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									                                ARCHIVE


                          ALPHABETICAL INDEX



                                                            Section


AIDS AND ASSURANCE (2/2006) ……………………………………………                 DE
CENTRAL PROVIDENT FUND (2/2006) …………………………………….              BM
CONTINUATION OPTIONS ……………………………………………………                     CN
COVER REINSTATEMENT OPTION (2/2006) ……………………………….             CB
DEFERRED COMPENSATION (2/2006) ……………………………………..              BM
DISABILITY BENEFITS (2/2006) ……………………………………………..              CD
EDUFOCUS (2/2006) ……………………………………………………………                     BB
ENDORSEMENTS (2/2006) ……………………………………………………                    DC
EXTENDED STRATUS …………………………………………………………                      BW7
FINPLAN CODES ………………………………………………………………..                      EB
FUTURE COVER (TD) (2/2006) …………………..…………………………..              CJ
GEARED EQUITY GROWTH (10/1998) ……………………………………..               BV
GUARANTEED PLAN FROM SANLAM ……………………………………..                  BR
HOW A UNIVERSAL LIFE POLICY WORKS (2/2006) …………………….          AB
INCOME PROTECTOR (T48) ………………………………………………….                   BI
INCOME TAX TABLES
− 1999 …………………………………………………………………………………….                      EA
− 2000 …………………………………………………………………………………….                      EA
− 2001 …………………………………………………………………………………….                      EA
− 2002 ……………………………………………………………………………………..                     EA
− 2003 …………………………………………………………………………………….                      EA
− 2004 …………………………………………………………………………………….                      EA
− 2005 …………………………………………………………………………………….                      EA
− 2006 …………………………………………………………………………………….                      EA
INDEXPLAN (2/2006) …………………………………………………………..                  CM
INVESTMENT FUNDS ………………………………………………………….                      AC
   −   2004 …………………………………………………………………………………                   AC
   −   2/2006 ……………………………………………………………………………….                 AC
LEVEL TERM ASSURANCE (T6) ……………………………………………..                 BH
MEDICAL UNDERWRITING (2/2006) …………………………………………                DD
ONEMED (8/1998) ……………………………………………………………….                     BE
OPTIONS OUTOMATICALLY PART OF SOME POLICIES (2/2006) ……..     CE


                                                             2/…


GE 8/2006                       Archive
                                    -2-
                                                                Section




PART TIME ACTIVITIES (2/2006) …………………………………………….                 DB
PREGNANCY BENEFIT (2/2006) ……………………………………………..                    CI
PERMANENT ASSURANCE OPTIONS (PVO AND OV-PVO) 2/2006) ….           CF
PB, GB, PM. GM …………………………………………………………………                         CG
PLAN 25 ………………………………………………………………………….                            BK
PLAN 26 ………………………………………………………………………….                            BK
PRESERVATION FUNDS ………………………………………………………                         BO
PRODUCT NAME CODES ……………………………………………………..                         EE
RATE DIFFERENTIATION (2/2006) …………………………………………..                 DA
RETIREMENT ANNUITY (2/2006) …………………………………………….                   BC
ROLLING GUARANTEED EQUITY GROWTH (10/1998) …………..………              BS
STRATUS …………………………………………………………………………                             BW
− EXTENDED STRATUS ……………………………………………………………….                     BW7
STRATUS RIDER BENEFITS:
− WAIVER OF PREMIUM AT DISABILITY (OPG, OGG)(2/2006) ………………….    CX1
− WAIVER OF PREMIUM AT DEATH (DP, DG)(2/2006) ……………………………        CX2
STRATUS CONTINUATIONS ………………………………………………….                      BX10
STRATUS RISK PRODUCTS : RATE DIFFERENTIATION AND
 OCCUPATION CODES (2/2006) ………………………….………………….                    DX
SUMMARIES FOR NON-STRATUS PRODUCTS (2/2006) ………………..              G
THE 4IN1 PLAN (2/2006) ……………………………………………………….                     BE
THE ONE FAMILYSUPPORTER ………………………………………………                       BG
THE ONE MEDICAL BENEFIT FUND (8/1998) ……………………………..               BF
THE ONE MEDICAL PLAN (12/1998) ………………………………………..                 BD
THE ONE POLICY ……………………………………………………………….                         BA
THE ONE POLICY FOR TWO (2/2006) ………………………………………                   BP
THE ONE POLICY FOR WHOLE-LIFE AND ENDOWMENT ……………...             BA
THE ONE SINKING FUNDS …………………………………………………...                      BL
THE PREGNANCY BENEFIT (2/2006) ………………………………………..                  CI
TRAUMA BENEFIT (TV) (2/2006) ……………………………………………..                 CK
WAIVER OF PREMIUM BENEFITS AT DEATH (P, PB) (2/2006) …………        CG
WAIVER OF PREMIUMS AT DISABILITY (OP, OG AND M-OP)(2/2006) ..    CH




GE 8/2006                          Archive
                          FEBRUARY 2006

                            SECTION AB



                 HOW A UNIVERSAL LIFE POLICY WORKS

                                                         Page

BASIC COMPOSITION …………………………………………………………………              AB1
–   INVESTMENT ACCOUNT …………………………………………………………………….       AB1
–   TERM ASSURANCE …………………………………………………………………………..        AB1
DEATH BENEFIT / COVER AMOUNT ………………………………………………..        AB2
–   INITIAL DEATH BENEFIT ……………………………………………………………………..   AB2
–   BREAKTHROUGH POINT …………………………………………………………………….       AB2
CASH VALUE ……………………………………………………………………………                 AB3
COVER LEVELS …………………………………………………………………………                AB4
–   MAXIMUM COVER …………………………………………………………………………….         AB4
–   STANDARD COVER …………………………………………………………………………..        AB4
–   WITHOUT COVER ……………………………………………………………………………..        AB4
–   COVER ACCORDING TO CHOICE ………………………………………………………….    AB5
APPLICATION OF PREMIUMS ………………………………………………………..          AB6
–   INVESTMENT AMOUNT ………………………………………………………………………        AB6
–   INVESTMENT ACCOUNT …………………………………………………………………….       AB6
THE EFFECT OF INVESTMENT PERFORMANCE …………………………………       AB7
–   HIGHER INVESTMENT PERFORMANCE ………………………………………………….   AB7
–   LOWER INVESTMENT PERFORMANCE …………………………………………………..   AB7
INVESTMENT GUARANTEE …………………………………………………………..            AB8
GUARANTEED TERM …………………………………………………………………..              AB8
REVISIONS ……………………………………………………………………………….                AB9




GE 6/2000                       arg(AB)
                             HOW A UNIVERSAL LIFE POLICY WORKS


 BASIC COMPOSITION

A universal life policy consists of two elements, viz. an investment account and annually purchased term
assurance.

INVESTMENT ACCOUNT
The investment account is like a savings account and forms the basis of The One Policy and the 4in1
Plan. The extent to which the investment account grows, depends on the way in which the premium is
applied. See “Application of premiums” later in this section.

TERM ASSURANCE
The annually purchased term assurance is added to the investment account to provide the exact life
cover (initial death benefit) which the client selected when taking out the policy, and to keep the life
cover constant.
The graph shows how these two elements combine to give the initial death benefit offered by The One
Policy and the 4in1 Plan.




GE 2/2005                                      arg(AB1)
DEATH BENEFIT/COVER AMOUNT

INITIAL DEATH BENEFIT
We call the initial death benefit the cover amount.
Whenever a client takes out the One Policy or the 4in1 Plan, he/she can choose the cover amount
(initial death benefit). This amount consists of
   •   the balance on the investment account plus
   •   the annually purchased term assurance.
The unique feature of these policies is that the term assurance does not decrease according to a fixed
pattern. It decreases in accordance with the investment account increase by means of bonuses/growth
and contributions. The amount of term assurance is therefore recalculated from year to year (see
graph).

BREAKTHROUGH POINT
As long as the balance of the investment account is less than the chosen cover amount (initial death
benefit), the cover is supplemented by term assurance.
When the investment account has grown to the point where the balance of the investment account is
equal to the cover amount, no further term assurance is necessary. This point is called the
breakthrough point. After that, the death benefit of the policy does not remain constant, but is equal to
the balance of the investment account (which is larger than the chosen cover amount).




As the graph shows, the investment performance of the assurer will determine the actual breakthrough
point. In view of the fact that no term assurance is required after the breakthrough point, the cost of life
cover falls away at that stage. This will also apply in respect of lump sum disability and trauma cover - if
these benefits have been added to the policy.
Note: The cover amount (initial death benefit) is guaranteed for the duration of the guaranteed term.




GE 2/2005                                        arg(AB2)
CASH VALUE
Subject to certain requirements, the policy-owner may terminate the policy by means of a full cash
withdrawal.
Features
   •   A full cash withdrawal is permitted only once the waiting period of the policy in question has
       elapsed.
   •   The cash value of the policy is usually smaller than the balance of the investment account, since
       outstanding costs have to be recovered from the latter in the case of a surrender.
   •   The cash value of the policy is market-related (even in the case of policies in the Stable Bonus
       Fund).
   •   As a result of the outstanding costs on the policy, the cash value could be smaller than the total
       premiums paid on the policy, in the early years of the policy.
   •   At maturity the cash value (then called the maturity value) is equal to the balance of the
       investment account.
   •   Since outstanding costs are redeemed over the term of the policy, the gap between the cash
       value and the balance of the investment account will become smaller as the policy grows older.
   •   In terms of Part 4 of the Regulations issued in terms of the Long-term Insurance Act (previously
       Section 59D), the cash value will be restricted within a limited period – a limited period of 5 years
       apply to new policies.
Cash withdrawals/Loans
When partial cash withdrawals are allowed to be made, the life cover is always decreased as a result.
To establish what effect a cash withdrawal will have on your client’s policy, you must request a computer
quotation. Recommending a loan instead of a cash withdrawal may be to your client’s advantage.




GE 2/2005                                        arg(AB3)
COVER LEVELS
•   At inception the client selects a policy with or without cover.
•   Different cover options are available.
•   Minimum life cover available:
    − Recurring-premium policies: R10 000
    − Single-premium policies: Single premium + R10 000
•   The cover level and/or premium can be altered after inception to suit your client’s changing
    circumstances and needs. However, alterations involve costs and this will affect the other benefits in
    terms of the policy. The computer quotation reflects this alteration to the benefits of the policy.
•   For increases in life cover, proof of assurability is required.

MAXIMUM COVER
Maximum cover is for the policy-owner who wishes to obtain high cover for his premium, and is less
interested in the investment aspect. Because the investment element is smaller, the investment account
will grow more slowly and it will take longer before the policy reaches the breakthrough point. The cash
value at any stage, will therefore be less (for the same premium) than for a policy with less cover.
The shorter the term, the lower the maximum cover, so that the policy reaches the breakthrough point
before the end of the premium term (at current illustration rates).

STANDARD COVER
Standard cover offers lower cover than maximum cover, but has a higher savings level. As a result
breakthrough point occurs earlier and cash values are higher.




WITHOUT COVER
The 4in1 Plan (recurring and single premiums) is also available as a pure savings plan. This choice of
cover is intended for the client who has no need for life cover (no death benefit amount). The premium –
after deduction of premium for rider benefits – is used exclusively for building up the investment account.




GE 2/2005                                           arg(AB4)
Cover amount of single premiums without cover:
    •   Balanced Fund:
           the larger of
            −   the single premium and
            −   the balance of the investment account
    •   Sanlam Equity Fund, Offshore Equity Fund and Multi-Manager Balanced Fund (High Equity):
              the balance of the investment account

COVER ACCORDING TO CHOICE
In addition to the fixed cover levels, The One Policy and the 4in1 Plan also offers the client total freedom
of choosing his own cover for any given premium, subject to the following:
−   Recurring premiums:
    Any amount between R10 000 and Maximum Cover
−   Single premiums:
    Any amount between the minimum permissible cover (single premium + R10 000) and Maximum
    Cover.




GE 2/2005                                        arg(AB5)
APPLICATION OF PREMIUMS

INVESTMENT AMOUNT
In the case of the 4in1 Plan, the client can pay monthly, quarterly, half-yearly or annual premiums. As
long as the premiums are paid, certain costs are recovered from them. The nett amount after recovering
costs is called the investment amount.
At present The One Policy for Life Cover is available only as part of a Capital Retention Plan : Plan 24,
and is then issued as a single premium policy.
Annual application
Regardless of the frequency of payments, premiums are applied annually on the policy anniversary.
This appropriation annually in advance not only offers a more immediate participation in the bonuses or
growth of our investment series, but also results in lower administrative costs to the benefit of policy-
owners.
For single premiums, premiums are allocated on inception date.
Determining the investment account
The investment amount is equal to the annual premium minus (where applicable):
   •    the policy fee;
   •    the cost of rider benefits (lump sum disability cover and trauma cover excluded);
        and
   •    an administrative charge.
The policy fee and cost recovery are used to pay costs still outstanding on the policy and to ensure that
no costs are outstanding at maturity.
The remaining amount is called the investment amount. At the beginning of each policy year, Sanlam
invests this amount on behalf of the policy-owner in an investment portfolio for the policy.
Note:    When rider benefits expire, the premiums paid for them are automatically used to increase the
         investment amount.

INVESTMENT ACCOUNT
Stable Bonus Fund policies: Investment bonuses are expressed as a percentage of the balance of
the investment account and are declared annually. They are added to the investment account.
Balanced Fund, Sanlam Equity Fund, Offshore Equity Fund and Multi-Manager Balanced Fund
(High Equity) policies: The value of the investment account is determined by the market value of the
underlying assets in the various funds. See Section AC for more particulars about investment funds.
Before breakthrough point is reached
Before breakthrough point is reached, Sanlam recovers annually (in accordance with the fundamental
principle of a universal policy), the cost of the annually purchased term assurance from the investment
account. This is the exact cost of
   •    life cover
   •    lump sum disability cover, and
   •    trauma cover
This cost is calculated in accordance with
   •    the risk tables in respect of mortality, disability and traumatic events;
   •    the assured’s age, sex, rate class etc. at that stage; and
   •    the nett cover enjoyed by the assured, i.e. the amount by which the cover amount exceeds the
        balance of the investment account.
After breakthrough point
As soon as the balance of the investment account exceeds the cover amount (i.e. breakthrough point is
reached), the cost of life cover, lump sum disability and trauma cover (if applicable) falls away. The
investment account of the policy subsequently grows faster since a bigger part of the premiums will be
used as savings.




GE 2/2005                                        arg(AB6)
Adjustment to risk tables
The cost of cover is calculated annually according to the risk tables. The risk tables will be adjusted from
time to time, according to Sanlam’s latest experience of mortality, disability and traumatic occurances
(should experience justify or necessitate it). See ”Revisions” later in this section.


  THE EFFECT OF INVESTMENT PERFORMANCE

HIGHER INVESTMENT PERFORMANCE
The method of profit-sharing of The One Policy and the 4in1 Plan is exceptional in that an increase in
declared investment bonuses or growth does not cause the cover amount to increase.
All increases are used to allow the investment account to grow faster so that less term assurance is
required.
The lower term assurance in turn leads to a saving in costs from the investment account, which in turn
stimulates faster growth.




A snowball effect can thus be obtained on the balance of the investment account so that breakthrough point
is reached sooner.
The same principle applies when the amount of cover increases with Cover Growth. The cover growth is not
influenced by the investment performance before breakthrough point.

LOWER INVESTMENT PERFORMANCE
If investment performance should decline, it will mean that the balance of the investment account will
increase more slowly. As the total cover remains constant (or increases at a fixed percentage in the case of
Indexplan with Cover Growth), more term assurance will be required than in the case of a higher investment
performance (as described above). As the assured grows older, the cost of term assurance rises and a
larger amount for cover will therefore have to be recovered from the investment account. This can result in
the breakthrough point being reached later or possibly never.




GE 10/2004                                       arg(AB7)
    INVESTMENT GUARANTEE

No minimum maturity value (i.e. no investment growth) is guaranteed.

    GUARANTEED TERM

General

•     The guaranteed term appears on all computer quotations of policies with cover.
•     The date on which the guaranteed term expires is stated in the policy contract.

