlam Life will pay the benefit in instalments monthly in arrears when the life 

insured becomes disabled. 


This benefits may only be chosen as stand-alone benefits. 

The following benefits can be chosen: 

• Disability income (OIO) 

• Temporary disability income (OIT) 

• Overhead expenses protector (OIB) 

Any combination of these three benefits can be taken on the same plan. Other Risk Cover benefits are 

not available on an Income Protector product. 

A waiver of payment benefit at disability is automatically included in each income benefit variation, which 

means that Sanlam Life will waive the payments on the plan while a claim is in payment. 


For this benefit, the guarantee period is five years. 


Payment and specified cover growth is available according to the growth choice of the planholder. 

For level optional growth the planholder can choose between growth rates of 0%, 5% and CPI. The 

maximum growth rate is 15% per year, if CPI was chosen. 

For fixed compulsory growth, the planholder can choose between 5% payment growth with no cover 

growth, and 12% payment growth with 5% cover growth. 

Different rates apply for different payment growth types. 

If a claim is in payment, the benefits will grow at the selected growth rate. Payments will be adjusted 

accordingly. 

Additional cover growth option (available on Disability income and Temporary disability 

income) 

Each year the planholder has the option to request in writing that Sanlam Life increases the cover 

amount of a benefit by more than the chosen cover growth rate, without additional underwriting for the 

life insured. Any additional cover increase will also take place on the plan anniversary. (This option 

applies only if cover growth on the plan is chosen.) 

The total increase in the cover amount of a benefit for a particular year will be restricted to the lower of 

• the actual increase in the life insured's income over that year, 

• twice the rate that Sanlam Life will use for increases according to the inflation rate that year, and 

• 20%. 

INCOME PROTECTOR PRODUCTS (OIB, OIO, OIT) 

GE 8/2011 BZ 137

Additional cover growth option (continued) 

The following requirements must be met before Sanlam Life will grant an additional cover increase: 

• The life insured must not be disabled on the date of the cover increase. 

• A claim must not have been admitted or already submitted, during the 12 months preceding the date 

of the cover increase. 

• The life insured must be younger than 50 years on the date of the cover increase. 

• Sanlam Life must receive the client's written request to exercise the option at their head office at 

least seven working days before the plan anniversary of the particular year. 


• Minimum : If fixed compulsory payment growth is chosen, the minimum inception age is 30 

next birthday. Otherwise a minimum of 18 next birthday applies. 

• Maximum : At least 5 years before selected cease age 


The client chooses a benefit cease age of 55, 60 or 65 next birthday. These ages may differ for each of 

the three available benefits on the same plan. 


The benefit will end 



MINIMUM PAYMENT 

R100,00 per month 

GE 8/2011 BZ 138


Disability income 

and Temporary 

disability income 

Overhead 

expenses 

protector 

Persons who are classified in any of classes A, B, C, D and E qualify for these 

benefits, subject to some exceptions. See Classes. 

Lives insured qualifying for disability income and temporary disability income 

must have been in the same occupation for more than 12 months, as well as 

having worked for the same employer. 

The 7-day waiting periods are available to: 

• All professional occupations, i.e. persons who qualify for rate group 5, 

whether self-employed or not. 

• Any self-employed person who does not qualify for rate group 5, but who falls 

in classes A, B or C. 

A specific group of occupations qualify for this benefit. This benefit is available 

only for clients who are the owner of or partner in a business, as well as key 

persons in the business. 

Individual owners 

The life insured must also be the business owner, as well as the planholder. 

Persons who qualify are: 

Business owners who qualify on the same basis as those for disability income 

above, and 

• who are actively involved in the business on a daily basis and without whose 

presence the service cannot be provided by the other employees because of 

the lack of qualifications and/or knowledge; 

• who are the sole proprietor of a business with less than 4 employees; 

• who are in a partnership where the number of partners do not exceed 4 and 

with an interest of at least 25% in the business. The number of employees 

must not exceed 10 people; 

• who are in a close corporation with 4 or less members and with a member 

interest of at least 25%. The number of employees must not exceed 10 

people; 

• whose contribution to the turnover in the business exceeds 25%. This 

percentage of the turnover must be equal to the percentage of the life 

insured's contribution of the total overheads with a maximum of 75% (if more 

than one owner); 

• whose business turnover from the sale of goods do not exceed 20%; 

• whose business operate solely on RSA territory. If the business is operating 

outside the RSA borders, the case must be referred to the underwriter for 

individual consideration. 

If the business is being operated from the residence of the owner, Sanlam Life 

needs proof that the residence has been converted to a business premises. 

Key person insurance 

If the income protector plan is owned by a business, the life insured must be a 

key person in that business. 

The following rules apply to key person insurance: 

• The business must be the owner of the plan and the life insured must not be 

an owner of or partner in the business. 

• The life insured must be actively involved in the business. 

• The number of employees in the business, may not exceed 10. 

• The contribution of the life insured to the turnover must exceed 25%. 

• Key person insurance can only be taken out on the lives of persons living in 

the RSA. 

• The business turnover from the sale of goods must not exceed 20%. 

• If the business is operating from the residence of the owner, Sanlam Life will 

need proof that the residence has been converted to a business premises. 

Please note: If the planholder qualifies for rate group 5, Sanlam Life will not 

require proof that the residence has been converted to a business premises. 

Note: Key person insurance is not available for disability income and temporary 

disability income, but only for the overhead expenses protector. 

GE 8/2011 BZ 139

FREQUENCY 

Payments for an income protector plan may be made monthly or annually. All benefits that Sanlam Life 

pays, will, however, be paid monthly in arrears, regardless of the payment frequency. 


Rate differentiation for the calculation of payments takes place on the basis of: 



• Sex 

LIMITS 

Minimum : R3 000 per month for Disability income and Temporary disability income /R5 000 for 

Overhead expenses protector. 

Maximum : The maximum limit differs for each of the three available benefits, and is calculated 

as described under “determining of maximum permitted cover amount” further on in 

this section. 

DETERMINING OF MAXIMUM PERMITTED COVER AMOUNT 

Calculate the cover amounts as described in the two or three steps below. The smallest amount of the 

two or three is the maximum cover amount for which the life insured qualifies. 

Disability Income 

• Step 1 : Maximum 1 

Sanlam Life also restricts the available disability amounts according to income, as follows: 



GE 8/2011 BZ 140 

















65 anb 0

DETERMINING OF MAXIMUM PERMITTED COVER AMOUNT (continued) 

• Step 1 : Maximum 1 (continued) 

− Calculate sum total of all disability benefits, in relation to income, on the life of the life insured 

with Sanlam Life and other companies and deduct this amount from the result. 

− All lump sum, waiver of payment, sickness and other disability benefits (accidental disability 

included) must be taken into account. Dread disease, physical impairment and functional 

impairment benefits are excluded. 

− Existing disability income benefit amounts are adjusted with a conversion factor and taken into 

consideration when available benefits are calculated. 

• Step 2 : Maximum 2: Total income protector benefits may not exceed R150 000 

− Calculate total amount of existing income protector benefits. 

− Deduct the calculated amount from R150 000. 

− For this calculation sickness and income protector benefits with Sanlam Life and other 

companies are taken into account. 

− Both disability and temporary disability income benefits must be taken into account. 

• Step 3 : Maximum 3: Permanent income protection may not exceed 75% of monthly income 

− Calculate total amount of income that will be paid with regard to the life insured due to his or her 

disability, with Sanlam Life as well as other companies. 

− Lump sum disability benefits and temporary disability income benefits are excluded. 

Temporary Disability Income 

• Step 1 : Maximum 1: Total income protector benefits may not exceed R150 000 

− Calculate total amount of existing sickness and income protector benefits. 


− For this calculation only sickness and income protector benefits with Sanlam Life are taken into 

consideration. 

− Both disability and temporary disability income benefits must be taken into account. 

• Step 2 : Maximum 2: Temporary disability income may not exceed 100% of monthly income 

− Calculate total amount of income (income benefits with waiting period of 2 months excluded) 

which will be paid with regard to the life insured due to his or her disability, with Sanlam Life as 

well as other companies. 

− Any sickness and income protector benefits are also taken into consideration. 

− Lump sum disability benefits are excluded. 

Overhead expenses protector 

• Step 1 : Maximum 1: Total overhead expenses protector benefits may not exceed R100 000 

− Calculate total amount of existing overhead expenses protector benefits. 


− For this calculation overhead expenses protector benefits with only Sanlam Life are taken into 

account. 

• Step 2 : 100% of overhead expenses of business, where the overhead expenses are the part 

to which the life insured's contribution applies 

− Any overhead expenses protector benefits with Sanlam Life and other companies must be taken 

into account. 

GE 8/2011 BZ 141


Besides the conditions for admittance of a claim as set out in the general plan provisions, Sanlam Life 

will admit a claim only if the disability 


• has lasted for the entire waiting period. 

However, if the period between consecutive periods of disability for the same cause is shorter than the 

chosen waiting period, Sanlam Life will consider the consecutive periods of disability to be continuous. 


The client chooses a waiting period according to the chosen benefit. The following waiting periods can 

be chosen: 

Disability income : 1, 3, 6, 12 or 24 months, or 7 days 

Temporary disability income : 1 or 3 months, or 7 days 

Overhead expenses protector : 1 or 3 months 

The waiting period starts on the date the life insured becomes disabled, as described under “claim 

event.” In the case of the 7 day waiting period the life insured can qualify for a claim from the day of the 

claim event. 

A waiting period of one month instead of 7 days will apply if the disability resulted from or is accelerated 

by any of the following: 

• adjustment disorders, autism, chronic fatigue syndrome, myalgic encephalomyelitis (yuppie-flu) and 

psychiatric disorders, for example, eating, psychotic, affective, personality, somatoform, dissociate, 

sexual and mood disorders. However, if the life insured has been treated in a hospital or clinic for at 

least 7 days by a specialist psychiatrist, the waiting period will be 7 days. Sleep therapy as a 

treatment is excluded; 

• any back disorders. However, if the life insured has been treated in a hospital or clinic for 7 days or 

more by an orthopaedic surgeon or neurosurgeon, Sanlam Life will pay a claim from the date on 

which the claim event occurred instead of from the end of the waiting period; 

• operations or treatment 

− of a purely cosmetic nature other than as a result of an accident, or 

− to facilitate pregnancy, or 

− to improve potency. 

If the life insured dies during the waiting period, Sanlam Life will not admit a claim. 

GE 8/2011 BZ 142

WAITING PERIOD (continued) 

If the life insured in the case of disability income and temporary disability income is no longer disabled, 

or no longer has a loss of income, Sanlam Life will stop the income payments. In the case of overhead 

expenses protector, Sanlam Life will stop the income payments if the life insured is no longer disabled or 

can again fully contribute towards payment of his or her part of the overhead expenses. 

Disability Income If, within 3 months after Sanlam Life has made the last income payment, 

Sanlam Life admits another claim for this benefit based on the same 

cause, Sanlam Life will waive the waiting period. 

Temporary disability 

income 

Overhead expenses 

protector 

GE 8/2011 BZ 143 

If the life insured is no longer disabled, or no longer has a loss of income, 

Sanlam Life will stop the income payments. If Sanlam Life has not yet 

made 24 income payments for a specific cause of the claim event, and 

within 3 months after Sanlam Life has made the last income payment, 

Sanlam Life admits another claim for this benefit based on the same 

cause, Sanlam Life will waive the waiting period. Sanlam Life will then 

continue with the remainder of the maximum number of 24 income 

payments for a specific cause of the claim event, for as long as the 

planholder has the right to claim payment. 

If Sanlam Life has not yet made 24 income payments for a specific cause 

of the claim event, and within 3 months after Sanlam Life has made the 

last income payment, Sanlam Life admits another claim for this benefit 

based on the same cause, Sanlam Life will waive the waiting period. 

Sanlam Life will then continue with the remainder of the maximum number 

of 24 income payments for a specific cause of the claim event, for as long 

as the planholder has the right to claim payment. 


CLAIM EVENT 

Disability income and 


income 


protector 

A benefit may be claimed if the life insured becomes disabled to the extent 

that he or she is continuously unable to fulfil a substantial and material 

part of the duties of the regular occupation he or she engaged in for 

income immediately before the disability, resulting in a loss of some or all 

of such income. 

A benefit may be claimed if the life insured becomes disabled to the extent 

that he or she is continuously unable to fulfil a substantial and material 

part of the duties he or she normally and regularly fulfilled in the affected 

business immediately before becoming so disabled that less business 

income gets generated in the affected business to pay for the overhead 

expenses.

PROVIDING OF BENEFIT 

Disability income If Sanlam Life admits a claim, Sanlam Life will make an income payment 

of up to 100% of the cover amount as set out in the plan overview. For as 

long as Sanlam Life makes an income payment, we will also waive 

payments of the plan. 

GE 8/2011 BZ 144 

Sanlam Life will limit the amount of the income payment to the cover 

amount as at the date we admit the claim. For the first 24 months after 

the life insured became disabled Sanlam Life will limit the amount of the 

income payment further to ensure that this amount, plus any other income 

that the life insured receives in spite of the disability claim, does not 

exceed 100% of the life insured's average monthly income. 

After the first 24 months Sanlam Life will limit the amount of the income 

payment to ensure that this amount, plus any other income that the life 

insured receives in spite of the disability claim, does not exceed 75% of 

the life insured's average monthly income. However, if the life insured 

becomes totally and permanently disabled, and the disability does not 

directly or indirectly result from any of the following conditions, Sanlam 

Life will limit the amount of the income payment to ensure that this 

amount, plus any other income that the life insured receives in spite of the 

disability claim, does not exceed 100% of the life insured's average 

monthly income: 

• depression or dysthymia, whether as an episode or disorder, or as part 

of the symptom complex of another psychiatric diagnosis; 






− quadriplegia 

− malignant tumours of the spinal cord and vertebral column 

− failed back syndrome after multiple spinal surgery, provided the 

extent of the functional impairment arising therefrom is verified by a 

specialist that Sanlam Life will nominate; 

• an injury or illness that directly or indirectly resulted from, or is 

traceable to, any of the above causes; 

• a complication that directly or indirectly is attributable to any of the 

above causes, or to such an injury or illness; 

• a side-effect of treatment for any of the above causes, or for such an 

injury or illness, or for such a complication. 

Lump sum disability benefits that may be payable will also be taken into 

account. 

Sanlam Life will make an income payment only if the amount Sanlam Life 

has to pay is at least equal to the smaller of 


• the minimum cover amount allowed for new business, 

both determined as at the time Sanlam Life considers a claim. 

Once Sanlam Life has admitted a claim, and started to make the income 

payment, Sanlam Life will not apply this rule even if Sanlam Life reduces 

the amount of the income payment to less than the above limit.

PROVIDING OF BENEFIT (continued) 


income 


protector 

GE 8/2011 BZ 145 

If Sanlam Life admits a claim, Sanlam Life will make an income payment 

of up to 100% of the cover amount as set out in the plan overview, with a 

maximum of 24 payments per claim event resulting from the same cause. 

For as long as Sanlam Life makes an income payment, Sanlam Life will 

also waive payments of the plan. 


amount as at the date Sanlam Life admits the claim. Sanlam Life will limit 

the amount of the income payment further to ensure that this amount, plus 

any other income that the life insured receives in spite of the disability 

claim, does not exceed 100% of the life insured's average monthly 

income. 


has to pay is at lest equal to the smaller of 






the amount of the income payment to less than the above limit. 

If Sanlam Life admits a claim, Sanlam Life will make an income payment 

of up to 100% of the cover amount as set out in the plan overview, with a 

maximum of 24 payments per claim event resulting from the same cause. 

For as long as Sanlam Life makes an income payment, Sanlam Life will 

also waive payments of the plan. 


amount as at the date Sanlam Life admits a claim. Sanlam Life will limit 

the amount of the income payment further to ensure that this amount, plus 

any remaining contributions to overhead expenses that the life insured 

can make regardless of his or her disability does not exceed 100% of the 

life insured's share of the overhead expenses. 


has to pay is at least equal to the smaller of 






the amount of the income payment to less than the above limit.

EXCLUSIONS 

If the life insured at any time engages in sport as an occupation (in the case of disability income and 

temporary disability income), and becomes continuously unable to fulfil a substantial and material part of 

the duties of that occupation, Sanlam Life will not admit a claim as a result of such inability. 

Sanlam Life will also not admit a claim if it directly or indirectly resulted from 

• normal pregnancy, 

• normal childbirth. 

Also see the section regarding general exclusions which is also applicable to these benefits. 


concerned. 

INCOME PAYMENTS 

Sanlam Life will make the first income payment, for the number of days that the life insured was 

disabled, at the end of the plan month in which Sanlam Life admits the claim. Thereafter, Sanlam Life 

will make an income payment at the end of each subsequent plan month, for as long as the planholder 

has the right to claim payment. 

If Sanlam Life admits a claim after the end of the waiting period, the first income payment will include 

payments for the period between the end of the waiting period and the date of this first payment. 

Sanlam Life will not pay any interest on this amount. 

If the disability in the case of a 7-day waiting period resulted from any of the following, Sanlam Life will 

pay a claim from the date on which the claim event occurred instead of from the end of the waiting 

period: 

• an infectious disease requiring the life insured to avoid contact with others, for example chicken pox 

or measles; 

• complications of pregnancy, childbirth, abortion, miscarriage or obstetrical procedures; 

• back disorders, sports injuries or psychiatric disorders involving hospitalisation for at least 7 days; 

• any other condition involving hospitalisation for at least 24 hours. 

Disability income Sanlam Life will make the income payment for as long as the life 

insured's disability and loss of income continue, but only up to midnight 

before the cover end date as set out in the plan overview. If, before this 

date, the planholder no longer has the right to claim payment, Sanlam 

Life will make the last income payment at the end of the plan month that 

ends before or on the date the planholder's right to claim payment stops. 

This last payment will only be for the number of days that the life insured 

has been disabled. The planholder will then have to resume payments. 

GE 8/2011 BZ 146 

If a compulsory payment pattern is applicable on the plan, Sanlam Life 

will make payments for at least 5 years, even if it means payments being 

made until after the chosen cease age. This applies only if the insured 

is still disabled at that stage.

INCOME PAYMENTS (continued) 


income 


protector 

GE 8/2011 BZ 147 

Sanlam Life will make the income payment for as long as the life 

insured's disability and loss of income continue, but only 

• with a maximum of 24 income payments for a specific cause of the 

claim event, or 

• until midnight before the cover end date as set out in the plan 

overview. 

If, before Sanlam Life has made 24 income payments, or before the 

cover end date, the planholder no longer has the right to claim payment, 

Sanlam Life will make the last income payment at the end of the plan 

month that ends on or after the date the planholder's right to claim 

payment stops. This last payment will only be for the number of days 

that the life insured has been disabled. The planholder will then have to 

resume payments. 

Sanlam Life will make the income payment for as long as the life 

insured's disability and diminished ability to contribute towards payment 

of his or her share of the overhead expenses continue, but only 

• with a maximum of 24 income payments for a specific cause of the 

claim event, or 

• until midnight before the cover end date as set out in the plan 

overview. 

If, before Sanlam Life has made 24 income payments, or before the 

cover end date, the planholder no longer has the right to claim payment, 

Sanlam Life will make the last income payment at the end of the plan 

month that ends on or after the date the planholder's right to claim 

payment stops. This last payment will only be for the number of days 

that the life insured has been disabled. The planholder will then have to 

resume payments. 

After Sanlam Life has started making the income payment in respect of disability income or temporary 

disability income, Sanlam Life may from time to time ask for proof that the life insured is still disabled, 

and still has a loss of income. Sanlam Life may require the life insured to be medically examined for this 

purpose. Sanlam Life will cover the cost of this medical reassessment only after the life insured has 

been disabled for at least one month. 

If the life insured in respect of disability income and temporary disability income travels or lives outside 

South Africa while a claim is in payment, and Sanlam Life requires proof that the life insured is still 

disabled and still has a loss of income, Sanlam Life will require the medical proof issued in a foreign 

country to be in English. The planholder will be responsible for the cost of all medical proof. Sanlam 

Life will refund the planholder in South African currency for an amount equal to what Sanlam Life usually 

pays for such medical proof in South Africa. 

The maximum period of disability and loss of income in a foreign country will be limited to 12 months. 

Thereafter, Sanlam Life will consider the continuation of income payments only after the life insured has 

been medically assessed by a doctor nominated by Sanlam Life, which may require the life insured to 

travel to South Africa for such an assessment. Sanlam Life will cover the cost of such an assessment, 

but not the travel accommodation and related costs involved. 

If the life insured recovers to such an extent that he or she is no longer disabled, or no longer has a loss 

of income, Sanlam Life will stop making the income payments. However, if the life insured has only 

partially recovers from his or her disability, Sanlam Life will reduce the income payments accordingly.

INCOME PAYMENTS (continued) 

In the case of overhead expenses protector, Sanlam Life may – after we have started making the 

income payments – from time to time ask for proof of the actual overhead expenses, as well as that the 

life insured is still disabled, and that his or her ability to contribute towards payment of his or her share of 

the overhead expenses, is still diminished. Sanlam Life may require the life insured to be medically 

examined for this purpose. Sanlam Life will cover the cost of this medical reassessment only after the 

life insured has been disabled for at least one month. 

If the life insured in respect of overhead expenses protector travels or lives outside South Africa while a 

claim is in payment, and Sanlam Life requires proof that the life insured is still disabled, and that his or 

her ability to contribute towards payment of his or her share of the overhead expenses, is still 

diminished, Sanlam Life will require the medical proof issued in a foreign country to be in English. The 

planholder will be responsible for the cost of all medical proof. Sanlam Life will refund the planholder in 

South African currency for an amount equal to what Sanlam Life usually pays for such medical proof in 

South Africa. 

The maximum period of disability and diminished ability to contribute towards payment of the life 

insured's share of the overhead expenses in a foreign country will be limited to 12 months. Thereafter, 

Sanlam Life will consider the continuation of income payments only after the life insured has been 

medically assessed by a doctor nominated by Sanlam Life, which may require the life insured to travel to 

South Africa for such an assessment. Sanlam Life will cover the cost of such an assessment, but not 

the travel, accommodation and related costs involved. 

If the life insured recovers to such an extent that he or she is no longer disabled, or that he or she can 

again fully contribute towards payment of his or her share of the overhead expenses, Sanlam Life will 

stop making the income payment. However, if the life insured only partially recovers from his or her 

disability, Sanlam Life will reduce the income payment accordingly. 

Sanlam Life will also stop the income payment if 

• Sanlam Life do not receive the required proof of the life insured's continued disability and loss of 

income, or 





− dies. 

In the case of overhead expenses protector, Sanlam Life will also stop the income payments if we do 

not receive the required proof of the actual overhead expenses, or the life insured's uninterrupted 

disability and diminished ability to contribute towards payment of his or her share of the overhead 

expenses. 

The period of disability may not exceed, unless Sanlam Life agrees otherwise in writing, the midrange 

date in the latest edition of the Official Disability Guidelines of the Work Loss Data Institute of the United 

States of America that Sanlam Life will use as a reference to determine the average period of disability 

for the claim event in question. 

If the life insured – in the case of disability income and temporary disability income – starts earning an 

income, or his or her income is increased, after Sanlam Life has started making the income payment, 

the planholder must notify Sanlam Life of this. In the case of overhead expenses protector, the 

planholder must notify us when the life insured's ability to contribute towards payment of his or her share 

of the overhead expenses is restored or increases, or the overhead expenses have decreased, after we 

started making the income payment. Sanlam Life will then reduce the amount of the income payment, 

or stop it. 

If the planholder fails to notify Sanlam Life of this, and Sanlam Life continues to make income payments 

and continues to waive payments, Sanlam Life will be entitled to recover from the planholder the excess 

income payments and the payments Sanlam Life waived. 

GE 8/2011 BZ 148

MULTIPLE CLAIMS 

Multiple claims in respect of the same benefit are not permitted. If a claim for a new claim event begins 

while a claim is being paid, payments for the first claim event will be terminated first before payments for 

the new claim event will be done. Multiple claims may exist on a plan, though, on each of the different 

benefits. 

INCOME TAX 

Individual planholders can take the payments for these benefits into consideration as a deduction from 

their taxable income for calculation of their income tax. These payments can be deducted from their 

taxable income in terms of section 11(a), read with section 23(m) of the Income Tax Act over and above 

any contributions towards retirement annuities in terms of section 11(n) of the Income Tax Act. 

For employer owned plans payments will be tax deductible to the employer in terms of either section 

11(w) or section 11(a) of the Income Tax Act. 

Payments in terms of a claim are always paid to the planholder. The South African Revenue Service 

regards such income payments always as taxable income, regardless of whether the payments were tax 

deductible or not. 

EXPLANATIONS 

AFFECTED BUSINESS 

The business where the life insured fulfilled his or her duties immediately before the disability. 

