THIS IS AN OPTION FOR THE OPENING TITLE SLIDE Insurance Financial Planning Retirement Investments Wealth The Graduate Backpack 2015 Application of the income protection solution

agenda Sanlam for Graduates Reminder of who qualifies Target Markets Who? Why? Gaps? Case studies- solutions to the GAPS! The Graduate Backpack SILSS Distribution Support

Solutions for graduates a unique offering! The Graduate Backpack SILSS Distribution Support

who qualifies? Self-employed graduated clients Employed graduated clients The Graduate Backpack SILSS Distribution Support

 Government Departments  Hospitals - Nurses  Internal audit  Public Protectorate  Justice Dept.  Environmental  Water affairs  Geoscience  Forensic – SAPS  Teachers  Private and semi private sector  Eskom  Telkom  Engineering – Aurecon etc.  Auditing firms  Engen – Worksite  Dimension data – Worksite  SAP Consultants – Google  Draftsman – companies  Unilever – almost all are grads where do we find graduates? The Graduate Backpack SILSS Distribution Support

National focus areas … The target Markets The Graduate Backpack SILSS Distribution Support

 Majority qualify for Sickness Benefits  All Cities and towns have Hospitals  Ideal for worksite marketing  Limited employee benefits GEPF  No other life insurer offers a “True” sickness benefit why nurses? The target Markets The Graduate Backpack SILSS Distribution Support

 Sanlam already a household name  Enormous Worksite potential  Rerated occupation class “A”  Not qualifying for SB  Very competitive rates for:  Income benefits  Temporary disability + extended + Pre and post impairment benefit  Total and Permanent Dis income benefit  Lump-sum disability benefits why teachers? Target Markets The Graduate Backpack SILSS Distribution Support

 Many have tertiary qualifications  All Cities and towns have Government Departments  Ideal for worksite marketing  Limited employee benefits GEPF  No other life insurer offers a “True” sickness benefit why Government employee? The target Markets The Graduate Backpack SILSS Distribution Support

 Generally, most have ill-fitting or no financial solution to meet the needs of a self- employed individual  No other life insurer offers a “True” sickness benefit why self-employed? The target Markets The Graduate Backpack SILSS Distribution Support

the pitfalls for graduates… The Graduate Backpack SILSS Distribution Support

 What happens when they are unable to earn an income?  No temporary or permanent income benefits?  Business Pressure self employed graduate X The Graduate Backpack SILSS Distribution Support

 What happens when they are unable to earn an income?  There may be gaps in the temporary and permanent income benefits employed graduate (limited benefits) ? The Graduate Backpack SILSS Distribution Support

 What happens when they are unable to earn an income?  No temporary or permanent income benefits with the GEPF (Only Lump-sum for Total and Permanent) GEPF employed graduate (less than 10 years service)

 What happens when they are unable to earn income  No temporary and limited income / Lump-sum benefits with the GEPF (Only for Total and Permanent) GEPF employed graduate (more than 10 years service) The Graduate Backpack SILSS Distribution Support

Solutions to the GAPS! The Graduate Backpack SILSS Distribution Support

the solution… The Graduate Backpack SILSS Distribution Support

Financial planning 1.The Will 2.Settlement of the Estate 3.Care of the Family 4.Disability 5.Retirement Planning 6.Investment Planning The Graduate Backpack SILSS Distribution Support

Sanlam for Professionals and Graduates  Case studies  Male 40 anb with a 4 year diploma and gross income in all cases R pa (R pm).  All premium calculations are based on the following:  Age related premium patterns  5 year guarantee period  100% administration RG 4 and disability class “A”  Debt of R Graduate - Self-employed with no employee benefits 2.Graduate in private sector with no employee benefits 3.Graduate in private sector with limited employee benefits 4.Graduate in the Government services with less than 10 (9) years service 5.Graduate in the Government services with more than 10 (20) years service The Graduate Backpack SILSS Distribution Support

sickness benefit – sliding scale For internal use onlyFinancial limits Gross professional Income (annual): GPI Up to and including 55 anb Older than 55 anb GPI ≤ R %77% R < GPI ≤ R %72% R < GPI ≤ R %68% R < GPI ≤ R %64% R < GPI ≤ R %60% R < GPI ≤ R %55% R < GPI60%51% The Graduate Backpack SILSS Distribution Support