Effect of guaranteed term on cover amount
•     The cover amount of The One Policy and the 4in1 Plan is not affected directly by investment
      performance before breakthrough point. Although improbable, it is possible that the investment account
      could be exhausted if high cover were maintained over a long period of low investment growth (see
      “Revisions”).
•     Sanlam guarantees that the policy benefits will be maintained up to the end of the guaranteed term,
      provided that
      − all premiums are paid
      − no cash withdrawal or policy loan is made and
      − the prescribed HIV blood tests have been supplied.
•     If Cover Growth has been added to the policy, Sanlam undertakes to maintain the full cover growth for
      the duration of the guaranteed term.




GE 10/2004                                          arg(AB8)
    REVISIONS

Sanlam strives to keep
•    premiums,
•    benefits and
•    cover (as well as the increase in cover in the case of policies with Cover Growth)
constant, as selected by the policy-owner.
Sanlam reserves the right to revise the premiums and/or benefits in certain circumstances, as soon as the
guaranteed term has expired. If a revision appears necessary, Sanlam will advise the policy-owner in time.
The One Policy and the 4in1 Plan
•    The following factors can prevent the investment account from growing satisfactorily:
     − the deterioration of general investment conditions over a prolonged period,
     − unacceptable risk experience and
     − high cost experience.
•    Should the investment account not grow satisfactorily, future premium payments could be insufficient to
     maintain policy benefits
     − throughout the rest of the lifetime of the assured (whole-life assurance) or
     − for the remaining policy term (endowment assurance)
     after the guaranteed term has expired.

•    If a revision is required, the policy-owner – in order to prevent the policy from becoming null and void –
     has to decide whether
     − the premiums of the policy have to increase, or
     − whether the benefits of the policy have to be reduced.
In the case of single-premium policies, an additional premium may be necessary to maintain the benefits.
The Funeral Help Plan
Sanlam reserves the right to revise the policy’s premiums and benefits annually on the policy anniversary if
necessary (e.g. as a result of poor mortality experience).




GE 10/2004                                         arg(AB9)
                           FEBRUARY 2006


                            SECTION AC


                         INVESTMENT FUNDS


                                                             Page


RAND DENOMINATED FUNDS ……………………………………………………..                AC1
US$, £ AND € DENOMINATED FUNDS …………………………………………….            AC2
EXTERNAL FUND MANAGERS ……………………………………………………..                AC2
SWITCHES ………………………………………………………………………………                      AC3
INVESTMENT GUARANTEES ……………………………………………………….                 AC3
INVESTMENT FUNDS AVAILABLE FOR STRATUS AND STRATUS PREMIER   AC4
INVESTMENT FUNDS AVAILABLE FOR LEGACY PRODUCTS ……………….       AC4
REVERSIONARY BONUS SERIES (RB) ………………………………………….             AC5




GE 10/2005                     arg(AC)
                                        INVESTMENT FUNDS


Sanlam Life enables the intermediary to satisfy the needs and preferences of his/her clients with
investment series products in a variety of investment funds viz:


    RAND DENOMINATED FUNDS

MANAGED OPTIONS – ONSHORE

−    Stable Bonus Fund (non-Stratus)
−    Absolute Return Fund (CPIX + 3%)
−    Multi-Manager Absolute Return Fund (CPIX + 3%)
−    PPS Multi-Manager Inflation + 3%
−    Absolute Return Fund (CPIX + 5%)
−    Multi-Manager Absolute Return Fund (CPIX + 5%)
−    PPS Multi-Manager Inflation + 5%
−    Vesting Bonus Fund
−    Balanced Fund (Low Equity)
−    Multi-Manager Balanced Fund (Low Equity)
−    PPS Multi-Manager Inflation + 8%
−    Balanced Fund (Medium Equity)
−    Multi-Manager Balanced Fund (Medium Equity)
−    Balanced Fund (High Equity)
−    Multi-Manager Balanced Fund (High Equity)
−    Guaranteed Property Fund (only available for Stratus Guaranteed Property Investment)

ACTIVE BUILDING BLOCKS – ONSHORE

−    Guaranteed Capital Fund
−    PPS Enhanced Cash Fund
−    Bond Fund
−    Property Fund
−    Sanlam Equity Fund
−    Multi-Manager Equity Fund

MANAGED OPTIONS – OFFSHORE

−    Offshore Hedge Fund
−    Offshore Balanced Fund

ACTIVE BUILDING BLOCKS – OFFSHORE

−    Offshore Money Market Fund (US$)
−    Offshore Money Market Fund (£)
−    Offshore Money Market Fund (€)
−    Offshore Bond Fund
−    Offshore Property Fund
−    Offshore Equity Fund

NB: No Offshore funds are available for retirement annuities for new business.



GE 10/2005                                       arg(AC1)
For continuations of endowment policies in Stratus after the original maturity date or for the purchasing
of Sanlam Traded Policies, a choice from the above-mentioned funds must also be made.

Each of the funds is actively managed with its own investment philosophy and strategy.


    US$, £ AND € DENOMINATED FUNDS

The following investment funds are available for international Stratus policies:

MANAGED OPTIONS – OFFSHORE

−    International Hedge Fund
−    International Balanced Fund

ACTIVE BUILDING BLOCKS – OFFSHORE

−    Money Market Fund (US$)
−    Money Market Fund (£)
−    Money Market Fund (€)
−    International Bond Fund
−    International Property Fund
−    International Equity Fund


    EXTERNAL FUND MANAGERS

The investment funds here after were withdrawn since February 2005 for Stratus products, but are,
along with a range of other unit trust funds, available for Stratus Premier:

−    Coronation Equity Fund (previously Coronation Relative Equity Fund)
−    Investec Equity Fund (previously Investec Relative Equity Fund)
−    Oasis Crescent Equity Fund (previously Nur Equity Fund)
−    Allan Gray Equity Fund

How does the client decide which investment fund is best for him/her?

The client should feel comfortable with the fund's level of risk. This is influenced by various factors,
including:
     −   the types of investment in which a fund invests,
     −   the composition of the funds from the different types of investments,
     −   the strategy of the investment manager, and
     −   whether there are any guarantees.

The types of investments in which an investment fund can invest:

•    Shares of listed companies listed on the Johannesburg Stock Exchange or overseas stock
     exchanges.
•    Direct property investments and listed property trusts.
•    Interest-bearing investments, such as government bonds and money market investments.
•    Derivatives such as options.




GE 10/2005                                          arg(AC2)
The composition of the portfolio plays a role in an investment fund's risk level:

A fund that invests a larger portion in shares will carry more risk than one investing a greater portion in
interest-bearing investments and cash.


  SWITCHES

In the case of Stratus policies, switches between investment funds are allowed, subject to the following:

 Investment fund for            •   The investment guarantee lapses if there is a full switch from the
 which an investment                investment fund for which the investment guarantee was chosen to
 guarantee has been                 another investment fund, unless premiums are still directed to the
 chosen                             particular investment fund.
                                •   When an investment guarantee lapsed in the case of an investment
                                    fund for which an investment guarantee was chosen, it cannot be
                                    added again when the client again does a switch or redirection to
                                    such an investment fund.
                                •   Under certain conditions a participation fee is charged for a switch to
                                    a fund for which an investment guarantee has been chosen.
 Vesting Bonus Fund             •   In order to be able to switch to the Vesting Bonus Fund, the client
                                    must already have invested money in this investment fund, or the
                                    outstanding period up to the option date must be at least five years.
                                    Under certain conditions a participation fee is charged for a switch to
                                    the Vesting Bonus Fund.



  INVESTMENT GUARANTEES


The following investment guarantees are available with Stratus products:

Absolute Return Fund (CPIX + 3%)                              : 0% guarantee
Multi-Manager Absolute Return Fund (CPIX + 3%)                : 0% guarantee
Absolute Return Fund (CPIX + 5%)                              : 0% guarantee
Multi-Manager Absolute Return Fund (CPIX + 5%)                : 0% guarantee
Balanced Fund (Low Equity)                                    : 0% and 3% guarantee
Multi-Manager Balanced Fund (Low Equity)                      : 0% and 3% guarantee

See Section BX for the working of investment guarantees with Stratus policies.




GE 10/2005                                         arg(AC3)
                             INVESTMENT FUNDS AVAILABLE FOR
                               STRATUS AND STRATUS PREMIER


See Summary C in Section BX for a short summary of every investment fund available for Stratus and
Stratus Premier.

Summary D in Section BX indicates which investment funds are available for the respective Stratus
products.

Detailed information about every investment fund (internal and external fund managers) is available on
the Sanlam web. This information is updated regularly.



                             INVESTMENT FUNDS AVAILABLE FOR
                                    LEGACY PRODUCTS

The following investment funds are available for Legacy products – as indicated:

         Investment Funds                        Products available in investment funds
 Stable Bonus Fund                        •   Life policies (non-Matrix)
                                          •   Deferred Compensation
                                          •   Central Provident Fund
                                          •   EduFocus
                                          •   The One Retirement Annuity
                                          •   The One Policy for Special Risks
 Multi-Manager AbsoluteReturn Fund        •   Deferred Compensation
  (CPIX + 5%)                             •   Central Provident Fund
 Balanced Fund (Low Equity)               •   Life policies (non-Matrix)
                                          •   Deferred Compensation
                                          •   Central Provident Fund
                                          •   EduFocus
                                          •   The One Retirement Annuity
 Multi-Manager Balanced Fund (Low         •   Deferred Compensation
  Equity)                                 •   Central Provident Fund
 Multi-Manager Balanced Fund (High        •   Life policies (non-Matrix)
  Equity)(previously Fund of Funds)       •   Deferred Compensation
                                          •   Central Provident Fund
                                          •   EduFocus
                                          •   The One Retirement Annuity
 Guaranteed Capital Fund                  •   Continuation of Deferred Compensation policies
 Sanlam Equity Fund                       •   Life policies (non-Matrix)
                                          •   Deferred Compensation
                                          •   EduFocus
                                          •   The One Retirement Annuity

Detailed information about the above investment funds is available on the Sanlam web.




GE 10/2005                                        arg(AC4)
                                 REVERSIONARY BONUS SERIES (RB)


Although only a few types of policies are still marketed in the Reversionary Bonus Series (only on
Legacy), many policy-owners still have policies in this series.

METHOD OF PROFIT-SHARING
The great advantage of the Reversionary Bonus Series is the stability it offers the policy-owner.
Reversionary bonus
•   A reversionary bonus is declared annually as
       −     a percentage of the sum assured and
       −     a percentage of already vested reversionary bonuses.
•   This bonus vests on the first policy anniversary after it has been declared and then forms a
    permanent part of the policy.

Claim Bonuses
•   Claim Bonuses are declared each year as
       −     a percentage of existing reversionary bonuses and
       −     a percentage of the sum assured.
•   The percentages depend on the inception date of the policy.
•   The claim bonuses do not vest and are declared only for policies that become claims in the next
    financial year.

Final maturity claim bonus
•   A final maturity claim bonus (which is linked to the asset value of the fund) is payable additionally to
    the claim bonus.
•   The final maturity claim bonus is payable only in the case of
       −     a claim in the last policy year or
      − at maturity.
Please Note: Claim bonuses apply only to Reversionary Bonus Series policies not linked to unit
             trusts.

INVESTMENT PHILOSOPHY AND PORTFOLIO COMPOSITION
The investment philosophy and the portfolio composition of the Reversionary Bonus Series are very
similar to those of the Stable Bonus Fund. The only difference is the way in which bonuses are added
to the policy.




GE 10/2005                                          arg(AC5)
                                                 SECTION AC


                                           INVESTMENT FUNDS

                                                                                                        Page
RAND DENOMINATED FUNDS ……………………………………...……………...                                                        AC1
US$, £ AND € DENOMINATED FUNDS ............................................................             AC2
SWITCHES ……………………………………………………………………………..                                                                AC2
GUARANTEED CAPITAL FUND ……………………………………..............…….                                                 AC3
VESTING BONUS FUND ………………………………………………….………….                                                            AC5
BALANCED FUND ……………………………………………………………….…….                                                              AC7
GUARANTEED PROPERTY FUND ....................................................................           AC9
MULTI-MANAGER BALANCED FUND ..............................................................              AC10
STABLE BONUS FUND ……………………………………………………………….                                                             AC12
SANLAM EQUITY FUND .………………………………………..…………….…….                                                          AC14
FUND OF FUNDS ……………………………………………………………….……..                                                             AC16
OFFSHORE BALANCED FUND ………………………………………………….….                                                           AC18
OFFSHORE EQUITY FUND ………………………………………………………….                                                            AC20
WORLDWIDE PROPERTY FUND …………………………………………………..                                                           AC22
WORLDWIDE BALANCED FUND …………………….…………………………….                                                           AC24
WORLDWIDE EQUITY FUND ………………………………………………………..                                                           AC26
ALLAN GRAY EQUITY FUND ……………………………………………………....                                                         AC28
CORONATION RELATIVE EQUITY FUND .........................................................               AC30
INVESTEC RELATIVE EQUITY FUND ...............................................................           AC32
OFFSHORE HEDGE FUND ………………………………………………………….                                                             AC34
NUR EQUITY FUND …………………………………………………………………..                                                             AC36
BOND FUND ……………………………………………………………………………                                                                 AC38
MULTI-MANAGER ABSOLUTE RETURN FUND …………………………………                                                        AC39
MULTI-MANAGER EQUITY FUND ………………………………………………….                                                          AC41
PROPERTY FUND ……………………………………………………………………                                                                AC43
OFFSHORE MONEY MARKET FUND (US$) ……………………………………..                                                       AC45
OFFSHORE MONEY MARKET FUND (£) ………………………………………….                                                        AC47
OFFSHORE MONEY MARKET FUND (€) ………………………………………….                                                        AC49
INTERNATIONAL BALANCED FUND ...............................................................             AC51
INTERNATIONAL EQUITY FUND ......................................................................        AC53
MONEY MARKET FUND (US$) .........................................................................       AC55
MONEY MARKET FUND (£) ...............................................................................   AC57
MONEY MARKET FUND (€) ..............................................................................    AC59
INTERNATIONAL HEDGE FUND …………………………………………………..                                                          AC61
WHICH PORTFOLIO?………………………………………………………………….                                                              AC63
REVERSIONARY BONUS SERIES ………………………………………………….                                                          AC65




GE 4/2004                                                arg(AC)1
                                        INVESTMENT FUNDS



Sanlam Life enables the intermediary to satisfy the needs and preferences of his/her clients with
investment series products in a variety of investment funds viz:


    RAND DENOMINATED FUNDS

INVESTMENT FUNDS WITH GUARANTEES

−    Guaranteed Capital Fund
−    Vesting Bonus Fund
−    Balanced Fund (guarantee optional in the case of Stratus policies)
−    Guaranteed Property Fund (only available for Stratus Guaranteed Property Investment)
−    Multi-Manager Balanced Fund (guarantee optional)

INVESTMENT FUNDS WITHOUT GUARANTEES

−    Stable Bonus Fund
−    Sanlam Equity Fund
−    Fund of Funds
−    Offshore Balanced Fund
−    Offshore Equity Fund
−    Worldwide Property Fund
−    Worldwide Balanced Fund
−    Worldwide Equity Fund
−    Coronation Relative Equity Fund
−    Investec Relative Equity Fund
−    International Hedge Fund
−    Nur Equity Fund
−    Bond Fund
−    Offshore Money Market Fund (US$)
−    Offshore Money Market Fund (£)
−    Offshore Money Market Fund (€)
−    Multi-Manager Absolute Return Fund
−    Multi-Manager Equity Fund
−    Allan Gray Equity Fund
−    Property Fund

For continuations of endowment policies in Stratus after the original maturity date or for the purchasing
of Sanlam Traded Policies, an option from the above-mentioned funds must also be made. For Traded
Policies only the Guaranteed Capital Fund, the Balanced Fund, the Sanlam Equity Fund, Fund of Funds
and the Offshore Equity Fund can be chosen.

Each of the funds is actively managed with its own investment philosophy and strategy.




GE 10/2004                                        arg(AC1)
    US$, £ AND € DENOMINATED FUNDS *

−     International Balanced Fund (guarantee optional for the Stratus International Endowment)
−     International Equity Focus Fund (guarantee optional for the Stratus International Endowment)
−     Money Market Fund (US$)
−     Money Market Fund (£)
−     Money Market Fund (€)
−     International Hedge Fund
* Only available for Stratus International RA and Endowment.

How does the client decide which investment fund is best for him/her?

•    The client should feel comfortable with the fund's level of risk. This is influenced by various factors,
     including:
     −   the types of investment in which a fund invests,
     −   the composition of the funds from the different types of investments,
     −   the strategy of the investment manager, and
     −   whether there are any guarantees.