OVERHEAD EXPENSES 

Overhead expenses include the following: 

• rent for the business premises; 

• water, electricity, telephone; 

• regular maintenance services; 

• property taxes and mortgage interest for the business premises; 

• equipment leasing costs; 

• insurance premiums; 

• accounting fees; 

• salaries of employees; 

• other normal and necessary expenses that we agree to include. 

Overhead expenses exclude the following: 

• depreciation; 

• cost of goods or merchandise or additions to inventory; 

• cost of furniture or equipment; 

• capital payments on outstanding debt; 

• expenditure on assets; 

• fees on current accounts; 

• expenses that are remunerable under any other disability insurance; 

• business rationalisation costs, for example, retrenchment; 

• any remuneration or other consideration to the life insured, the planholder, partners in the affected 

business, and any other person who shares directly or indirectly in the profit of the affected business. 

GE 8/2011 BZ 149

OVERHEAD EXPENSES (continued) 

The life insured's share of the overhead expenses is a proportion of the total overhead expenses of the 

affected business. The share is calculated as the business income the life insured generates in the 

affected business, averaged over the 12 months before the claim event took place, divided by the total 

business income of the affected business. 

AVERAGE MONTHLY INCOME 

The monthly income from the life insured's regular occupation, averaged over the 12 months before the 

claim event took place. If the life insured has a fluctuating income, Sanlam Life will calculate the 

average monthly income over the 36 months before the claim event took place. 

INCOME FOR LIVES INSURED IN FORMAL EMPLOYMENT OF AN EMPLOYER 

Cost-to-company income which consists of gross taxable income including the employer's contributions 

to a medical scheme, provident fund or pension fund, and the cost of any other benefits paid for by the 

life insured's employer that forms part of the life insured's remuneration package and are reflected in the 

employer's financial statements. 

INCOME FOR PROFESSIONAL LIVES INSURED IN PRACTICE 

Gross professional income for professionals who charge a fee for services is equal to the sum of 

professional fees and net income from trading activities, after deducting business overhead expenses. 

INCOME FOR OTHER SELF-EMPLOYED LIVES INSURED 

Income or benefits receivable on account of the life insured's employment, or any services rendered by 

the life insured, plus the life insured's share of profit in the business over the last 12 months. 

PLAN MONTH 

The first plan month starts on the day when the plan starts. Every following plan month will start on the 

same day as the first one. A plan month ends at midnight on the day before the next plan month starts. 

TOTAL AND PERMANENT DISABILITY 

The life insured is totally, permanently and continuously unable to fulfil the occupational demands of the 

regular occupation he or she engaged in for income immediately before the disability, resulting in a loss 

of a substantial part or all of such income. 

GE 8/2011 BZ 150

GENERAL EXCLUSIONS 

Sanlam Life will not admit a claim if it resulted directly or indirectly from any of the following, whereby the 

life insured: 


• commits or attempts to commit a crime of murder, assault, housebreaking, theft, robbery, 


crimes; 




• is exposed to nuclear explosion or radio-activity; 


gain; 


• recurrently participates in micro-light flights, hang-gliding, paragliding, parasailing, sky-diving, 



The above-mentioned general exclusions do not apply for the following benefits: 

• Death 



• Waiver of payment at death 

A specific life insured's specific circumstances may lead to further exclusions and/or loadings. 

GE 8/2011 BZ 151

Benefit 

COMBINATIONS OF BENEFITS NOT AVAILABLE (PER LIFE INSURED) ON ONE MATRIX TOPCOVER, MATRIX TERMCOVER, COBALT FOR 

PROFESSIONALS OR GLACIER TOPCOVER PLAN (PER LIFE INSURED) 

The table below indicates the benefits that may not be taken together on the life of the life insured. An X indicates the combinations not allowed. 

DS 

DS80 

DS x 

DS80 x 

DSF1 

SUMMARY 1 

DSF1 

OAR 

OAS 

OAF 

OSR 

OAR x x x 

OAS x x x 

OSS 

OAF x 

OSR x x x 

OSS x x x 

OSF x 

OSF 

GE 8/2011 BZ 152 

OAP 

OAP x 

OSP x 

OAP2 x 

OSP2 x 

CAR x x x 

CAS x x x 

CSR x x x 

CSS x x x 

OSP 

OAP2 

OSP2 

CAR 

CAS 

CSR 

CSS 

TAC 

TAW 

TSC 

TSW 

TAC2 

TSC2 

TAW2 

TSW2 

ASC 

ASW 

ASO 

FS1 

FS2 

OPG1 

OGG1 

DP 

DG

Benefit 

COMBINATIONS OF BENEFITS NOT AVAILABLE (PER LIFE INSURED) ON ONE MATRIX TOPCOVER, MATRIX TERMCOVER, COBALT FOR 

PROFESSIONALS OR GLACIER TOPCOVER PLAN (PER LIFE INSURED) 


DS 

DS80 

DSF1 

OAR 

OAS 

OAF 

OSR 

OSS 

OSF 

TAC x 

GE 8/2011 BZ 153 

OAP 

TAW x 

TSC x 

TSW x 

OSP 

TAC2 x 

TSC2 x 

OAP2 

TAW2 x 

TSW2 x 

ASC 

ASW 

ASO 

FS1 

FS2 

SUMMARY 1 (CONTINUED) 

OSP2 

CAR 

CAS 

CSR 

OPG1 x x 

OGG1 x x 

DP x x 

DG x x 

CSS 

TAC 

TAW 

TSC 

TSW 

TAC2 

TSC2 

TAW2 

TSW2 

ASC 

ASW 

ASO 

FS1 

FS2 

OPG1 

OGG1 

DP 

DG

COMBINATIONS OF BENEFITS NOT AVAILABLE ON GLACIER TOPCOVER PLAN (WITH SERVICE COMMISSION) (PER LIFE INSURED) 


BENEFIT DS OAR OSR CAR CSR ASW TAW TSW TAW2 TSW2 OPG1 OGG1 ASO FS1 FS2 IS1 

DS 

OAR x 

OSR x 

CAR x 

CSR x 

ASW 

TAW x 

TSW x 

TAW2 x 

TSW2 x 

OPG1 x 

OGG1 x 

ASO 

FS1 

FS2 

IS1 

GE 8/2011 BZ 154

SUMMARY 2 

LIMITS PER BENEFIT 


The table below indicates the benefits that must be taken into account when the available maximum 

limits per benefit are calculated. This applies to risk cover plans on both the Legacy and Lamda 

systems. 

Benefit Company 

GE 8/2011 BZ 155 

Sanlam benefits used to determine the maximum remaining amounts 

allowed 

Risk Cover products on Lamda Risk Cover products on Legacy 

DS Sanlam only DS and DS80 (no fixed maximums; 

subject to financial underwriting) 

DS80 Sanlam only DS80 and DS (no fixed maximums; 

subject to financial underwriting) 

All death benefits (no fixed 

maximums; subject to financial 

underwriting) 

All death benefits (no fixed 

maximums; subject to financial 

underwriting) 

DSF1 Sanlam only DSF1 – 

OAR All companies OAR, OAS, OSR, OSS, OPG1, 

OGG1, OAF, OSF, CAR, CAS, CSR, 

CSS, OAP, OSP, OAP2, OSP2 

OAS All companies OAR, OAS, OSR, OSS, OPG1, 



OAF Sanlam only OAF, OSF, OAR, OAS, OSR, OSS, 

OPG1, OGG1, CAR, CAS, CSR, 


OSR All companies OAR, OAS, OSR, OSS, OPG1, 



OSS All companies OAR, OAS, OSR, OSS, OPG1, 



OSF Sanlam only OAF, OSF, OAR, OAS, OSR, OSS, 



CAR All companies OAF, OSF, OAR, OAS, OSR, OSS, 



CAS All companies OAF, OSF, OAR, OAS, OSR, OSS, 



CSR All companies OAF, OSF, OAR, OAS, OSR, OSS, 



CSS All companies OAF, OSF, OAR, OAS, OSR, OSS, 



OA, OB, OC, OD, OE, OF, OG, 

OP, M-OP, T46, T47, T48, OPG, 

OGG 


OP, M-OP, T46, T47, T48, OPG, 

OGG 


OP, M-OP, T46, T47, T48, OPG, 

OGG 


OP, M-OP, T46, T47, T48, OPG, 

OGG 


OP, M-OP, T46, T47, T48, OPG, 

OGG 


OP, M-OP, T46, T47, T48, OPG, 

OGG 


OP, M-OP, T46, T47, T48, OPG, 

OGG 


OP, M-OP, T46, T47, T48, OPG, 

OGG 


OP, M-OP, T46, T47, T48, OPG, 

OGG 


OP, M-OP, T46, T47, T48, OPG, 

OGG 

OAP Sanlam only OAP, OSP, OAP2, OSP2 – 

OSP Sanlam only OAP, OSP, OAP2, OSP2 –

SUMMARY 2 (CONTINUED) 

Benefit Company 

GE 8/2011 BZ 156 

Sanlam benefits used to determine the maximum remaining amounts 

allowed 

Risk Cover products on Lamda Risk Cover products on Legacy 

OAP2 Sanlam only OAP, OSP, OAP2, OSP2 – 

OSP2 Sanlam only OAP, OSP, OAP2, OSP2 – 

TAC All companies TAC, TAW, TSC, TSW, TAC2, TSC2, 

TAW2, TSW2 

TAW All companies TAC, TAW, TSC, TSW, TAC2, TSC2, 

TAW2, TSW2 

TSC All companies TAC, TAW, TSC, TSW, TAC2, TSC2, 

TAW2, TSW2 

TSW All companies TAC, TAW, TSC, TSW, TAC2, TSC2, 

TAW2, TSW2 

TAC2 All companies TAC, TAW, TSC, TSW, TAC2, TSC2, 

TAW2, TSW2 

TSC2 All companies TAC, TAW, TSC, TSW, TAC2, TSC2, 

TAW2, TSW2 

TAW2 All companies TAC, TAW, TSC, TSW, TAC2, TSC2, 

TAW2, TSW2 

TSW2 All companies TAC, TAW, TSC, TSW, TAC2, TSC2, 

TAW2, TSW2 

TV, KTV, T16 

TV, KTV, T16 

TV, KTV, T16 

TV, KTV, T16 

TV, KTV, T16 

TV, KTV, T16 

TV, KTV, T16 

TV, KTV, T16 

ASC Sanlam only ASC OLV, DU, T84 

ASW Sanlam only ASW – 

ASO All companies ASO – 

FS1 Sanlam only FS1, FS2 TD 

FS2 Sanlam only FS1,FS2 TD 

OPG1 All companies None None (Depend on availability of DS) 

OGG1 All companies None None (Depend on availability of DS) 

DP Sanlam only No fixed maximums; subject to 

financial underwriting 

DG Sanlam only No fixed maximums; subject to 


IS1 All companies OSS, OAS, OSR, OAR, CAR, CSR, 

CAS, CSS, OIO, OIT, OIB, IS1 

No fixed maximums; subject to 


No fixed maximums; subject to 


OA, OB, OC, OD, OE, OF, OG, OP, 

M-OP, T46, T47, T48, OPG, OGG

OCCUPATIONAL UNDERWRITING 

The decision in respect of occupational underwriting can be 

• Decline the cover 

• Accept the cover, and then determine 

− The rate group. 

− The accident or disability classes. 

− The occupational loading, if any. 

− Any claim exclusion on the benefit, for a specific activity. 

RATE GROUPS: 

Each life insured is classified into one of 5 rate groups. The rate groups are determined according to 

qualifications and income, but can be limited as a result of a specific occupation. To qualify for rate 

group 5, the life insured also has to practise one of the occupations which qualifies for that rate group. 

Rate Group 5 

REQUIREMENTS 

The life insured must practise a professional occupation as determined by Sanlam Life and must have 

one of the following qualifications: 

• M-Tech qualification at a university of technology (technicon) (B-Tech qualification plus an 

additional year) 

• D-Tech qualification at a university of technology (technicon) (M-Tech qualification plus additional 

year) 

• Two 3-year bachelor's degrees at a university 

• 4-year bachelor's degree at a university 

• Honours degree at a university 

• Master's degree at a university 

• Doctorate at a university 

• Actuaries with FASSA/FIA/FFA qualification 

• Professional accountants, fully registered by SAIPA 

Rate Groups 4, 3, 2 and 1 

The table below indicates the rate groups which apply according to the life insured's qualifications and 

income: 

Qualifications Less than 

R6 000 

UNDERWRITING 

R6 000 – 

R13 999 

GE 8/2011 BZ 157 

Income 

R14 000 – 

R24 999 

R25 000 – 

R34 999 

R35 000 

No matric RG1 RG1 RG2 RG3 RG4 

Matric RG1 RG2 RG3 RG4 RG4 

3 year degree or Btech, or 4 

year diploma RG2 RG3 RG4 RG4 RG4 

4 year degree RG4 RG4 RG4 RG4 RG4

STUDENTS 

Students in their 4 th academic year and who study in one of the following fields listed for rate group 5, 

qualify for rate group 5. Lump sum benefits are also available, but are, however, limited to R1 000 000. 

No income benefits are available. 

ACCIDENT AND DISABILITY CLASSES 

Each life insured is classified according to one of 5 accident/disability classes. This class is largely 

determined by taking into account the type of occupation and the amount of non-administrative work 

(manual labour/travelling/supervision/fieldwork) (see Classes). 

Examples 

• Persons involved in professional, executive, managerial, administrative and clerical 

occupations, not engaging in any manual labour, will be classified in Class A. 

• Persons involved in heavy manual work, or in higher risk occupations like mining, railway or 

seafaring will be classified in Class E. 

CLASSES 

The life insured is classified according to one of five classes to determine the payment for the waiver of 

payment benefit. The class is largely determined by taking into account the type of occupation and the 

amount of non-administrative work (manual labour/ travelling/ supervision). For instance: a bricklayer 

doing physical construction work will pay more for the rider benefit than the bricklayer who is merely in a 

supervisory capacity on the site and who also has to perform certain administrative functions. Likewise, 

a salesman who has to travel much in the performance of his duties will pay more than the person who 

works from his office only. 

The following five occupational classes, based on occupation code and amount of administrative work is 

involved: 

CLASS OCCUPATIONS 

A 

Professional, executive, management, commerce, administrative and clerical, not 

involved with any manual labour or otherwise classified. 

B • Master-artisans and master-artisans solely involved with management and 

supervision. 

• Shop assistants. 

• Skilled operators in light manual labour and non-hazardous occupations. 

C • Skilled operators in heavier manual labour in non-hazardous occupations. 

• People with higher than average vehicle risk. 

D 

A skilled or semi-skilled operator in heavy manual labour or subject to high danger. 

E • Mining occupations 

• Railway occupations 

• A variety of high-risk occupations 

DEFINITION OF ADMINISTRATIVE WORK 

For the purposes of occupational underwriting, the following breakdown of work must be provided: 

• manual labour 

• travel, including fieldwork 

• supervision extramerally, or over travelling work teams or over machinery 

• administration, including supervision of administrative personnel, or factory or workshop workers. 

Consider for example a physiotherapist. If he or she does not travel when performing his or her duties, 

the work is regarded as 100% administrative. In the same way the work of a lecturer at a university is 

also regarded as 100% administrative. 

GE 8/2011 BZ 158

DEFINITION OF MANUAL LABOUR 

Manual labour is physical work done with the hands. Jobs that fit this definition will be found in the 

unskilled labour market, or amongst technical workers and drivers of heavy machinery/vehicles. 

RATE DIFFERENTIATION WITH REGARD TO SPOUSE (applies only to whole life and 

term cover products) 

A married person [excluding housewives (woman / man)] is classified according to 

• his/her own qualifications and 

• his/her own income or that of his/her spouse, whichever is the larger. 

DEFINITION OF INCOME (applies only to whole life and term cover products) 

It is the greater of the average taxable monthly income of the life assured or his/her spouse. When the 

rate group is determined for a life insured, the higher income of the two spouses is used. The same rule 

applies when an application is made for a plan for a child. However, when it comes to determining 

financial and disability limits, only the life insured's own income is used to calculate the relevant limit. 

AVERAGE MONTHLY INCOME 

The monthly income from the life insured's regular occupation, averaged over the 12 months before the 

claim event took place. If the life insured has a fluctuating income, Sanlam Life will calculate the 

average monthly income over the 36 months before the claim event took place. 

INCOME FOR LIVES INSURED IN FORMAL EMPLOYMENT OF AN EMPLOYER 

Cost-to-company income which consists of gross taxable income including the employer's contributions 

to a medical scheme, provident fund or pension fund, and the cost of any other benefits paid for by the 

life insured's employer that forms part of the life insured's remuneration package and are reflected in the 

employer's financial statements. 

INCOME FOR PROFESSIONAL LIVES INSURED IN PRACTICE 

Gross professional income for professionals who charge a fee for services is equal to the sum of 

professional fees and net income from trading activities, after deducting business overhead expenses. 

INCOME FOR OTHER SELF-EMPLOYED LIVES INSURED 

Income or benefits receivable on account of the life insured's employment, or any services rendered by 

the life insured, plus the life insured's share of profit in the business over the last 12 months. 

INCOME FOR PENSIONERS 

For pensioners the definition of basic income is as follows: 

• income benefits from a pension fund and a RA fund 

• any regular interest and dividend income from a fixed investment 

• income from rent. 

CHANGE IN OCCUPATION/ACTIVITY 

After the plan has come into force, the insured may freely change his/her occupation/activity and follow 

any occupation/activity. The life insured also does not have to notify Sanlam Life when he/she begins to 

work from home. 

GE 8/2011 BZ 159

CLAUSES 

As in the case of non-Stratus products, clauses in respect of occupations and part-time activities are 

placed in some cases. Some of the hazardous activities are contractually excluded with these disability 

benefits already and therefore no loadings and clauses are therefore involved with these activities. 

Please see examples of such clauses below. 

U clause (exclusion clause) 

A U clause is placed when cover for a specific activity is excluded. 

Diving 

"Despite anything to the contrary in this plan, we will not admit a disability claim if the disability of the 

life insured is caused directly or indirectly by, or is related to, the participation in, or training with the 

intention of participating in, diving." 

B clause 

A B clause is placed when a loading for a specific activity is being paid. 

Diving 

"Because the life insured participates in diving, the payment for this benefit includes a loading of 

50%. If the life insured ceases to participate in this, you may request us to reconsider the loading. 

We may then remove or reduce it at that time." 

NB: The loading in this clause is merely illustrative and is in no way an indication of the 

actual loading that may be payable. 

A clause 

An A clause is placed when an insured participated in an activity in the past, or intends to participate in it 

in the future. 

Diving 

"You must please inform us when the life insured starts or resumes participation in diving. 

We may then charge a loading from the date that the life insured started or resumed participation in 

the above. We will determine the amount of the loading at that time. Or, we may cancel or change 

the benefit. 

If you do not inform us when the life insured starts or resumes participation in the above, we will 

cancel the benefit at the time it becomes known to us. We will also cancel the benefit if you do not 

pay the loading we may charge." 


The decision in respect of medical underwriting can be: 

• Decline the cover; 

• Accept the cover on standard terms; 

• Accept the cover, and then determine 

− an extra payment, if any, because of the life insured's raised body mass; 

− a medical loading, if any; 

− any medical exclusion for a specific condition. 

The medical and HIV requirements are determined according to the various rate groups, and are set out 

below: 

Full proof of insurability, including an HIV-blood test, is required when the plan is taken out. With whole 

life and income protector this initial proof of insurability will apply for as long as the cover is provided. 

GE 3/2013 BZ 160

MEDICAL LIMITS 

EFFECTIVE AMOUNT 

RATE GROUP 5 

GE 8/2011 BZ 161 

AGE NEXT BIRTHDAY 

15 – 35 36 – 45 46 – 55 56+ 

1. Death/ Waiver of payment at death/ Death income benefits/ FutureCover : Death 

Up to R1m A A A A 

R1 000 001 up to R3m A A A AB 

R3 000 001 up to R5m A A AB ACDF 

R5 000 001 up to R8m A AB ACDF ACDF 

> R8m AB ABF ACDF ACDF 

2. Lump sum disability benefits/ Functional impairment/ Physical impairment/ FutureCover : 

Comprehensive 


R1 000 001 up to R2m A A AB AB 

R2 000 001 up to R5m A A AB ACDF 

R5 000 001 up to R8m A AB ACDF ACDF 


3. Disability income (waiting period 12 months or more) 

Up to R20 000 p.m. A A A A 

R20 001 up to R50 000 p.m. A A AB ACDF 

R50 001 up to R80 000 p.m. A AB ACDF ACDF 

> R80 000 p.m. AB ABF ACDF ACDF 

4. Dread disease (Core and Comprehensive) 

Up to R600 000 E E E E 

R600 001 up to R1.2m E E EH EH 

R1 200 001 up to R2.5m E E EH EBH 

> R2.5m EB EBF ECDH ECDH 

5. Sickness benefit/ Temporary disability income/ Overhead expenses protector/ Disability income 

(waiting period less than 12 months)/ Waiver of payment at disability 

Up to R20 000 p.m. E E E E 

R20 001 up to R50 000 p.m. E E EC ECDF 

R50 001 up to R80 000 p.m. E EB ECDF ECDF 

> R80 000 p.m. AB EBF ECDF ECDF


RATE GROUP 4 

1. Death/ Waiver of payment at death/ Death income/ FutureCover : Death 

GE 8/2011 BZ 162 


15 – 35 36 – 45 46 – 55 56+ 


R1 000 001 up to R3m A A AB ABF 

R3 000 001 up to R5m A AB ABF ACDF 


2. Lump sum disability benefit/ Functional impairment/ Physical impairment/ FutureCover : 

Comprehensive 

Up to R800 000 A A A A 

R800 001 up to R2.5m A A AB ABF 

R2 500 001 up to R5m A AB ABF ACDF 




R10 001 up to R30 000 p.m. A A AB ABF 

R30 001 up to R50 000 p.m. A AB ABF ACDF 


4. Dread Disease (Core and Comprehensive) 

Up to R600 000 E E E E 

R600 001 up to R1.2m E EF EH EH 

R1 200 001 up to R2.5m E EF EBH ECDH 





R10 001 up to R30 000 p.m. E EB ECF ECDF 

R30 001 up to R50 000 p.m. EB EBF ECDF ECDF 

> R50 000 p.m. EB ECF ECDF ECDF


RATE GROUP 3 

1. Death/ Waiver of payment at death/ Death income/ FutureCover : Death 

GE 8/2011 BZ 163 


15 – 35 36 – 45 46 – 55 56+ 


R1 000 001 up to R2.5m A AF ABF ABF 

> R2.5m AB ABF ACDF ACDF 

2. Lump sum disability benefit/ Functional impairment/ Physical impairment/ FutureCover : 

Comprehensive 


R1 000 001 up to R3m A AF ABF ACF 




R8 001 up to R20 000 p.m. A A AB ABF 

R20 001 up to R30 000 p.m. A ABF ACF ACDF 

> R30 000 p.m. AB ACF ACDF ACDF 


Up to R500 000 E E E E 

R500 001 up to R1.0m E EF EH EH 

R1 000 001 up to R2.5m E EF EBH ECDH 




Tot R8 000 p.m. E E E E 

R8 001 tot R20 000 p.m. E EB ECF ECDF 

R20 001 tot R30 000 p.m. EB EBF ECDF ECDF 

> R30 000 p.m. EC ECF ECDF ECDF


RATE GROUPS 1 AND 2 

1. Death/ Waiver of payment at death/ Death Income/ FutureCover : Death 

GE 8/2011 BZ 164 


15 – 35 36 – 45 46 – 55 56+ 

Up to R400 000 A A A A 

R400 001 up to R1.2m A A ABF ABF 

R1 200 001 up to R2.5m A A ABF ACDF 


2. Lump Sum Disability Benefit/ Functional impairment/ Physical impairment/ FutureCover : 

Comprehensive 

Up to R400 000 A A A A 

R400 001 up to R1m A A ABF ABF 

R1 000 001 up to R2.5m A AF ACDF ACDF 




R5 001 up to R20 000 p.m. A ABF ABF ACDF 



Up to R300 000 E E E E 

R300 001 up to R600 000 E E EH EH 

R600 001 up to R1m E EF EBH EBH 

R1 000 001 up to R2m E EF EBH ECDH 

> R2m EB EBF ECDH ECDH 




R5 001 up to R20 000 p.m. EB EBF ECF ECDF 

> R20 000 p.m. EC EBF ECDF ECDF

Notes: 

1) Only benefits effected within the past 12 months to be accumulated. 

2) No differentiation between accelerator and stand alone benefits. 

3) Effective amounts will be calculated for each of the individual categories. Waiver of payment at 

death and Death income benefits in Category 1 must be converted to lump sum benefits by using 

the formula: Monthly benefits x outstanding term x 12. 

