Sanlam Severe Illness Cover Review 2023

Sanlam Severe Illness Cover

The Sanlam Severe Illness Cover is a critical illness cover that provides coverage of up to R6 million. Premiums for the cover start at R100.00 per month for the primary member. Individuals must be at least 18 years old to purchase this product.

The Sanlam Severe Illness Cover has many benefits, including cancer coverage of 150% of the cover amount and access to the Sanlam reality rewards program, which allows policyholders to save up to 30% on premiums payable.

A cashback benefit can be purchased, which provides the policyholder with cashback after 15 years of policy ownership. On the 15th year anniversary of the policy, 100% of the premiums are repaid. However, the benefits earned will depend on the cover option chosen.

Sanlam Severe Illness Cover comes in three options. These severe illness cover options are discussed below.

Sanlam Severe Illness Cover Options

The Sanlam Severe Illness Cover Options include Indie Critical Illness Cover, Matric Express Severe Illness Cover, and Matrix Premier Severe Illness Cover. All of these options are discussed below.

Indie Critical Illness Cover

The Indie Critical Illness Cover provides coverage of up to R5 million if the policyholder becomes critically ill. This money can be used however the policyholder sees fit, such as paying for accommodation and airfare to treatment facilities.

Indie critical illness cover has monthly premiums starting at R100.00. The product can be applied for online, and the online quote is guaranteed. The Sanlam Indie Critical Illness Cover can be obtained in as little as 10 minutes.

The plan covers a variety of severe illnesses, with cancer treatment receiving the highest payout. Indie critical illness insurance provides up to 150% coverage for certain aggressive cancers. For example, if a policyholder has R1 million in coverage and is diagnosed with cancer, he or she can receive a R1.5 million payout.

When you purchase the policy, you will receive a free wealth bonus. Sanlam will match up to 100% of monthly premiums paid for insurance coverage. Policyholders can withdraw 10% of their wealth bonus every five years, and the entire amount when they reach the age of 70.

The Indie critical illness cover has flexible premiums, and Sanlam allows policyholders to skip premiums without losing all of their cover or reducing their wealth bonus. However, the premium legacies must be paid.

The Matrix Express Severe Illness Cover is the second option on the Sanlam Severe Illness Cover, and it is discussed further below.

Matrix Express Severe Illness Cover

The Matrix Express Severe Illness Cover provides more comprehensive severe illness coverage and can be obtained over the phone. Premiums on the product are subject to phone underwriting.

Before establishing a premium, 13 health questions will have to be answered by the customer. These 13 questions will determine a portion of your monthly premiums. When calculating the premium, age and other risk factors will be considered.

Matrix Express Severe Illness Cover provides coverage of up to R5 million. If the policyholder is diagnosed with a serious illness, the cover amount is payable. When a claim is made, the policyholder will be given a lump sum equal to the total cover amount which is tax-free.

The Matrix Express cover includes a cashback benefit that provides cashback after 15 years of policy ownership. To be eligible for the cashback benefit, the policy must be kept in force throughout the period. The cashback benefit reimburses all payments in full.

The Matrix Express cover is more scrutinized than the Indie cover because it includes random medical tests. These tests may have an impact on the premiums payable.

The Matrix Premier Severe Illness Cover, which is discussed further below, is the third severe illness option available.

Matrix Premier Severe Illness Cover

The Matrix Premier Severe Illness Cover provides the most coverage of any severe illness cover option. The plan has a maximum coverage amount of R6 million and covers a variety of serious illnesses.

The premiums for the Matrix Premier Severe Illness Cover are tailored to the underwriting results. This policy can be obtained by calling an adviser. The policy will almost certainly require the policyholder to undergo some blood tests.

The Sanlam Reality Rewards program rewards the Matrix Premier Severe Illness Cover. Members of the Sanlam Reality Rewards program can save up to 30% on Matrix Premier Severe Illness Cover premiums.

The Matrix Premier policy includes the option to add a cashback benefit. After 15 years on the policy, the policyholder receives a refund of 100% of the premiums paid through the cashback benefit. The policyholder must have kept the policy active during the time period and maintained it.

The cashback benefit increases the policyholder’s monthly payment by 35%, but it falls away after 15 years.

Advantages of Sanlam Severe Illness Cover

  • The product comes with a cashback benefit that can be added to the policy.
  • Sanlam Reality Rewards can be earned on premiums paid without having to pay an extra premium for the benefit.
  • There are different cover options to choose from, with each cover having its unique features.
  • Some of the severe illness cover policies don’t require a medical examination.
  • The maximum cover amount of R6 million is very high for a severe illness cover.
  • The payout for severe illness is tax-free.
  • Aggressive cancers get an adjusted rate of 150% of the cover amount.
  • Indie covers can be bought online, and the cover is activated immediately.
  • Premiums are personalized based on individual risk factors.

Disadvantages of Sanlam Severe Illness Cover

  • There is no paid-up benefit that can be added to the cover.
  • Premiums can be very high when a policyholder adds a cashback benefit since it inflates the premiums by 35%.

Conclusion

The Sanlam Severe Illness Cover provides members with benefits that are unrivaled by other severe illness policies. With the addition of the Sanlam Reality Rewards to some of the options, the insurance cover now provides the best free benefit for any severe illness cover. The Sanlam Severe Illness Cover’s only shortcoming is a lack of add-ons.

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