The types of investments in which an investment fund can invest:

•    Shares of listed companies listed on the Johannesburg Stock Exchange or overseas stock
     exchanges.
•    Direct property investments and listed property trusts.
•    Interest-bearing investments, such as government bonds and money market investments.
•    Derivatives such as options.

The composition of the portfolio plays a role in an investment fund's risk level:

A fund that invests a larger portion in shares will carry more risk than one investing a greater portion in
interest-bearing investments and cash.


    SWITCHES

In the case of Stratus policies, switches between investment funds are allowed, subject to the following:

    Investment fund for          •   The investment guarantee lapses if there is a full switch from the
    which an investment              investment fund for which the investment guarantee was chosen to
    guarantee has been               another investment fund, unless premiums are still directed to the
    chosen                           particular investment fund.
                                 •   When an investment guarantee lapsed in the case of an investment
                                     fund for which an investment guarantee was chosen, it cannot be
                                     added again when the client again does a switch or redirection to
                                     such an investment fund.
                                 •   Under certain conditions a participation fee is charged for a switch to
                                     a fund for which an investment guarantee has been chosen.
    Vesting Bonus Fund           •   In order to be able to switch to the Vesting Bonus Fund, the client
                                     must already have invested money in this investment fund, or the
                                     outstanding period up to the option date must be at least five years.
                                     Under certain conditions a participation fee is charged for a switch to
                                     the Vesting Bonus Fund.




GE 10/2004                                           arg(AC2)
                                      RAND DENOMINATED FUNDS


          INVESTMENT FUNDS WITH GUARANTEES, OR WHERE GUARANTEES CAN BE
                                     CHOSEN


    GUARANTEED CAPITAL FUND

There is no risk attached to an investment in this fund. An investment in the Guaranteed Capital Fund
shares in the full growth of the assets of this fund. Sanlam Life guarantees that this growth will never be
negative.

Type of policies that can be invested in the Guaranteed Capital Fund:

      •    Stratus Endowment
      •    Stratus Sinking Fund
      •    Stratus Retirement Annuity
      •    Stratus Continuation with life insured
      •    Stratus Continuation without life insured
      •    Stratus policy in the Sanlam Preservation Funds
      •    Stratus policy in the Wealth Protector Preservation Funds
      •    Traded Policies
      •    Stratus Investment Linked Pension
      •    Stratus Composite Annuity
      •    Stratus Retirement Annuity Continuations
      •    Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
           Continuations
      •    Continuations of Deferred Compensation policies
      •    Continuations of Central Provident Fund policies
      •    Continuations of policies with more than one life insured

FEES

                                           Stratus-             Stratus-         Non-Stratus products
                                         products on          products on
                                             new                   old
                                                                                Tax-free         Taxable
                                        administration       administration
                                                                                policies         policies
                                           system               system
    Fund management fee                    1,10% p.a.          1,10% p.a.      1,10% p.a.       1,10% p.a.
    Service fee                            0,50% p.a.          0,50% p.a.      0,50% p.a.       0,50% p.a.
    Investment guarantee charge               n.a.                 n.a.            n.a.             n.a.
    Buy/sell spread                            2%                  2%              n.a.             n.a.

•     Tax and statutory investment costs


METHOD OF PROFIT-SHARING
•     A bonus is added daily or monthly depending on the type of policy or investment.
•     It becomes part of the investment and cannot be removed or decreased.
•     The bonus rate fluctuates from time to time, depending on the level of short-term interest rates.

RISK LEVEL

Conservative.

GE 10/2004                                              arg(AC3)
INVESTMENT GUARANTEE

•   The net investment, which is guaranteed for the full term, plus all accumulated bonuses, will be
    payable on the maturity date of the investment or policy.
•   The guaranteed amount is also payable in event of death of the life insured.
•   The bonuses can be withdrawn if:
    −   the investment originated from the continuation of another Sanlam Life policy,
    −   it is a Sanlam Traded Policy, or if
    −   it is a Stratus policy outside it's restricted period.
•   The guarantee does not apply to investments in the Stratus Investment Linked Pension or if the
    regular cash withdrawal amounts are larger than the declared bonus.
•   No guarantee applies at early termination.

PORTFOLIO COMPOSITION

•   Daily cash deposits
•   Money market investments
•   Small amount of shares

TAX IMPLICATIONS

According to the present tax practice, no further tax is payable on these bonuses (higher after-tax
returns)(Stratus Investment Linked Pension excluded). If the client withdraws the bonuses in the case
of Continued or Traded Policies, this represents an after-tax pay out in his/her hands and should be
compared with other investments' after-tax amounts. For example, a bonus rate of 10% represents a
rate of 16,67%, before tax if the client pays tax at a 40% marginal rate.

NB: From 1 October 2001, the returns on Traded policies will be subject to capital gains tax (CGT)
    in the hands of the new policyholder.




GE 10/2004                                              arg(AC4)
     VESTING BONUS FUND

This is a fund for a person interested in an investment where the growth becomes part of the investment
and cannot be removed due to deteriorating market conditions, provided the policy is not terminated
before the end of the contractual term.

Type of policies that can be invested in the Vesting Bonus Fund:

      •   Stratus Endowment
      •   Stratus Sinking Fund
      •   Stratus Retirement Annuity
      •   Stratus Continuation with life insured
      •   Stratus Continuation without life insured
      •   Stratus policy in the Sanlam Preservation Funds
      •   Stratus policy in the Wealth Protector Preservation Funds
      •   Halala Savings Plan
      •   Stratus Investment Linked Pension
      •   Stratus Retirement Annuity Continuations
      •   Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
          Continuations
      •   Stratus Composite Annuity

FEES

                                          Stratus-             Stratus-          Non-Stratus products
                                        products on          products on
                                            new                   old
                                                                                Tax-free        Taxable
                                       administration       administration
                                                                                policies        policies
                                          system               system
    Fund management fee                   2,20% p.a.              -                 -                -
    Service fee                           0,50% p.a.              -                 -                -
    Investment guarantee charge              n.a.                 -                 -                -
    Buy/sell spread                        2,00%*                 -                 -                -

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund. The
      performance fee is taken into account when bonuses are declared.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

•     A bonus is declared monthly and is then proportionally added to the policy on a daily basis.
•     It becomes part of the investment and cannot be removed or decreased.
•     The bonus is calculated based on the expected long term yield of the fund, while taking into account
      the monthly market value change.

RISK LEVEL

Cautious.

INVESTMENT PHILOSOPHY

The fund is supported by a balanced portfolio of investments, to provide excellent growth over the long
term. The fluctuations in the market are stabilised for the investor by the daily addition of the bonuses to
the policy, provided the policy is not terminated before the end of the contractual term. Because
bonuses cannot be taken away, it can therefore happen that the growth does not equal those of the
more aggressive market-related funds.
GE 10/2004                                             arg(AC5)
INVESTMENT GUARANTEE

The risk is moderate. The declared bonuses vest.

This guarantee is valid
    •   on option dates
     • on death of the insured
The guarantee does not apply at the early termination of the policy. The surrender value of the policy
will depend on the market value of the underlying assets, which can fluctuate.

If the client increases his/her investment in the Vesting Bonus Fund within 60 months before any
investment guarantee date, Sanlam Life will charge a participating fee. Sanlam Life will determine the
amount of this fee at the time of such increase.

PORTFOLIO COMPOSITION

The fund can invest up to 70% of its portfolio in shares.
Example of portfolio composition (February 2003):
•   Cash                    :   8%
•   Interest-bearing        : 13%
•   RSA Properties          : 10%
•   Shares                  : 50%
•   Development Fund        :   3%
•   International Assets    : 16%




GE 10/2004                                         arg(AC6)
     BALANCED FUND

This fund is intended for clients who would like to share in the growth potential offered by South African
equity, interest-bearing and cash markets. The fund provides maximum capital growth over the medium
to long term, with moderate risk over the short term.
Types of policies by means of which investments can be made in the Balanced Fund:
      •   Stratus Endowment
      •   Stratus Sinking Fund
      •   Stratus Retirement Annuity
      •   Stratus policy in the Sanlam Preservation Funds
      •   Stratus policy in the Wealth Protector Preservation Funds
      •   Stratus Continuation with life insured
      •   Stratus Continuation without life insured
      •   Stratus Investment Linked Pension
      •   Stratus Retirement Annuity Continuations
      •   Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
          Continuations
      •   Stratus Composite Annuity
      •   Deferred Compensation and Central Provident Fund policies
      •   Traded Policies
      •   EduFocus
      •   Life policies (non-Matrix)
      •   Retirement Annuities (non-Stratus)

FEES

                                          Stratus-             Stratus-       Non-Stratus products
                                        products on          products on
                                            new                   old
                                                                             Tax-free         Taxable
                                       administration       administration
                                                                             policies         policies
                                          system               system
    Fund management fee                   1,10% p.a.          1,10% p.a.     1,94% p.a.      2,04% p.a.
    Service fee                           0,50% p.a.          0,50% p.a.        n.a.             n.a.
    Investment guarantee charge           1,25% p.a.               n.a.         n.a.            n.a.
    Buy/sell spread                        2,00%*                 2,00%         n.a.            n.a.

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING
Growth in the fund is determined by the interest, dividends and rental income earned on the assets, as
well as changes in the market value of the underlying assets in the investment fund. The growth
fluctuates according to market conditions and does not vest.

RISK LEVEL

Moderate.




GE 10/2004                                             arg(AC7)
INVESTMENT BENCHMARK FOR STRATUS BALANCED FUND

    Asset Category               Weighting   Benchmark
    RSA Equities                    35%      Shareholder Weighted All Share Index (PENI)
    RSA Fixed Interest              40%      BEASSA Total Return Index (TRI)
    Foreign Equities                7,5%     Morgan Stanley Capital International World (Develop
                                             Markets) Equity Index
    Foreign Fixed Interest          7,5%     Citigroup World BIG G4 (ex MBS) Index
    RSA Cash                        10%      STeFI (Short Term Fixed Interest Index)


INVESTMENT PHILOSOPHY
This fund endeavors to obtain the maximum growth possible in the medium to long term, but with
moderate volatility.

INVESTMENT GUARANTEE
Non-Stratus policies

No investment guarantee is available for non-Stratus policies, except for The One Policy for Two where
a minimum investment growth rate of 4,5% and 5% p.a. is contractually guaranteed for taxable and tax-
free policies respectively.

Stratus policies on the old administration system

No investment guarantee is available.

Optional investment guarantee available with any Stratus investments on the new
administration system

In the case of the Balanced Fund, an investment guarantee can be added which would guarantee a
minimum net rate of return of 3% per year on the net investment on the option date and investment
guarantee dates.

If the investment in the Balanced Fund is increased within 60 months before any investment guarantee
date of a Stratus policy on the new administration system, Sanlam Life will charge a participation fee.
The amount of this fee is determined at the time of such an increase.

PORTFOLIO COMPOSITION
This fund is a well-balanced portfolio where the focus is on growth assets like shares and property. It is
an excellent hedge against inflation.

Example of portfolio composition (October 2003):

•     Cash                   :   13,5 %
•     Interest-bearing       :   16,6%
•     RSA Properties         :   10,6%
•     Shares                 :   44,6%
•     Development Fund       :    3,1%
•     International Assets   :   11,7%




GE 10/2004                                         arg(AC8)
    GUARANTEED PROPERTY FUND (for Stratus Guaranteed Property Fund only)

INVESTOR’S PROFILE

This fund is for the investor who is looking for guaranteed growth over five years plus two-thirds of the
proceeds in the investment fund that exceeds this guarantee. This target is supported by investments in
property. The investment also offers clients the opportunity to diversify their portfolios in property
investments.

PORTFOLIO COMPOSITION

The fund manager has the mandate to invest in the following:

•     Shopping centres
•     Industrial property
• Office parks
The properties are managed by Gensec Property Services.

RISK LEVEL

Cautious.

FEES

                                         Stratus-           Stratus-           Non-Stratus products
                                       products on        products on
                                           new                 old
                                                                              Tax-free       Taxable
                                      administration     administration
                                                                              policies       policies
                                         system             system
    Fund management fee                      -             1,70% p.a.             -              -
    Service fee                              -             0,50% p.a.             -              -
    Investment guarantee charge              -                 0%                 -              -
    Buy/sell spread                          -                 0%                 -              -

•     Tax and statutory investment costs
•     Adviser’s fee deducted from investment up to 6%. The full investment amount less the adviser’s fee
      is used for purchasing units.
•     Termination fee: 3% (can increase if property must be sold in non-liquid market)




GE 10/2004                                          arg(AC9)
    MULTI-MANAGER BALANCED FUND

INVESTOR’S PROFILE

The investor wants to share in the growth potential offered by South African shares, bonds and cash.
He/she has a medium-term view and is prepared to accept the moderate volatility involved in a balanced
product such as this. Capital growth - rather than capital security - is of great importance to the
investor.

Type of policies by means of which investments can be made in the Multi-Manager Balanced Fund:

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-       Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                            Tax-free       Taxable
                                       administration      administration
                                                                            policies       policies
                                          system              system
    Fund management fee                  1,35% p.a.               -            -               -
    Service fee                          0,50% p.a.               -            -               -
    Investment guarantee charge          1,25% p.a.               -            -               -
    Buy/sell spread                        2,00%*                 -            -               -

•     Tax and statutory investment costs
•     Performance fee: A performance fee may be payable to an underlying investment manager if the
      investment returns achieved on its share of the portfolio exceed a specific performance target.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

The growth in the underlying assets of the investment fund determines the growth in the investment
portion of the policy. This growth fluctuates with the market and does not vest.

RISK LEVEL

Moderate.

OPTIONAL INVESTMENT GUARANTEE AVAILABLE

In the case of the Multi-Manager Balanced Fund an investment guarantee can be added which would
guarantee a minimum rate of return of 3% per year on the net investment on the option date and
investment guarantee dates.



GE 10/2004                                            arg(AC10)
PORTFOLIO COMPOSITION, INVESTMENT TARGETS AND INVESTMENT PROCESS

The benchmark for this fund is:
•   65% shares
•   25% bonds
•   10% cash

The fund aims to provide long-term investment income and capital growth, through investing in primarily
shares, fixed-interest bonds and in cash.

The investment philosophy of Sanlam Multi-Manager Portfolios (SMM) is to create and protect wealth
over the long. As a multi-manager investment manager, SMM combines the selection of specialist asset
managers with active portfolio management to offer their clients a well-diversified portfolio with
acceptable return and risk prospects.

Different investment managers have different skills and specialise in different areas. No single manager
can expect to be the best in all areas and markets.

SMM offers the client a fund that is well diversified over various assets classes, asset managers,
investment processes and investment styles.

Example of portfolio composition (February 2003):

•   Shares                 : 64,8%
•   Government bonds       : 25,3%
•   Cash                   :   9,9%




GE 10/2004                                       arg(AC11)
                           INVESTMENT FUNDS WITHOUT GUARANTEES

     STABLE BONUS FUND

The Stable Bonus Fund, is meant for clients who need long term growth but are aware of the need for
security and would like to make a more stable investment. The purpose of the fund is to achieve
consistent growth over the term of the policy.
Types of policies by means of which investments can be made in the Stable Bonus Fund:
•     Life policies (non-Matrix)
•     Deferred Compensation and Central Provident Fund policies
•     EduFocus
•     Retirement Annuity (non-Stratus)
•     The One Policy for Special Risks

The Stable Bonus Fund is at present available only for policies with recurring premiums with terms of 10
years and longer. Ad hoc recurring premiums are still permitted on policies in the closed bonus class if
the remaining term of the policy is five years or more.

FEES

                                        Stratus-            Stratus-            Non-Stratus products
                                      products on         products on
                                          new                  old
                                                                               Tax-free         Taxable
                                     administration      administration
                                                                               policies         policies
                                        system              system
    Fund management fee                     -                    -            1,8% p.a.        1,7% p.a.
    Service fee                             -                    -               n.a.             n.a.
    Investment guarantee charge             -                    -               n.a.             n.a.
    Buy/sell spread                         -                    -               n.a.             n.a.

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund. The
      performance fee is taken into account when bonuses are declared.

METHOD OF PROFIT-SHARING
A basic investment bonus, expressed as a percentage of the balance of the investment account, is
declared annually and added to the investment account.
Investment bonus
The basic investment bonus consists of two parts:
      •   An income bonus that vests as soon as it is declared.
      •   A non-vesting capital bonus. This bonus is affected by the market conditions and can decrease
          or be removed after a decline in the markets.
Claim bonus
Aside from the investment bonuses, policies in this investment series can also qualify for a claim bonus.
The claim bonus, if any, varies from month to month depending on market conditions and is determined
by the investment performance of the fund at the stage at which the claim arises.
Interim bonuses
Since bonuses for a particular financial year are declared at the end of the financial year, it is necessary
to declare interim bonuses for policies which will become claims before the next bonus declaration.