4) Determine limits for each category individually. 

5) Combinations of categories: Category 3 and 5. Add values together and use Category 5 table to 

determine limits. For any other combination, use tables for individual categories. 

Keys: 

A = Fully completed application form, a personal health questionnaire included; 

B = Short medical report (AE2681); 

C = Medical report by personal family practitioner / Sanlam medical adviser (AE2230); 

NB: If the report was not completed by the family practitioner / Sanlam medical 

adviser, Sanlam Life reserves the right to request possible additional 

medical information. 

D = Effort ECG by general practitioner / family practitioner / Sanlam medical adviser; 

E = Fully completed application form, personal health questionnaire and supplementary 

health questionnaire included; 

F = Blood profile: (Random serum cholesterol estimate, serum Gamma-GT estimate 

(GGT) by a pathologist); 

H = PSA test, Blood profile 1 

PSA test = Serum Prostate Specific Antigen 

Note: Blood profiles do not include HIV and cotinine tests, but HIV and cotinine tests are always 

going to be required. The same blood sample will be used for all tests. 

Aids limits 

The Aids limit is determined in the same way as the effective amount. If an HIV test is required for any 

of the 5 groups, an HIV test is required for the whole plan. 

ANB RATE GROUP 2 RATE GROUP 3 RATE GROUPS 4 AND 5 

< 45 10 000 10 000 10 000 

46 – 60 25 000 50 000 75 000 

> 61 150 000 200 000 200 000 

Note: An HIV test is always required when an income protector plan is taken out. 

LIFEREWARDS ® 

Clients have a choice between a conventional Matrix plan and a Matrix plan with LifeRewards ® when 

they apply for risk cover. When LifeRewards ® is chosen a more accurate risk rating is done, and 

healthy lives with a healthy life style can qualify for discounts and pay lower payments. 

LifeRewards ® is available with the following risk cover products: 

• Matrix Topcover (also as part of a combination product) 

• Glacier Topcover (with sales commission) 

• Cobalt for Professionals Topcover 

• Matrix Termcover 

GE 8/2011 BZ 165

LIFEREWARDS ® (continued) 

Sanlam Life entered into a partnership with Reality to continuously provide certain information about 

lives insured who are members of Reality, so that Sanlam Life can do a re-evaluation of those lives 

insured on a regular basis to determine whether the life insured qualifies for LifeRewards ® discount, and 

how much such discount will be for the following year. 

Only members of Reality can apply for LifeRewards ® discount. If a member of Reality should later 

cancel his or her membership, Reality will no further provide the necessary information to Sanlam Life. 

Any discount will then only apply until the following date on which Sanlam Life requires the necessary 

information, after which the discount will lapse automatically. 

Discount for healthy lifestyle 

A life insured may qualify for a discount on the basis of his or her health and fitness condition. Once a 

discount has been applied, it will become effective from the date the next payment is due. A discount 

will be guaranteed for one year and will not be reduced before the expiry date. An expiry date is always 

one year from the effective date. Sanlam Life will send an electronic message to notify the planholder of 

a discount that has been applied. 

New information required regularly 

Before an expiry date is reached, Sanlam Life will require new information to determine whether the life 

insured continues to qualify for a discount. The health and fitness criteria Sanlam Life will use to 

determine the level of a discount, if any, may change from time to time. For information regarding these 

criteria and how this information can be provided to Sanlam Life, please visit Reality's website at 

www.reality.co.za or contact the Client Contact Centre. 

Sanlam Life or Reality, will send the life insured an electronic message 6 weeks before an expiry date to 

remind him or her to provide Sanlam Life with the required health information. 

Fitness information will be monitored on a regular basis and will be provided to Sanlam Life via Reality. 

The life insured may also provide Sanlam Life with additional fitness information which he or she might 

have available. 

It remains the responsibility of the planholder and insured life to provide the required information in time 

for Sanlam Life to calculate a revised discount. 

New information received in advance 

If Sanlam Life receives new information well in advance and it results in a life insured's discount being 

bigger than the current discount, Sanlam Life will apply the bigger discount to qualifying benefits on all 

plans with LifeRewards ® . The bigger discount will become effective from the next date the payment is 

due. If a payment growth or an alteration transaction is pending on the plan, the bigger discount will 

become effective from the next date the payment is due after these transactions have been finalized. 

The bigger discount will be guaranteed for one year from the date it becomes effective. 

However, if the new information results in a discount smaller than the current discount, Sanlam Life will 

only apply the smaller discount to qualifying benefits on existing plans when the current discount 

reaches it expiry date. 

New information not received 

If Sanlam Life does not receive new information before an expiry date, the life insured will forfeit the 

possible discount and the total monthly payment will be increased. Sanlam Life will send an electronic 

message to notify the planholder of this increase. 

The discount may be activated again if the life insured goes for an evaluation again, and it still indicates 

a discount. 

GE 8/2011 BZ 166

Benefits for which LifeRewards ® discount are not available 

• Accidental benefits 

• Sickness 

• Physical impairment and Whole life physical impairment 

• Temporary income protector and Overhead expenses protector 

• FutureCover 

Waiver of payment benefits 

LifeRewards ® also applies to waiver of payment at disability and waiver of payment at death benefits. 

Smokers 

LifeRewards ® is available to smokers as well as non-smokers. 

Method of payment and frequency 

Only debit orders and internal transfers are available for LifeRewards ® . All the normal payment 

frequencies are permitted. 

DETERIORATION OF INSURANCE RISK 

• Before the plan comes into effect (Unless Immediate cover or Free cover applies) 

Clients must notify Sanlam Life should the assurance risk deteriorate before Sanlam Life’s 

obligations in terms of the plan comes into effect. 

If this information is concealed, Sanlam Life may refuse the claims and cancel the plan. In the event 

of such a cancellation, the client shall forfeit the payments and other amounts which have been paid 

in terms of the plan, unless Sanlam Life, at it’s reasonable discretion decides otherwise. 

• After the plan has come into operation 

The assured need not inform Sanlam Life of any deterioration in respect of the insurance risk after 

the plan has come into operation. 

NOTES REGARDING MEDICAL REQUIREMENTS 

(Requirements with regard to medical examinations/tests) 

1. Photographic proof of identity in respect of assured 

The insurance industry has a great responsibility to ensure that, in the interest of all planholders, 

• correct information is obtained from assureds; 

• sensitive information is treated as confidential; 

• substitution is prevented. 

In order to comply with the above, the ASISA lays down certain rules which must be observed, e.g. 

that assureds must always identify themselves before undergoing certain medical 

examinations / tests for the insurance industry. 

Besides the ASISA stipulations, Sanlam Life reserves the right to implement additional identification 

measures based on its own experience. 

GE 8/2011 BZ 167

NOTES REGARDING MEDICAL REQUIREMENTS 

(Requirements in regard to medical examinations/tests) 

Proof of identity for medical examinations/tests 

• RSA citizens 

Only the following proof of identity will be accepted: 

− An original RSA identity document, or 

− an original, valid RSA passport, or 

− a new card-type of driver’s licence issued by the Department of Transport in the RSA. 

If one of the above cannot be provided, the assured will have to submit the following: 

− A valid temporary identity document issued by the Department of Home Affairs. 

From time to time intermediaries will be informed which specific ASISA/Sanlam identification 

measures have to be applied. The doctors will have been informed about this and the chief 

underwriter at your local Client Services office can also be consulted if anything is not clear. 

• Non-RSA citizens (who reside in the RSA) 

(i) Persons who already have a permanent residence permit and who have been issued 

with an RSA identity document. For assurance purposes, this identity document will be 

acceptable for identification purposes. 

(ii) All other non-RSA citizens. Only the person's valid passport is acceptable. No other 

document(s) will be accepted. 

2. PMA report by family doctor (form AE1762) 

To obtain a PMA report, the sales office sends the family doctor a letter in which he/she is requested 

to complete a form AE1762 from the client’s medical records. It will never be necessary for the 

client to visit his/her doctor for this purpose. 

3. Short medical report (form AE2681) 

The short medical report can be completed by: 

3.1 the assured’s family doctor, or 

3.2 a general practitioner registered with the South African Medical and Dental Council (SAMDC) 

and still actively in practice, or 

3.3 a registered nurse in the service of a practising doctor or pathologist. 

If the nursing sister completes the report, the form must be co-signed by the family doctor or the 

practising doctor. Photographic proof of identity (see note 1) must also be provided. For such 

examinations, an appointment should preferably be made with the practice to prevent the assured 

having to wait too long and therefore being inconvenienced. 

GE 8/2011 BZ 168

4. Blood and urine samples by doctor, registered nurse or pathology laboratory (Only test results of 

ASISA-accredited pathology laboratories will be accepted). 

4.1 Blood and urine samples may be taken by the following persons: 

• Any practising medical practitioner registered with the Health Professions Council (HPC). 

• Any nurse registered with the South African Nursing Council (SANC) and who is bona fide 

in the service of a medical practitioner or pathologist. 

• Any registered person who has been authorised by the HPC to take blood and who is 

bona fide in the service of an accredited pathology laboratory. 

4.2 Confirmation of identity 

The authorised person who takes the blood and/or urine sample must verify the identity of the 

life assured and, in the case of an HIV test, make sure that the client has consented to the 

test, provided the necessary indemnity, and read the pre-test information. For this purpose, 

the relevant declarations on form E304/LID812 computerised letter must be made. 

4.3 Laboratory procedures 

5. Fasting period 

• If the laboratory does not receive such documents with the blood or urine sample, it will 

refuse to carry out the test. 

• If the blood or urine sample and documents are received from any source other than the 

above-mentioned (as stated in 4.1), the laboratory will refuse to carry out the test. 

• If the laboratory carries out a test without the necessary and correct documents, Sanlam 

will not accept the test results and no payment will be credited. 

Certain blood tests require that the life assured fast before blood is taken. In such cases the person 

may not eat or drink any alcohol or beverage which contains sugar for 12 hours prior to the 

appointment (only water may be drunk). 

6. X-rays of the chest by a radiologist 

If a radiologist is not available, X-rays may be taken by a general practitioner, if he/she has the 

necessary apparatus; or it may be taken at a hospital. 

7. Examinations with medical advisers of Sanlam 

You are welcome to arrange examinations by these medical advisers. An appointment can be made 

by telephoning the following numbers: 

Client Contact Centre : Head Office : (021) 947 - 4185 

GE 8/2011 BZ 169

VALIDITY PERIOD OF MEDICAL REPORTS 

The validity period is as follows: 

• Medical report (form AE2230/AE2681) – 6 months 

• Other medical reports and tests – 12 months 

• HIV test – 4 months 

GE 8/2011 BZ 170 

(Printed forms) 

These questionnaires are available on Intranet, as well as the Advisors and Brokers web. 

OTHER “QUESTIONNAIRES” 

(Not printed forms) 

In alphabetical order 

These questionnaires are for your convenience so that when you are concluding an application you are 

able to provide complete particulars on an illness. Further enquiries are thereby limited to the minimum. 

You can furnish the information on the application form or in a separate statement. If a separate 

statement is provided, it must be signed and dated by the life to be assured. For you as intermediary it 

has the advantage that you do not have to go back to the assured every time for the information and it 

may even not be necessary to arrange for a medical report. 

GENERAL QUESTIONS 

Use the following for abnormalities or illnesses for which no examples are given below: 

Questions 

1. Describe illness/injury fully. 

2. First and most recent date of symptoms. 

3. Type of treatment received. 

4. Has illness been cured? If not, what is the present condition? 

5. Is the assured limited in any way to carry out his/her occupation? 

6. Other information or remarks. 

7. Name and address of doctor(s) concerned. 

Guidelines 

This questions may for example be used in the following circumstances: 

1. A recent attack of bronchitis. 

2. A recent tropical disease, e.g. malaria and bilharzia. 

3. Nose and throat troubles, repeated sinusitis and repeated tonsillitis. 

4. Arthritis, gout. Please indicate which joints were affected. Please pay particular attention to joint 

injuries and describe the extent and duration of the symptoms in detail. 

5. Injury of the limbs, joints, eyes or ears. 

MEDICAL REPORTS / QUESTIONNAIRES 

QUESTIONNAIRES : SPECIFIC CONDITIONS 

6. In the case of injury of the limbs you are to query any injuries of the joints and indicate whether 

there is any shortening of limbs or residual joint symptoms.

VARICOSE VEINS 

Questions 

1. If varicose veins are present now, where do they appear, e.g. on the abdomen, thighs and/or 

calves? 

2. Extent and size of varicose veins. 

3. Complications, e.g. ulcers, blood clots, swelling of legs and ankles. 

4. Type of treatment given. 

5. Does the varicose vein ailment in any way limit the assured in practising his or her profession or 

participating in other activities? If so, to what extent are business and physical activities 

affected? 

6. Name and address of doctor(s) concerned. 

Guidelines 

If all varicose veins have been removed, and the wounds have healed completely, the questions are 

not necessary. Indicate on the application form that the varicose veins have been removed, and 

whether the assured suffers from any after-effects. 

CONDITIONS FOR WHICH NO SPECIFIC QUESTIONNAIRES ARE AVAILABLE 

In alphabetical order 

AMPUTATION OF LIMBS 

It is always important to put the following questions to the assured and to furnish the answers on the 

application form: 

− The reason for the amputation. 

− Indicate which part of the limb has been amputated, e.g. fingers, upper and lower legs, hands, 

arms, etc. 

− Date of the amputation. 

− Has the wound healed fully? 

− To what extent has the client succeeded in living with his/her handicap? Here we are particularly 

interested in factors such as: 

(i) the client’s psychological approach and acceptance of his/her handicap and 

(ii) his/her physical rehabilitation after the loss of the limb. 

− What restrictions do the assured experience as a result of the amputation, particularly in carrying 

out his/her occupational and daily activities? 

− To what extent is the mobility of the assured limited and how successful is the aid of his/her 

artificial limbs? 

FRACTURE OF A LIMB IN PLASTER OF PARIS OR SOME FORM OF FIXATION 

(SPLINTS OR BANDAGES) 

It often happens that at the time of the application the assured suffers from a fractured limb from 

which the plaster of paris has not yet been removed. 

Although life cover could be offered in most cases, disability and accident benefits could be 

considered only after the plaster of paris has been removed. 

GE 8/2011 BZ 171

HYSTERECTOMY (removal of the uterus) and MASTECTOMY (amputation of one or both breasts) 

If it is the first application of the assured for assurance with Sanlam Life or if she mentions that she 

had recently undergone a hysterectomy or mastectomy, it is important that the following information 

be mentioned in the personal declaration: 

− Reason for the operation. 

− Date of the operation. 

− Was the condition malignant? (to the knowledge of the assured) 

− Did the assured receive irradiation or chemotherapy after the operation? 

− Name and address of the doctor who performed the operation. 

THYROID OPERATION (THYROIDECTOMY), REMOVAL OF MOLES AND THE REMOVAL 

OF TESTIS: 

If the assured mentions one of the above operations, it is important that the following information be 

mentioned in the personal declaration: 

− The reason for the operation. 

− The date of the operation. 

− Name and address of the surgeon or doctor who has the surgical reports. 

− What was said to the assured afterwards in connection with malignancy or not, or further 

treatment. 

− What treatment did the assured receive after the operation, with particular reference to irradiation 

and chemotherapy? 

− What were the findings of follow-up examinations? 

GE 8/2011 BZ 172

PHYSICAL HANDICAPS 

ABNORMAL APPEARANCE AND BUILD 

Should you notice that the assured has an abnormal appearance or build, you must mention your 

observations in a separate memo. 

ABNORMAL GAIT 

Should you notice that the assured has an abnormal gait, (drags his feet, limps, uses a walking-stick) 

please mention this information in a separate note. 

ABNORMAL SPEECH 

Should you notice that the assured has a speech defect, (stutters, stammers, hare-lip) please 

mention this in a separate memo. Please also report any indication of a low I.Q. as this may have an 

increased disability risk. 

IMPAIRMENT OF VISION OR HEARING 

Guidelines 

− The degree of vision or hearing the assured still has. 

− When did this loss of sight or hearing start? 

− Which eye or ear is affected? 

− What was the cause of the loss; e.g. congenital, injury, illness etc? 

− Is the condition static or does it deteriorate. 

POLIOMYELITIS (Infantile Paralyses) 

Guidelines 

It is necessary to provide particulars on the application form with the aid of the following questions: 

− Which parts of the body were affected? 

− Describe the degree and nature of the disability. 

− Is there any chest deformity and does this impair breathing? 

− Is there curvature of the spine? 

− If the legs or arms have been affected, describe to what extent the assured still has the use of 

these limbs. 

− To what extent is the assured limited in carrying out his/her occupation? 

− Does he/she make use of aids such as crutches, walking callipers, etc.? 

GE 8/2011 BZ 173

FINANCIAL UNDERWRITING 

Individual insurance 

Sanlam Life considers the total cover amount of all plans (Sanlam Life and other companies) that is now 

applied for, including other plans in the process of being issued, for the following groups of benefits 

separately: 

• death, First death, Final expenses and accidental death benefits 

• accidental injury 

• dread disease 

• functional impairment, physical impairment and combination of functional impairment plus disability 

benefits 

A financial questionnaire is required if 

• the total of death, First death, Final expenses and accidental death benefit is more than R7 million 

(for rate group 1, 2, 3 and 4) / R10 million (for rate group 5) 

• the total of death, First death, Final expenses and accidental death benefit is less than or equal to 

R7 million, but more than the multiple of salary as indicated in the table below, and 

• the other amounts are less than the Sanlam Life maximums, but more than the multiples of the 

income. 



(anb) Rate groups 3, 4 and 5 Rate groups 1 and 2 

Up to and including 25 240 228 

26 – 30 288 228 

31 – 35 276 216 

36 – 40 264 168 

41 – 45 216 144 

46 – 50 216 120 

51 – 55 180 96 

56 – 60 144 84 

61 – 65 96 72 

66 – 69 72 60 

70 and older 0 0 

The actual monthly income is used for above-mentioned calculation. 

Certain sections of the financial questionnaire must be completed, subject to the cover amount. 

GE 8/2011 BZ 174

Key person insurance 

Sanlam Life is prepared to grant an amount additional to the above maximum cover amounts for key 

person insurance. 

Sanlam Life accepts the following definition as the most descriptive of a key person: 

"Key persons are actually the kingpins of the business and on whom the responsibility rests for the 

success and prosperity of the business. As a result of their special characteristics, such as knowledge, 

skills, vision and business experience they make a meaningful contribution to the enterprise." 

Because of the unique characteristics that a key person must have, this person will mainly, if not 

exclusively, be found in the top structure of the company. 

To replace such a person in a company there are two expenses/losses which determine the value of 

such a person, namely: 

• replacement costs 

• loss of profit. 

In order to enable Sanlam Life to determine whether a client complies with the definition of a key person 

and to justify the amount which is being applied for, a separate questionnaire "Key person insurance" 

(Questionnaire AE4005) must be completed. 

Replacement insurance 

Replacement costs are applicable to all personnel while the loss of income can only be applicable to real 

key persons. Replacement insurance as a reason for insurance can thus be seen as a concept for 

which an insurance need exists. 

Sanlam's guidelines for replacement costs are the following: 

Rate Group Maximum cover allowed Requirements 

RG4 and 5 1 x yearly package with overall 

maximum of R250 000 

RG2 and 3 1 x yearly package with overall 

maximum of R150 000 

GE 8/2011 BZ 175 

None 

None, but only persons with a minimum 

yearly package of R100 000 qualify 

RG1 Decline Not applicable 

Partnership insurance (buy and sell agreement) 

A financial questionnaire is required for each of the partners who apply for insurance in terms of the 

agreement. The underwriters will consider each application individually. 

REGIONAL UNDERWRITING 

If the insured lives, or plan to live at some stage, outside South Africa, a regional loading may be 

charged, if the risk is accepted at all. If the life insured is permanently back in South Africa, the loading 

may be reconsidered.

PART-TIME ACTIVITY UNDERWRITING 

The underwriting decision in respect of part-time activities can be 

• Accept the cover on standard terms with no loading or exclusion; 

• Add a part-time activity loading for a specific activity; 

• Place a claim exclusion on the benefit, for a specific activity; (Note that some of these activities are 

already contractually excluded.) 

• A loading and/or exclusion clause for part-time activities are determined mainly by computer. 

However, should the life insured be involved with more than one part-time activity, underwriting will 

have to be done manually. In such cases the application must be referred to the underwriter. 


Application forms 

Quotations 

AEB2051 

GE 8/2011 BZ 176 

AEB2007 must accompany all electronic applications 

Ordinary quotations SanQuote 

Special quotations 

and quotations 

where loadings 

apply 

Sanlam Personal Finance : 

Client Solutions : Product 

Support 

Product enquiries Sanlam Personal Finance : Client Solutions : Product 

Support 

Unissued applications 

en re-issues 

Amendments on 

existing plans 

(021) 916-3082 

(021) 916-3082 

New Business: Helpline (021) 916-3600 

New Business: Notations Support 

(Any enquiry in respect of amendments on this product) 

(021) 916-3600 

Underwriting New Business Underwriting: Helpline (021) 916-3600 

Claims enquiries Sanlam Life Claims Call Centre (021) 916-1710 

Commission enquiries Distribution: Commission Support (021) 947-5002

SECTION E 

TABLES AND OTHER CODES 

GE 5/2010 E 

EA 


INCOME TAX TABLES ………………………………………………………………. EA 

FINANCIAL PLANNING ……………………………………………………………… EC 

INTEREST TABLES ………………………………………………………………….. ED

GE 6/2012 EA 

INCOME TAX TABLES EA 

Page 

PROPOSED TAX RATES ……………………………………………………………. EA1 

– FOR NATURAL PERSONS, DECEASED ESTATES, INSOLVENT ESTATES AND 

SPECIAL TRUSTS ………………………………………………………………………. EA1 

– FOR TRUSTS (OTHER THAN A SPECIAL TRUST) ……………………………………. EA1 

TAX-FREE LUMP SUM BENEFITS ………………………………………………… EA2 

– PENSION FUND …………………………………………………………………………….. EA2 

– PROVIDENT FUND …………………………………………………………………………. EA2 

– RETIREMENT ANNUITY FUND …………………………………………………………… EA3 

– MEMBER OF MORE THAN ONE FUND ………………………………………………….. EA4 

EXEMPTIONS …………………………………………………………………………. EA5 

DEDUCTIONS OR TAX CREDITS …………………………….……………………. EA5 

GRATUITIES PAID BY EMPLOYERS ……………………………………………… EA8 

CALCULATION OF INCOME TAX : PERSONS OTHER THAN COMPANIES 

AND TRUSTS……………………………………………………………………….. 

PLEASE NOTE : 

TAXATION WITH REGARD TO 

– RETIREMENT ANNUITIES (see this section as well as Section BX) 

– OTHER POLICIES (see alphabetical index). 

EA9

(2012/2013 TAX YEAR) 

Year of assessment ending 28.02.2013 

TAXABLE INCOME RATE OF TAX 

R R R R 

0 − 160 000 18% of each R1 0 

160 001 − 250 000 28 800 + 25% of the amount above 160 000 




617 001 and above 178 940 + 40% of the amount above 617 000 

REBATES OF TAX**: 

Primary …………………………………………………………………………….. R 11 440 

Age 65 and older (additional to primary rebate)*** …………………………… R 6 390 

Age 75 and older (additional to primary rebate and the rebate for persons 

65 and older)**** ………………………………………………………………… 

TAX THRESHOLD 

PROPOSED TAX RATES FOR NATURAL PERSONS, DECEASED 

ESTATES, INSOLVENT ESTATES AND SPECIAL TRUSTS * 

GE 6/2012 EA1 

R 2 130 

Below age 65 ……………………………………………………………………… R 63 556 

Age 65 up to and including 74 .…………………………………………………. R 99 056 

Age 75 and older …………………………………………………………………. R110 889 

* A trust created solely for the benefit of a person who suffers from mental illness or a 

serious physical disability is also taxed according to these rates (special trusts), as well as 

testamentary trusts established for the benefit of minor children. 

** Rebates do not apply for special trusts, deceased estates and insolvent estates. 

*** A person is “65 and older” as soon as he turns 65. If he reaches the age of 65 on the last 

day of the year of assessment, he will qualify for the additional rebate. 

**** A person is "75 and older" as soon as he turns 75. If he reaches the age of 75 on the last 

day of the year of assessment, he will qualify for the additional rebate. 

PROPOSED TAX RATES FOR INTER VIVOS TRUSTS AND 

TESTAMENTARY TRUSTS (OTHER THAN A SPECIAL TRUST) 

These trusts are taxed against a fixed rate of 40%. 