 A self-employed graduate  No benefits  No days sick leave (self employed) case study 1 The Graduate Backpack SILSS Distribution Support

case study 1 Proposal Sickness Benefit 7– 30 day waiting period (If client qualifies) with 24 payments to 70 anb (R x 85% = R pm) Extended disability Income benefit with 24 months waiting period to 70 anb or W/L (R pm) Maximise the Lump sum disability to settle debt R (especially if there is a contingent liability etc.) Benefit Benefit amount Monthly Premium Sickness Benefit (SA) 7 day 24 payments (70)R pm R Sickness Benefit (SA) 14 day 24 payments (70)R pm R Sickness Benefit (SA) 30 day 24 payments (70)R pm R Extended Disability Income Benefit (SA) (70)R pm R Extended with Post-retirement impairment benefit (SA) (W/L)R pm R Extended with Post and Pre-retirement Impairment benefit (SA) (W/L)R pm R Regular Occupation Disability (SA) (65)R R125.10

disability calculator The Graduate Backpack SILSS Distribution Support

 Employee in private sector with the following Employee Benefits  No employee benefits  30 days sick leave in 3 year cycle case study 2 The Graduate Backpack SILSS Distribution Support

case study 2 Proposal Sickness Benefit 30 day waiting period with 24 payments to 65 anb (R pm) Extended Disability Income benefit with 24 months waiting period to 65 (R pm) Maximise the Lump sum disability to settle debt etc. R ) Benefit Benefit amount Monthly Premium Sickness Benefit (SA) 30 day 24 payments(65)R pmR Extended Disability Income Benefit (SA) (65)R pmR Extended with Pre-retirement Impairment Benefit (SA) (65)R pmR Regular Occupation Disability (SA) (65)R R The Graduate Backpack SILSS Distribution Support

 Employee in private sector with the following Employee Benefits  Lump sum disability 4 x annual salary with 6 month waiting period (total and permanent)  Income benefit 75% x annual income to 65 with 3 months waiting period (total)  30 days sick leave in 3 year cycle case study 3 Example Lump sum calculation 4 x R = R Income calculation 75% GP (Not cost to company) x R = R pm The Graduate Backpack SILSS Distribution Support

case study 3 Proposal Sickness Benefit 30 day waiting period with payments to 65 anb (R pm) Reason The client may be exposed as the Income benefit has a 3 month waiting period and only payable at total disability (most EB use the own or similar occupation definition) Optional Boost the lump sum disability to settle debt etc. (R – R = R ) BenefitBenefit amountMonthly Premium Sickness Benefit (SA) 30 day 6 months payments (65)R14 450pmR46.55 Regular Occupation Disability (SA) (65)R R23.01 The Graduate Backpack SILSS Distribution Support

Underwriting are prepared to give this client Sickness Benefit with a maximum payment period of 6 months! x

employee benefit… The Graduate Backpack SILSS Distribution Support

 Sick leave  Generally, most companies offer 30 days SL in a 3 year cycle.  Income care benefits (total)  There is no real definition of total disability.  This total is usually assessed in the following manner: 1. Medical condition 2. Occupation/Job description (regular or suited)  Does the medical condition (totally) prevent the employee doing their regular occupation or a suitable alternative to that regular occupation understanding EB The Graduate Backpack SILSS Distribution Support

 Client has 9 years service on the GEPF  36 days sick leave in 3 years cycle  Less than 10 years service – only a lump sum benefit payable. (total and permanent) case study 4 Example 15.5% x R x 9 x 4 = R (No income benefit is payable) Not even 2 x annual income The Graduate Backpack SILSS Distribution Support

case study 4 BenefitBenefit amountMonthly Premium Sickness Benefit (SA) 30 day 24 payments (65)R pmR Extended Disability Income Benefit (SA) (65)R pmR Extended with Pre-retirement Impairment Benefit (SA) (65)R pmR Regular Occupation Disability (SA) (65)R R Proposal Sickness Benefit 30 day waiting period with 24 payments to 65 anb (R pm) Extended Disability income benefit with a 24 month waiting period to 65 anb (R17000 x 85% = R pm) Optional benefits Boost the lump sum amount to settle debts etc. (R – R = R ) The Graduate Backpack SILSS Distribution Support

 Client has 20 years service to the GEPF  36 days sick leave in 3 years cycle  Client has a lump sum and income benefits (total and permanent) case study 5 Example Lump sum calculation 6.72% x 20 x R = R Income calculation 1 x 20 x R R360 = R pm (R R360 / 12) % of annual income The Graduate Backpack SILSS Distribution Support

case study 5 Proposal Sickness Benefit 30 day waiting period with 24 payments to 65 anb (R pm) Extended Disability income with a 24 month waiting period to 65 anb (R x 85% = R – R6 212 = R8 238 pm) Optional Boost the Lump sum amount to settle debts etc.(R – R = R ) BenefitBenefit amountMonthly Premium Sickness Benefit (SA) 30day 24 payments (65)R pmR Extended Disability Income Benefit (SA) (65)R pmR Extended with Pre-retirement Impairment Benefit (SA) (65)R pmR Regular Occupation Disability (SA) (65)R R The Graduate Backpack SILSS Distribution Support

Sanlam’s philosophy The Graduate Backpack SILSS Distribution Support

Sanlam’s guarantee … The Graduate Backpack SILSS Distribution Support

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