RISK LEVEL

Cautious.


GE 10/2004                                         arg(AC12)
INVESTMENT PHILOSOPHY

In the case of the Stable Bonus Fund the aim is to maintain a smooth performance over the term of the
policy. The portfolio manager therefore intends to obtain the best possible long-term growth and
manages a balanced portfolio. Despite large fluctuations in the economy and market, Sanlam Life
attempts to keep the basic investment bonus as stable as possible. In order to ensure that policy-
owners receive their equitable share of Sanlam Life’s profits, terminal bonuses may be added when their
money is paid out to give credit for exceptional investment performance.

INVESTMENT GUARANTEE
The investment is not guaranteed, except for The One Policy for Two, where a minimum investment rate
of 4,5% and 5% p.a. is contractually guaranteed for taxable and tax-free policies respectively.

The guarantee does not apply in the case of the early termination of the policy. The surrender value of
the policy depends on the market value of the underlying assets, which fluctuates.

PORTFOLIO COMPOSITION
In general, the portfolio manager will maintain a well-balanced composition of a wide range of
investments, with the emphasis on growth assets in order to create a steady hedge against inflation.

Example of portfolio composition (February 2003):

•   Cash                   :   8%
•   Interest-bearing       : 13%
•   RSA Property           : 10%
•   Shares                 : 50%
•   Development fund       :   3%
•   International Assets   : 16%




GE 10/2004                                      arg(AC13)
     SANLAM EQUITY FUND

INVESTOR'S PROFILE

The investor wants to share in the growth potential of the South African equity market. Capital growth,
rather than capital security, is of great importance to him/her. He/she is prepared to accept short-term
volatility for the sake of maximum potential long-term growth.

Types of policies by means of which investments can be made in the Sanlam Equity Fund:
      •   Stratus Endowment
      •   Stratus Sinking Fund
      •   Stratus Retirement Annuity
      •   Stratus policy in the Sanlam Preservation Funds
      •   Stratus policy in the Wealth Protector Preservation Funds
      •   Stratus Continuation with life insured
      •   Stratus Continuation without life insured
      •   Stratus Investment Linked Pension
      •   Stratus Retirement Annuity Continuations
      •   Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
          Continuations
      •   Stratus Composite Annuity
      •   Deferred Compensation Policies
      •   EduFocus
      •   Life policies (non-Matrix)
      •   Retirement Annuities (non-Stratus)
      •   Traded Policies

FEES

                                          Stratus-             Stratus-       Non-Stratus products
                                        products on          products on
                                            new                   old
                                                                             Tax-free       Taxable
                                       administration       administration
                                                                             policies       policies
                                          system               system
    Fund management fee                   1,10% p.a.          1,10% p.a.     1,94% p.a.    2,04% p.a.
    Service fee                           0,50% p.a.          0,50% p.a.      0% p.a.        0% p.a.
    Investment guarantee charge              n.a.                   n.a.        n.a.           n.a.
    Buy/sell spread                        2,00%*                  2,00%        n.a.           n.a.

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

Growth in this fund is determined by the changes in the market value of the underlying assets in the
investment fund. The growth fluctuates according to market conditions and does not vest.

RISK LEVEL

Moderately aggressive.




GE 10/2004                                             arg(AC14)
INVESTMENT BENCHMARK

    Asset Category               Weighting   Benchmark
    RSA Equities                   82%       JSE All Share Index (Free Float) with Resources down
                                             weighted to 75% of sector weight
    Foreign Equities               15%       Morgan Stanley Capital International World (Develop
                                             Markets) Equity Index
    RSA Cash                          3%     STeFI (Short Term Fixed Interest Index)


INVESTMENT PHILOSOPHY
The Sanlam Equity Fund is focused on a more aggressive approach towards investment strategy and
asset composition. The fund mainly invests in shares on the JSE Securities. The fund manager has
total investment freedom and can make aggressive investment decisions to obtain optimal investment
growth.

INVESTMENT GUARANTEE
No guarantee.
PORTFOLIO COMPOSITION

The fund is mainly invested in South African and overseas shares.

Example of portfolio composition (February 2003):

•     Cash                   :   5%
•     S.A. Shares            : 74%
•     Development fund       :   4%
•     International assets   : 17%




GE 10/2004                                        arg(AC15)
     FUND OF FUNDS

The investor wants to share in the growth potential that South African unit trusts offer, without selecting
the unit trusts themselves. Capital growth, rather than capital security, is of great importance to him/her.
He/she has a long term view and is prepared to accept short-term volatility for the sake of maximum
potential long-term growth.

Types of policies by means of which investments can be made in the Fund of Funds:
      •   Stratus Endowment
      •   Stratus Sinking Fund
      •   Stratus Retirement Annuity
      •   Stratus policy in the Sanlam Preservation Funds
      •   Stratus policy in the Wealth Protector Preservation Funds
      •   Stratus Continuation with life insured
      •   Stratus Continuation without life insured
      •   Stratus Investment Linked Pension
      •   Stratus Retirement Annuity Continuations
      •   Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
          Continuations
      •   Stratus Composite Annuity
      •   Deferred Compensation and Central Provident Fund Policies
      •   EduFocus
      •   Life policies (non-Matrix)
      •   Retirement Annuities (non-Stratus)
      •   Traded Policies

FEES

                                          Stratus-             Stratus-         Non-Stratus products
                                        products on          products on
                                            new                   old
                                                                               Tax-free         Taxable
                                       administration       administration
                                                                               policies         policies
                                          system               system
    Fund management fee                   1,10% p.a.          1,10% p.a.      1,85% p.a.       1,95% p.a.
    Service fee                           0,50% p.a.          0,50% p.a.       0% p.a.          0% p.a.
    Investment guarantee charge              n.a.                   n.a.         n.a.             n.a.
    Buy/sell spread                        2,00%*                  2,00%         n.a.             n.a.

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING
Growth in this fund is determined by the growth of the underlying unit trusts. The growth fluctuates
according to market conditions and does not vest.

RISK LEVEL

Moderately aggressive.




GE 10/2004                                             arg(AC16)
INVESTMENT BENCHMARK

The fund is managed on behalf of the client by a fund manager (Sanlam Multi-Manager Portfolios). The
fund manager’s target is:

    Asset Category                 Weighting   Benchmark
    RSA Equities                     60%       ACI Category : Domestic – Equity General – Funds
    Fixed Interest                   15%       ACI Category : Domestic – Fixed Interest – Bond Funds
    Foreign Equities                 10%       ACI Category : Foreign – Equity General – Funds
    Cash                             15%       ACI Category : Domestic – Fixed Interest – Money Market
                                               Funds

(ACI = Associations of Collective Investments)

INVESTMENT OBJECTIVES

The fund’s objective is to provide long-term capital growth by investing primarily in unit trusts.

INVESTMENT PROCESS

The investment philosophy of Sanlam Multi-Manager Portfolios (SMM) is to create and protect wealth
over the long. As a multi-manager investment manager, SMM combines the selection of specialist asset
managers with active portfolio management to offer their clients a well-diversified portfolio with
acceptable return and risk prospects.

Different investment managers have different skills and specialise in different areas. No single manager
can expect to be the best in all areas and markets.

SMM offers the client a fund that is well diversified over various assets classes, asset managers,
investment processes and investment styles.

INVESTMENT GUARANTEES
This fund offers no investment guarantees.

PORTFOLIO COMPOSITION
Bearing in mind the above investment philosophy, the fund manager invests in the unit trusts with the
best potential in order to achieve a high performance level at all times.

Example of portfolio composition (October 2003):

•     RSA Cash                 :   2%
•     RSA Interest Bearing     : 26%
•     RSA Equities             : 54%
•     International Equities   : 18%




GE 10/2004                                          arg(AC17)
     OFFSHORE BALANCED FUND

This fund is intended for investors looking for excellent investment growth and who wants to invest
overseas.

Types of policies by means of which investments can be made in the Offshore Balanced Fund:

      •   Stratus Endowment
      •   Stratus Sinking Fund
      •   Stratus Retirement Annuity
      •   Stratus Continuation with life insured
      •   Stratus Continuation without life insured
      •   Stratus policy in the Sanlam Preservation Funds
      •   Stratus policy in the Wealth Protector Preservation Funds
      •   Stratus Investment Linked Pension
      •   Stratus Retirement Annuity Continuations
      •   Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
          Continuations
      •   Stratus Composite Annuity

FEES

                                          Stratus-             Stratus-       Non-Stratus products
                                        products on          products on
                                            new                   old
                                                                             Tax-free        Taxable
                                       administration       administration
                                                                             policies        policies
                                          system               system
    Fund management fee                   2,00% p.a.          2,00% p.a.     1,25% p.a.     1,25% p.a.
    Service fee                           0,50% p.a.          0,50% p.a.      0% p.a.         0% p.a.
    Investment guarantee charge              n.a.                   n.a.        n.a.            n.a.
    Buy/sell spread                        3,00%*                  3,00%        n.a.            n.a.

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

The growth in the underlying shares and interest-bearing investment in the investment funds determines
the growth in the investment part of the policy. This growth fluctuates with market conditions and does
not vest. Any depreciation in the value of the rand against other denominations, will increase the return
on the underlying assets in the portfolio.

RISK LEVEL

Moderate.

NB:       The risk level is indicated in terms of the currency in which the investments are made. In
          rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT PHILOSOPHY

The fund manager's aim is to obtain a stable return in dollar terms. The fund invests in a balanced
portfolio of shares and fixed-interest bonds.




GE 10/2004                                             arg(AC18)
INVESTMENT GUARANTEE

The fund has no guarantees, and is influenced by fluctuations in the market as well as foreign exchange
fluctuations. However, because of the type of underlying investments, it has the potential for stable
growth over the longer term.

OTHER IMPORTANT INFORMATION

•   The investor is exposed to shares not available with investments in the South African share market.
•   It is an offshore fund with a rand denomination.
•   The investor’s allowance according to the currency control regulations is not affected, and he/she
    does not require permission from the SA Reserve Bank to make the investment.

PORTFOLIO COMPOSITION

•   Overseas government stocks and bonds.
•   Blue-chip shares listed on stock exchanges in North America, Britain, Europe and Japan.           A
    maximum of 75% may be invested in shares.
•   Minimal investment in emerging markets.
•   Sometimes the portfolio will retain a portion in cash, both in rand and dollar denominations.

Example of portfolio composition (February 2003):

•   Shares                   : 57%
•   Cash                     :   2%
•   Government bonds         : 41%

Geographical distribution:

•   North America            : 57%
•   Pan Europe               : 18%
•   Japan                    : 10%
•   Far East                 :   5%
•   United Kingdom           : 11%




GE 10/2004                                         arg(AC19)
     OFFSHORE EQUITY FUND

This fund is intended for investors looking for excellent investment growth offered by equity funds, and
who wants to invest overseas.

Types of policies by means of which investments can be made in the Offshore Equity Fund:
      •   Stratus Endowment
      •   Stratus Sinking Fund
      •   Stratus Retirement Annuity
      •   Stratus policy in the Sanlam Preservation Funds
      •   Stratus policy in the Wealth Protector Preservation Funds
      •   Stratus Continuation with life insured
      •   Stratus Continuation without life insured
      •   Stratus Investment Linked Pension
      •   Stratus Retirement Annuity Continuations
      •   Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
          Continuations
      •   Stratus Composite Annuity
      •   Retirement Annuities (non-Stratus)
      •   Deferred Compensation
      •   EduFocus
      •   Life policies (non-Matrix)
      •   Traded Policies

FEES

                                          Stratus-             Stratus-       Non-Stratus products
                                        products on          products on
                                            new                   old
                                                                             Tax-free       Taxable
                                       administration       administration
                                                                             policies       policies
                                          system               system
    Fund management fee                   2,00% p.a.          2,00% p.a.     2,75% p.a.    2,85% p.a.
    Service fee                           0,50% p.a.          0,50% p.a.      0% p.a.        0% p.a.
    Investment guarantee charge              n.a.                   n.a.        n.a.           n.a.
    Buy/sell spread                        3,00%*                  3,00%        n.a.           n.a.

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING
Growth in the Offshore Equity Fund is determined by the changes in the market value of the underlying
assets in the investment fund. The growth fluctuates according to market conditions and does not vest.
Any decrease in the value of the rand compared to other denominations will increase the proceeds on
the underlying assets in the portfolio.

RISK LEVEL

Moderately aggressive.

NB:       The risk level is indicated in terms of the currency in which the investments are made. In
          rand terms, the risk level is increased because of exchange rate fluctuations.


GE 10/2004                                             arg(AC20)
INVESTMENT PHILOSOPHY
This portfolio is invested mainly in overseas shares.

INVESTMENT GUARANTEE
This fund does not offer any investment guarantees.

OTHER IMPORTANT INFORMATION

•   The investor is exposed to shares not available with investments in the South African share market.
•   It is an offshore fund with a rand denomination.
•   The investor’s allowance according to the currency control regulations is not affected, and he/she
    does not require permission from the SA Reserve Bank to make the investment.

PORTFOLIO COMPOSITION
•   Investments in blue-chip shares on the stock exchanges of North America, Britain, Europe and
    Japan.
•   Minimal investments in upcoming markets.
•   The portfolio will from time to time keep a portion in cash - in rand and in dollar.

A maximum of 100% may be invested in shares.

Example of portfolio composition (February 2003):

•   Shares          : 99%
•   Cash            :   1%

Geographical distribution

•   North America            : 57%
•   Pan Europe               : 17%
•   Japan                    : 11%
•   Far East                 :   5%
•   United Kingdom           : 10%




GE 10/2004                                          arg(AC21)
    WORLDWIDE PROPERTY FUND

This fund is intended for clients who want to diversify into property investments, with simultaneous
exposure to local and offshore markets.

Type of policies by means of which investment can be made in the Worldwide Property Fund:

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-         Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                              Tax-free         Taxable
                                       administration      administration
                                                                              policies         policies
                                          system              system
    Fund management fee                  1,60% p.a.               -               -                -
    Service fee                          0,50% p.a.               -               -                -
    Investment guarantee charge                n.a.               -               -                -
    Buy/sell spread                        2,00%*                 -               -                -

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

Growth in the Worldwide Property fund is determined by the changes in the market value of the
underlying assets in the investment fund. This growth varies according to market conditions and will not
vest. Any depreciation in the value of the rand against other currencies will increase the proceeds on
the underlying assets of the overseas portion in the portfolio.

RISK LEVEL

Moderate.

NB:      The risk level is indicated in terms of the currency in which the investments are made. In
         rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT PHILOSOPHY

Half of the fund is invested in selected commercial properties in South Africa. These assets include
shopping malls, office buildings and industrial buildings. The other half of the fund consists of shares in
overseas companies that own selected properties.

GE 10/2004                                            arg(AC22)
INVESTMENT GUARANTEE

The fund does not offer any guarantees and is influenced by fluctuations in the property market, as well
as exchange rate fluctuations on the half that is invested overseas. However, as a result of the type of
underlying investments, it has the potential for relatively stable growth over the longer term.

PORTFOLIO COMPOSITION

Exposure in the RSA     :       50% (selected commercial properties in South Africa)
Off-shore exposure      :       50% (shares in off-shore companies that own selected properties)

Example of portfolio composition (February 2003):

•   RSA Cash                :     3%
•   RSA Shares              :     8%
•   Global Cash             :     7%
•   RSA Properties          : 49%
•   Global Properties       : 33%




GE 10/2004                                          arg(AC23)
    WORLDWIDE BALANCED FUND


This fund is intended for clients who want simultaneous exposure to both local and offshore markets.
The fund offers a balance between maximum capital growth and security over the medium to long term.

Type of policy by means of which investments can be made in the Worldwide Balanced Fund:

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-        Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                             Tax-free         Taxable
                                       administration      administration
                                                                             policies         policies
                                          system              system
    Fund management fee                  1,60% p.a.               -              -                -
    Service fee                          0,50% p.a.               -              -                -
    Investment guarantee charge                n.a.               -              -                -
    Buy/sell spread                        2,00%*                 -              -                -

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

Growth in the underlying assets of the investment fund determine the growth in the investment part of
the policy. This growth varies according to market conditions and does not vest. Any depreciation in
the value of the rand against other currencies will increase the proceeds on the underlying assets of the
overseas portion of the portfolio.