(2012/2013 TAX YEAR) 

Year of assessment ending 28.02.2013

GE 6/2012 EA2 

PENSION FUNDS 

RESIGNATION OR WITHDRAWAL RETIREMENT DEATH BEFORE RETIREMENT 

Tax on the resignation or withdrawal benefit is 

calculated according to a sliding scale. It is the same as 

for retirement annuities (e.g. withdrawals due to 

emigration), and is discussed in detail in, inter alia, 

Section BX. See "Tax at withdrawal" in Section BX for a 

detailed explanation and the current scales. 

The above tax is on cash withdrawals. There is no tax 

on a direct transfer to another pension fund, to a 

pension preservation fund or to a retirement annuity 

fund. A transfer from a pension to a provident fund is 

fully taxable. 

The R1 800 tax-free (before 1 March 2009) on an early 

withdrawal, if taken previously, will not be deducted from 

the R22 500 tax-free portion. 

The same as for pension funds, except that an amount 

may also be transferred directly to a provident fund, 

without incurring any tax. 

LUMP SUM BENEFITS FROM CERTAIN FUNDS (TAX-FREE) 

The maximum tax-free lump sum is the amount of 

R315 000 plus any contributions not deductible for 

income tax purposes in the past, but minus any tax-free 

amounts from other retirement funds already paid out. 

Any tax-free amounts paid on or after 1 March 2011 by 

an employer as a "severance benefit" will also be 

deducted. To this can also be added any tax-free 

benefit previously transferred from a paragraph (a) or (b) 

fund (e.g. Government Employees Pension Fund), for 

membership before 1 March 1998. 

The R120 000 tax-free (before 1 October 2007) on an 

early retirement, if taken previously, will not be deducted 

from the R315 000. 

The portion of the lump sum which exceeds the tax-free 

amount is taxed at a sliding scale. It is the same as for 

retirement annuities, and is discussed in detail in, inter 

alia, Section BX. See "Tax on retirement benefit" in 

Section BX for a detailed explanation on the current 

scales. 

PROVIDENT FUND 

Tax-free as for retirement, therefore the maximum taxfree 

lump sum is the amount of R315 000 plus any 

contributions not deductible for income tax purposes in 

the past, but minus any tax-free amounts from other 

retirement funds already paid out including at retirement, 

where it occurred before death. To this can also be 

added any tax-free benefit previously transferred from a 

paragraph (a) or (b) fund (e.g. Government Employees 

Pension Fund), for membership before 1 March 1998. 





amount is taxed at a sliding scale, and is the same as at 

retirement. 

The same as for pension funds above. The same as for pension funds.

GE 6/2012 EA3 

RETIREMENT ANNUITY FUND 

WITHDRAWAL RETIREMENT DEATH BEFORE RETIREMENT 

No withdrawal before age 55, unless contributions have 

been stopped and the member's fund value is R7 000 or 

less, or the member has officially emigrated in which 

case the member may terminate his/ her membership. 

The policy/ plan automatically becomes paid-up (after 

paying the contributions for the waiting period). 

Tax on the withdrawal benefit is calculated according to 

a sliding scale. It is discussed, inter alia, in Section BX. 

See "Tax at withdrawal" in Section BX for a detailed 

explanation and the current scales. 

The above tax is on cash withdrawals. There is no tax 

on a direct transfer to another retirement annuity fund. 

The R1 800 tax-free (before 1 March 2009) on an early 

withdrawal, if taken previously, will not be deducted from 

the R22 500 tax-free portion. 

Tax-free: up to 1/3 of proceeds (which member can 

select to take in cash) 

Maximum: The maximum tax-free lump sum is the 

amount of R315 000 plus any contributions not 

deductible for income tax purposes in the past, but 

minus any tax-free amounts from other retirement funds 

already paid out. Any tax-free amounts paid on or after 

1 March 2011 by an employer as a "severance benefit" 

will also be deducted. To this can also be added any 

tax-free benefit previously transferred from a paragraph 

(a) or (b) fund (e.g. Government Employees Pension 

Fund), for membership before 1 March 1998. 





amount is taxed at a sliding scale. It is discussed in 

detail in, inter alia, Section BX. See "Tax on retirement 

benefit" in Section BX for a detailed explanation and the 

current scales. 

The full benefit amount may be paid as a lump sum. 

The first R315 000 of the lump sum is tax-free. 


amount is taxed at the following sliding scale: 

(i) R315 001 to R630 000 at 18%; 

(ii) R630 001 to R945 000 at 27%; and 

(iii) R945 001 + at 36%. 

In addition to the first R315 000 that is tax-free, any 

contributions not deductible for income tax purposes in 

the past, minus any tax-free amounts from other 

retirement funds already paid out is also tax-free. To 

this can also be added any tax-free benefit previously 

transferred from a paragraph (a) or (b) fund (e.g. 

Government Employees Pension Fund), for membership 

before 1 March 1998. 

The R120 000 tax-free (which applied before 1 October 

2007) on an early retirement, if taken previously, will not 

be deducted from the R315 000.

MEMBER OF MORE THAN ONE FUND 

• All lump sums aggregated: 

Tax-free: R315 000 plus own contributions in past not allowed as deduction, plus where applicable, to this can be added any tax-free benefit previously transferred from a 

paragraph (a) or (b) fund (e.g. Government Employees Pension Fund), for membership before 1 March 1998. 

• Lump sum in excess of tax-free limit: 

Taxed at sliding scale (as explained in the table above) 

GE 6/2012 EA4

• Capital element of annuity purchased (only for a natural person or in terms of a court order a trust or 

curatorship estate for a person of unsound mind and incapable of managing his own affairs) 

• Basic exemption of taxable interest (for a resident natural person) 

− Below age 65 ……………………………………………………………………. R22 800 

− Age 65 and over ………………………………………………………………… R33 000 

(Foreign interest is fully taxable without any exemption since 1 March 2012 - a final withholding tax 

might be introduced in future. Foreign dividends like local dividends are subject to a final withholding 

tax of 15% since 1 April 2012.) 

• Retirement gratuity received by a director/employee 

Any retirement gratuity received by an employee or director (e.g. accumulated leave), including a lump 

sum received with retrenchment, will if it is a "severance benefit" (see EA7) be taxed according to the 

special rates table for retirement or death. 

• Pension, RA, Preservation or Provident Funds 

See summary of tax-free receipts on page EA2. 

EXEMPTIONS 

DEDUCTIONS OR TAX CREDITS 

The most important deductions from income and now also a tax credit are as follows: 

• Medical and physical defect: Medical tax credits and Expenses (see *Some more details) 

The Taxation Laws Amendment Act of 2011 converted the previous income tax deductions for medical 

scheme contributions for taxpayers below 65 years into medical tax credits from 1 March 2012. 

From this date the monthly credit will be R230 for the first two beneficiaries and R154 for each 

additional beneficiary. 

From that date onwards (apart from those with disabilities), where medical scheme contributions in 

excess of four times the total allowable tax credits plus out-of-pocket medical expenses combined 

exceed 7.5 per cent of taxable income, they can be claimed as a deduction against taxable income 

(see * below and example further below). 

Additional medical deductions will be converted into tax credits at a rate of 25 per cent for taxpayers 

aged below 65 years with effect from 1 March 2014. Also with effect from the same date, employer 

contributions to medical schemes on behalf of ex-employees will be deemed a taxable fringe benefit 

and such ex-employees will be able to claim the appropriate tax credits. 

Taxpayers 65 years and older, and those with disabilities or with disabled dependants, can currently 

claim all medical scheme contributions and out of- pocket medical expenses as a deduction against 

their taxable income (see * below). 

The tax credits will, as from 1 March 2014, apply to all taxpayers. However, taxpayers 65 years and 

older and those with disabilities or disabled dependants will be able to convert all medical scheme 

contributions in excess of three times the total allowable tax credits plus out-of-pocket medical 

expenses into a tax credit of 33.3 per cent. 

Note that the 7.5 per cent threshold will not apply in the case of taxpayers 65 years and older and those 

with disabilities or with disabled dependants. 

GE 6/2012 EA5

* Some more details in section 18 of the Act: 

In terms of section 18(1), the following other aspects to take into account are: 

• actual medical expenses, which must be reduced by amounts received from medical savings 

accounts; 

• contributions are amounts made during the tax year to any duly registered local or foreign medical 

scheme; 

• amounts, other than those recoverable by the taxpayer or his spouse, that were paid by the 

taxpayer during the year of assessment to any duly registered 

− medical practitioner, dentist, optometrist, homeopath, naturopath, osteopath, herbalist, 

physiotherapist, chiropractor or orthopaedist for professional services rendered or medicines 

supplied to the taxpayer or his or her spouse or children or any dependant (section 18(1)(b)(i)); 

− nursing home or hospital or any duly registered or enrolled nurse, midwife or nursing assistant or 

to any nursing agency in respect of the services of such a nurse, midwife or nursing assistant, 

because of illness or confinement of the taxpayer or his or her spouse or children or any 

dependant (section 18(1)(b)(ii)); 

− pharmacist for medicines supplied on the prescription of any person mentioned above for the 

taxpayer or his or her spouse or children or any dependant (section 18(1)(b)(iii)); 

• amounts other than those recoverable by the taxpayer or his or her spouse that were paid by the 

taxpayer during the year of assessment for expenditure incurred outside the Republic on services 

rendered or medicines supplied to the taxpayer or his or her spouse or children or any dependant 

that are substantially similar to the services and medicines for which a deduction may be made 

under the above paragraphs (section 18(1)(c); 

• expenditure other than expenditure recoverable by the taxpayer or his or her spouse necessarily 

incurred and paid by the taxpayer in consequence of any physical impairment or disability suffered 

by the taxpayer or his or her spouse or children or any dependant (section 18(1)(d). 

"Child" includes a stepchild and a legally adopted child. In practice the deduction may also be claimed 

for illegitimate children, provided that the taxpayer can prove the illegitimate child is his or her 

dependant. For the purposes of section 18 "child" means the taxpayer’s child or child of his or her 

spouse who was alive during any portion of the year of assessment, unmarried on the last day of the 

year of assessment and not (or, had he or she lived, would not have been). 

• over the age of 18; 

• over the age of 21. A child in this age category must also have been 

− wholly or partially dependent for his or her maintenance on the taxpayer; 

− not liable for the payment of normal tax in the year of assessment concerned; 

• over the age of 26. In addition a child in this category must have been 

− wholly or partially dependent for his or her maintenance on the taxpayer; 

− not liable for the payment of normal tax in the year of assessment concerned; and 

− a full-time student at an educational institution of a public character for at least part of the year. 

Also included in the definition is any other child who was 

• alive during any portion of the year of assessment; 

• incapacitated by a disability from maintaining himself or herself; 

• wholly or partially dependent for his or her maintenance on the taxpayer; 

• not liable for the payment of normal tax in the year of assessment concerned. 

GE 6/2012 EA6

The deduction is available to the spouse who paid the contributions to any medical scheme and/or the 

medical expenses irrespective of whether it was to the taxpayer’s own benefit or that of his or her 

spouse or children. 

The definition of a "handicapped person" has been replaced with effect from 1 March 2009 with "a 

person with a disability" who could be the taxpayer, his or her spouse or child. 

For the purposes of section 18(3) 

"'disability' means a moderate to severe limitation of a person’s ability to function or perform daily 

activities as a result of a physical, sensory, communication, intellectual or mental impairment, if the 

limitation – 

(a) has lasted or has a prognosis of lasting more than a year; and 

(b) is diagnosed by a duly registered medical practitioner in accordance with criteria prescribed by the 

Commissioner." 

Parents of dependent children may deduct the medical expenses of such children provided that the 

children are not liable in their own capacity for income tax. This does not mean that the children are not 

allowed to receive income, but merely that the income must not make the child liable for income tax if the 

parents would like to deduct medical expenses that the child incurred. 

Example of how the excess over 7.5% deduction will work for person under age 65 

A person receives taxable income of R400 000 per year and makes own contributions to a medical 

scheme of R24 000 per year. He is married and has 2 children. Therefore, his medical tax credit per 

year is R9 216. His yearly out of pocket medical expenses (that qualify under the above requirements) 

are R12 000. 

Step 1 : 4 x medical tax credit = R36 864 

Step 2 : Medical contributions less 4 x medical tax credit = Nil 

Step 3 : Add answer of step 2 to out of pocket expenses = R12 000 

Step 4 : Calculate 7.5 of taxable income = R30 000 

Step 5 : Answer of step 3 less answer of step 4 = Nil 

Therefore, there will be no excess over 7.5% deduction. If another person had the same contributions, 

credits and expenses, but an income of only R100 000 then the answer in step 4 would be R7 500, 

which would mean R4 500 excess would be deductible. 

• Pension fund: (Male as well as female − deduction) 

(i) Current contributions 

greater of: − R1 750 and 

− 7,5% of remuneration from “pensionable” service 

(ii) 

(if husband and wife are both members of a pension fund the maximum deduction for each of 

them is allowed) 

Contributions for past period 

Maximum deduction : R1 800 

GE 6/2012 EA7

• Retirement annuity fund (see notes) 

(i) Current contributions 

Greater of: − R1 750 and 

− R3 500 less current pension fund deductions and 

− 15% of taxable income (not from "pensionable" service)* to which specified 

deductions in respect of retirement annuities, soil erosion and farming 

improvements are added again. 

* Apart from pensionable service the 15% is also not deductible based on 

dividend income (final withholding tax), retirement fund lump sums on 

withdrawal or retirement and severance benefits. 

(ii) Reinstating contributions 

Maximum deduction : R1 800 

• Donations 

Deductions in respect of donations to certain public benefit organisations are limited to 10% of taxable 

income before deducting medical expenses (excluding retirement fund lump sums). 

Notes regarding deductions of RA contributions: 

1) The permissible deduction for a spouse is not influenced by the deduction to which the other 

spouse is entitled and any unused portion of a deduction may therefore not be "carried-over" 

from one spouse to the other. 

2) A married woman who became a member of an RA fund before 1/3/92, had the option of 

deciding that − for income tax purposes − her contribution be deemed a contribution made by 

her husband to a fund of which he was a member. This provision applied up to 28/2/97. 

GRATUITIES PAID BY EMPLOYERS 

Since 1 March 2011 the definition of "severance benefit" applies to gratuities paid by employers (not a 

retirement fund), at retirement or service termination on or after age 55, disability, retrenchments, or death. 

However, even if an employer received tax concessions on the payments/ premiums of such a Deferred 

Compensation plan/ policy in terms of Section 11(w) of the Income Tax before 1 March 2012, no tax 

concession applies from 1 March 2012. The employee is now taxed on the payments/ premiums as if the 

payments/ premiums are part of his/ her monthly income. In addition such employee will pay tax at his/ her 

marginal tax rate when he/ she receives the benefits at any of the above-mentioned events. 

GE 6/2012 EA8

CALCULATION OF INCOME TAX 

PERSONS OTHER THAN COMPANIES AND TRUSTS * 

TAXABLE INCOME R 

All receipts + accruals ……………………………………………………………………….. ……………….. 

less − capital receipts + accruals ………………………………………………………. (………………) 

Gross income …………………………………………..……………………………………… ……………….. 

less − exempt receipts + accruals, 

e.g. tax-free interest (see page EA5) ………………..………………….….…. (………………) 

Income ………………………………………………………………………………………..… ……………….. 

less − deductions (see page EA5) …………………………………………………..… (………………) 

GE 6/2012 EA9 

Taxable income: A 

TAX 

on A − per scale (see page EA1) ……………………………………………………….. ……………….. 

less − rebates (see page EA1) …….…………………………………………………... (………………) 

Tax payable: 

Please Note: Dividend tax is a final withholding tax of 15% and does not form 

part of the above tax calculation. 

* The tax liability of a trust created solely for the benefit of a person who suffers from mental illness or 

a serious physical disability (special trust) will also be calculated according to these steps, except 

that such a trust will not qualify for a rebate. The same applies to a deceased estate and insolvent 

estate.

SECTION EC 

FINANCIAL PLANNING 

LIFE EXPECTANCY (a55) ……………………………………………………………... 

INCREASING TERM ANNUITIES (capitalisation) …………………………………. 

USUFRUCTS, ANNUITIES AND FIDEICOMMISSUM …………………………….. 

– LIFE EXPECTANCY …………………………………………………………………………… 

– FIXED TERM …………………………………………………………………………………… 

MORTGAGE LOANS …………………………………………………………………… 

GE 6/2000 EC 

Page 

EC1 

EC2 

EC10 

EC10 

EC12 

EC13

LIFE EXPECTANCY (a55) 

Actual age Female Male Actual age Female Male 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

49 

50 

51 

52 

53 

54 

53 

52 

51 

50 

49 

48 

47 

46 

45 

44 

43 

43 

42 

41 

40 

39 

38 

37 

36 

35 

34 

33 

32 

32 

31 

30 

29 

28 

27 

26 

49 

48 

47 

46 

45 

44 

43 

42 

41 

40 

39 

38 

37 

36 

36 

35 

34 

33 

32 

31 

30 

29 

28 

27 

26 

26 

25 

24 

23 

22 

Death: Actual age = Calculation year minus spouse’s year of birth. 

GE 10/98 EC1 

55 

56 

57 

58 

59 

60 

61 

62 

63 

64 

65 

66 

67 

68 

69 

70 

71 

72 

73 

74 

75 

76 

77 

78 

79 

Retirement: Actual age = Retirement age as entered. 

80 

25 

24 

24 

23 

22 

21 

20 

20 

19 

18 

17 

16 

16 

15 

14 

14 

13 

12 

12 

11 

10 

10 

9 

9 

8 

8 

21 

21 

20 

19 

18 

18 

17 

16 

15 

15 

14 

13 

13 

12 

11 

11 

10 

10 

9 

9 

8 

8 

7 

7 

6 

6

INCREASING TERM ANNUITIES (capitalising) 

Capital required to provide a term annuity of R1,00 (payable annually in advance), increasing at the undermentioned annual growth rates, with an 

assumed net investment return of 15% p.a. 

