1. 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

2. 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

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

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

5.  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

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

7.  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

8.  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

9.  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

10.  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

11. the pitfalls for graduates… The Graduate Backpack SILSS Distribution Support

12.  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

13.  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

14.  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)

15.  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

16. Solutions to the GAPS! The Graduate Backpack SILSS Distribution Support

17. the solution… The Graduate Backpack SILSS Distribution Support

18. 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

19. Sanlam for Professionals and Graduates  Case studies  Male 40 anb with a 4 year diploma and gross income in all cases R204 000 pa (R17 000 pm).  All premium calculations are based on the following:  Age related premium patterns  5 year guarantee period  100% administration RG 4 and disability class “A”  Debt of R1 000 000 1.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

20. 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 ≤ R100 00090%77% R100 000 < GPI ≤ R 300 00085%72% R300 000 < GPI ≤ R 400 00080%68% R400 000 < GPI ≤ R 700 00075%64% R700 000 < GPI ≤ R 1 500 00070%60% R1 500 000 < GPI ≤ R 4 000 00065%55% R 4 000 000 < GPI60%51% The Graduate Backpack SILSS Distribution Support

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

22. case study 1 Proposal Sickness Benefit 7– 30 day waiting period (If client qualifies) with 24 payments to 70 anb (R17 000 x 85% = R14 450 pm) Extended disability Income benefit with 24 months waiting period to 70 anb or W/L (R14 450 pm) Maximise the Lump sum disability to settle debt R 1 000 000 (especially if there is a contingent liability etc.) Benefit Benefit amount Monthly Premium Sickness Benefit (SA) 7 day 24 payments (70)R14 450 pm R165.97 Sickness Benefit (SA) 14 day 24 payments (70)R14 450 pm R112.36 Sickness Benefit (SA) 30 day 24 payments (70)R14 450 pm R 48.93 Extended Disability Income Benefit (SA) (70)R14 450 pm R141.41 Extended with Post-retirement impairment benefit (SA) (W/L)R14 450 pm R162.62 Extended with Post and Pre-retirement Impairment benefit (SA) (W/L)R14 450 pm R174.01 Regular Occupation Disability (SA) (65)R1 000 000 R125.10

24. disability calculator The Graduate Backpack SILSS Distribution Support

25.  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

26. case study 2 Proposal Sickness Benefit 30 day waiting period with 24 payments to 65 anb (R14 450 pm) Extended Disability Income benefit with 24 months waiting period to 65 (R14 450 pm) Maximise the Lump sum disability to settle debt etc. R1 000 000) Benefit Benefit amount Monthly Premium Sickness Benefit (SA) 30 day 24 payments(65)R14 450 pmR 47.95 Extended Disability Income Benefit (SA) (65)R14 450 pmR113.22 Extended with Pre-retirement Impairment Benefit (SA) (65)R14 450 pmR130.20 Regular Occupation Disability (SA) (65)R1 000 000R125.10 The Graduate Backpack SILSS Distribution Support

28.  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 R204 000 = R816 000 Income calculation 75% GP (Not cost to company) x R204 000 = R12 750 pm The Graduate Backpack SILSS Distribution Support

29. case study 3 Proposal Sickness Benefit 30 day waiting period with 3 - 6 payments to 65 anb (R14 450 pm) Reason The client may be exposed as the Income benefit has a 3 month waiting period and only payable at total disability (most EB use the own or similar occupation definition) Optional Boost the lump sum disability to settle debt etc. (R1 000 000 – R816 000 = R184 000) BenefitBenefit amountMonthly Premium Sickness Benefit (SA) 30 day 6 months payments (65)R14 450pmR46.55 Regular Occupation Disability (SA) (65)R184 000R23.01 The Graduate Backpack SILSS Distribution Support

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

31. employee benefit… The Graduate Backpack SILSS Distribution Support

32.  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

33.  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 R204 000 x 9 x 4 = R379 440 3 (No income benefit is payable) Not even 2 x annual income The Graduate Backpack SILSS Distribution Support

34. case study 4 BenefitBenefit amountMonthly Premium Sickness Benefit (SA) 30 day 24 payments (65)R14 450 pmR 47.95 Extended Disability Income Benefit (SA) (65)R14 450 pmR113.22 Extended with Pre-retirement Impairment Benefit (SA) (65)R14 450 pmR130.20 Regular Occupation Disability (SA) (65)R620 560R 77.63 Proposal Sickness Benefit 30 day waiting period with 24 payments to 65 anb (R14 450 pm) Extended Disability income benefit with a 24 month waiting period to 65 anb (R17000 x 85% = R14 450 pm) Optional benefits Boost the lump sum amount to settle debts etc. (R1 000 000 – R379 440 = R620 560) The Graduate Backpack SILSS Distribution Support

36.  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 R204 000 = R274 176 Income calculation 1 x 20 x R204 000 + R360 = R 6 212 pm (R74 182 + R360 / 12) 55 36.5% of annual income The Graduate Backpack SILSS Distribution Support

37. case study 5 Proposal Sickness Benefit 30 day waiting period with 24 payments to 65 anb (R14 450 pm) Extended Disability income with a 24 month waiting period to 65 anb (R17 000 x 85% = R14 450 – R6 212 = R8 238 pm) Optional Boost the Lump sum amount to settle debts etc.(R1 000 000 – R274 176 = R725 824) BenefitBenefit amountMonthly Premium Sickness Benefit (SA) 30day 24 payments (65)R14 450 pmR 47.95 Extended Disability Income Benefit (SA) (65)R 8 238 pmR 64.54 Extended with Pre-retirement Impairment Benefit (SA) (65)R 8 238 pmR 74.22 Regular Occupation Disability (SA) (65)R725 824R 90.80 The Graduate Backpack SILSS Distribution Support

39. Sanlam’s philosophy The Graduate Backpack SILSS Distribution Support

40. Sanlam’s guarantee … The Graduate Backpack SILSS Distribution Support

41. thank you