RISK LEVEL

Moderate.

NB:      The risk level is indicated in terms of the currency in which the investments are made. In
         rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT PHILOSOPHY

The asset managers decide on the distribution between the local and offshore portion of the Worldwide
Balanced Fund, depending on the market prospects. This distribution varies between 40% and 60% of
the total portfolio. The local portion of the fund is composed exactly like the Balanced Fund's portfolio,
and the offshore portion like the Offshore Balanced Fund.
GE 10/2004                                            arg(AC24)
INVESTMENT GUARANTEE

The fund does not offer any guarantees and is influenced by fluctuations in the market, as well as
exchange rate fluctuations on the portion that is invested overseas. As a result of the type of underlying
investment, it, however, has the potential for stable growth over the longer term.

PORTFOLIO COMPOSITION

Exposure in the RSA      :   40% - 60%    (fixed-interest investments, cash, property and shares on the
                                          Johannesburg Stock Exchange)
Off-shore exposure       :   60% - 40%    (overseas fixed-interest investments, property and shares)


Example of portfolio composition (February 2003):

•   RSA Shares                      : 34%
•   RSA Cash                        :    6%
•   RSA Government Bonds            : 11%
•   International Government Bonds: 28%
•   International Cash              : 21%




GE 10/2004                                        arg(AC25)
    WORLDWIDE EQUITY FUND

This fund is intended for clients who want simultaneous exposure to both local and off-shore markets
with the potential for excellent capital growth offered by equity funds.

Type of policies by means of which investments can be made in the Worldwide Equity Fund:

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-        Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                             Tax-free        Taxable
                                       administration      administration
                                                                             policies        policies
                                          system              system
    Fund management fee                  1,60% p.a.               -              -               -
    Service fee                          0,50% p.a.               -              -               -
    Investment guarantee charge                n.a.               -              -               -
    Buy/sell spread                        2,00%*                 -              -               -

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

Growth in the underlying assets of the investment fund determine the growth in the investment part of
the policy. This growth varies according to market conditions and does not vest. Any depreciation in
the value of the rand against other currencies will increase the proceeds on the underlying assets of the
overseas portion of the portfolio. Because changes in the market value of the underlying assets are
reflected in the net rate of return, the growth of this investment will fluctuate.

RISK LEVEL

Moderately aggressive.

NB:      The risk level is indicated in terms of the currency in which the investments are made. In
         rand terms, the risk level is increased because of exchange rate fluctuations.




GE 10/2004                                            arg(AC26)
INVESTMENT PHILOSOPHY

The asset managers decide on the distribution between the local and offshore portion of the Worldwide
Equity Fund, depending on the market prospects. This distribution varies between 40% and 60% of the
total portfolio. The local portion of the fund is composed exactly like the Sanlam Equity Fund's portfolio,
and the offshore portion like that of the Offshore Equity Fund.

The Worldwide Equity Fund aims at an aggressive approach to investment strategy and asset
composition. This fund mainly invests in shares. The aim is therefore to achieve higher returns with this
fund than with the Worldwide Balanced Fund, but this necessarily means that the growth will be
exposed to greater fluctuation.

INVESTMENT GUARANTEE

The fund does not offer any guarantees and is influenced by fluctuations in the market, as well as
exchange rate fluctuations on the portion that is invested overseas.

PORTFOLIO COMPOSITION

Exposure in the RSA      :       40% - 60%   (fixed-interest investments, cash, property and shares on the
                                             Johannesburg Stock Exchange)
Off-shore exposure       :       60% - 40%   (cash and off-shore shares)

A maximum of 100% may be invested in shares.

Example of portfolio composition (February 2003):

•   RSA Shares               : 35%
•   RSA Bonds                :    7%
•   RSA Cash                 : 15%
•   Global Shares            : 42%
•   Global Cash              :    1%




GE 10/2004                                          arg(AC27)
    ALLAN GRAY EQUITY FUND

INVESTOR'S PROFILE

The investor would like to share in the growth potential of the South African equity market. Capital
growth, rather than capital security, is of primary importance to him or her. He or she is willing to accept
short-term volatility in order to maximize the potential for long-term growth.

Type of policies by means of which investments can be made in the Allan Gray Equity Fund:

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-          Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                               Tax-free         Taxable
                                       administration      administration
                                                                               policies         policies
                                          system              system
    Fund management fee                 2,52% p.a. *              -                -                  -
    Service fee                          0,50% p.a.               -                -                  -
    Investment guarantee charge                n.a.               -                -                  -
    Buy/sell spread                        2,00%**                -                -                  -

•     Tax and statutory investment costs
•     Performance fee: A performance fee may be payable to an underlying investment manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
* The fund management fee of 2,52% comprises:
      •   0,81% charged by Sanlam Life
      •   1,71% charged by Allan Gray if the performance of the fund is in line with the benchmark.
** Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

The growth in the underlying assets determines the growth in the value of the policy. The growth is
affected by the fluctuations in market conditions and does not vest.




GE 10/2004                                            arg(AC28)
RISK LEVEL

Moderately aggressive.

INVESTMENT OBJECTIVES

The fund invests in equities offering superior fundamental value. The fund manager's experience is that
equity investing based on this "value approach" offers not only higher returns over the long term, but
also less risk of loss.

Superior value is determined by comparing the price of the share to its intrinsic or underlying value.
Selected shares are acquired when their market prices are at significant discounts to their underlying
values, and may be sold when the reverse is true.

Prospective equities are initially identified using a proprietary quantitative screening process that
projects expected rates of return for more than 250 companies. Attractive shares are short-listed and
subjected to intensive qualitative investment research to identify those companies with sound economic
fundamentals underlying the business. This investment approach is long-term in nature and as such the
fund does not actively participate in short-term trading.

Given that the price of a share is typically driven to well below its underlying value when it is out of
favour with investors, the composition of the fund will often differ markedly from the average equity fund.
Similarly, clients' short-term returns can also be expected to be at variance, whereas long-term returns
should be significantly enhanced.

PERFORMANCE FEE

Allan Gray charges 1,71% per annum if the performance is in line with the benchmark.

If the benchmark is outperformed by more than 15%, a performance fee of 3% per annum is charged. If
the benchmark is underperformed by more than 15%, no performance fee is charged.

BENCHMARK

FTSE/JSE All Share Index, including income.

INVESTMENT GUARANTEE

The fund offers no investment guarantees.




GE 10/2004                                        arg(AC29)
    CORONATION RELATIVE EQUITY FUND

INVESTOR’S PROFILE

The investor would like to share in the growth potential of the South African equity market. Capital
growth, rather than capital security, is of primary importance to him/her. He/she is willing to accept short
term volatility in order to maximise the potential long term growth.

Type of policies by means of which investments can be made in the Coronation Relative Equity Fund:

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-          Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                               Tax-free         Taxable
                                       administration      administration
                                                                               policies         policies
                                          system              system
    Fund management fee                  1,35% p.a.               -                -                -
    Service fee                          0,50% p.a.               -                -                -
    Investment guarantee charge                n.a.               -                -                -
    Buy/sell spread                        2,00%*                 -                -                -

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

The growth in the underlying assets determines the growth in the value of the policy. The growth is
affected by the fluctuations in market conditions and does not vest.

INVESTMENT OBJECTIVES

Investments will be actively managed, with the objective of providing superior investment returns over
the long term. The fund is a general equity portfolio managed according to the in-house investment
approach and principles applicable for a fund with this benchmark. The fund will reflect a growth bias,
consistent with Coronation's house view for a mandate with this particular benchmark.




GE 10/2004                                            arg(AC30)
INVESTMENT PROCESS

Coronation is one of the well-established and respected investment houses in South Africa. They have
a record of consistent above average performance on their investment portfolios and frequently rank in
the top median of the Alexander Forbes Large Manager Watch Survey.

Coronation distinguishes between generalist and specialist portfolio managers. Generalist managers
manage mandates spanning the whole spectrum of South African equities whereas the specialist
managers have specific responsibilities for shares in a certain sector. Generalist managers also have
more input into the allocation decisions.

Coronation has primarily a bottom-up investment style with a slight growth bias.

RISK LEVEL

Moderately aggressive.

SECTOR COMPOSITION

Example of sector composition (February 2003):

•   Resources     : 33,8%
•   Financial     : 33,8%
•   Industrial    : 32,4%

ASSET COMPOSITION

Example of asset composition (February 2003):

•   Shares        : 95%
•   Cash          :   5%




GE 10/2004                                        arg(AC31)
    INVESTEC RELATIVE EQUITY FUND

INVESTOR’S PROFILE

The investor would like to share in the growth potential of the South African equity market. Capital
growth, rather than capital security, is of primary importance to him/her. He/she is willing to accept short
term volatility in order to maximise the potential long term growth.

Type of policies by means of which investments can be made in the Investec Relative Equity Fund:

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-          Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                               Tax-free         Taxable
                                       administration      administration
                                                                               policies         policies
                                          system              system
    Fund management fee                  1,35% p.a.               -                -                -
    Service fee                          0,50% p.a.               -                -                -
    Investment guarantee charge                n.a.               -                -                -
    Buy/sell spread                        2,00%*                 -                -                -

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

The growth in the underlying assets determines the growth in the value of the policy. This growth is
affected by the fluctuations in market conditions and does not vest.

INVESTMENT OBJECTIVES

Investments will be actively managed, with the objective of providing superior investment returns over
the long term. The fund is a general equity portfolio managed according to the in-house investment
approach and principles.

The fund will reflect Investec's house view on equities for a mandate with this particular benchmark.




GE 10/2004                                            arg(AC32)
INVESTMENT PROCESS

Investec Asset Management is a specialist international investment management company. As a team
they focus on and measure their success by meeting and exceeding the wealth creation and
preservation needs of their clients. They are passionate about creating smart, relevant investment
solutions that benefit their clients.

The investment team searches out opportunities on behalf of the clients and build these into efficient
portfolios using best practice fund construction and risk control technology. The team is focused entirely
on high quality idea generation and execution.

Each team member has responsibility for a specific sector or broader mandate type. Debate and
decision making is rigorous and is backed by objective quantitative screening, to ensure that views are
robust.

RISK LEVEL

Moderately aggressive.

SECTOR COMPOSITION

Example of sector composition (February 2003):

•   Resources     : 32,6%
•   Financial     : 30,5%
•   Industrial    : 36,9%

ASSET COMPOSITION

Example of asset composition (February 2003):

•   Shares        : 95%
•   Cash          :   5%




GE 10/2004                                        arg(AC33)
    OFFSHORE HEDGE FUND

INVESTOR’S PROFILE

This investment fund is ideal for investors who want exposure to offshore investment markets, but at a
low risk.

Types of policies by means of which investments can be made in the Offshore Hedge Fund:

•     Stratus Endowment
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FUND DESCRIPTION

An investment in the Offshore Hedge Fund shares in the full market-related growth of the assets in this
fund. The Offshore Hedge Fund is largely invested in a selection of hedge funds with conservative and
risk averse strategies, with a small proportion invested in cash. The fund is constructed with the aim to
produce a consistent stream of positive investment returns, to preserve capital, and to keep volatility of
investment return minimal. The fund is actively managed by a multi-manager, who selects a number of
different hedge fund managers to each manage a specific part of the assets of the fund. The greatest
advantage of this kind of hedging fund is that it can render positive returns, regardless of whether share
prices increase or decrease.

FEES

                                          Stratus-            Stratus-        Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                             Tax-free         Taxable
                                       administration      administration
                                                                             policies         policies
                                          system              system
    Fund management fee *                2,00% p.a.               -              -                -

    Service fee                          0,50% p.a.               -              -                -
    Investment guarantee charge                n.a.               -              -                -
    Buy/sell spread                        3,00%**                -              -                -

* The fund managers of the Offshore Hedge Fund will deduct their management fees directly from the
  investment returns (in addition to the fund management fee above).
•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
** Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.




GE 10/2004                                            arg(AC34)
FUND MANDATE

To seek long-term capital appreciation by aiming to produce consistent positive returns accompanied by
low levels of volatility. Preservation of capital is important and the aim is to keep negative monthly
returns to a minimum.

KEY INVESTMENT STRATEGIES

Merger Arbitrage

This strategy aims to capture the difference in value between the stock of target and acquiring
companies that are going through mergers and acquisitions.

Event Arbitrage

As with Merger Arbitrage, this strategy aims to capture the difference in value between the stock of
target and acquiring companies that are going through mergers and acquisitions.

In addition, the practitioners of this strategy extend their consideration to a wide range of other corporate
restructuring, such as default situations and insolvency.

Convertible Arbitrage

Practitioners of this strategy seek to identify mispricing in the convertible bond market by buying the
convertible bond and selling the corresponding stock to a company.

METHOD OF PROFIT-SHARING

An investment in the Offshore Hedge Fund shares in the full market-related growth of the assets in the
fund. This growth varies according to market conditions and does not vest.

RISK LEVEL

Cautious.

NB:    The risk level is indicated in terms of the currency in which the investments are made. In
       rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT GUARANTEE

The fund does not offer any guarantees and is influenced by fluctuations in the market, as well as
fluctuations in the exchange rate.

GEOGRAPHICAL SPREAD

Example of geographical composition (February 2003):

•   USA           : 79%
•   Europe        : 18%
•   Other         :    3%

STRATEGY ALLOCATION AT MONTH END

Example of strategy allocation (February 2003):

•   Convertible Arbitrage   : 56%
•   Event Arbitrage         : 24%
•   Merger Arbitrage        : 14%
•   Distressed Arbitrage    :   6%




GE 10/2004                                         arg(AC35)
    NUR EQUITY FUND

INVESTOR’S PROFILE

The investor wants to share in the growth potential of the South African equity market, but also wants
the fund manager to adhere to the Islamic moral and cultural teachings.

Types of policies by means of which investments can be made in the Nur Equity Fund:

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-        Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                             Tax-free         Taxable
                                       administration      administration
                                                                             policies         policies
                                          system              system
    Fund management fee                  1,35% p.a.               -              -                -
    Service fee                          0,50% p.a.               -              -                -
    Investment guarantee charge                n.a.               -              -                -
    Buy/sell spread                        2,00%*                 -              -                -

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

The growth in the underlying assets of the investment funds determines the growth in the investment
portion of the policy. This growth is affected by the fluctuations in market conditions and does not vest.

RISK LEVEL

Moderately aggressive.

INVESTMENT GUARANTEE

None.




GE 10/2004                                            arg(AC36)
PORTFOLIO COMPOSITION, INVESTMENT OBJECTIVES AND INVESTMENT PROCESS

The fund is managed by Oasis.

The fund is managed in accordance with the investment guidelines of the Dow Jones Index's Shari'ah
Supervisory Council. The fund excludes investments in companies of which the primary business
amongst other things includes the manufacturing and/or marketing of tobacco, alcohol, pork, gambling,
hotels, cinemas, pornography, music, weapons or financial services. Any income earned by the fund
which is not permitted in terms of these guidelines, will be donated towards charity on behalf of the
investors.

An independent advisory board advises Oasis on Shari'ah investments and ethical issues, and ensures
that the fund is compliant with Shari'ah investment guidelines.

The benchmark for this fund is:

•   95% FTSE / JSE All-Share Index, with removal of all sub-sectors that do not comply with Shari'ah
    guidelines, and
•   5% cash.




GE 10/2004                                     arg(AC37)
    BOND FUND

INVESTOR’S PROFILE

The investor will share in the growth potential offered by South African bonds. The investor has a
medium-term investment outlook and is prepared to accept the moderate level of volatility of the fund.

Types of policies by means of which investments can be made in the Bond Fund:

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-        Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                             Tax-free         Taxable
                                       administration      administration
                                                                             policies         policies
                                          system              system
    Fund management fee                  1,10% p.a.               -              -                -
    Service fee                          0,50% p.a.               -              -                -
    Investment guarantee charge                n.a.               -              -                -
    Buy/sell spread                        2,00%*                 -              -                -

•     Tax and statutory investment costs
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

The growth in the underlying assets of the investment funds determines the growth in the investment
portion of the policy. This growth is affected by the fluctuations in market conditions and does not vest.

RISK LEVEL

Cautious.

INVESTMENT GUARANTEE

None.

PORTFOLIO COMPOSITION, INVESTMENT OBJECTIVES AND INVESTMENT PROCESS

The benchmark for this fund is the BEASSA Total Returns Index.