TERM 

GE 9/2001 EC2 

Increase in annuity 

G = 0% G = 2% G = 3% G = 5% G = 7,5% G = 10% G = 12% G = 15% 

1 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1 

2 1,870 1,887 1,896 1,913 1,934 1,957 1,974 2 

3 2,626 2,674 2,698 2,747 2,809 2,871 2,922 3 

4 3,283 3,371 3,416 3,508 3,625 3,747 3,846 4 

5 3,855 3,990 4,060 4,203 4,389 4,584 4,746 5 

6 4,352 4,539 4,636 4,837 5,103 5,384 5,622 6 

7 4,784 5,026 5,152 5,417 5,770 6,150 6,475 7 

8 5,160 5,458 5,615 5,946 6,394 6,883 7,306 8 

9 5,487 5,841 6,029 6,429 6,977 7,584 8,116 9 

10 5,772 6,181 6,400 6,870 7,522 8,254 8,904 10 

11 6,019 6,482 6,732 7,272 8,031 8,895 9,672 11 

12 6,234 6,749 7,030 7,640 8,507 9,508 10,420 12 

13 6,421 6,986 7,296 7,976 8,953 10,095 11,148 13 

14 6,583 7,197 7,535 8,282 9,369 10,656 11,857 14 

15 6,724 7,383 7,748 8,562 9,758 11,193 12,548 15 

16 6,847 7,548 7,940 8,817 10,121 11,706 13,220 16 

17 6,954 7,695 8,111 9,051 10,461 12,197 13,875 17 

18 7,047 7,825 8,265 9,264 10,779 12,667 14,513 18 

19 7,128 7,941 8,403 9,458 11,076 13,116 15,135 19 

20 7,198 8,043 8,526 9,636 11,354 13,546 15,740 20 

21 7,259 8,134 8,636 9,798 11,613 13,957 16,329 21 

22 7,312 8,214 8,735 9,946 11,856 14,350 16,903 22 

23 7,359 8,286 8,823 10,081 12,083 14,726 17,462 23 

24 7,399 8,349 8,903 10,204 12,295 15,086 18,007 24 

25 7,434 8,405 8,974 10,317 12,493 15,430 18,537 25 

26 7,464 8,455 9,037 10,420 12,678 15,759 19,054 26 

27 7,491 8,499 9,094 10,514 12,851 16,074 19,557 27 

28 7,514 8,539 9,145 10,600 13,013 16,375 20,046 28 

29 7,534 8,573 9,191 10,678 13,164 16,663 20,523 29 

30 7,551 8,604 9,232 10,749 13,306 16,939 20,988 30




TERM 

GE 9/2001 EC3 


G = 0% G = 2% G = 3% G = 5% G = 7,5% G = 10% G = 12% G = 15% 

31 7,566 8,632 9,269 10,815 13,438 17,202 21,441 31 

32 7,579 8,656 9,302 10,874 13,562 17,454 21,881 32 

33 7,591 8,677 9,331 10,929 13,677 17,695 22,310 33 

34 7,600 8,696 9,357 10,978 13,785 17,926 22,728 34 

35 7,609 8,713 9,381 11,024 13,886 18,147 23,135 35 

36 7,617 8,728 9,402 11,065 13,981 18,358 23,532 36 

37 7,623 8,742 9,421 11,103 14,069 18,559 23,918 37 

38 7,629 8,753 9,438 11,137 14,151 18,753 24,294 38 

39 7,634 8,764 9,453 11,169 14,228 18,937 24,660 39 

40 7,638 8,773 9,467 11,198 14,300 19,114 25,017 40 

41 7,642 8,781 9,479 11,224 14,368 19,283 25,364 41 

42 7,645 8,789 9,490 11,248 14,431 19,444 25,703 42 

43 7,648 8,795 9,499 11,270 14,490 19,599 26,032 43 

44 7,650 8,801 9,508 11,290 14,545 19,747 26,353 44 

45 7,652 8,806 9,516 11,308 14,596 19,888 26,666 45 

46 7,654 8,811 9,523 11,325 14,644 20,024 26,970 46 

47 7,656 8,815 9,529 11,340 14,689 20,153 27,266 47 

48 7,657 8,818 9,535 11,354 14,731 20,277 27,555 48 

49 7,659 8,821 9,540 11,367 14,770 20,395 27,836 49 

50 7,660 8,824 9,545 11,378 14,807 20,508 28,110 50 

51 7,661 8,827 9,549 11,389 14,841 20,617 28,377 51 

52 7,661 8,829 9,552 11,399 14,874 20,720 28,637 52 

53 7,662 8,831 9,555 11,407 14,904 20,820 28,890 53 

54 7,663 8,833 9,558 11,415 14,932 20,914 29,136 54 

55 7,663 8,834 9,561 11,423 14,958 21,005 29,376 55




TERM 

GE 9/2001 EC4 


G = 0% G = 2% G = 3% G = 5% G = 7% G = 8% G = 10% G = 12% 

1 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1 

2 1,893 1,911 1,920 1,937 1,955 1,964 1,982 2 

3 2,690 2,740 2,765 2,816 2,868 2,894 2,947 3 

4 3,402 3,495 3,543 3,640 3,740 3,791 3,894 4 

5 4,037 4,183 4,258 4,413 4,573 4,655 4,825 5 

6 4,605 4,810 4,916 5,137 5,369 5,489 5,738 6 

7 5,111 5,380 5,521 5,816 6,129 6,293 6,636 7 

8 5,564 5,900 6,078 6,452 6,856 7,068 7,517 8 

9 5,968 6,373 6,589 7,049 7,550 7,816 8,383 9 

10 6,328 6,804 7,060 7,609 8,213 8,537 9,234 10 

11 6,650 7,197 7,492 8,133 8,846 9,232 10,069 11 

12 6,938 7,554 7,890 8,625 9,451 9,902 10,889 12 

13 7,194 7,880 8,256 9,086 10,029 10,549 11,694 13 

14 7,424 8,176 8,593 9,518 10,581 11,172 12,486 14 

15 7,628 8,446 8,902 9,923 11,109 11,773 13,263 15 

16 7,811 8,692 9,187 10,303 11,613 12,352 14,026 16 

17 7,974 8,916 9,449 10,659 12,095 12,911 14,775 17 

18 8,120 9,120 9,689 10,993 12,555 13,450 15,511 18 

19 8,250 9,306 9,911 11,306 12,994 13,970 16,234 19 

20 8,366 9,475 10,114 11,599 13,414 14,471 16,945 20 

21 8,469 9,629 10,302 11,874 13,815 14,954 17,642 21 

22 8,562 9,769 10,474 12,132 14,198 15,420 18,327 22 

23 8,645 9,897 10,632 12,374 14,565 15,869 19,000 23 

24 8,718 10,013 10,778 12,600 14,914 16,302 19,660 24 

25 8,784 10,119 10,912 12,813 15,249 16,720 20,309 25 

26 8,843 10,216 11,035 13,012 15,568 17,123 20,947 26 

27 8,896 10,304 11,148 13,199 15,873 17,512 21,573 27 

28 8,943 10,384 11,252 13,374 16,164 17,886 22,187 28 

29 8,984 10,456 11,348 13,538 16,443 18,247 22,791 29 

30 9,022 10,523 11,436 13,692 16,709 18,596 23,384 30




TERM 

GE 9/2001 EC5 


G = 0% G = 2% G = 3% G = 5% G = 7% G = 8% G = 10% G = 12% 

31 9,055 10,583 11,517 13,836 16,963 18,931 23,967 31 

32 9,085 10,638 11,592 13,971 17,205 19,255 24,539 32 

33 9,112 10,689 11,660 14,098 17,437 19,568 25,100 33 

34 9,135 10,734 11,723 14,217 17,659 19,869 25,652 34 

35 9,157 10,776 11,781 14,328 17,871 20,159 26,194 35 

36 9,176 10,814 11,835 14,433 18,073 20,439 26,726 36 

37 9,192 10,848 11,884 14,531 18,266 20,709 27,249 37 

38 9,208 10,880 11,929 14,623 18,450 20,970 27,763 38 

39 9,221 10,908 11,970 14,709 18,627 21,221 28,267 39 

40 9,233 10,934 12,008 14,789 18,795 21,463 28,762 40 

41 9,244 10,958 12,043 14,865 18,956 21,696 29,248 41 

42 9,253 10,980 12,075 14,936 19,110 21,921 29,726 42 

43 9,262 10,999 12,105 15,003 19,257 22,139 30,195 43 

44 9,270 11,017 12,132 15,065 19,397 22,348 30,656 44 

45 9,276 11,033 12,157 15,123 19,531 22,550 31,109 45 

46 9,283 11,048 12,181 15,178 19,659 22,744 31,553 46 

47 9,288 11,062 12,202 15,230 19,782 22,932 31,990 47 

48 9,293 11,074 12,221 15,278 19,898 23,113 32,418 48 

49 9,297 11,085 12,239 15,323 20,010 23,288 32,840 49 

50 9,301 11,096 12,256 15,365 20,117 23,456 33,253 50 

51 9,304 11,105 12,271 15,405 20,219 23,618 33,659 51 

52 9,308 11,113 12,285 15,442 20,316 23,775 34,058 52 

53 9,310 11,121 12,298 15,477 20,409 23,926 34,450 53 

54 9,313 11,128 12,309 15,510 20,498 24,071 34,835 54 

55 9,315 11,135 12,320 15,540 20,583 24,211 35,213 55




TERM 

GE 9/2001 EC6 


G = 0% G = 2% G = 3% G = 5% G = 6% G = 7% G = 8% G = 9% 

1 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1 

2 1,917 1,936 1,945 1,963 1,972 1,982 1,991 2 

3 2,759 2,811 2,838 2,891 2,918 2,945 2,973 3 

4 3,531 3,631 3,682 3,785 3,838 3,891 3,945 4 

5 4,240 4,398 4,479 4,646 4,732 4,820 4,909 5 

6 4,890 5,115 5,232 5,476 5,602 5,731 5,864 6 

7 5,486 5,787 5,944 6,275 6,448 6,626 6,810 7 

8 6,033 6,415 6,617 7,045 7,270 7,505 7,748 8 

9 6,535 7,003 7,253 7,786 8,070 8,367 8,677 9 

10 6,995 7,553 7,854 8,500 8,848 9,213 9,597 10 

11 7,418 8,068 8,421 9,188 9,605 10,044 10,509 11 

12 7,805 8,550 8,958 9,851 10,340 10,860 11,413 12 

13 8,161 9,001 9,465 10,490 11,056 11,661 12,308 13 

14 8,487 9,423 9,944 11,105 11,751 12,447 13,195 14 

15 8,786 9,818 10,396 11,697 12,428 13,218 14,074 15 

16 9,061 10,187 10,824 12,268 13,086 13,976 14,945 16 

17 9,313 10,533 11,228 12,818 13,726 14,719 15,808 17 

18 9,544 10,857 11,610 13,347 14,348 15,449 16,663 18 

19 9,756 11,160 11,971 13,858 14,953 16,166 17,510 19 

20 9,950 11,443 12,312 14,349 15,542 16,869 18,349 20 

21 10,129 11,708 12,634 14,822 16,114 17,560 19,181 21 

22 10,292 11,956 12,939 15,279 16,670 18,238 20,005 22 

23 10,442 12,188 13,227 15,718 17,211 18,903 20,821 23 

24 10,580 12,406 13,499 16,141 17,738 19,556 21,630 24 

25 10,707 12,609 13,756 16,549 18,250 20,197 22,432 25 

26 10,823 12,799 13,998 16,941 18,747 20,827 23,226 26 

27 10,929 12,977 14,228 17,320 19,231 21,445 24,013 27 

28 11,027 13,144 14,445 17,684 19,702 22,051 24,793 28 

29 11,116 13,300 14,650 18,035 20,160 22,646 25,565 29 

30 11,198 13,446 14,843 18,373 20,605 23,231 26,331 30




TERM 

GE 9/2001 EC7 


G = 0% G = 2% G = 3% G = 5% G = 6% G = 7% G = 8% G = 9% 

31 11,274 13,582 15,026 18,699 21,038 23,805 27,089 31 

32 11,343 13,710 15,199 19,013 21,459 24,368 27,841 32 

33 11,406 13,829 15,362 19,315 21,868 24,921 28,585 33 

34 11,464 13,941 15,517 19,606 22,266 25,464 29,323 34 

35 11,518 14,046 15,663 19,887 22,653 25,996 30,054 35 

36 11,567 14,144 15,800 20,157 23,030 26,519 30,778 36 

37 11,612 14,236 15,931 20,417 23,396 27,033 31,496 37 

38 11,653 14,321 16,054 20,668 23,752 27,537 32,207 38 

39 11,691 14,402 16,170 20,910 24,098 28,031 32,911 39 

40 11,726 14,477 16,280 21,142 24,435 28,517 33,609 40 

41 11,757 14,547 16,384 21,366 24,763 28,994 34,301 41 

42 11,787 14,613 16,482 21,582 25,081 29,462 34,986 42 

43 11,813 14,674 16,575 21,790 25,391 29,921 35,665 43 

44 11,838 14,732 16,662 21,991 25,692 30,372 36,338 44 

45 11,861 14,786 16,745 22,184 25,985 30,815 37,005 45 

46 11,881 14,836 16,823 22,370 26,270 31,250 37,665 46 

47 11,900 14,884 16,897 22,549 26,547 31,676 38,320 47 

48 11,918 14,928 16,967 22,721 26,816 32,095 38,968 48 

49 11,934 14,969 17,033 22,887 27,078 32,506 39,611 49 

50 11,948 15,008 17,096 23,048 27,333 32,910 40,247 50 

51 11,962 15,044 17,155 23,202 27,580 33,306 40,878 51 

52 11,974 15,078 17,210 23,350 27,821 33,695 41,503 52 

53 11,985 15,110 17,263 23,493 28,056 34,076 42,122 53 

54 11,996 15,139 17,313 23,631 28,283 34,451 42,736 54 

55 12,005 15,167 17,360 23,764 28,505 34,819 43,344 55


Capital required to provide a term annuity of R1,00 (payable annually in advance), increasing at the undermentioned annual 

growth rates, with an assumed net investment return of 6% p.a. 

TERM 

GE 9/2001 EC8 


G = 0% G = 1% G = 2% G = 3% G = 4% G = 5% G = 6% 

1 1,000 1,000 1,000 1,000 1,000 1,000 1 

2 1,943 1,953 1,962 1,972 1,981 1,991 2 

3 2,833 2,861 2,888 2,916 2,944 2,972 3 

4 3,673 3,726 3,779 3,833 3,888 3,944 4 

5 4,465 4,550 4,637 4,725 4,815 4,907 5 

6 5,212 5,335 5,462 5,591 5,724 5,860 6 

7 5,917 6,084 6,256 6,433 6,616 6,805 7 

8 6,582 6,797 7,019 7,251 7,491 7,741 8 

9 7,210 7,476 7,755 8,046 8,350 8,668 9 

10 7,802 8,124 8,462 8,818 9,192 9,586 10 

11 8,360 8,740 9,143 9,568 10,019 10,496 11 

12 8,887 9,328 9,798 10,298 10,830 11,397 12 

13 9,384 9,888 10,428 11,006 11,625 12,289 13 

14 9,853 10,422 11,034 11,695 12,406 13,173 14 

15 10,295 10,930 11,618 12,364 13,172 14,049 15 

16 10,712 11,414 12,180 13,014 13,924 14,916 16 

17 11,106 11,876 12,720 13,645 14,661 15,776 17 

18 11,477 12,316 13,240 14,259 15,384 16,627 18 

19 11,828 12,735 13,740 14,856 16,094 17,470 19 

20 12,158 13,134 14,222 15,435 16,790 18,305 20 

21 12,470 13,515 14,685 15,998 17,473 19,132 21 

22 12,764 13,877 15,131 16,546 18,144 19,952 22 

23 13,042 14,223 15,560 17,077 18,801 20,764 23 

24 13,303 14,552 15,973 17,594 19,447 21,568 24 

25 13,550 14,865 16,370 18,096 20,080 22,364 25 

26 13,783 15,164 16,752 18,584 20,701 23,153 26 

27 14,003 15,449 17,120 19,058 21,310 23,935 27 

28 14,211 15,720 17,474 19,519 21,908 24,709 28 

29 14,406 15,979 17,815 19,966 22,495 25,476 29 

30 14,591 16,225 18,143 20,401 23,070 26,236 30


Capital required to provide a term annuity of R1,00 (payable annually in advance), increasing at the undermentioned annual 

growth rates, with an assumed net investment return of 6% p.a. 

TERM 

GE 9/2001 EC9 


G = 0% G = 1% G = 2% G = 3% G = 4% G = 5% G = 6% 

31 14,765 16,460 18,458 20,824 23,635 26,988 31 

32 14,929 16,683 18,761 21,234 24,189 27,734 32 

33 15,084 16,896 19,053 21,633 24,733 28,472 33 

34 15,230 17,099 19,334 22,021 25,266 29,203 34 

35 15,368 17,293 19,605 22,398 25,789 29,928 35 

36 15,498 17,477 19,865 22,764 26,303 30,645 36 

37 15,621 17,653 20,115 23,120 26,807 31,356 37 

38 15,737 17,820 20,356 23,465 27,301 32,061 38 

39 15,846 17,979 20,588 23,801 27,786 32,758 39 

40 15,949 18,131 20,811 24,128 28,261 33,449 40 

41 16,046 18,276 21,026 24,445 28,728 34,133 41 

42 16,138 18,414 21,232 24,753 29,186 34,811 42 

43 16,225 18,545 21,431 25,052 29,635 35,483 43 

44 16,306 18,671 21,623 25,343 30,076 36,148 44 

45 16,383 18,790 21,807 25,626 30,509 36,807 45 

46 16,456 18,904 21,984 25,901 30,933 37,460 46 

47 16,524 19,012 22,154 26,168 31,350 38,107 47 

48 16,589 19,115 22,318 26,427 31,758 38,747 48 

49 16,650 19,213 22,476 26,679 32,159 39,382 49 

50 16,708 19,307 22,628 26,924 32,552 40,010 50 

51 16,762 19,396 22,774 27,162 32,938 40,633 51 

52 16,813 19,482 22,914 27,393 33,316 41,249 52 

53 16,861 19,563 23,050 27,618 33,688 41,860 53 

54 16,907 19,640 23,180 27,836 34,052 42,465 54 

55 16,950 19,713 23,305 28,049 34,410 43,065 55

Age next birtday 

USUFRUCT, ANNUITIES AND FIDEICOMMISSUM 

EC 

CAPITALISED VALUE (AT 12%) OVER 

LIFE EXPECTANCY 

GE 6/2000 EC10 

MALES FEMALES 

A B A B 

0 - 5 8,33 99,96 8,33 99,96 

6 8,32 99,84 8,33 99,96 

7 8,32 99,84 8,33 99,96 

8 8,32 99,84 8,33 99,96 

9 8,32 99,84 8,33 99,96 

10 8,32 99,84 8,33 99,96 

11 8,32 99,84 8,33 99,96 

12 8,32 99,84 8,33 99,96 

13 8,31 99,72 8,33 99,96 

14 8,31 99,72 8,32 99,84 

15 8,31 99,72 8,32 99,84 

16 8,31 99,72 8,32 99,84 

17 8,30 99,60 8,32 99,84 

18 8,30 99,60 8,32 99,84 

19 8,30 99,60 8,32 99,84 

20 8,29 99,48 8,32 99,84 

21 8,29 99,48 8,31 99,72 

22 8,29 99,48 8,31 99,72 

23 8,28 99,36 8,31 99,72 

24 8,28 99,36 8,31 99,72 

25 8,27 99,24 8,30 99,60 

26 8,26 99,12 8,30 99,60 

27 8,26 99,12 8,30 99,60 

28 8,25 99,00 8,29 99,48 

29 8,24 98,88 8,29 99,48 

30 8,23 98,76 8,28 99,36 

31 8,22 98,64 8,28 99,36 

32 8,20 98,40 8,27 99,24 

33 8,19 98,28 8,26 99,12 

34 8,17 98,04 8,25 99,00 

35 8,16 97,92 8,25 99,00 

36 8,14 97,68 8,24 98,88 

37 8,12 97,44 8,22 98,64 

38 8,09 97,08 8,21 98,52 

39 8,07 96,84 8,20 98,40 

40 8,04 96,48 8,18 98,16 

41 8,01 96,12 8,17 98,04 

42 7,98 95,76 8,15 97,80 

43 7,94 95,28 8,13 97,56 

44 7,91 94,92 8,11 97,32 

45 7,86 94,32 8,09 97,08 

46 7,82 93,84 8,06 96,72 

47 7,77 93,24 8,03 96,36 

48 7,72 92,64 8,00 96,00 

49 7,66 91,92 7,97 95,64 

A = R1 per annum annuity 

B = Usufruct or Fiduciary value of R100 asset

Age next birtday 



LIFE EXPECTANCY 

GE 6/2000 EC11 

MALES FEMALES 

A B A B 

50 7,60 91,20 7,93 95,16 

51 7,54 90,48 7,89 94,68 

52 7,47 89,64 7,85 94,20 

53 7,39 88,68 7,80 93,60 

54 7,32 87,84 7,75 93,00 

55 7,23 86,76 7,69 92,28 

56 7,14 85,68 7,63 91,56 

57 7,05 84,60 7,57 90,84 

58 6,95 83,40 7,50 90,00 

59 6,85 82,20 7,42 89,04 

60 6,74 80,88 7,34 88,08 

61 6,63 79,56 7,25 87,00 

62 6,51 78,12 7,16 85,92 

63 6,39 76,68 7,06 84,72 

64 6,27 75,24 6,96 83,52 

65 6,14 73,68 6,84 82,08 

66 6,01 72,12 6,72 80,64 

67 5,87 70,44 6,60 79,20 

68 5,73 68,76 6,47 77,64 

69 5,59 67,08 6,33 75,96 

70 5,45 65,40 6,18 74,16 

71 5,31 63,72 6,04 72,48 

72 5,17 62,04 5,88 70,56 

73 5,02 60,24 5,72 68,64 

74 4,88 58,56 5,56 66,72 

75 4,73 56,76 5,39 64,68 

76 4,59 55,08 5,22 62,64 

77 4,45 53,40 5,05 60,60 

78 4,30 51,60 4,87 58,44 

79 4,16 49,92 4,69 56,28 

80 4,02 48,24 4,52 54,24 

81 3,89 46,68 4,34 52,08 

82 3,77 45,24 4,17 50,04 

83 3,65 43,80 4,00 48,00 

84 3,55 42,60 3,84 46,08 

85 3,45 41,40 3,68 44,16 

86 3,37 40,44 3,52 42,24 

87 3,30 39,60 3,37 40,44 

88 3,25 39,00 3,23 38,76 

89 3,23 38,76 3,10 37,20 

90 - 100 3,21 38,52 2,99 35,88 


B = Usufruct or Fiduciary value of R100 asset

TERM A B TERM A B 

1 0,89 10,68 29 8,02 96,24 

2 1,69 20,28 30 8,06 96,72 

3 2,40 28,80 31 8,08 96,96 

4 3,04 36,48 32 8,11 97,32 

5 3,60 43,20 33 8,14 97,68 

6 4,11 49,32 34 8,16 97,92 

7 4,56 54,72 35 8,18 98,16 

8 4,97 59,64 36 8,19 98,28 

9 5,33 63,96 37 8,21 98,52 

10 5,65 67,80 38 8,22 98,64 

11 5,94 71,28 39 8,23 98,76 

12 6,19 74,28 40 8,24 98,88 

13 6,42 77,04 41 8,25 99,00 

14 6,63 79,56 42 8,26 99,12 

15 6,81 81,72 43 8,27 99,24 

16 6,97 83,64 44 8,28 99,36 

17 7,12 85,44 45 8,28 99,36 

18 7,25 87,00 46 8,29 99,48 

19 7,37 88,44 47 8,29 99,48 

20 7,47 89,64 48 8,30 99,60 

21 7,56 90,72 49 8,30 99,60 

22 7,64 91,68 50 8,30 99,60 

23 7,72 92,64 51 8,31 99,72 

24 7,78 93,36 52 8,31 99,72 

25 7,84 94,08 53 8,31 99,72 

26 7,90 94,80 54 8,32 99,84 

27 7,94 95,28 55 8,32 99,84 

28 7,98 95,76 56 8,32 99,84 


B = Usufruct or Fiduciary value of R100 asset 



A FIXED TERM 

Note : Fractions of a year are not taken into account. 

GE 6/2000 EC12

Monthly instalment (payable in arrears) per R10 000 mortgage. 

MORTGAGE LOANS 

Interest rate p.a. 

ORIGINAL TERM 

% 5 10 15 20 25 30 

13,0 227,53 149,31 126,52 117,16 112,78 110,62 

13,5 230,10 152,27 129,83 120,74 116,56 114,54 

14,0 232,68 155,27 133,17 124,35 120,38 118,49 

14,5 235,28 158,29 136,55 128,00 124,22 122,46 

15,0 237,90 161,33 139,96 131,68 128,08 126,44 

15,5 240,53 164,41 143,40 135,39 131,97 130,45 

16,0 243,18 167,51 146,87 139,13 135,89 134,48 

16,5 245,85 170,64 150,37 142,89 139,82 138,51 

17,0 248,53 173,80 153,90 146,68 143,78 142,57 

17,5 251,22 176,98 157,46 150,49 147,75 146,63 

18,0 253,93 180,19 161,04 154,33 151,74 150,71 

18,5 256,66 183,42 164,65 158,19 155,75 154,79 

19,0 259,41 186,67 168,29 162,07 159,77 158,89 

19,5 262,16 189,95 171,95 165,97 163,80 162,99 

20,0 264,94 193,26 175,63 169,88 167,85 167,10 

20,5 267,73 196,58 179,33 173,82 171,90 171,22 

21,0 270,53 199,93 183,06 177,76 175,97 175,34 

21,5 273,35 203,30 186,81 181,73 180,04 179,47 

22,0 276,19 206,70 190,58 185,71 184,12 183,60 

22,5 279,04 210,11 194,36 189,70 188,22 187,73 

Note: The interest rate per annum is compounded montly. 

GE 6/2000 EC13

SECTION ED 

INTEREST TABLES 

THE USE OF INTEREST TABLES………………………………………………………. ED1 

TABLE A (lump sum investments)…………………………………………………………………. ED2 

GE 10/98 ED 

Page 

TABLE B (annually recurring investments)………………………………………………….. ED10 

TABLE C (monthly recurring investments)………………………………………………………… ED18

Table A : Single premium investment – see page 2 

Table B : Annually recurring investments (payable in advance) – see page 10 

Table C : Monthly recurring investments (payable in advance) – see page 18 

TO DETERMINE THE 

The following procedure must be used to determine the proceeds: 

– Use the appropriate table, namely table A, B or C. 

– Read off the factor opposite the term and under the appropriate interest rate. 

– Multiply the factor with the original investment (single premium investment, annually recurring 

investment or monthly recurring investment, according to what the case may be) to determine the 

illustrative proceeds. 


The following procedure must be used to determine the initial investment: 


– Read off the factor opposite the term and under the appropriate interest rate. 

– The factor is divided into the proceeds to determine the original investment. 

TO DETERMINE THE I INTEREST RATE (YIELD) 

The following procedure must be used to determine the interest rate (yield): 


– Calculate the factor by dividing the original investment into the proceeds. 

– Look in the table opposite the appropriate term for a factor nearest to the calculated factor and 

read off the interest rate. 


INTEREST TABLES 

THE USE OF INTEREST TABLES 

ILLUSTRATIVE PROCEEDS 

INITIAL INVESTMENT 

TERM 

The following procedure must be used to determine the term: 


– Calculate the factor by dividing the original investment into the proceeds. 

– Look in the table under the appropriate interest rate for a factor nearest to the calculated factor, 

and read off the term. 

GE 10/98 ED1

TERM 

GE 10/98 ED2 

TABLE A 

LUMP SUM INVESTMENTS (projection) 

(one unit capital) 

Effective interest rate per annum 

4,0% 4,5% 5,0% 5,5% 6,0% 6,5% 7,0% 7,5% 8,0% 8,5% 

(1 + i) n 

1 1,040 1,045 1,050 1,055 1,060 1,065 1,070 1,075 1,080 1,085 

2 1,082 1,092 1,102 1,113 1,124 1,134 1,145 1,156 1,166 1,177 

3 1,125 1,141 1,158 1,174 1,191 1,208 1,225 1,242 1,260 1,277 

4 1,170 1,193 1,216 1,239 1,262 1,286 1,311 1,335 1,360 1,386 

5 1,217 1,246 1,276 1,307 1,338 1,370 1,403 1,436 1,469 1,504 

6 1,265 1,302 1,340 1,379 1,419 1,459 1,501 1,543 1,587 1,631 

7 1,316 1,361 1,407 1,455 1,504 1,554 1,606 1,659 1,714 1,770 

8 1,369 1,422 1,477 1,535 1,594 1,655 1,718 1,783 1,851 1,921 

9 1,423 1,486 1,551 1,619 1,689 1,763 1,838 1,917 1,999 2,084 

10 1,480 1,553 1,629 1,708 1,791 1,877 1,967 2,061 2,159 2,261 

11 1,539 1,623 1,710 1,802 1,898 1,999 2,105 2,216 2,332 2,453 

12 1,601 1,696 1,796 1,901 2,012 2,129 2,252 2,382 2,518 2,662 

13 1,665 1,772 1,886 2,006 2,133 2,267 2,410 2,560 2,720 2,888 

14 1,732 1,852 1,980 2,116 2,261 2,415 2,579 2,752 2,937 3,133 

15 1,801 1,935 2,079 2,232 2,397 2,572 2,759 2,959 3,172 3,400 

16 1,873 2,022 2,183 2,355 2,540 2,739 2,952 3,181 3,426 3,689 

17 1,948 2,113 2,292 2,485 2,693 2,917 3,159 3,419 3,700 4,002 

18 2,026 2,208 2,407 2,621 2,854 3,107 3,380 3,676 3,996 4,342 

19 2,107 2,308 2,527 2,766 3,026 3,309 3,617 3,951 4,316 4,712 

20 2,191 2,412 2,653 2,918 3,207 3,524 3,870 4,248 4,661 5,112 

21 2,279 2,520 2,786 3,078 3,400 3,753 4,141 4,566 5,034 5,547 

22 2,370 2,634 2,925 3,248 3,604 3,997 4,430 4,909 5,437 6,018 

23 2,465 2,752 3,072 3,426 3,820 4,256 4,741 5,277 5,871 6,530 

24 2,563 2,876 3,225 3,615 4,049 4,533 5,072 5,673 6,341 7,085 

25 2,666 3,005 3,386 3,813 4,292 4,828 5,427 6,098 6,848 7,687 

26 2,772 3,141 3,556 4,023 4,549 5,141 5,807 6,556 7,396 8,340 

27 2,883 3,282 3,733 4,244 4,822 5,476 6,214 7,047 7,988 9,049 

28 2,999 3,430 3,920 4,478 5,112 5,832 6,649 7,576 8,627 9,818 

29 3,119 3,584 4,116 4,724 5,418 6,211 7,114 8,144 9,317 10,653 

30 3,243 3,745 4,322 4,984 5,743 6,614 7,612 8,755 10,063 11,558

GE 10/98 ED3 

TABLE A 




(1 + i) n 

4,0% 4,5% 5,0% 5,5% 6,0% 6,5% 7,0% 7,5% 8,0% 8,5% 

31 3,373 3,914 4,538 5,258 6,088 7,044 8,145 9,412 10,868 12,541 

32 3,508 4,090 4,765 5,547 6,453 7,502 8,715 10,117 11,737 13,607 

33 3,648 4,274 5,003 5,852 6,841 7,990 9,325 10,876 12,676 14,763 

34 3,794 4,466 5,253 6,174 7,251 8,509 9,978 11,692 13,690 16,018 

35 3,946 4,667 5,516 6,514 7,686 9,062 10,677 12,569 14,785 17,380 

36 4,104 4,877 5,792 6,872 8,147 9,651 11,424 13,512 15,968 18,857 

37 4,268 5,097 6,081 7,250 8,636 10,279 12,224 14,525 17,246 20,460 

38 4,439 5,326 6,385 7,649 9,154 10,947 13,079 15,614 18,625 22,199 

39 4,616 5,566 6,705 8,069 9,704 11,658 13,995 16,785 20,115 24,086 

40 4,801 5,816 7,040 8,513 10,286 12,416 14,974 18,044 21,725 26,133 

41 4,993 6,078 7,392 8,982 10,903 13,223 16,023 19,398 23,462 28,354 

42 5,193 6,352 7,762 9,476 11,557 14,083 17,144 20,852 25,339 30,764 

43 5,400 6,637 8,150 9,997 12,250 14,998 18,344 22,416 27,367 33,379 

44 5,617 6,936 8,557 10,546 12,985 15,973 19,628 24,098 29,556 36,217 

45 5,841 7,248 8,985 11,127 13,765 17,011 21,002 25,905 31,920 39,295

TERM 

TABLE A 



GE 10/98 ED4 


(1 + i) n 

9,0% 9,5% 10,0% 10,5% 11,0% 11,5% 12,0% 12,5% 13,0% 13,5% 

1 1,090 1,095 1,100 1,105 1,110 1,115 1,120 1,125 1,130 1,135 

2 1,188 1,199 1,210 1,221 1,232 1,243 1,254 1,266 1,277 1,288 

3 1,295 1,313 1,331 1,349 1,368 1,386 1,405 1,424 1,443 1,462 

4 1,412 1,438 1,464 1,491 1,518 1,546 1,574 1,602 1,630 1,660 

5 1,539 1,574 1,611 1,647 1,685 1,723 1,762 1,802 1,842 1,884 

6 1,677 1,724 1,772 1,820 1,870 1,922 1,974 2,027 2,082 2,138 

7 1,828 1,888 1,949 2,012 2,076 2,143 2,211 2,281 2,353 2,426 

8 1,993 2,067 2,144 2,223 2,305 2,389 2,476 2,566 2,658 2,754 

9 2,172 2,263 2,358 2,456 2,558 2,664 2,773 2,887 3,004 3,126 

10 2,367 2,478 2,594 2,714 2,839 2,970 3,106 3,247 3,395 3,548 

11 2,580 2,714 2,853 2,999 3,152 3,311 3,479 3,653 3,836 4,027 

12 2,813 2,971 3,138 3,314 3,498 3,692 3,896 4,110 4,335 4,570 

13 3,066 3,254 3,452 3,662 3,883 4,117 4,363 4,624 4,898 5,187 

14 3,342 3,563 3,797 4,046 4,310 4,590 4,887 5,202 5,535 5,888 

15 3,642 3,901 4,177 4,471 4,785 5,118 5,474 5,852 6,254 6,682 

16 3,970 4,272 4,595 4,941 5,311 5,707 6,130 6,583 7,067 7,585 

17 4,328 4,678 5,054 5,460 5,895 6,363 6,866 7,406 7,986 8,609 

18 4,717 5,122 5,560 6,033 6,544 7,095 7,690 8,332 9,024 9,771 

19 5,142 5,609 6,116 6,666 7,263 7,911 8,613 9,373 10,197 11,090 

20 5,604 6,142 6,727 7,366 8,062 8,821 9,646 10,545 11,523 12,587 

21 6,109 6,725 7,400 8,140 8,949 9,835 10,804 11,863 13,021 14,286 

22 6,659 7,364 8,140 8,994 9,934 10,966 12,100 13,346 14,714 16,215 

23 7,258 8,064 8,954 9,939 11,026 12,227 13,552 15,014 16,627 18,404 

24 7,911 8,830 9,850 10,982 12,239 13,633 15,179 16,891 18,788 20,888 

25 8,623 9,668 10,835 12,135 13,585 15,201 17,000 19,003 21,231 23,708 

26 9,399 10,587 11,918 13,410 15,080 16,949 19,040 21,378 23,991 26,909 

27 10,245 11,593 13,110 14,818 16,739 18,898 21,325 24,050 27,109 30,541 

28 11,167 12,694 14,421 16,374 18,580 21,072 23,884 27,056 30,633 34,664 

29 12,172 13,900 15,863 18,093 20,624 23,495 26,750 30,438 34,616 39,344 

30 13,268 15,220 17,449 19,993 22,892 26,197 29,960 34,243 39,116 44,656

TERM 

TABLE A 



GE 10/98 ED5 


(1 + i) n 

9,0% 9,5% 10,0% 10,5% 11,0% 11,5% 12,0% 12,5% 13,0% 13,5% 

31 14,462 16,666 19,194 22,092 25,410 29,209 33,555 38,524 44,201 50,684 

32 15,763 18,250 21,114 24,411 28,206 32,568 37,582 43,339 49,947 57,526 

33 17,182 19,983 23,225 26,975 31,308 36,314 42,092 48,757 56,440 65,293 

34 18,728 21,882 25,548 29,807 34,752 40,490 47,143 54,851 63,777 74,107 

35 20,414 23,960 28,102 32,937 38,575 45,146 52,800 61,708 72,069 84,111 

36 22,251 26,237 30,913 36,395 42,818 50,338 59,136 69,421 81,437 95,467 

37 24,254 28,729 34,004 40,217 47,528 56,127 66,232 78,099 92,024 108,354 

38 26,437 31,458 37,404 44,439 52,756 62,581 74,180 87,861 103,987 122,982 

39 28,816 34,447 41,145 9,105 58,559 69,778 83,081 98,844 117,506 139,585 

40 31,409 37,719 45,259 54,261 65,001 77,803 93,051 111,199 132,782 158,429 

41 34,236 41,303 49,785 59,959 72,151 86,750 104,217 125,099 150,043 179,817 

42 37,318 45,227 54,764 66,255 80,088 96,726 116,723 140,736 169,549 204,092 

43 40,676 49,523 60,240 73,211 88,897 107,850 130,730 158,328 191,590 231,645 

44 44,337 54,228 66,264 80,898 98,676 120,253 146,418 178,119 216,497 262,917 

45 48,327 59,379 72,890 89,393 109,530 134,082 163,988 200,384 244,641 298,410

TERM 

TABLE A 



GE 10/98 ED6 


14,0% 14,5% 15,0% 15,5% 16,0% 16,5% 17,0% 17,5% 18,0% 18,5% 

(1 + i) n 

1 1,140 1,145 1,150 1,155 1,160 1,165 1,170 1,175 1,180 1,185 

2 1,300 1,311 1,322 1,334 1,346 1,357 1,369 1,381 1,392 1,404 

3 1,482 1,501 1,521 1,541 1,561 1,581 1,602 1,622 1,643 1,664 

4 1,689 1,719 1,749 1,780 1,811 1,842 1,874 1,906 1,939 1,972 

5 1,925 1,968 2,011 2,055 2,100 2,146 2,192 2,240 2,288 2,337 

6 2,195 2,253 2,313 2,374 2,436 2,500 2,565 2,632 2,700 2,769 

7 2,502 2,580 2,660 2,742 2,826 2,913 3,001 3,092 3,185 3,281 

8 2,853 2,954 3,059 3,167 3,278 3,393 3,511 3,633 3,759 3,888 

9 3,252 3,383 3,518 3,658 3,803 3,953 4,108 4,269 4,435 4,607 

10 3,707 3,873 4,046 4,225 4,411 4,605 4,807 5,016 5,234 5,460 

11 4,226 4,435 4,652 4,880 5,117 5,365 5,624 5,894 6,176 6,470 

12 4,818 5,078 5,350 5,636 5,936 6,250 6,580 6,926 7,288 7,667 

13 5,492 5,814 6,153 6,510 6,886 7,282 7,699 8,138 8,599 9,085 

14 6,261 6,657 7,076 7,519 7,988 8,483 9,007 9,562 10,147 10,766 

15 7,138 7,622 8,137 8,684 9,266 9,883 10,539 11,235 11,974 12,758 

16 8,137 8,727 9,358 10,030 10,748 11,514 12,330 13,201 14,129 15,118 

17 9,276 9,993 10,761 11,585 12,468 13,413 14,426 15,511 16,672 17,915 

18 10,575 11,442 12,375 13,381 14,463 15,627 16,879 18,226 19,673 21,229 

19 12,056 13,101 14,232 15,455 16,777 18,205 19,748 21,415 23,214 25,156 

20 13,743 15,001 16,367 17,850 19,461 21,209 23,106 25,163 27,393 29,810 

21 15,668 17,176 18,822 20,617 22,574 24,708 27,034 29,566 32,324 35,325 

22 17,861 19,666 21,645 23,812 26,186 28,785 31,629 34,740 38,142 41,860 

23 20,362 22,518 24,891 27,503 30,376 33,535 37,006 40,820 45,008 49,605 

24 23,212 25,783 28,625 31,766 35,236 39,068 43,297 47,963 53,109 58,781 

25 26,462 29,521 32,919 36,690 40,874 45,514 50,658 56,357 62,669 69,656 

26 30,167 33,802 37,857 42,377 47,414 53,024 59,270 66,219 73,949 82,542 

27 34,390 38,703 43,535 48,946 55,000 61,773 69,345 77,808 87,260 97,813 

28 39,204 44,315 50,066 56,532 63,800 71,966 81,134 91,424 102,967 115,908 

29 44,693 50,741 57,575 65,295 74,009 83,840 94,927 107,423 121,501 137,351 

30 50,950 58,098 66,212 75,415 85,850 97,674 111,065 126,222 143,371 162,761

TERM 

TABLE A 



GE 10/98 ED7 


(1 + i) n 

14,0% 14,5% 15,0% 15,5% 16,0% 16,5% 17,0% 17,5% 18,0% 18,5% 

31 58,083 66,523 76,144 87,105 99,586 113,790 129,946 148,311 169,177 192,872 

32 66,215 76,169 87,565 100,606 115,520 132,565 152,036 174,266 199,629 228,553 

33 75,485 87,213 100,700 116,200 134,003 154,438 177,883 204,762 235,563 270,835 

34 86,053 99,859 115,805 134,211 155,443 179,921 208,123 240,595 277,964 320,940 

35 98,100 114,338 133,176 155,013 180,314 209,608 243,503 282,700 327,997 380,314 

36 111,834 130,917 153,152 179,041 209,164 244,193 284,899 332,172 387,037 450,672 

37 127,491 149,900 176,125 206,792 242,631 284,485 333,332 390,302 456,703 534,046 

38 145,340 171,636 202,543 238,845 281,452 331,425 389,998 458,605 538,910 632,845 

39 165,687 196,523 232,925 275,865 326,484 386,110 456,298 538,861 635,914 749,921 

40 188,884 225,019 267,864 318,625 378,721 449,818 533,869 633,162 750,378 888,657 

41 215,327 257,647 308,043 368,011 439,317 524,038 624,626 743,965 885,446 1053,058 

42 245,473 295,006 354,250 425,053 509,607 610,504 730,813 874,159 1044,827 1247,874 

43 279,839 337,782 407,387 490,936 591,144 711,238 855,051 1027,137 1232,896 1478,731 

44 319,017 386,760 468,495 567,032 685,727 828,592 1000,410 1206,886 1454,817 1752,296 

45 363,679 442,840 538,769 654,922 795,444 965,310 1170,479 1418,091 1716,684 2076,471

TERM 

TABLE A 



GE 10/98 ED8 


19,0% 19,5% 20,0% 20,5% 21,0% 21,5% 22,0% 23,0% 24,0% 25,0% 

(1 + i) n 

1 1,190 1,195 1,200 1,205 1,210 1,215 1,220 1,230 1,240 1,250 

2 1,416 1,428 1,440 1,452 1,464 1,476 1,488 1,513 1,538 1,562 

3 1,685 1,706 1,728 1,750 1,772 1,794 1,816 1,861 1,907 1,953 

4 2,005 2,039 2,074 2,108 2,144 2,179 2,215 2,289 2,364 2,441 

5 2,386 2,437 2,488 2,541 2,594 2,648 2,703 2,815 2,932 3,052 

6 2,840 2,912 2,986 3,061 3,138 3,217 3,297 3,463 3,635 3,815 

7 3,379 3,480 3,583 3,689 3,797 3,909 4,023 4,259 4,508 4,768 

8 4,021 4,159 4,300 4,445 4,595 4,749 4,908 5,239 5,590 5,960 

9 4,785 4,969 5,160 5,357 5,560 5,770 5,987 6,444 6,931 7,451 

10 5,695 5,939 6,192 6,455 6,727 7,011 7,305 7,926 8,594 9,313 

11 6,777 7,097 7,430 7,778 8,140 8,518 8,912 9,749 10,657 11,642 

12 8,064 8,480 8,916 9,372 9,850 10,349 10,872 11,991 13,215 14,552 

13 9,596 10,134 10,699 11,294 11,918 12,575 13,264 14,749 16,386 18,190 

14 11,420 12,110 12,839 13,609 14,421 15,278 16,182 18,141 20,319 22,737 

15 13,590 14,472 15,407 16,399 17,449 18,563 19,742 22,314 25,196 28,422 

16 16,172 17,294 18,488 19,760 21,114 22,554 24,086 27,446 31,243 35,527 

17 19,244 20,666 22,186 23,811 25,548 27,403 29,384 33,759 38,741 44,409 

18 22,901 24,696 26,623 28,692 30,913 33,295 35,849 41,523 48,039 55,511 

19 27,252 29,511 31,948 34,574 37,404 40,453 43,736 51,074 59,568 69,389 

20 32,429 35,266 38,338 41,662 45,259 49,150 53,358 62,821 73,864 86,736 

21 38,591 42,143 46,005 50,203 54,764 59,718 65,096 77,269 91,592 108,420 

22 45,923 50,361 55,206 60,494 66,264 72,557 79,418 95,041 113,574 135,525 

23 54,649 60,181 66,247 72,896 80,180 88,157 96,889 116,901 140,831 169,407 

24 65,032 71,917 79,497 87,839 97,017 107,110 118,205 143,788 174,631 211,758 

25 77,388 85,940 95,396 105,846 117,391 130,139 144,210 176,859 216,542 264,698 

26 92,092 102,699 114,475 127,545 142,043 158,119 175,936 217,537 268,512 330,872 

27 109,589 122,725 137,371 153,692 171,872 192,114 214,642 267,570 332,955 413,590 

28 130,411 146,657 164,845 185,198 207,965 233,419 261,864 329,112 412,864 516,988 

29 155,189 175,255 197,814 223,164 251,638 283,604 319,474 404,807 511,952 646,235 

30 184,675 209,429 237,376 268,913 304,482 344,579 389,758 497,913 634,820 807,794

TERM 

TABLE A 



GE 10/98 ED9 


19,0% 19,5% 20,0% 20,5% 21,0% 21,5% 22,0% 23,0% 24,0% 25,0% 

31 219,764 250,268 284,852 324,040 368,423 418,663 475,505 612,433 787,177 1009,742 

32 261,519 299,070 341,822 390,468 445,792 508,676 580,116 753,292 976,099 1262,177 

33 311,207 357,389 410,186 470,514 539,408 618,041 707,741 926,550 1210,363 1577,722 

34 370,337 427,080 492,224 566,969 652,683 750,920 863,444 1139,656 1500,850 1972,152 

35 440,701 510,360 590,668 683,198 789,747 912,367 1053,402 1401,777 1861,054 2465,190 

36 524,434 609,880 708,802 823,254 955,594 1108,526 1285,150 1724,186 2307,707 3081,488 

37 624,076 728,807 850,562 992,021 1156,269 1346,859 1567,883 2120,748 2861,557 3851,860 

38 742,651 870,924 1020,675 1195,385 1399,085 1636,434 1912,818 2608,520 3548,330 4814,825 

39 883,754 1040,755 1224,810 1440,439 1692,893 1988,268 2333,638 3208,480 4399,930 6018,531 

40 1051,668 1243,702 1469,772 1735,729 2048,400 2415,745 2847,038 3946,430 5455,913 7523,164 

41 1251,484 1486,223 1763,726 2091,553 2478,564 2935,130 3473,386 4854,110 6765,332 9403,955 

42 1489,266 1776,037 2116,471 2520,322 2999,063 3566,183 4237,531 5970,555 8389,011 11754,944 

43 1772,227 2122,364 2539,765 3036,988 3628,866 4332,913 5169,788 7343,782 10402,374 14693,679 

44 2108,950 2536,225 3047,718 3659,570 4390,928 5264,489 6307,141 9032,852 12898,944 18367,099 

45 2509,651 3030,789 3657,262 4409,782 5313,023 6396,354 7694,712 11110,408 15994,690 22958,874 

(1 + i) n

TERM 

GE 10/98 ED10 

TABLE B 

ANNUALLY RECURRING INVESTMENTS (projection) 

(one unit per annum payable in advance) 


4,0% 4,5% 5,0% 5,5% 6,0% 6,5% 7,0% 7,5% 8,0% 8,5% 

1 1,040 1,045 1,050 1,055 1,060 1,065 1,070 1,075 1,080 1,085 

2 2,122 2,137 2,152 2,168 2,184 2,199 2,215 2,231 2,246 2,262 

3 3,246 3,278 3,310 3,342 3,375 3,407 3,440 3,473 3,506 3,540 

4 4,416 4,471 4,526 4,581 4,637 4,694 4,751 4,808 4,867 4,925 

5 5,633 5,717 5,802 5,888 5,975 6,064 6,153 6,244 6,336 6,429 

6 6,898 7,019 7,142 7,267 7,394 7,523 7,654 7,787 7,923 8,060 

7 8,214 8,380 8,549 8,722 8,897 9,077 9,260 9,446 9,637 9,831 

8 9,583 9,802 10,027 10,256 10,491 10,732 10,978 11,230 11,488 11,751 

9 11,006 11,288 11,578 11,875 12,181 12,494 12,816 13,147 13,487 13,835 

10 12,486 12,841 13,207 13,583 13,972 14,372 14,784 15,208 15,645 16,096 

11 14,026 14,464 14,917 15,386 15,870 16,371 16,888 17,424 17,977 18,549 

12 15,627 16,160 16,713 17,287 17,882 18,500 19,141 19,806 20,495 21,211 

13 17,292 17,932 18,599 19,293 20,015 20,767 21,550 22,366 23,215 24,099 

14 19,024 19,784 20,579 21,409 22,276 23,182 24,129 25,118 26,152 27,232 

15 20,825 21,719 22,657 23,641 24,673 25,754 26,888 28,077 29,324 30,632 

16 22,698 23,742 24,840 25,996 27,213 28,493 29,840 31,258 32,750 34,321 

17 24,645 25,855 27,132 28,481 29,906 31,410 32,999 34,677 36,450 38,323 

18 26,671 28,064 29,539 31,103 32,760 34,517 36,379 38,353 40,446 42,665 

19 28,778 30,371 32,066 33,868 35,786 37,825 39,995 42,305 44,762 47,377 

20 30,969 32,783 34,719 36,786 38,993 41,349 43,865 46,553 49,423 52,489 

21 33,248 35,303 37,505 39,864 42,392 45,102 48,006 51,119 54,457 58,036 

22 35,618 37,937 40,430 43,112 45,996 49,098 52,436 56,028 59,893 64,054 

23 38,083 40,689 43,502 46,538 49,816 53,355 57,177 61,305 65,765 70,583 

24 40,646 43,565 46,727 50,153 53,865 57,888 62,249 66,978 72,106 77,668 

25 43,312 46,571 50,113 53,966 58,156 62,715 67,676 73,076 78,954 85,355 

26 46,084 49,711 53,669 57,989 62,706 67,857 73,484 79,632 86,351 93,695 

27 48,968 52,993 57,403 62,234 67,528 73,333 79,698 86,679 94,339 102,744 

28 51,966 56,423 61,323 66,711 72,640 79,164 86,347 94,255 102,966 112,562 

29 55,085 60,007 65,439 71,435 78,058 85,375 93,461 102,399 112,283 123,215 

30 58,328 63,752 69,761 76,419 83,802 91,989 101,073 111,154 122,346 134,773 

S & 

n

TERM 

GE 10/98 ED11 

TABLE B 




4,0% 4,5% 5,0% 5,5% 6,0% 6,5% 7,0% 7,5% 8,0% 8,5% 

31 61,701 67,666 74,299 81,677 89,890 99,034 109,218 120,566 133,214 147,314 

32 65,210 71,756 79,064 87,225 96,343 106,536 117,933 130,683 144,951 160,920 

33 68,858 76,030 84,067 93,077 103,184 114,526 127,259 141,560 157,627 175,684 

34 72,652 80,497 89,320 99,251 110,435 123,035 137,237 153,252 171,317 191,702 

35 76,598 85,164 94,836 105,765 118,121 132,097 147,913 165,820 186,102 209,081 

36 80,702 90,041 100,628 112,637 126,268 141,748 159,337 179,332 202,070 227,938 

37 84,970 95,138 106,710 119,887 134,904 152,027 171,561 193,857 219,316 248,398 

38 89,409 100,464 113,095 127,536 144,058 162,974 184,640 209,471 237,941 270,597 

39 94,026 106,030 119,800 135,606 153,762 174,632 198,635 226,257 258,057 294,683 

40 98,827 111,847 126,840 144,119 164,048 187,048 213,610 244,301 279,781 320,816 

41 103,820 117,925 134,232 153,100 174,951 200,271 229,632 263,698 303,244 349,170 

42 109,012 124,276 141,993 162,576 186,508 214,354 246,776 284,551 328,583 379,934 

43 114,413 130,914 150,143 172,573 198,758 229,352 265,121 306,967 355,950 413,314 

44 120,029 137,850 158,700 183,119 211,744 245,325 284,749 331,065 385,506 449,530 

45 125,871 145,098 167,685 194,246 225,508 262,336 305,752 356,969 417,426 488,825 

S & 

n

TERM 

GE 10/98 ED12 

TABLE B 




9,0% 9,5% 10,0% 10,5% 11,0% 11,5% 12,0% 12,5% 13,0% 13,5% 

1 1,090 1,095 1,100 1,105 1,110 1,115 1,120 1,125 1,130 1,135 

2 2,278 2,294 2,310 2,326 2,342 2,358 2,374 2,391 2,407 2,423 

3 3,573 3,607 3,641 3,675 3,710 3,744 3,779 3,814 3,850 3,885 

4 4,985 5,045 5,105 5,166 5,228 5,290 5,353 5,416 5,480 5,545 

5 6,523 6,619 6,716 6,814 6,913 7,013 7,115 7,218 7,323 7,428 

6 8,200 8,343 8,487 8,634 8,783 8,935 9,089 9,246 9,405 9,566 

7 10,028 10,230 10,436 10,646 10,859 11,077 11,300 11,526 11,757 11,993 

8 12,021 12,297 12,579 12,868 13,164 13,466 13,776 14,092 14,416 14,747 

9 14,193 14,560 14,937 15,325 15,722 16,130 16,549 16,979 17,420 17,873 

10 16,560 17,039 17,531 18,039 18,561 19,100 19,655 20,226 20,814 21,420 

11 19,141 19,752 20,384 21,038 21,713 22,411 23,133 23,879 24,650 25,447 

12 21,953 22,724 23,523 24,352 25,212 26,104 27,029 27,989 28,985 30,017 

13 25,019 25,977 26,975 28,014 29,095 30,221 31,393 32,613 33,883 35,205 

14 28,361 29,540 30,772 32,060 33,405 34,811 36,280 37,814 39,417 41,092 

15 32,003 33,442 34,950 36,531 38,190 39,929 41,753 43,666 45,672 47,775 

16 35,974 37,714 39,545 41,472 43,501 45,636 47,884 50,249 52,739 55,360 

17 40,301 42,391 44,599 46,932 49,396 51,999 54,750 57,655 60,725 63,968 

18 45,018 47,513 50,159 52,965 55,939 59,094 62,440 65,987 69,749 73,739 

19 50,160 53,122 56,275 59,631 63,203 67,005 71,052 75,361 79,947 84,829 

20 55,765 59,264 63,002 66,997 71,265 75,826 80,699 85,906 91,470 97,415 

21 61,873 65,989 70,403 75,137 80,214 85,661 91,503 97,769 104,491 111,701 

22 68,532 73,353 78,543 84,131 90,148 96,627 103,603 111,115 119,205 127,916 

23 75,790 81,416 87,497 94,070 101,174 108,854 117,155 126,130 135,831 146,320 

24 83,701 90,246 97,347 105,052 113,413 122,487 132,334 143,021 154,620 167,208 

25 92,324 99,914 108,182 117,188 126,999 137,688 149,334 162,023 175,850 190,916 

26 101,723 110,501 120,100 130,597 142,079 154,637 168,374 183,401 199,841 217,825 