The fund’s investment objective is to provide long-term investment income and capital growth by
investing primarily in fixed-interest bonds and cash.

The portfolio is actively managed and views must be expressed on the direction of interest rates, credit
risk and the shape of the yield curve.

GE 10/2004                                            arg(AC38)
    MULTI-MANAGER ABSOLUTE RETURN FUND

INVESTOR’S PROFILE

The investor wants an investment with little risk, rendering positive long-term investment returns that
exceed inflation.

Types of policies by means of which investments can be made in the Multi-Manager Absolute Return
Fund:

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-        Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                             Tax-free         Taxable
                                       administration      administration
                                                                             policies         policies
                                          system              system
    Fund management fee                  1,35% p.a.               -              -                -
    Service fee                          0,50% p.a.               -              -                -
    Investment guarantee charge                n.a.               -              -                -
    Buy/sell spread                        2,00%*                 -              -                -

•     Tax and statutory investment costs
•     Performance fee: A performance fee may be payable to an underlying manager if the investment
      returns achieved on his part of the portfolio exceeds a specific target.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

The growth in the underlying assets of the investment fund determines the growth in the investment
portion of the policy. This growth is affected by the fluctuations in market conditions and does not vest.

RISK LEVEL

Cautious.

INVESTMENT GUARANTEE

None.




GE 10/2004                                            arg(AC39)
PORTFOLIO COMPOSITION, INVESTMENT OBJECTIVES AND INVESTMENT PROCESS

The benchmark for this fund is the consumer price index (CPI) + 5% before the deduction of fees and
tax.

The fund’s investment objective is to render long-term positive investment returns in excess of inflation,
with less risk than that of a portfolio which invests in the equity market only. The fund manager’s
objective is also to achieve positive returns over any 12-months period. A wide variety of tools may be
used in the execution of this mandate, including active asset allocation between inflation-linked bonds,
equities, listed property, derivative instruments, hedge funds, bonds and cash.

The investment philosophy of Sanlam Multi-Manager Portfolios (SMM) is to create and protect wealth
over the long. As a multi-manager investment manager, SMM combines the selection of specialist asset
managers with active portfolio management to offer their clients a well-diversified portfolio with
acceptable return and risk prospects.

Different investment managers have different skills and specialise in different areas. No single manager
can expect to be the best in all areas and markets.

SMM offers the client a fund that is well diversified over various assets classes, asset managers,
investment processes and investment styles.




GE 10/2004                                        arg(AC40)
    MULTI-MANAGER EQUITY FUND

INVESTOR’S PROFILE

The investor wants to share in the excellent growth potential offered by South African shares. He/she is
prepared to accept the short term volatility to maximize the potential long term growth. Capital growth –
rather than capital security - is of primary importance to the investor.

Types of policies by means of which investments can be made in the Multi-Manager Equity Fund:

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-        Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                             Tax-free         Taxable
                                       administration      administration
                                                                             policies         policies
                                          system              system
    Fund management fee                  1,35% p.a.               -              -                -
    Service fee                          0,50% p.a.               -              -                -
    Investment guarantee charge                n.a.               -              -                -
    Buy/sell spread                        2,00%*                 -              -                -

•     Tax and statutory investment costs
•     Performance fee: A performance fee may be payable to an underlying investment manager if the
      investment returns achieved on his part of the portfolio exceeds a specific target.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

The growth in the underlying assets of the investment funds determines the growth in the investment
portion of the policy. This growth is affected by the fluctuations in market conditions and does not vest.

RISK LEVEL

Moderately aggressive.

INVESTMENT GUARANTEE

None.




GE 10/2004                                            arg(AC41)
PORTFOLIO COMPOSITION, INVESTMENT OBJECTIVES AND INVESTMENT PROCESS

The mandate for this fund is:

•   95% shares and
•   5% cash

The fund’s investment objective is to provide superior investment returns over the long term by investing
primarily in shares.

The investment philosophy of Sanlam Multi-Manager Portfolios (SMM) is to create and protect wealth
over the long. As a multi-manager investment manager, SMM combines the selection of specialist asset
managers with active portfolio management to offer their clients a well-diversified portfolio with
acceptable return and risk prospects.

Different investment managers have different skills and specialise in different areas. No single manager
can expect to be the best in all areas and markets.

SMM offers the client a fund that is well diversified over various assets classes, asset managers,
investment processes and investment styles.




GE 10/2004                                       arg(AC42)
    PROPERTY FUND

INVESTOR'S PROFILE

The investor requires investment returns that reflect the rental growth and increase in property values
offered by the South African property market.

This fund aims to combine both of these aspects into consistent capital appreciation, with moderate risk.
You may also require the diversification benefits of investing in a fund with exposure to the South
African property market.

Types of policies by means of which investments can be made in the Property Fund:

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-        Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                             Tax-free        Taxable
                                       administration      administration
                                                                             policies        policies
                                          system              system
    Fund management fee                  1,35% p.a.               -              -               -
    Service fee                          0,50% p.a.               -              -               -
    Investment guarantee charge                n.a.               -              -               -
    Buy/sell spread                        2,00%*                 -              -               -

•     Tax and statutory investment costs
•     Performance fee: A performance fee may be payable to an underlying investment manager if the
      investment returns achieved on his part of the portfolio exceeds a specific target.
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

The growth in the fund is determined by the income earned by the fund, as well as by changes in the
market value of assets in the fund. Growth fluctuates according to market conditions and does not vest.

FUND MANAGER

Richard Anderson

RISK LEVEL

Moderate.



GE 10/2004                                            arg(AC43)
INVESTMENT OBJECTIVES

The fund manager aims to achieve both a high income yield and long-term capital growth. As such, the
fund will invest mainly in JSE Securities Exchange listed property shares, as well as in some cash
investments.

At the discretion of the fund manager, the exposure to cash may be increased when property market
returns are poor.

INVESTMENT GUARANTEE

The fund offers no investment guarantees.




GE 10/2004                                     arg(AC44)
    OFFSHORE MONEY MARKET FUND (US$)

INVESTOR’S PROFILE

The risk involved in an investment in this fund can be described as "conservative". The fund offers
security to investors who are not prepared to subject their investments to the volatility of the global stock
exchanges. The client who wants to invest in this fund, would probably show the following investment
needs.

•     Wants to invest overseas.
•     Prefers the safety of a money market investment as opposed to those of share investment. A
      money market investment is, however, not recommended as a long-term investment, but rather as a
      safe haven in times of uncertainty.
•     Believe that the exchange rate will positively support this type of investment.

Types of policies by means of which investments can be made in the Offshore Money Market
Fund (US$):

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-            Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                                 Tax-free        Taxable
                                       administration      administration
                                                                                 policies        policies
                                          system              system
    Fund management fee                  1,30% p.a.                -                    -            -
    Service fee                          0,50% p.a.                -                    -            -
    Investment guarantee charge                n.a.                -                    -            -
    Buy/sell spread                         2,00%*                 -                    -            -

•     Tax and statutory investment costs
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

•     Investment returns are added daily.
•     The rate of return varies depending on the level of short-term rates.
•     Exchange rate fluctuation affects the investment returns in Rand terms.




GE 10/2004                                            arg(AC45)
RISK LEVEL

Conservative.

NB:     The risk level is indicated in terms of the currency in which the investments are made. In
        rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT GUARANTEE

None.

PORTFOLIO COMPOSITION

This fund comprises short-term USA dollar denominated interest-bearing investments.




GE 10/2004                                     arg(AC46)
    OFFSHORE MONEY MARKET FUND (£)

INVESTOR’S PROFILE

The risk involved in an investment in this fund can be described as "conservative". The fund offers
security to investors who are not prepared to subject their investments to the volatility of the global stock
exchanges. The client who wants to invest in this fund, would probably show the following investment
needs.

•     Wants to invest overseas.
•     Prefers the safety of a money market investment as opposed to those of share investment. A
      money market investment is, however, not recommended as a long-term investment, but rather as a
      safe haven in times of uncertainty.
•     Believe that the exchange rate will positively support this type of investment.

Types of policies by means of which investments can be made in the Offshore Money Market Fund (£):

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-            Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                                 Tax-free        Taxable
                                       administration      administration
                                                                                 policies        policies
                                          system              system
    Fund management fee                  1,30% p.a.                -                    -            -
    Service fee                          0,50% p.a.                -                    -            -
    Investment guarantee charge                n.a.                -                    -            -
    Buy/sell spread                         2,00%*                 -                    -            -

•     Tax and statutory investment costs
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

•     Investment returns are added daily.
•     The rate of return varies depending on the level of short-term rates.
•     Exchange rate fluctuation affects the investment returns in Rand terms.




GE 10/2004                                            arg(AC47)
RISK LEVEL

Conservative.

NB:     The risk level is indicated in terms of the currency in which the investments are made. In
        rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT GUARANTEE

None.

PORTFOLIO COMPOSITION

This fund comprises short-term pound sterling denominated interest-bearing investments.




GE 10/2004                                      arg(AC48)
    OFFSHORE MONEY MARKET FUND (€)

INVESTOR’S PROFILE

The risk involved in an investment in this fund can be described as "conservative". The fund offers
security to investors who are not prepared to subject their investments to the volatility of the global stock
exchanges. The client who wants to invest in this fund, would probably show the following investment
needs.

•     Wants to invest overseas.
•     Prefers the safety of a money market investment as opposed to those of share investment. A
      money market investment is, however, not recommended as a long-term investment, but rather as a
      safe haven in times of uncertainty.
•     Believe that the exchange rate will positively support this type of investment.

Types of policies by means of which investments can be made in the Offshore Money Market Fund (€):

•     Stratus Endowment
•     Stratus Sinking Fund
•     Stratus Retirement Annuity
•     Stratus Continuation with life insured
•     Stratus Continuation without life insured
•     Stratus policy in the Sanlam Preservation Funds
•     Stratus policy in the Wealth Protector Preservation Funds
•     Stratus Investment Linked Pension
•     Stratus Retirement Annuity Continuations
•     Stratus with Preservation Pension Fund Continuations and Preservation Provident Fund
      Continuations
•     Stratus Composite Annuity

FEES

                                          Stratus-            Stratus-            Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                                 Tax-free        Taxable
                                       administration      administration
                                                                                 policies        policies
                                          system              system
    Fund management fee                  1,30% p.a.                -                    -            -
    Service fee                          0,50% p.a.                -                    -            -
    Investment guarantee charge                n.a.                -                    -            -
    Buy/sell spread                         2,00%*                 -                    -            -

•     Tax and statutory investment costs
* Buy/sell spread is 0% for Stratus Investment Linked Pension and Stratus Composite Annuity.

METHOD OF PROFIT-SHARING

•     Investment returns are added daily.
•     The rate of return varies depending on the level of short-term rates.
•     Exchange rate fluctuation affects the investment returns in Rand terms




GE 10/2004                                            arg(AC49)
RISK LEVEL

Conservative.

NB:     The risk level is indicated in terms of the currency in which the investments are made. In
        rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT GUARANTEE

None.

PORTFOLIO COMPOSITION

This fund comprises short-term euro denominated interest-bearing investments.




GE 10/2004                                     arg(AC50)
                               US$, £ AND € DENOMINATED FUNDS



    INTERNATIONAL BALANCED FUND

This investment fund is intended for the investor who requires 100% offshore exposure with an
investment in foreign currency. The International Balanced Fund offers a balance between maximum
capital growth and security over the medium to long term.

Type of policy by means of which investments can be made in the International Balanced Fund:

•     Stratus International Endowment
•     Stratus International Retirement Annuity
•     Stratus International Investment Linked Pension

FEES

                                         Stratus-            Stratus-           Non-Stratus products
                                       products on         products on
                                           new                  old
                                                                               Tax-free        Taxable
                                      administration      administration
                                                                               policies        policies
                                         system              system
    Fund management fee                 2,00% p.a.               -                 -              -
    Service fee                         0,50% p.a.               -                 -              -
    Investment guarantee charge         1,25% p.a.               -                 -              -
    Buy/sell spread                        3,00% *               -                 -              -

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
•     * Buy/sell spread is currently 0% for Stratus International Investment Linked Pension.

METHOD OF PROFIT-SHARING

The growth in the underlying assets of the fund determines the investment return on the policy. This
investment return varies according to market conditions and does not vest. Because the investment
fund is 100% market-related, the value of a policy investment in this investment fund will vary according
to market conditions.

RISK LEVEL

Moderate.

NB:      The risk level is indicated in terms of the currency in which the investments are made. In
         rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT PHILOSOPHY

The fund manager is mandated to invest 100% of the portfolio in overseas assets. This fund invests in a
balanced portfolio of shares and fixed-interest bonds.

INVESTMENT GUARANTEE

An investment guarantee for the International Endowment is available as an option.              For more
information, see section BX7.




GE 10/2004                                           arg(AC51)
PORTFOLIO COMPOSITION

This US dollar-denominated fund is invested in global assets. These assets consist of a balanced mix
of equities, fixed-interest investments and cash. The share component of the fund consists of shares
listed on offshore equity markets. The fixed-interest investments consist of offshore government bonds.

Example of portfolio composition (February 2003):

•   Cash                  :   2%
•   Shares                : 57%
•   Government Bonds      : 41%

Example of geographical spread (February 2003):

•   North America         : 57%
•   Pan Europe            : 18%
•   Japan                 : 10%
•   Far East              :   5%
•   United Kingdom        : 10%




GE 10/2004                                      arg(AC52)
    INTERNATIONAL EQUITY FUND


This investment fund is intended for the investor who requires 100% offshore exposure with an
investment in foreign currency. The International Equity Fund offers the potential of excellent capital
growth offered by share funds.

Type of policy by means of which investments can be made in the International Equity Fund:

•     Stratus International Endowment
•     Stratus International Retirement Annuity
•     Stratus International Investment Linked Pension

FEES

                                         Stratus-            Stratus-           Non-Stratus products
                                       products on         products on
                                           new                  old
                                                                               Tax-free        Taxable
                                      administration      administration
                                                                               policies        policies
                                         system              system
    Fund management fee                 2,00% p.a.               -                 -              -
    Service fee                         0,50% p.a.               -                 -              -
    Investment guarantee charge         2,00% p.a.               -                 -              -
    Buy/sell spread                        3,00% *               -                 -              -

•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.
•     * Buy/sell spread is currently 0% for Stratus International Investment Linked Pension.

METHOD OF PROFIT-SHARING

Growth in the underlying assets of the fund determines the growth in the investment part of the policy.
Because the investment fund is 100% market-related, the value of a policy investment in this investment
fund varies, according to market conditions.

RISK LEVEL

Moderately aggressive.

NB:      The risk level is indicated in terms of the currency in which the investments are made. In
         rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT PHILOSOPHY

The fund manager is mandated to invest 100% of the portfolio in overseas assets. Up to 100% of these
investments may be in shares of companies listed on the overseas stock exchanges.

INVESTMENT GUARANTEE

An investment guarantee for the International Endowment is available as an option.              For more
information, see section BX7.




GE 10/2004                                           arg(AC53)
PORTFOLIO COMPOSITION

This US dollar-denominated fund is invested in global assets. These assets are mainly equities, but
may include some fixed-interest investments and cash. The share component of the fund consists of
shares listed on overseas stock exchanges.

Example of portfolio composition (February 2003):

•   Cash            :   1%
•   Shares          : 99%

Example of geographical spread (February 2003):

•   North America            : 57%
•   Pan Europe               : 17%
•   Japan                    : 11%
•   Far East                 :   5%
•   United Kingdom           : 10%




GE 10/2004                                      arg(AC54)
     MONEY MARKET FUND (US$)

The risk involved in an investment in this fund could be described as “conservative". The fund offers
security to investors who are not prepared to subject their investments to the volatility of the stock
exchanges. The client who wants to invest in this fund, will probably show the following investment
needs:

•     Wants to invest overseas.
•     Prefers the safety of a money market investment as opposed to those of share investments. A
      money market investment is, however, not recommended as a long-term investment, but rather as a
      safe haven in times of uncertainty.
•     Believes that the exchange rate will positively support this type of investment.

Types of policies by means of which investments can be made in the Money Market Fund (US$):

•     Stratus International Endowment
•     Stratus International Retirement Annuity
•     Stratus International Investment Linked Pension

FEES

                                          Stratus-            Stratus-            Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                                 Tax-free      Taxable
                                       administration      administration
                                                                                 policies      policies
                                          system              system
    Fund management fee                  1,30% p.a.                -                 -            -
    Service fee                          0,50% p.a.                -                 -            -
    Investment guarantee charge              n.a.                  -                 -            -
    Buy/sell spread                         3,00% *                -                 -            -

•     Tax and statutory investment costs
•     * Buy/sell spread is currently 0% for Stratus International Investment Linked Pension.