27 111,968 122,094 133,210 145,415 158,817 173,535 189,699 207,452 226,950 248,366 

28 123,135 134,788 147,631 161,789 177,397 194,607 213,583 234,508 257,583 283,031 

29 135,308 148,688 163,494 179,881 198,021 218,101 240,333 264,946 292,199 322,375 

30 148,575 163,908 180,943 199,874 220,913 244,298 270,293 299,190 331,315 367,030 

S & 

n

TERM 

GE 10/98 ED13 

TABLE B 




9,0% 9,5% 10,0% 10,5% 11,0% 11,5% 12,0% 12,5% 13,0% 13,5% 

31 163,037 180,574 200,138 221,966 246,324 273,507 303,848 337,713 375,516 417,714 

32 178,800 198,824 221,252 246,377 274,529 306,076 341,429 381,053 425,463 475,241 

33 195,982 218,807 244,477 273,352 305,837 342,389 383,521 429,809 481,903 540,533 

34 214,711 240,688 270,024 303,159 340,590 382,879 430,663 484,660 545,681 614,640 

35 235,125 264,649 298,127 336,095 379,164 428,025 483,463 546,368 617,749 698,752 

36 257,376 290,886 329,039 372,490 421,982 478,363 542,599 615,789 699,187 794,218 

37 281,630 319,615 363,043 412,707 469,511 534,490 608,831 693,888 791,211 902,573 

38 308,066 351,073 400,448 457,146 522,267 597,071 683,010 781,748 895,198 1025,555 

39 336,882 385,520 441,593 506,252 580,826 666,850 766,091 880,592 1012,704 1165,140 

40 368,292 423,239 486,852 560,513 645,827 744,652 859,142 991,791 1145,486 1323,569 

41 402,528 464,542 536,637 620,472 717,978 831,402 963,359 1116,890 1295,529 1503,386 

42 439,846 509,769 591,401 686,726 798,065 928,129 1080,083 1257,626 1465,078 1707,478 

43 480,522 559,292 651,641 759,938 886,963 1035,978 1210,813 1415,954 1656,668 1939,123 

44 524,859 613,519 717,905 840,836 985,639 1156,231 1357,230 1594,074 1873,165 2202,039 

45 573,186 672,899 790,795 930,229 1095,169 1290,312 1521,218 1794,458 2117,806 2500,449 

S & 

n

TERM 

GE 10/98 ED14 

TABLE B 




14,0% 14,5% 15,0% 15,5% 16,0% 16,5% 17,0% 17,5% 18,0% 18,5% 

1 1,140 1,145 1,150 1,155 1,160 1,165 1,170 1,175 1,180 1,185 

2 2,440 2,456 2,472 2,489 2,506 2,522 2,539 2,556 2,572 2,589 

3 3,921 3,957 3,993 4,030 4,066 4,103 4,141 4,178 4,215 4,253 

4 5,610 5,676 5,742 5,809 5,877 5,945 6,014 6,084 6,154 6,225 

5 7,536 7,644 7,754 7,865 7,977 8,091 8,207 8,324 8,442 8,562 

6 9,730 9,897 10,067 10,239 10,414 10,592 10,772 10,955 11,142 11,331 

7 12,233 12,477 12,727 12,981 13,240 13,504 13,773 14,048 14,327 14,612 

8 15,085 15,432 15,786 16,148 16,519 16,897 17,285 17,681 18,086 18,500 

9 18,337 18,814 19,304 19,806 20,321 20,850 21,393 21,950 22,521 23,107 

10 22,045 22,687 23,349 24,031 24,733 25,456 26,200 26,966 27,755 28,567 

11 26,271 27,122 28,002 28,911 29,850 30,821 31,824 32,860 33,931 35,037 

12 31,089 32,200 33,352 34,547 35,786 37,071 38,404 39,786 41,219 42,704 

13 36,581 38,014 39,505 41,057 42,672 44,353 46,103 47,923 49,818 51,790 

14 42,842 44,671 46,580 48,575 50,660 52,836 55,110 57,485 59,965 62,556 

15 49,980 52,293 54,717 57,260 59,925 62,719 65,649 68,720 71,939 75,313 

16 58,118 61,020 64,075 67,290 70,673 74,233 77,979 81,921 86,068 90,431 

17 67,394 71,013 74,836 78,875 83,141 87,647 92,406 97,432 102,740 108,346 

18 77,969 82,455 87,212 92,255 97,603 103,273 109,285 115,658 122,414 129,575 

19 90,025 95,556 101,444 107,710 114,380 121,478 129,033 137,073 145,628 154,732 

20 103,768 110,557 117,810 125,560 133,841 142,687 152,139 162,235 173,021 184,542 

21 119,436 127,732 136,632 146,177 156,415 167,396 179,172 191,801 205,345 219,867 

22 137,297 147,399 158,276 169,989 182,601 196,181 210,801 226,542 243,487 261,728 

23 157,659 169,917 183,168 197,493 212,978 229,716 247,808 267,362 288,494 311,332 

24 180,871 195,699 211,793 229,259 248,214 268,784 291,105 315,325 341,603 370,114 

25 207,333 225,221 244,712 265,949 289,088 314,298 341,763 371,682 404,272 439,770 

26 237,499 259,023 282,569 308,326 336,502 367,322 401,032 437,901 478,221 522,312 

27 271,889 297,726 326,104 357,272 391,503 429,096 470,378 515,709 565,481 620,125 

28 311,094 342,041 376,170 413,804 455,303 501,061 551,512 607,133 668,447 736,033 

29 355,787 392,782 433,745 479,099 529,312 584,901 646,439 714,556 789,948 873,384 

30 406,737 450,881 499,957 554,514 615,162 682,575 757,504 840,778 933,319 1036,145 

S & 

n

TERM 

GE 10/98 ED15 

TABLE B 




14,0% 14,5% 15,0% 15,5% 16,0% 16,5% 17,0% 17,5% 18,0% 18,5% 

31 464,820 517,404 576,100 641,619 714,747 796,365 887,449 989,089 1102,496 1229,017 

32 531,035 593,572 663,666 742,225 830,267 928,930 1039,486 1163,355 1302,125 1457,570 

33 606,520 680,785 764,365 858,425 964,270 1083,369 1217,368 1368,117 1537,688 1728,406 

34 692,573 780,644 880,170 992,635 1119,713 1263,290 1425,491 1608,713 1815,652 2049,346 

35 790,673 894,982 1013,346 1147,649 1300,027 1472,897 1668,994 1891,412 2143,649 2429,660 

36 902,507 1025,900 1166,498 1326,689 1509,191 1717,090 1953,894 2223,584 2530,686 2880,332 

37 1029,998 1175,800 1342,622 1533,481 1751,822 2001,575 2287,225 2613,887 2987,389 3414,378 

38 1175,338 1347,436 1545,165 1772,326 2033,273 2333,000 2677,224 3072,492 3526,299 4047,223 

39 1341,025 1543,960 1778,090 2048,191 2359,757 2719,110 3133,522 3611,353 4162,213 4797,144 

40 1529,909 1768,979 2045,954 2366,816 2738,478 3168,928 3667,391 4244,515 4912,591 5685,801 

41 1745,236 2026,626 2353,997 2734,827 3177,795 3692,967 4292,017 4988,480 5798,038 6738,859 

42 1990,709 2321,631 2708,246 3159,881 3687,402 4303,471 5022,830 5862,639 6842,865 7986,733 

43 2270,548 2659,413 3115,633 3650,817 4278,546 5014,709 5877,881 6889,775 8075,760 9465,464 

44 2589,565 3046,173 3584,128 4217,849 4964,274 5843,301 6878,291 8096,661 9530,577 11217,759 

45 2953,244 3489,013 4122,898 4872,770 5759,718 6808,610 8048,770 9514,752 11247,261 13294,230 

S & 

n

TERM 

GE 10/98 ED16 

TABLE B 




19,0% 19,5% 20,0% 20,5% 21,0% 21,5% 22,0% 23,0% 24,0% 25,0% 

1 1,190 1,195 1,200 1,205 1,210 1,215 1,220 1,230 1,240 1,250 

2 2,606 2,623 2,640 2,657 2,674 2,691 2,708 2,743 2,778 2,812 

3 4,291 4,330 4,368 4,407 4,446 4,485 4,524 4,604 4,684 4,766 

4 6,297 6,369 6,442 6,515 6,589 6,664 6,740 6,893 7,048 7,207 

5 8,683 8,806 8,930 9,056 9,183 9,312 9,442 9,708 9,980 10,259 

6 11,523 11,718 11,916 12,117 12,321 12,529 12,740 13,171 13,615 14,073 

7 14,902 15,198 15,499 15,806 16,119 16,438 16,762 17,430 18,123 18,842 

8 18,923 19,356 19,799 20,251 20,714 21,187 21,670 22,669 23,712 24,802 

9 23,709 24,326 24,959 25,608 26,274 26,957 27,657 29,113 30,643 32,253 

10 29,404 30,264 31,150 32,063 33,001 33,968 34,962 37,039 39,238 41,566 

11 36,180 37,361 38,581 39,840 41,142 42,486 43,874 46,788 49,895 53,208 

12 44,244 45,841 47,497 49,213 50,991 52,835 54,746 58,779 63,110 67,760 

13 53,841 55,975 58,196 60,506 62,909 65,410 68,010 73,528 79,496 85,949 

14 65,261 68,085 71,035 74,115 77,330 80,688 84,192 91,669 99,815 108,687 

15 78,850 82,557 86,442 90,513 94,780 99,250 103,935 113,983 125,011 137,109 

16 95,022 99,851 104,931 110,274 115,894 121,804 128,020 141,430 156,253 172,636 

17 114,266 120,517 127,117 134,085 141,441 149,207 157,405 175,188 194,994 217,045 

18 137,166 145,212 153,740 162,777 172,354 182,502 193,254 216,712 243,033 272,556 

19 164,418 174,724 185,688 197,352 209,758 222,955 236,989 267,785 302,601 341,945 

20 196,847 209,990 224,026 239,014 255,018 272,105 290,347 330,606 376,465 428,681 

21 235,438 252,133 270,031 289,216 309,781 331,822 355,443 407,875 468,056 537,101 

22 281,362 302,494 325,237 349,711 376,045 404,379 434,861 502,917 581,630 672,626 

23 336,010 362,675 391,484 422,607 456,225 492,536 531,750 619,817 722,461 842,033 

24 401,042 434,592 470,981 510,446 553,242 599,646 649,955 763,605 897,092 1053,791 

25 478,431 520,533 566,377 616,292 670,633 729,785 794,165 940,465 1113,634 1318,489 

26 570,522 623,231 680,853 743,837 812,676 887,903 970,102 1158,002 1382,146 1649,361 

27 680,112 745,956 818,223 897,529 984,548 1080,018 1184,744 1425,572 1715,101 2062,952 

28 810,523 892,613 983,068 1082,727 1192,513 1313,436 1446,608 1754,683 2127,965 2579,939 

29 965,712 1067,868 1180,882 1305,892 1444,151 1597,040 1766,081 2159,491 2639,916 3226,174 

30 1150,387 1277,297 1418,258 1574,804 1748,632 1941,619 2155,839 2657,404 3274,736 4033,968 

S & 

n

TERM 

GE 10/98 ED17 

TABLE B 




19,0% 19,5% 20,0% 20,5% 21,0% 21,5% 22,0% 23,0% 24,0% 25% 

31 1370,151 1527,565 1703,109 1898,844 2117,055 2360,282 2631,344 3269,836 4061,913 5043,710 

32 1631,670 1826,635 2044,931 2289,312 2562,847 2868,957 3211,460 4023,129 5038,012 6305,887 

33 1942,877 2184,023 2455,118 2759,826 3102,254 3486,998 3919,201 4949,678 6248,375 7883,609 

34 2313,214 2611,103 2947,341 3326,796 3754,938 4237,918 4782,645 6089,334 7749,225 9855,761 

35 2753,914 3121,463 3538,009 4009,994 4544,685 5150,285 5836,047 7491,111 9610,279 12320,952 

36 3278,348 3731,343 4246,811 4833,247 5500,279 6258,811 7121,197 9215,297 11917,986 15402,440 

37 3902,424 4460,150 5097,373 5825,268 6656,547 7605,671 8689,080 11336,045 14779,543 19254,299 

38 4645,075 5331,074 6118,048 7020,653 8055,632 9242,105 10601,898 13944,566 18327,873 24069,124 

39 5528,829 6371,829 7342,858 8461,092 9748,525 11230,373 12935,535 17153,046 22727,803 30087,655 

40 6580,496 7615,531 8812,629 10196,821 11796,925 13646,118 15782,573 21099,476 28183,715 37610,819 

41 7831,981 9101,754 10576,355 12288,374 14275,489 16581,248 19255,959 25953,586 34949,047 47014,774 

42 9321,247 10877,791 12692,826 14808,696 17274,552 20147,432 23493,490 31924,140 43338,058 58769,718 

43 11093,474 13000,155 15232,592 17845,683 20903,418 24480,345 28663,278 39267,923 53740,432 73463,397 

44 13202,424 15536,381 18280,310 21505,253 25294,346 29744,834 34970,419 48300,775 66639,376 91830,496 

45 15712,075 18567,170 21937,572 25915,035 30607,368 36141,188 42665,131 59411,183 82634,066 114789,370 

S & 

n

TERM 

TABLE C 

MONTHLY RECURRING INVESTMENTS (projection) 

(one unit per month payable in advance) 

GE 10/98 ED18 


4,0% 4,5% 5,0% 5,5% 6,0% 6,5% 7,0% 7,5% 8,0% 8,5% 

1 12,258 12,291 12,323 12,355 12,387 12,418 12,450 12,482 12,514 12,546 

2 25,007 25,134 25,261 25,389 25,516 25,644 25,772 25,900 26,029 26,158 

3 38,266 38,556 38,847 39,140 39,434 39,729 40,026 40,325 40,625 40,927 

4 52,055 52,581 53,112 53,647 54,186 54,730 55,279 55,832 56,389 56,951 

5 66,396 67,238 68,090 68,952 69,824 70,706 71,598 72,501 73,414 74,337 

6 81,310 82,554 83,817 85,099 86,400 87,720 89,061 90,421 91,801 93,202 

7 96,821 98,560 100,331 102,134 103,971 105,841 107,745 109,684 111,659 113,669 

8 112,952 115,285 117,670 120,106 122,595 125,139 127,738 130,393 133,106 135,877 

9 129,729 132,764 135,876 139,066 142,338 145,691 149,130 152,654 156,268 159,972 

10 147,176 151,029 154,992 159,070 163,264 167,580 172,019 176,586 181,283 186,115 

11 165,322 170,115 175,064 180,173 185,447 190,891 196,510 202,312 208,300 214,481 

12 184,193 190,061 196,140 202,437 208,960 215,717 222,717 229,967 237,478 245,257 

13 203,819 210,904 218,270 225,926 233,884 242,157 250,757 259,697 268,990 278,650 

14 224,230 232,686 241,506 250,706 260,303 270,316 280,760 291,656 303,023 314,881 

15 245,458 255,447 265,903 276,849 288,308 300,305 312,864 326,012 339,778 354,191 

16 267,535 279,233 291,521 304,431 317,993 332,243 347,214 362,945 379,475 396,843 

17 290,494 304,089 318,420 333,529 349,459 366,257 383,970 402,648 422,346 443,120 

18 314,373 330,063 346,663 364,228 382,814 402,482 423,298 445,329 468,648 493,331 

19 339,206 357,207 376,319 396,615 418,169 441,062 465,379 491,211 518,654 547,810 

20 365,033 385,571 407,458 430,783 455,646 482,149 510,406 540,534 572,660 606,919 

21 391,893 415,213 440,153 466,831 495,371 525,908 558,585 593,556 630,987 671,053 

22 419,827 446,188 474,483 504,861 537,480 572,510 610,136 650,555 693,979 740,638 

23 448,878 478,557 510,530 544,983 582,115 622,142 665,296 711,829 762,012 816,138 

24 479,092 512,382 548,379 587,312 629,428 674,999 724,317 777,698 835,487 898,055 

25 510,514 547,730 588,121 631,969 679,581 731,293 787,469 848,507 914,839 986,936 

26 543,193 584,668 629,849 679,081 732,742 791,245 855,042 924,627 1000,540 1083,371 

27 577,179 623,269 673,664 728,785 789,093 855,094 927,346 1006,457 1093,097 1188,003 

28 612,525 663,607 719,670 781,223 848,825 923,094 1004,710 1094,423 1193,059 1301,529 

29 649,284 705,760 767,976 836,545 912,141 995,514 1087,490 1188,987 1301,018 1424,704 

30 687,514 749,809 818,698 894,909 979,256 1072,641 1176,065 1290,643 1417,613 1558,350 

12S & 

(12) 

n

TERM 

TABLE C 



GE 10/98 ED19 


4,0% 4,5% 5,0% 5,5% 6,0% 6,5% 7,0% 7,5% 8,0% 8,5% 

31 727,273 795,841 871,955 956,484 1050,398 1154,781 1270,840 1399,923 1543,536 1703,355 

32 768,622 843,945 927,875 1021,445 1125,809 1242,260 1372,249 1517,400 1679,533 1860,686 

33 811,625 894,213 986,592 1089,979 1205,744 1335,425 1480,756 1643,687 1826,409 2031,390 

34 856,349 946,743 1048,244 1162,283 1290,475 1434,646 1596,860 1779,446 1985,036 2216,604 

35 902,861 1001,637 1112,979 1238,563 1380,290 1540,317 1721,090 1925,386 2156,353 2417,561 

36 951,234 1059,001 1180,950 1319,039 1475,494 1652,856 1854,017 2082,272 2341,375 2635,599 

37 1001,542 1118,947 1252,321 1403,940 1576,410 1772,710 1996,248 2250,925 2541,199 2872,171 

38 1053,862 1181,590 1327,259 1493,511 1683,381 1900,354 2148,436 2432,226 2757,009 3128,851 

39 1108,275 1247,052 1405,945 1588,009 1796,771 2036,296 2311,277 2627,125 2990,083 3407,349 

40 1164,865 1315,460 1488,564 1687,704 1916,963 2181,073 2485,516 2836,642 3241,804 3709,519 

41 1223,718 1386,946 1575,315 1792,883 2044,368 2335,262 2671,953 3061,872 3513,662 4037,374 

42 1284,925 1461,649 1666,404 1903,846 2179,416 2499,472 2871,440 3303,994 3807,269 4393,094 

43 1348,580 1539,714 1762,046 2020,912 2322,568 2674,356 3084,891 3564,276 4124,363 4779,055 

44 1414,782 1621,291 1862,471 2144,417 2474,308 2860,608 3313,283 3844,079 4466,824 5197,820 

45 1483,632 1706,540 1967,917 2274,714 2635,153 3058,966 3557,664 4144,863 4836,684 5652,180 

12S & 

(12) 

n

TERM 

TABLE C 



GE 10/98 ED20 


9,0% 9,5% 10,0% 10,5% 11,0% 11,5% 12,0% 12,5% 13,0% 13,5% 

1 12,577 12,609 12,641 12,672 12,704 12,735 12,766 12,798 12,829 12,861 

2 26,287 26,416 26,545 26,675 26,805 26,935 27,065 27,195 27,326 27,457 

3 41,230 41,534 41,840 42,148 42,457 42,767 43,079 43,393 43,708 44,024 

4 57,518 58,089 58,665 59,245 59,831 60,421 61,015 61,615 62,219 62,828 

5 75,271 76,216 77,172 78,138 79,116 80,104 81,104 82,115 83,137 84,171 

6 94,623 96,066 97,529 99,015 100,522 102,051 103,603 105,177 106,774 108,394 

7 115,717 117,801 119,923 122,083 124,283 126,522 128,801 131,122 133,484 135,888 

8 138,708 141,601 144,556 147,574 150,658 153,807 157,024 160,310 163,666 167,093 

9 163,769 167,662 171,652 175,742 179,933 184,230 188,633 193,146 197,772 202,512 

10 191,086 196,199 201,458 206,867 212,430 218,151 224,036 230,088 236,311 242,711 

11 220,861 227,447 234,244 241,260 248,501 255,974 263,687 271,646 279,861 288,337 

12 253,316 261,663 270,309 279,264 288,539 298,146 308,095 318,400 329,072 340,124 

13 288,691 299,130 309,980 321,259 332,982 345,168 357,833 370,998 384,680 398,901 

14 327,251 340,156 353,619 367,663 382,314 397,597 413,540 430,171 447,518 465,613 

15 369,281 385,080 401,621 418,940 437,072 456,056 475,931 496,740 518,525 541,331 

16 415,094 434,271 454,424 475,600 497,854 521,237 545,810 571,630 598,762 627,271 

17 465,029 488,136 512,507 538,210 565,321 593,915 624,073 655,882 689,430 724,814 

18 519,459 547,118 576,398 607,395 640,210 674,950 711,729 750,665 791,886 835,524 

19 578,788 611,703 646,678 683,843 723,336 765,304 809,902 857,296 907,660 961,180 

20 643,456 682,424 723,987 768,319 815,607 866,049 919,857 977,256 1038,485 1103,800 

21 713,944 759,863 809,026 861,665 918,028 978,380 1043,007 1112,211 1186,317 1265,674 

22 790,777 844,659 902,569 964,812 1031,714 1103,629 1180,934 1264,035 1353,368 1449,401 

23 874,524 937,510 1005,466 1078,789 1157,906 1243,281 1335,413 1434,837 1542,135 1657,930 

24 965,808 1039,183 1118,654 1204,734 1297,980 1398,994 1508,428 1626,990 1755,442 1894,611 

25 1065,308 1150,514 1243,159 1343,903 1453,461 1572,613 1702,207 1843,161 1996,478 2163,244 

26 1173,763 1272,422 1380,116 1497,685 1626,045 1766,199 1919,238 2086,354 2268,850 2468,143 

27 1291,979 1405,911 1530,768 1667,614 1817,614 1982,047 2162,313 2359,947 2576,629 2814,203 

28 1420,835 1552,082 1696,486 1855,385 2030,255 2222,717 2434,557 2667,738 2924,421 3206,981 

29 1561,287 1712,138 1878,775 2062,873 2266,287 2491,065 2739,470 3014,003 3317,425 3652,783 

30 1714,381 1887,401 2079,292 2292,146 2528,282 2790,272 3080,973 3403,551 3761,519 4158,770 

12S & 

(12) 

n

TERM 

TABLE C 



GE 10/98 ED21 


9,0% 9,5% 10,0% 10,5% 11,0% 11,5% 12,0% 12,5% 13,0% 13,5% 

31 1881,252 2079,313 2299,862 2545,494 2819,097 3123,889 3463,456 3841,793 4263,344 4733,063 

32 2063,142 2289,456 2542,489 2825,443 3141,901 3495,871 3891,838 4334,813 4830,406 5384,887 

33 2261,402 2519,563 2809,379 3134,787 3500,214 3910,631 4371,621 4889,465 5471,191 6124,707 

34 2477,506 2771,531 3102,957 3476,611 3897,941 4373,086 4908,984 5513,445 6195,273 6964,402 

35 2713,059 3047,435 3425,893 3854,328 4339,414 4888,727 5510,828 6215,422 7013,488 7917,457 

36 2969,811 3349,551 3781,123 4271,703 4829,457 5463,668 6184,895 7005,148 7938,074 8999,176 

37 3249,671 3680,367 4171,875 4732,902 5373,398 6104,723 6939,848 7893,590 8982,852 10226,926 

38 3554,719 4042,611 4601,703 5242,531 5977,176 6819,500 7785,398 8893,086 10163,453 11620,422 

39 3887,221 4439,266 5074,512 5805,668 6647,371 7616,480 8732,414 10017,520 11497,531 13202,039 

40 4249,648 4873,605 5594,605 6427,938 7391,285 8505,109 9793,070 11282,508 13005,039 14997,176 

41 4644,691 5349,207 6166,707 7115,543 8217,031 9495,934 10981,004 12705,621 14708,523 17034,656 

42 5075,293 5869,992 6796,020 7875,348 9133,605 10600,699 12311,492 14306,621 16633,461 19347,195 

43 5544,645 6440,250 7488,262 8714,930 10151,008 11832,516 13801,637 16107,746 18808,641 21971,926 

44 6056,242 7064,680 8249,727 9642,668 11280,324 13205,992 15470,602 18134,016 21266,594 24950,996 

45 6613,879 7748,434 9087,340 10667,820 12533,863 14737,414 17339,840 20413,566 24044,078 28332,242 

12S & 

(12) 

n

TERM 

TABLE C 



GE 10/98 ED22 


14,0% 14,5% 15,0% 15,5% 16,0% 16,5% 17,0% 17,5% 18,0% 18,5% 

1 12,892 12,923 12,954 12,985 13,016 13,047 13,079 13,109 13,140 13,171 

2 27,588 27,720 27,852 27,983 28,115 28,248 28,380 28,513 28,646 28,779 

3 44,343 44,662 44,983 45,306 45,630 45,956 46,284 46,612 46,943 47,275 

4 63,442 64,061 64,685 65,314 65,948 66,586 67,230 67,879 68,533 69,192 

5 85,216 86,273 87,342 88,423 89,516 90,621 91,738 92,867 94,009 95,164 

6 110,038 111,706 113,398 115,114 116,855 118,621 120,412 122,229 124,071 125,941 

7 138,335 140,826 143,361 145,942 148,568 151,240 153,960 156,728 159,545 162,411 

8 170,594 174,169 177,820 181,548 185,355 189,243 193,212 197,265 201,403 205,628 

9 207,369 212,346 217,447 222,673 228,028 233,515 239,137 244,896 250,796 256,841 

10 249,292 256,060 263,018 270,173 277,529 285,093 292,868 300,862 309,080 317,528 

11 297,085 306,111 315,425 325,035 334,950 345,180 355,734 366,623 377,855 389,441 

12 351,569 363,420 375,693 388,401 401,559 415,183 429,288 443,891 459,009 474,660 

13 413,680 429,039 445,001 461,588 478,825 496,735 515,345 534,681 554,771 575,643 

14 484,487 504,173 524,706 546,120 568,453 591,744 616,032 641,360 667,771 695,308 

15 565,207 590,201 616,365 643,754 672,422 702,429 733,836 766,708 801,110 837,112 

16 657,228 688,703 721,774 756,521 793,026 831,377 871,667 913,991 958,450 1005,149 

17 762,132 801,489 842,995 886,767 932,927 981,602 1032,929 1087,049 1144,111 1204,272 

18 881,722 930,627 982,398 1037,201 1095,211 1156,614 1221,606 1290,392 1363,192 1440,234 

19 1018,054 1078,491 1142,712 1210,953 1283,462 1360,503 1442,357 1529,320 1621,707 1719,849 

20 1173,474 1247,795 1327,073 1411,636 1501,832 1598,034 1700,636 1810,061 1926,754 2051,192 

21 1350,652 1441,649 1539,089 1643,425 1755,141 1874,757 2002,823 2139,931 2286,710 2443,834 

22 1552,635 1663,611 1782,906 1911,141 2048,980 2197,139 2356,382 2527,528 2711,459 2909,115 

23 1782,896 1917,758 2063,296 2220,353 2389,834 2572,714 2770,045 2982,955 3212,662 3460,472 

24 2045,393 2208,756 2385,745 2577,493 2785,224 3010,260 3254,031 3518,082 3804,081 4113,828 

25 2344,640 2541,948 2756,561 2989,990 3243,876 3520,000 3820,295 4146,855 4501,953 4888,059 

26 2685,781 2923,454 3182,999 3466,423 3775,912 4113,848 4482,820 4885,664 5325,445 5805,523 

27 3074,683 3360,277 3673,403 4016,704 4393,074 4805,680 5257,980 5753,766 6297,168 6892,715 

28 3518,030 3860,441 4237,367 4652,277 5108,980 5611,664 6164,914 6773,781 7443,801 8181,039 

29 4023,446 4433,125 4885,926 5386,367 5939,434 6550,637 7226,031 7972,305 8796,824 9707,703 

30 4599,617 5088,852 5631,770 6234,238 6902,762 7644,539 8467,535 9380,566 10393,395 11516,801 

12S & 

(12) 

n

TERM 

TABLE C 



GE 10/98 ED23 


14,0% 14,5% 15,0% 15,5% 16,0% 16,5% 17,0% 17,5% 18,0% 18,5% 

31 5256,457 5839,660 6489,488 7213,531 8020,219 8918,934 9920,094 11035,277 12277,344 13660,582 

32 6005,254 6699,332 7475,867 8344,613 9316,473 10403,605 11619,590 12979,559 14500,406 16200,961 

33 6858,883 7683,660 8610,199 9651,016 10820,125 12133,250 13607,996 15264,094 17123,621 19211,309 

34 7832,016 8810,715 9914,684 11159,906 12564,359 14148,285 15934,438 17948,418 20219,016 22778,570 

35 8941,391 10101,191 11414,844 12902,680 14587,676 16495,797 18656,367 21102,504 23871,578 27005,781 

36 10206,078 11578,785 13140,023 14915,578 16934,719 19230,652 21841,031 24808,551 28181,602 32015,020 

37 11647,820 13270,633 15123,980 17240,480 19657,293 22416,758 25567,086 29163,156 33267,430 37950,973 

38 13291,406 15207,797 17405,531 19925,738 22815,477 26128,570 29926,566 34279,816 39268,711 44985,070 

39 15165,098 17425,852 20029,316 23027,215 26478,969 30452,832 35027,164 40291,895 46350,219 53320,480 

40 17301,102 19965,523 23046,668 26609,418 30728,621 35490,598 40994,859 47356,086 54706,398 63197,941 

41 19736,148 22873,449 26516,625 30746,863 35658,219 41359,594 47977,066 55656,512 64566,691 74902,688 

42 22512,102 26203,023 30507,070 35525,613 41376,547 48196,977 56146,246 65409,512 76201,813 88772,875 

43 25676,688 30015,383 35096,086 41045,066 48009,813 56162,523 65704,125 76869,250 89931,250 105209,063 

44 29284,316 34380,539 40373,453 47420,039 55704,398 65442,387 76886,938 90334,500 106132,063 124685,875 

45 33397,012 39378,641 46442,426 54783,129 64630,121 76253,375 89970,813 106156,125 125249,000 147765,938 

12S & 

(12) 

n

TERM 

TABLE C 



GE 10/98 ED24 


19,0% 19,5% 20,0% 20,5% 21,0% 21,5% 22,0% 23,0% 24,0% 25,0% 

1 13,202 13,233 13,264 13,295 13,325 13,356 13,387 13,448 13,509 13,570 

2 28,913 29,046 29,180 29,314 29,449 29,583 29,718 29,988 30,260 30,532 

3 47,608 47,944 48,280 48,619 48,958 49,300 49,643 50,334 51,031 51,734 

4 69,856 70,526 71,200 71,880 72,565 73,255 73,951 75,358 76,787 78,237 

5 96,331 97,511 98,704 99,910 101,129 102,361 103,607 106,138 108,725 111,367 

6 127,836 129,759 131,709 133,686 135,691 137,725 139,787 143,998 148,327 152,778 

7 165,327 168,295 171,314 174,386 177,512 180,691 183,926 190,565 197,434 204,542 

8 209,942 214,345 218,841 223,430 228,114 232,896 237,777 247,843 258,327 269,247 

9 263,033 269,375 275,873 282,527 289,344 296,324 303,474 318,294 333,835 350,128 

10 326,211 335,137 344,311 353,740 363,431 373,390 383,625 404,949 427,464 451,230 

11 401,393 413,721 426,437 439,551 453,077 467,025 481,409 511,536 543,564 577,607 

12 490,860 507,630 524,988 542,954 561,548 580,791 600,706 642,636 687,528 735,579 

13 597,326 619,851 643,250 667,554 692,798 719,017 746,247 803,891 866,044 933,043 

14 724,020 753,955 785,163 817,697 851,611 886,962 923,808 1002,233 1087,403 1179,874 

15 874,786 914,209 955,460 998,620 1043,775 1091,015 1140,433 1246,195 1361,889 1488,412 

16 1054,198 1105,713 1159,816 1216,631 1276,293 1338,939 1404,715 1546,268 1702,250 1874,084 

17 1267,698 1334,561 1405,042 1479,335 1557,640 1640,167 1727,138 1915,357 2124,300 2356,175 

18 1521,762 1608,033 1699,315 1795,894 1898,069 2006,159 2120,495 2369,337 2647,640 2958,788 

19 1824,100 1934,832 2052,442 2177,346 2309,989 2450,839 2600,391 2927,732 3296,583 3712,055 

20 2183,881 2325,358 2476,194 2636,997 2808,412 2991,125 3185,864 3614,558 4101,270 4653,637 

21 2612,021 2792,035 2984,697 3190,876 3411,504 3647,573 3900,140 4459,352 5099,082 5830,617 

22 3121,507 3349,715 3594,900 3858,300 4141,242 4445,156 4771,555 5498,453 6336,371 7301,840 

23 3727,795 4016,143 4327,141 4662,543 5024,230 5414,219 5834,684 6776,543 7870,613 9140,871 

24 4449,277 4812,523 5205,836 5631,660 6092,645 6591,633 7131,703 8348,598 9773,066 11439,656 

25 5307,840 5764,195 6260,266 6799,445 7385,426 8022,191 8714,066 10282,223 12132,113 14313,145 

26 6329,535 6901,449 7525,582 8206,629 8949,691 9760,320 10644,547 12660,582 15057,328 17905,000 

27 7545,348 8260,465 9043,961 9902,281 10842,453 11872,145 12999,734 15585,965 18684,598 22394,820 

28 8992,168 9884,488 10866,020 11945,543 13132,691 14438,012 15873,063 19184,184 23182,410 28007,094 

29 10713,879 11825,199 13052,488 14407,676 15903,883 17555,539 19378,523 23609,992 28759,699 35022,438 

30 12762,719 14144,344 15676,250 17374,543 19257,023 21343,336 23655,184 29053,738 35675,535 43791,617 

12S & 

(12) 

n

TERM 

TABLE C 



GE 10/98 ED25 


19,0% 19,5% 20,0% 20,5% 21,0% 21,5% 22,0% 23,0% 24,0% 25,0% 

31 15200,840 16915,727 18824,762 20949,621 23314,324 25945,512 28872,711 35749,547 44251,172 54753,090 

32 18102,203 20227,523 22602,980 25257,590 28223,656 31537,152 35238,094 43985,391 54884,961 68454,875 

33 21554,824 24185,125 27136,840 30448,688 34163,953 38330,996 43003,863 54115,480 68070,813 85582,188 

34 25663,441 28914,457 32577,473 36703,965 41351,707 46585,520 52478,098 66575,438 84421,375 106991,313 

35 30552,699 34566,012 39106,230 44241,574 50048,891 56614,762 64036,668 81901,250 104696,000 133752,750 

36 36370,914 41319,617 46940,742 53324,391 60572,484 68800,250 78138,063 100752,000 129836,563 167204,500 

37 43294,590 49390,176 56342,156 64269,188 73306,000 83605,688 95341,875 123938,438 161010,813 209019,188 

38 51533,766 59034,492 67623,813 77457,625 88713,625 101594,250 116330,438 152457,750 199666,938 261287,625 

39 61338,383 70559,438 81161,875 93349,750 107356,813 123450,375 141936,563 187536,438 247600,500 326623,063 

40 73005,875 84331,750 97407,500 112499,750 129915,063 150005,563 173176,000 230683,313 307038,188 408292,438 

41 86890,188 100789,688 116902,250 135575,500 157210,500 182270,125 211288,125 283753,938 380740,875 510379,125 

42 103412,500 120456,875 140296,000 163381,750 190238,063 221471,625 257784,875 349030,813 472132,188 637987,438 

43 123074,125 143959,250 168368,438 196888,375 230201,375 269101,375 314510,938 429321,313 585457,375 797497,875 

44 146471,375 172044,563 202055,438 237263,750 278557,000 326971,500 383716,750 528078,688 725980,688 996885,938 

45 174314,125 205606,438 242479,750 285916,125 337067,313 397283,750 468147,875 649550,250 900229,563 

12S & 

(12) 

n

SECTION G 

SUMMARIES 

FOR NON-STRATUS PRODUCTS 

Summary Page 

1 POLICY PARTICULARS : RECURRING PREMIUMS ………….... 2 

2 MINIMUM PREMIUMS ……………………….……………………….. 3 

3 DEBIT ORDER DISCOUNT AND POLICY FEE ……………...…… 4 

4 INDEXPLAN INCREASES …………………………………………... 5 

5 INVESTMENT PLANS ……………………………………………..… 6 

6 PROPOSAL FORMS …………………….…………………………… 7 

GE 3/2012 G1

SUMMARY 1 

Type of assurance Table 

GE 3/2012 G2 

POLICY PARTICULARS : RECURRING PREMIUMS (Legacy policies) 

Inception anb Benefit term (years) Maturity anb 

Min. Max. Min. Max. Min. Max. 

Endowment (Special Risks)(with cover) 303 15 60 10 10 n.a. n.a. 


(Whole-life premium term) 

• Principal life insured 

• Spouse 

• Parents/Parents-in-law 

• Children 

• Other dependants 

• Principal life insured (with regard to 

PB) 

The One Step Cover 

• Whole life policy 

• Term Cover policy 

69 

69 

69 

69 

69 

69 

86R 

86M 

18 

18 

25 

1 

1 

18 

18 

18 

65 

65 

75 

24 

70 

55 

60 

55 

Lifelong 

Lifelong 

Lifelong 

up to 25 anb 

Lifelong 

Until the end of the poilcy year 

in which the principal life 

insured turns 64 

Lifelong 

Until the policy anniversary 

before the policyholder turns 65 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a.

SUMMARY 2 

• Funeral TopCover 

• Life Annuities and Term Annuities * 

* This is the minimum instalment. 

Recurring premiums 

GE 3/2012 G3 

Monthly Annually 

R 75,00 

R100,00 

MINIMUM PREMIUMS (Legacy policies) 

R 855,00 

R 600,00 

Minimum premium increase 

The minimum increase in the premium of a policy is as follows: 

• Recurring premiums Monthly Annually 

− Revision of benefits (notations) 

• original term 10 years and longer 

• original term shorter than 10 years 

• Indexplan premium increase 

See page G5 for full details. 

R150,00 

R300,00 

Maximum premium increase 

The maximum increase in the premium of a policy is as follows: 

R1 710,00 

R3 420,00 

• Recurring premiums Monthly Annually 

− Revision of benefits (notations) R750,00 R8 550,00 

• Indexplan premium increase 

See page G5 for full details.

SUMMARY 3 


A debit order discount of 1% to 3% * on the contractual premium (policy fee included) 

is granted. The premium is rounded off to the nearest cent. These discounts is only 

applicable to Legacy policies, One Step Cover, One Step Retirement Plan and Funeral 

TopCover excluded. POLICY FEE 

Frequency Premium before discount 

Monthly to R 249,99 

R 250,00 to R 499,99 

R 500,00 and more 

Quarterly to R 749,99 

R 750,00 to R1 499,99 

R1 500,00 and more 

Half-yearly to R1 462,99 

R1 463,00 to R2 924,99 


Annually to R2 849,99 

R2 850,00 to R5 699,99 


GE 3/2012 G4 

Debit order premium 

as % of contractual 

premium 

99% 

98% 

97% 

99% 

98% 

97% 

99% 

98% 

97% 

99% 

98% 

97% 

If the first premium is collected in cash and submitted with a debit order, the debit 

order discount does not apply to this premium as well. The contractual premium then 

applies to that first premium. 

* NB: 1) The policy fees and debit order discount above do not apply for Stratus and Matrix. 

2) The debit order discount does not apply to the One Step Cover, One Step Retirement Plan and Funeral TopCover. 

** See the Archive for information about a Legacy TopCover policy. 

• Funeral TopCover R10,00 p.m. 

• Single premium policies None 

• In the case of a TopCover-NKV ** R20,25 p.m. 

• Accident Cover (Table 84N) R7,00 p.m. 

• Life Annuities: − Issuing fee 

− Policy fee 

• Term Annuities: − Issuing fee 

− Policy fee 

R350,00 

R 15,00 

R 30,00 

R 45,00 

R 60,00 

R350,00 

R 11,50 

R 23,00 

R 34,50 

R 46,00 

once only 

per month 

per quarter 

per half-year 

per annum 

once only 

per month 

per quarter 

per half-year 

per annum 

• One Step Cover R 0,00 per month 

• One Step Retirement Plan R 0,00 per month

SUMMARY 4 

Type of assurance 

GE 3/2012 G5 

INDEXPLAN INCREASES 

Fixed rate Inflation rate 

Minimum increase Minimum increase Maximum increase 

Funeral TopCover Fixed rate not available 4% of premium 20% of premium 

One Step Cover Premium and cover growth is contractual and compulsory. Premiums increase at 5% p.a. and cover at 2% 

p.a. 

One Step Retirement Plan Premium and cover growth is contractual and compulsory. Premiums increase at 5% p.a. For the One 

Step Term Cover portion the cover increases at 2% p.a.

SUMMARY 5 

Type of assurance Plan 

INVESTMENT POLICY : RECURRING PREMIUM 

GE 3/2012 G6 


Inception anb Maturity anb 

Benefit term 

(years) 

Min. Max. Max. Minimum Maximum 

Capital Protection Option : Whole life (compulsory money) 27 15 80 n.a. n.a. n.a. 

Capital Protection Option : Chosen term (compulsory 

money) 

28 15 70 n.a. n.a. n.a. 

LIFE ANNUITY 2 en 3 20 86 n.a. Lifelong (0, 5, 10, 15 years guaranteed) 

TERM ANNUITY 1 n.a. n.a. n.a. 5 15 

(1) Minimum maturity age is 18 years. 

(2) Maximum inception age = 85 minus the chosen term.

SUMMARY 6 

Cobalt: 

Type of insurance 

− Cobalt for Professionals Linked Retirement 

Annuity 

− Cobalt for Professionals Cover 

− Cobalt Cover Alterations 

• Quotation form (Income Protector) 

• Quotation form (Other) 

• Alterations 

Funeral TopCover: 

− New proposal 

− Amendments 

Glacier: 

− Stratus Investment Linked Pension 

− Stratus Composite Annuity 

Glacier Topcover and Income Protector 

Glacier RiskCover/ Topcover Alterations: 

PROPOSAL FORMS 

GE 3/2013 G7 

Table / Product code 

L02S 

T02W/ T03W 

T03W 

M01W/ T02W/ T02 

M01W/ T02W/ T02/ T03W 

69 

Proposal form 

AEB2058 

AEB2051/ AEB2100 

AEB2035 

AEB2055 

AEB2022/ AEB2107 

AEB44 

AEB2 

– AEB2021 

– E2022 

M01W/ M02W/ T02W/ 

T03W 

− Quotation form (Income Protector) T03W 

− Quotation form (other) M01W/ M02W/ T02W 

− Alterations M01W/ M02W/ T02W/ 

T03W 

Halala Savings Plan: 

− Cash withdrawals, in full or partial 

− Alterations 

AEB2071/AEB2051/ 

AEB2100 

AEB2035 

AEB2072/ AEB2055 

AEB2073/ AEB2022/ 

AEB2107 

E2823 

AEB2029

Investment Plans: 


− Capital Protection Option: Whole life 

(compulsory money) 

− Capital Protection Option: Chosen term 

(compulsory money) 

Life and Term Annuities 

Matrix Cover: 

− Matrix Income Protector 

− Matrix Topcover 

− Matrix Termcover 

Matrix/ Topaz Cover Alterations: 

GE 3/2013 G8 


Plan 27 

Plan 28 

Plan 1/ Plan 2/ Plan 3 

T03W 

T02W 

T02 

Proposal form 

AEB42/ AEB2056 



AEB2051/ AEB2100 

AEB2051/ AEB2100 

AEB2051/ AEB2100 

− Quotation form (Income Protector) T03W AEB2035 

− Quotation form (Other) T02W/ T02/ T15W AEB2055 

− Alterations T02W/ T02/ T15W/ T03W AEB2022/ AEB2107 

One Step Cover 

One Step Term Cover 

One Step Retirement Plan 

Sanlam Cumulus Investments 

The One Policy for Two: Notations 

86R 

86M 

R19C/ 86M 

E40 

All tables 

AEB54 

AEB54 

AEB11 

AEB2099 

AEB6

Stratus (Legacy): 



− Surrenders and cash withdrawals, in full or 

partial 

− Notations (policy alterations) 

Stratus Continuations: 

− Without regular cash withdrawals 

− Quotation form 


Stratus Endowment: 

− With risk 

− Without risk 

Stratus Endowment: 

− Conversions: 

• Proposal form 

• Quotation form 


− Alterations on continuations/ conversions 

Stratus Guaranteed Income: 



partial 


Stratus Guaranteed Investment: 



partial 

GE 3/2013 G9 


511V 

EC9/ SC2/ SC7 

E36 

E26/ E73 

JO10 

SG1P 

Proposal form 

AEB48 

E2823 

AEB46 

AEB2013/ AEB2064/ 

AEB2083 

AEB2012/ AEB2084 

AEB2029 

AEB2051/ AEB2100 

AEB2057/ AEB2051/ 

AEB2100 

AEB2009/ AEB2062 

AEB2010 

E2823 

AEB2029 

AEB2002/ AEB2056 

E2823 

AEB2027 

AEB2002/ AEB2056 

E2823


Stratus Guaranteed Property Investment: 

Surrenders/ cash withdrawals/loans 

Stratus Guaranteed Return: 



partial 


Stratus International Endowment: 


− Surrenders and cash withdrawals 


Stratus International Retirement Annuity: 

Alterations 

Stratus Pension/ Provident Preserver: 


− Conversions 



Stratus Preservation Funds: 




− Quotation form for Endowment option (loan 

on 1 /3) 

− Endowment option (loan on 1 /3) 

Stratus Preservation Funds and Topaz/ 

Stratus Pension/ Provident Preserver: 

Alterations 

GE 3/2013 G10 


T411 

SG1 

E17 

R05C/ R05P 

PP3/ PF3 

PF4/ PP4 

PP3/ PF3/ PF4/ PP4 

PP2C/ PF2C 

PP1C/ PP7C/ PF1C/ 

PF7C/ PP3/ PP3T/ PF3/ 

PF2C/ PF3T/ PF4/ PP4/ 

PP2C 

Proposal form 

E2823 

AEB2002/ AEB2056 

E2823 

AEB2027 

AEB2016 

E2823 

AEB2025 

AEB2026 

AEB2015 

AEB2018 

AEB2044 

AEB2030 

AEB2045 

AEB2038 

AEB2039 

AEB2028


Stratus Provident Funds: 

− Statement by employee 

− Proposal by employer 




− Continuations: 



Stratus Retirement Annuity Continuations: 

− Proposal form 

− Quotation form 

Stratus/ Cobalt for Professionals Retirement 

Annuity: 

− With risk 


Stratus Retirement annuity: 

− Conversion (extension): 



− Quotation form (loan on 1 /3) 

− Endowment option (loan on 1 /3) 

Stratus/ Topaz/ Cobalt for Professionals 

Retirement Annuity: Alterations 

GE 3/2013 G11 


F01C/ F70C 

FC1C/ FC7C 

RC9P/ RC9C 

R19C / R26C 

R07C/ R07P/ R72C/ R72P 

R19C 

Proposal form 

AEB2036 

AEB2037 

AEB2046 

AEB2049 

AEB2047 

AEB2048 

AEB2013/ AEB2064 

AEB2012 

AEB2051/ AEB2100 

AEB2057/ AEB2051/ 

AEB2100 

AEB2009/ AEB2062 

AEB2010 

AEB2038 

AEB2039 

AEB2028

Stratus Sinking Fund: 






− Alterations on continuations/conversions 

Stratus Traded Policies 

Stratus Edufocus: 

− With risk 


Stratus/ Cobalt for Professionals Registered 

Retirement Annuity Scheme (without risk 

cover) 

Stratus Linked Savings Plan and Stratus 

Linked Investment: 



Stratus Linked Retirement Annuity and Stratus 

Linked Pension Fund Booster: 



GE 3/2013 G12 


S03/ S70 

– 

E30 

R19C 

D03/ D04 

L01C 

Proposal form 

AEB2009/ AEB2062 

AEB2010 

E2823 

AEB2029 

AEB3/ AEB7 

AEB2051/ AEB2100 

AEB2057/ AEB2051/ 

AEB2100 

AEB2003 

AEB2058 

AEB2029 

AEB2058 

AEB2028

Other forms: 


− Amendments to policies: 

• Conversions (total alteration/NKV) 

• Notations (revision of benefits): Universal 

Life and non-Universal Life, including 

Pension Booster 

− Declaration for Stratus Linked Investments, 

Stratus Linked Savings Plan, Stratus/ Cobalt 

for Professionals Linked Retirement Annuity 

and Stratus Linked Pension Fund Booster 

electronic applications submitted on 

SanQuote 

− Declaration for other electronic applications 

submitted on SanQuote 

GE 3/2013 G13 


All policies 

Proposal form 

AEB21 

AEB5 

AEB2008 

AEB2007 

NB: (1) Some forms can be ordered from Supply Services at Drake & Scull according to normal 

procedures. All forms are available electronically. 

(2) Only one policy may be written per proposal form.

Section A : General Information Section B : The Product ... - Sanlam

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