METHOD OF PROFIT-SHARING

•     Investment returns are added daily.
•     The rate of return varies, depending on the level of short-term rates.
•     Exchange rate fluctuation affects the investment return in Rand terms.

RISK LEVEL

Conservative.

NB:      The risk level is indicated in terms of the currency in which the investments are made. In
         rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT GUARANTEE

None




GE 10/2004                                            arg(AC55)
PORTFOLIO COMPOSITION

The fund consists of short-term, US$ denominated, interest-bearing investments.

Example of portfolio composition (February 2003):

•   Cash/Deposits                    :   5,4%
•   Fixed Rate Bonds                 : 12,8%
•   Commercial Paper                 : 44,7%
•   Floating Rate Notes (FRN's)      : 37,1%

TAX IMPLICATIONS

In terms of the present tax practice, no further tax is payable on these returns (after-tax returns). A rate
of return of 10% would for example represent returns (before tax) of 16,67%, if the client pays tax at a
rate of 40%.




GE 10/2004                                         arg(AC56)
    MONEY MARKET FUND (£)

The risk involved in an investment in this fund could be described as "conservative". The fund offers
security to investors who are not prepared to subject their investments to the volatility of the global stock
exchanges. The client who wants to invest in this fund, will probably show the following investment
needs:

•     Wants to invest overseas.
•     Prefers the safety of a money market investment as opposed to those of share investments. A
      money market investment is, however, not recommended as a long-term investment, but rather as a
      safe haven in times of uncertainty.
•     Believes that the exchange rate will positively support this type of investment.

Types of policies by means of which investment can be made in the Money Market Fund (£):

•     Stratus International Endowment
•     Stratus International Retirement Annuity

FEES

                                          Stratus-            Stratus-            Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                                 Tax-free        Taxable
                                       administration      administration
                                                                                 policies        policies
                                          system              system
    Fund management fee                  1,30% p.a.                -                 -               -
    Service fee                          0,50% p.a.                -                 -               -
    Investment guarantee charge              n.a.                  -                 -               -
    Buy/sell spread                         3,00%                  -                 -               -

•     Tax and statutory investment costs.

METHOD OF PROFIT-SHARING

•     Investment returns are added on a daily basis.
•     The rate of return varies, depending on the level of short-term rates.
•     Exchange rate fluctuation affects the investment return in Rand terms.

RISK LEVEL

Conservative.

NB:      The risk level is indicated in terms of the currency in which the investments are made. In
         rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT GUARANTEE

None.




GE 10/2004                                            arg(AC57)
PORTFOLIO COMPOSITION

The fund consists of short-term, £-denominated, interest-bearing investments.

Example of portfolio composition (February 2003):

•   Cash/Deposits                     : 30%
•   Certificates of Deposits ("CD's") :   8%
•   Government Bonds                  :   9%
•   Corporate Paper (CP)              : 44%
•   Floating Rate Notes (FRN's)       :   9%

TAX IMPLICATIONS

According to the present tax practice, no further tax is payable on these returns (after-tax returns). A
rate of return of 10% for example represents returns before tax of 16,67%, as the client pays tax at a
rate of 40%.




GE 10/2004                                       arg(AC58)
     MONEY MARKET FUND (€)

The risk involved in an investment in this fund could be described as "conservative". The fund offers
security to investors who are not prepared to subject their investment to the volatility of the global stock
exchanges. The client who wants to invest in this fund, will probably show the following investment
needs:

•     Wants to invest overseas.
•     Prefers the safety of a money market investment as opposed to those of share investments. A
      money market investment is, however, not recommended as a long-term investment, but rather as a
      safe haven in times of uncertainty.
•     Believes that the exchange rate will positively support this type of investment.

Types of policies by means of which investments can be made in the Money Market Fund (€).

•     Stratus International Endowment
•     Stratus International Retirement Annuity

FEES

                                          Stratus-            Stratus-          Non-Stratus products
                                        products on         products on
                                            new                  old
                                                                               Tax-free         Taxable
                                       administration      administration
                                                                               policies         policies
                                          system              system
    Fund management fee                  1,30% p.a.                -               -                -
    Service fee                          0,50% p.a.                -               -                -
    Investment guarantee charge              n.a.                  -               -                -
    Buy/sell spread                        3,00%                   -               -                -

•     Tax and statutory investment costs

METHOD VAN PROFIT-SHARING

•     Investment returns are added on a daily basis.
•     The rate of return varies, depending on the level of short-term rates.
•     Exchange rate fluctuation affects the investment return in Rand terms.

RISK LEVEL

Conservative.

NB:      The risk level is indicated in terms of the currency in which the investments are made. In
         rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT GUARANTEE

None.




GE 10/2004                                            arg(AC59)
PORTFOLIO COMPOSITION

The fund consists of short-term, (€) denominated, interest-bearing investments.

Example of portfolio composition (February 2003):

•   Cash/Deposits                     : 17%
•   Certificates of Deposits ("CD's") :   5%
•   Government Bonds                  :   2%
•   Corporate Paper (CP)              : 59%
•   Floating Rate Notes (FRN's)       : 17%

TAX IMPLICATIONS

In terms of the present tax practice, no further tax is payable on these returns (after-tax returns). A rate
of return of 10% for example represents returns of 16,67% before tax if the client pays tax at a rate of
40%.




GE 10/2004                                         arg(AC60)
    INTERNATIONAL HEDGE FUND

This investment fund is ideal for investors who want exposure to offshore investment markets, but at a
low risk.

Types of policies by means of which investment can be made in the International Hedge Fund:

•     Stratus International Endowment
•     Stratus International Retirement Annuity

FUND DESCRIPTION

An investment in the International Hedge Fund shares in the full market-related growth of the assets in
this fund. This US dollar-denominated fund is largely invested in a selection of hedge funds with
conservative and risk averse strategies, with a small proportion invested in cash. The fund is
constructed with the aim to produce a consistent stream of positive investment returns, to preserve
capital, and to keep volatility of returns minimal. The fund is actively managed by a multi-manager, who
selects a number of different hedge fund managers to each manage a specific part of the assets of the
fund. The greatest advantage of this kind of hedge fund is that it can produce a positive return,
regardless of whether share prices rise or fall.

FEES

                                         Stratus-            Stratus-        Non-Stratus products
                                       products on         products on
                                           new                  old
                                                                            Tax-free        Taxable
                                      administration      administration
                                                                            policies        policies
                                         system              system
    Fund management fee *               2,00% p.a.               -              -               -

    Service fee                         0,50% p.a.               -              -               -
    Investment guarantee charge             n.a.                 -              -               -
    Buy/sell spread                        3,00%                 -              -               -

* The fund managers of the Offshore Hedge Fund will deduct their management fees directly from the
  investment returns (in addition to the fund management fee above).
•     Tax and statutory investment costs
•     Performance fee: Sanlam Life will recover a performance fee for an asset manager if the
      investment return of a fund exceeds the benchmark for that specific investment fund.

FUND MANDATE

To seek long-term capital appreciation by aiming to produce consistent positive returns accompanied by
low levels of volatility. Preservation of capital is important and the aim is to keep negative monthly
returns to a minimum.




GE 10/2004                                           arg(AC61)
KEY INVESTMENT STRATEGIES

Merger Arbitrage

This strategy aims to capture the difference in value between the stock of target and acquiring
companies that are going through mergers and acquisitions.

Event Arbitrage

As with Merger Arbitrage, this strategy aims to capture the difference in value between the stock of
target and acquiring companies that are going through mergers and acquisitions.

In addition, the practitioners of this strategy extend their consideration to a wide range of other corporate
restructuring, such as default situations and insolvency.

Convertible Arbitrage

Practitioners of this strategy seek to identify mispricing in the convertible bond market by buying the
convertible bond and selling the corresponding stock to a company.

METHOD OF PROFIT-SHARING

An investment in the International Hedge Fund shares in the full market-related growth of the assets in
the fund. This growth is affected by the fluctuations in market conditions and does not vest.

RISK LEVEL

Cautious.

NB:     The risk level is indicated in terms of the currency in which the investments are made. In
        rand terms, the risk level is increased because of exchange rate fluctuations.

INVESTMENT GUARANTEE

None.

GEOGRAPHICAL SPREAD

Example of geographical spread (February 2003):

•   USA           : 79%
•   Europe        : 18%
•   Other         :    3%

STRATEGY ALLOCATION AT MONTH END

Example of strategy allocation (February 2003):

•   Convertible Arbitrage   : 56%
•   Event Arbitrage         : 24%
•   Merger Arbitrage        : 14%
•   Distressed Arbitrage    :   6%




GE 10/2004                                         arg(AC62)
                                          WHICH PORTFOLIO?



The portfolio that you recommend for a client will depend on his attitude to potential growth and stability,
and also on his expertise. The diagram below is a useful guideline for determining where the various
portfolios fall in the investment spectrum and which portfolio you would recommend to a particular type
of client.


                                        INVESTMENT PORTFOLIO

                                   RAND DENOMINATED FUNDS
                      Short/Medium
      Type of        term: Ordinary       Potential       Risk level      Investment fund with long term
     investor          investments        proceeds                                 assurance

 Speculative/        Shares and                         Moderately       Sanlam Equity Fund
 Knowledgeable       most unit trusts                   aggressive       Fund of Funds
                                                                         Offshore Equity Fund
                                                                         Worldwide Equity Fund
                                                                         Allan Gray Equity Fund
                                                                         Coronation Relative Equity Fund
                                                                         Investec Relative Equity Fund
                                                                         Nur Equity Fund
                                                                         Multi-Manager Equity Fund
 In between          Some unit trusts                   Moderate         Balanced Fund
                                                                         Multi-Manager Balanced Fund
                                                                         Offshore Balanced Fund
                                                                         Worldwide Property Fund
                                                                         Worldwide Balanced Fund
                                                                         Property Fund
                                                        Cautious         Stable Bonus Fund
                                                                         Vesting Bonus Fund
                                                                         Offshore Hedge Fund
                                                                         Guaranteed Property Fund
                                                                         Multi-Manager Absolute Return
                                                                           Fund
                                                                         Bond Fund
 Conservative/       Fixed deposits                     Conservative     Guaranteed Capital Fund
 Not-                                                                    Offshore Money Market Fund (US$)
 knowledgeable                                                           Offshore Money Market Fund (£)
                                                                         Offshore Money Market Fund (€)




GE 10/2004                                         arg(AC63)
                              US$, £ AND € DENOMINATED FUNDS


                      Short/Medium
      Type of        term: Ordinary       Potential       Risk level       Investment fund with long
     investor          investments        proceeds                              term assurance

 Speculative/        Shares and                         Moderately       International Equity Fund
 Knowledgeable       most unit trusts                   aggressive
 In between          Some unit trusts                   Moderate         International Balanced Fund
                                                        Cautious
                                                                         International Hedge Fund
 Conservative/       Fixed deposits                     Conservative     Money Market Fund (US$)
 Not-                                                                    Money Market Fund (£)
 knowledgeable                                                           Money Market Fund (€)


The conservative investor who puts stability (low risk) first, usually invests with a bank or a post office,
where his investment enjoys total security. On the other hand, the knowledgeable, speculative investor
seeks the highest possible returns; he will probably invest directly in shares. Unit trusts are the
investment medium for those wanting the middle course – higher returns than, say, banks - but less risk
than direct share investments.
If insurance is considered, the same principles apply. Sanlam Life’s Guaranteed Property Fund offers
the most stability of all the various ranges, but does not have as high a potential return as the Sanlam
Equity Fund with its complete investment freedom and aggressive investment approach. The Balanced
Fund serves as an example in the case of Sanlam Life's insurance products where the golden mean is
chosen.




GE 10/2004                                         arg(AC64)
                                 REVERSIONARY BONUS SERIES (RB)



Although only a few types of policies are still marketed in the Reversionary Bonus Series, many policy-
owners still have policies in this series.

METHOD OF PROFIT-SHARING
The great advantage of the Reversionary Bonus Series is the stability it offers the policy-owner.
Reversionary bonus
•   A reversionary bonus is declared annually as
       −     a percentage of the sum assured and
       −     a percentage of already vested reversionary bonuses.
•   This bonus vests on the first policy anniversary after it has been declared and then forms a
    permanent part of the policy.

Claim Bonuses
•   Claim Bonuses are declared each year as
       −     a percentage of existing reversionary bonuses and
       −     a percentage of the sum assured.
•   The percentages depend on the inception date of the policy.
•   The claim bonuses do not vest and are declared only for policies that become claims in the next
    financial year.

Final maturity claim bonus
•   A final maturity claim bonus (which is linked to the asset value of the fund) is payable additionally to
    the claim bonus.
•   The final maturity claim bonus is payable only in the case of
       −     a claim in the last policy year or
       −     at maturity.
Please Note: Claim bonuses apply only to Reversionary Bonus Series policies not linked to unit
             trusts.

INVESTMENT PHILOSOPHY AND PORTFOLIO COMPOSITION
The investment philosophy and the portfolio composition of the Reversionary Bonus Series are very
similar to those of the Stable Bonus Fund. The only difference is the way in which bonuses are added
to the policy.




GE 10/2004                                         arg(AC65)
                                        SECTION BA


                                      THE ONE POLICY

                                                                                  Page

THE ONE POLICY FOR LIFE COVER ……………………………………………...                                BA1
–   FEATURES ..………………………………………………………………………………….                                   BA1
–   TERM ………………………………………………………………………………………….                                      BA1
–   AIDS ……………………………………………………………………………………………                                      BA1

THE ONE POLICY FOR ENDOWMENT ……………………………………………                                    BA1
–   FEATURES ……………………………………………………………………………………                                     BA1
–   TERM …………………………………………………………………………………………..                                     BA1
–   AIDS ……………………………………………………………………………………………                                      BA1

THE ONE POLICY AT A GLANCE ………………………………………………….                                   BA2
–   Whole Life : Stable Bonus Fund, Balanced Fund, Sanlam Equity Fund, Offshore
    Equity Fund and Fund of Funds …………………………………………..………………..                      BA2
–   Endowment : Stable Bonus Fund, Balanced Fund, Sanlam Equity Fund, Offshore
    Equity Fund and Fund of Funds …………….....................……………………………….         BA3

RIDER BENEFITS ……………………………………………………………………..                                       BA5
–   THE ONE POLICY FOR LIFE COVER …………………………………………………….                           BA5
–   THE ONE POLICY FOR ENDOWMENT …………………………………………………..                            BA5




GE 2/2004                                 arg(BA Index)
                                                   THE ONE POLICY



THE ONE POLICY FOR LIFE COVER
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 (see Section AB).
                   •       Benefits are payable only at the death of the life assured.
                   •       It is a universal policy (see Section AB).

 Term              For Life
 Aids              Full details on Aids appear in Section DE.


THE ONE POLICY FOR ENDOWMENT

 Features              •    It is a savings policy with a chosen term.
                       •    It also offers cover (if required) for death during the term (Sanlam Equity Focus
                            Fund, Offshore Equity Fund and Fund of Funds included).
                       •    If cover is chosen, the guarantee term is usually for the duration of the term but
                            can also be less.
                       •    The death and maturity benefits are usually not taken into account for tax
                            purposes (Sanlam pays the tax during the term). Please note, however, that the
                            Receiver may tax the proceeds if he deems them income.
                       •    No investment guarantees are given in the case of policies in the Balanced
                            Fund, Sanlam Equity Fund, Offshore Equity Fund and Fund of Funds.
                       •    It is a universal policy (see Section AB).
 Term                  Client chooses according to his/her planning (see “Policy terms” which follows later
                       in this section).
 Aids                  Full details on Aids appear in Section DE.




GE 2/2004                                              arg(BA1)
                                         THE ONE POLICY AT A GLANCE

            The One policy for life cover : Stable Bonus Fund, Balanced Fund, Sanlam Equity Fund,
                                     Offshore Equity Fund and Fund of Funds

                   Minimum premium and           Minimum premiums/policy fees are revised annually
                   policy fee                    and indicated in Section G (Summaries) only.
                   Age at inception              Minimum     :     15 anb
                                                 Maximum     :     80 anb
                   Cover levels available                              Maximum
                   Waiting period                                     One month
                   Death benefit is the larger   – Single Premium
                   of
                                                 – Balance of the investment account
                                                 – Cover amount
                   Policy/benefit term                                  For life
                                Note: Only available as part of a Capital Retention Plan : Plan 24.




GE 2/2004                                              arg(BA2)
                           The One Policy for Endowment : Stable Bonus Fund, Balanced Fund, Sanlam Equity Fund,
                                                       Offshore Equity Fund and Fund of Funds

                                       Recurring premium                   Single premium              Higher ages (C Tables)           Last Survivor
                                                                                                                                          (L tables)
Minimum premium and             Minimum premiums/policy fees are revised annually and indicated in Section G (Summaries) only.
policy fee
Age at inception
Policies with cover:            Minimum: 15 anb                                 15 anb                           n.a.                        n.a.
                                Maximum: 80 anb                                 80 anb                           n.a.                        n.a.

                                                                                 n.a.                      61 anb (males)                   1 anb
Policies without cover:         Minimum:     1 anb                                                         66 anb (females)
                                Maximum: 60 anb (males)                          n.a.                      80 anb (both)              80 anb (recurring)
                                         65 anb (females)                        n.a.                                              90 anb (single premium)

Cover levels available          – Maximum                           – Maximum
                                – Standard                          – Standard
                                – According to choice *             – According to choice *
                                – Without cover                     – Without cover                         Without cover               Without cover

Waiting period                   5 years      = 12 mths                       One month              5 years      = 12 mths       5 years     = 12 mths
                                 6 − 10 years = 18 mths**                                            6 − 10 years = 12 mths**     6 − 10 years = 12 mths**
                                11 − 20 years = 24 mths **                                          11 − 20 years = 24 mths **   11 − 20 years = 24 mths **
                                21 years plus = 36 mths                                             21 years plus = 36 mths      21 years plus = 36 mths
                                                                                                                                 Single premium = 1 month

* In the case of cover according to choice the minimum amount will be R10 000.                                                                      (continued)
** Waiting period can vary according to the size of the premium - See Summary 7 (Section G).




GE 2/2004                                                                 arg(BA3)
                                       The One Policy for Endowment : Stable Bonus Fund, Balanced Fund, Sanlam Equity Fund,
                                                              Offshore Equity Fund and Fund of Funds (continued)

                                                                 Recurring premium                Higher ages (C Tables)                   Last Survivor
                                                                                                                                             (L tables)
                       Death benefit                      Death benefit is the larger of       Death benefit is the larger of
                       Policies with cover                – Balance of the investment          – Cash value                       Balance of the investment
                                                            account                            – Premiums paid                    account
                                                          – Cover amount


                       Policies without cover **          – Balance of the investment          – Cash value                       Balance of the investment
                                                            account                            – Premiums paid                    account

                       Policy/benefit term
                         Minimum *                                     5 years                            5 years                              5 years
                         Maximum                                       45 years                       24 years (males)                        45 years
                                                                                                      19 years (females)
                         Without cover (see note) **                   10 years
                       Maximum age at maturity                          85 anb                             85 anb                        85 anb (recurring)
                                                                                                                                      95 anb (single premium)
                       Maturity benefit                   Balance of the investment            Balance of the investment          Balance of the investment
                                                          account                              account                            account


Notes:    Savings policies with terms longer than 15 years will be issued only if all the following requirements have been met:
             1) the policy must be on the life of the child;
             2) the policy term must run until the child turns 21 (should the term be longer, the relevant Business Development Manager (in the case of advisers) or Sales
                 Manager/Sales Support Manager/Provincial Manager (in the case of brokers) must provide a written motivation); and
             3) a P benefit must be linked to the policy as a rider benefit.
             4) M-OP is also available.
          Adding an additional benefit to a savings policy e.g. OLV, does not influence the fact that it is a savings policy. Should OLV therefore be added to a savings policy,
          the 15 year term limit will still be applicable.
* The minimum term for recurring premium policies in the Stable Bonus Fund is 10 years.
** The One Policy for Endowment without cover is available only if P-benefit and/or M-OP is taken together with it as well as for EduFocus.



          GE 2/2004                                                                    arg(BA4)
                                              RIDER BENEFITS


THE ONE POLICY FOR LIFE COVER
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.
THE ONE POLICY FOR ENDOWMENT
                                                           Policies with cover
 Rider benefits        OEA          :   Lump sum disability benefits
 available
                       OEP          :   Disability Benefits in Five Instalments
                       OG           :   Waiver of premium benefits at disability of assured (grow after a
                                        claim arises). Not together with OP, M-OP and P benefit. OG is
                                        available only if the premium increases at inflation rate.
                       OP           :   Waiver of premium benefit at disability of assured (constant after a
                                        claim arises). Not together with M-OP, OG and P.
                       OLV          :   Accident Benefit
                       TD *         :   Future Cover (available only from age 15 next birthday).
                       TV           :   Trauma Benefit
                       DHO          :   Cover Reinstatement option with TV
                       DHOE         :   Cover Reinstatement option with OE
                       M-OP *       :   Waiver of premium benefit at disability of co-assured (available only
                                        together with P benefit).
                       P*           :   Waiver of premium benefit at death of co-assured. An additional
                                        policy fee of R0,75 is levied.
                       * Not available in the case of rate group 1.
 Indexplan             Policies with cover : Premium growth and cover growth are available.
 Single Premiums       No rider benefits available.



                                                         Policies without cover
 Rider benefits        Table 303, 403 and 503
 available
                       OP           :   Waiver of premium benefits at disability of assured (constant after a
                                        claim arises). Not together with M-OP, OG and P.
                       M-OP *       :   Waiver of premium benefit at disability of co-assured (available only
                                        together with P benefit).
                       P*           :   Waiver of premium benefit at death of co-assured. An additional
                                        policy fee of R0,75 is levied.
                       * Not available in the case of rate group 1.
                       Note: Full particulars on rider benefits appear in Section C.
 Indexplan             Policies without cover : Only Premium growth is available.




GE 2/2004                                             arg(BA5)
                            FEBRUARY 2006


                              SECTION BB


                              EDUFOCUS


                                                                Page
DESCRIPTION ……………………………………………………………………………..                     BB1
HOW THE POLICY WORKS ……………………………………………………………..                  BB1
COVER AMOUNT (LIMITED THROUGH LEGISLATION) …………………………...        BB1
PROPOSER ………………………………………………………………………………..                       BB2
DEATH BENEFIT ………………………………………………………………………….                     BB2
MATURITY BENEFIT ……………………………………………………………………..                   BB2
CASH WITHDRAWALS …………………………………………………………………..                    BB2
CONSTRUCTION: NO EXISTING LIFE COVER ………………………………………            BB2
CONSTRUCTION: EXISTING LIFE COVER …………………………………………...           BB3
GUARANTEE TERM ………………………………………………………………………                      BB3
COVER LEVELS …………………………………………………………………………..                     BB3
AIDS COVER ………………………………………………………………………………                       BB3
RIDER BENEFITS AVAILABLE …………………………………………………………                 BB3
RATES ………………………………………………………………………………………                         BB4
MINIMUM PREMIUM ……………………………………………………………………...                   BB4
AGE AT INCEPTION ……………………………………………………………………...                  BB4
POLICY TERM ……………………………………………………………………………..                     BB4
MAXIMUM AGE AT MATURITY …………………………………………………………                  BB4
WAITING PERIOD …………………………………………………………………………                     BB4
   – Policy taken out prior to 26/2/94 …………………………………………………..    BB4
   –   Policy taken out after 26/2/94 ……………………………………………………………   BB5
OPTION AT MATURITY DATE …………………………………………………………..                BB5
CONTINUATION OPTION ………………………………………………………………..                  BB5
SUMMARY OF PRODUCTS AVAILABLE FOR CHILDREN ………………………...         BB6




GE 10/2005                        arg(BB)
                                          EDUFOCUS


Description      EduFocus is endowment assurance for children younger than 15 anb.
                 It consists of:
                 •   an investment account to which bonuses/growth is added,
                     plus
                 •   annually purchased term assurance which varies so that the term assurance
                     together with the balance of the investment account keeps the cover amount at a
                     constant level.
How the policy   At the beginning of each policy year an investment amount is deposited in the
works            investment account of the policy. The investment account represents the residual
                 premium after provision has been made for:
                 •   the policy fee,
                 •   the cost of rider benefits, if any, and
                 •   a cost recovery.
                 Sanlam recovers the cost of each year’s life cover from the investment account.
Cover amount     •   For children up to 3 anb            −   only the balance of the investment account
(limited
through          •   For children 4 anb to 6 anb         −   cover limited to R10 000 (all policies)
legislation)     •   For children 7 anb to 14 anb        −   cover limited to R30 000 (all policies)
                 Note: The ages referred to are the ages next birthday as at the beginning of the
                       policy year. The restriction for children up to 3 anb, is a Sanlam restriction.
                 A deferred cover amount is chosen at inception of the policy. The deferred cover
                 becomes operative on the policy anniversary before the child’s fifteenth birthday.
                 NB: EXISTING LIFE COVER
                 Only a simplified policy is available for a child who already has a policy with
                 life cover. In this variation the cover amount remains constant. In effect, this
                 policy therefore has no deferred cover.




GE 10/2005                                    arg(BB1)
Cover amount       The vast majority of clients should take the maximum available life cover with the
(limited through   first policy. However, this variation of our product makes provision for the
legislation)       exceptions.
(continued)
                   The client chooses the cover amount which is calculated as follows:
                   •   Maximum cover amount available
                       [(i.e. R10 000 (4 anb to 6 anb) or R30 000 (7 anb to 14 anb)]
                   minus
                   •   existing cover with all assurers on the child’s life (excluding children’s policies
                       taken out prior to September 1990).
                   Life cover can be adjusted to the levels available (all cover included) by means of a
                   notation when ages 7 anb and 15 anb are reached respectively.
                   Example: Child from 7 anb to 14 anb
                   Situation on proposal date:
                       Child: 7 anb
                       Existing cover: R12 000
                       Maximum cover permitted: R30 000
                   Cover available on proposal date:
                      Cover at inception (30 000 - 12 000): R18 000
                      Deferred cover from 15 anb: R18 000
Proposer           Only the parents or the legal guardian may be the proposer on the policy.             A
                   grandparent may be the proposer only if the policy is
                   •   a without-cover policy
                   •   an EduFocus with maximum death benefit of R30 000.
                   The legal guardian is someone else than the parents if:
                   •   both parents are deceased and/or
                   •   the court has decided that another person/a grandparent must be the legal
                       guardian.
                   The proof of appointment as legal guardian must always accompany the proposal.
                   •   The proposal form must always be signed by the legal guardian (parent) as
                       guardian.
Death benefit      At early death of the life assured, the greater of the following is payable:
                   •   The cover amount, and
                   •   the balance of the investment account.
Maturity benefit   At survival of the policy term, the balance of the investment account is payable.
Cash               Full cash withdrawals can be done at any time after the waiting period has expired.
Withdrawals                                                        th
                   Partial cash withdrawals before the assured's 14 birthday are not permitted.
Construction:      The policy consists of an investment account to which bonuses are added. The
no existing life   annually purchased term assurance provides limited cover of R10 000 or R30 000
cover              from the inception date, as well as deferred cover from the policy anniversary before
                   anb 15.




GE 10/2005                                      arg(BB2)
Construction:    The policy consists of an investment account to which bonuses are added. The
existing life    annually purchased term assurance provides the life cover. If a child already has
cover            existing life cover the chosen cover amount remains constant, but subject to the
                 available maximum (see NB under Cover amount).
Guarantee term   The guarantee term of a policy with a long term can be shorter than the policy term.
Cover levels     Maximum cover
                 Standard cover
                 Cover according to choice (minimum R10 000)
                 Without cover     This choice is not available for EduFocus. If a policy without
                                   cover is required, the product name code D048 must always be
                                   entered.
Aids cover       No HIV test is required prior to the issuing of a children’s policy. On the policy
                 anniversary after the child’s 17th birthday (18 anb), a blood test will be necessary, if
                 the limits − with deferred cover taken into account − require it.
                 Aids cover is always included from the policy anniversary on which the child’s age is
                 4 anb up to and including 18 anb (17 years old).
Rider benefits   The following rider benefits are available with EduFocus:
available
                 •   Indexplan, premium and cover growth are available. Cover growth is available
                     only if the deferred cover amount is R30 000 or more.
                     −   the cover amount up to 14 does not grow if cover growth is not taken.
                     −   only the deferred cover amount is increased from the first month of increase
                         and annually thereafter by the applicable cover amount.
                 •   Waiver of premium benefits at death of the co-assured (P) are not available if
                     the co-assured qualifies for rate group 1 rates. (Cost: an additional policy fee of
                     R0,75 is levied.)
                 •   Waiver of premium benefits in the event of disability of the co-assured (M-OP)
                     are available only if P benefit is taken. They are not available if the co-assured
                     qualifies for rate group 1 rates.
                 Addition          The following rider benefits can be added by means of a notation
                 from 15 anb       from anb 15:
                                   •   Lump sum disability benefits (OEA)
                                   •   Disability benefits in Five Instalments (OEP)
                                   •   Cover reinstatement option (DHOE) is available only if OE is
                                       taken.
                                   •   Accident benefits (OLV)
                                   •   Waiver of premium disability benefits with growth until a claim
                                       arises (OP) are not available if OG, P or M-OP is taken.




GE 10/2005                                   arg(BB3)
RIDER BENEFITS (continued)

 Rider benefits     Addition from    •   Waiver of premium disability benefits with growth before and
 available          15 anb               after a claim arises (OG) are available only if premium growth
 (continued)        (continued)          at inflation rate is taken. They are not available if OP, P or M-
                                         OP is taken.

                                     •   Trauma benefit (TV).

                                     •   Cover reinstatement option (DHO) is available only if OE is
                                         taken.
                                     •   The following rider benefit can be added by means of a
                                         revision of benefits (notation):
                                          TD : Future Cover

 Rates              Separate rates apply to boys and girls.
                    Differentiated rates i.e. rate group 3, rate group 2 and rate group 1 rates based on
                    the status of the guardian are available in the case of EduFocus.

 Minimum            Monthly          R 100,00
 premium            Annually         R1 140,00
                    Premium          The premiums are payable up to
                    payments
                                     •   the end of the policy term or
                                     •   the policy anniversary after the early death of the life assured.
 Age at inception   Minimum           1 anb
                    Maximum          14 anb
 Policy term        Minimum          10 years
                    Maximum          45 years
 Maximum age at     59 anb
 maturity

 Waiting period −   Policy term      Twelve months
 policy taken out   10 years
 prior to 26/2/94
                    Policy term      24 months
                    11 to 15
                    years
                    Policy term      36 months
                    16 years and
                    longer




GE 10/2005                                    arg(BB4)
 Waiting period −   Policy term      18 months
 policy taken out   10 years
 after 26/2/94
                    Policy term      24 months (can fluctuate according to size of premium)
                    11 to 20
                    years
                    Policy term      36 months
                    21 years and
                    longer
 Option at          The life assured can resume his/her cover after the maturity date by taking out a
 maturity date      new policy without proof of good health.

                    Conditions       The following conditions are applicable when the option is
                                     exercised:
                                     •   The maturity date of EduFocus should be between 15 anb
                                         and 26 anb.
                                     •   Any new policy with cover may be taken out, except term
                                         assurance.
                                     •   The option should be exercised within three months after the
                                         maturity date.
                                     •   Normal Aids and new business requirements apply.
                    Rider            No additional benefits shall be granted on new assurance
                    benefits         effected in terms of an option, except those approved by Sanlam
                                     subject to the requirements that Sanlam may impose. If this
                                     policy provides for increasing policy options, however, similar
                                     options shall be allowed under the new assurance without the
                                     assured having to give proof of good health.
 Continuation       The client can leave the maturity value with Sanlam for further growth with or
 option             without premium payments. If the policy is continued without further premium
                    payments the policy-owner has the option to make cash withdrawals. See section
                    BX.
                    The policy replacement option is still available if the continuation option is
                    exercised.




GE 10/2005                                   arg(BB5)
                                 SUMMARY OF PRODUCTS AVAILABLE FOR CHILDREN (PROVISION FOR EDUCATION)

       PRODUCT                         NEED                                              CHARACTERISTICS                                        PROPOSAL FORM

EduFocus                    For medium- or long-term      Minimum premium: R100,00 a month                                                   Proposal form : AEB40
                            savings and cover needs       Minimum term: 10 years
−   Endowment policy with
    life cover                                            Life cover: Up to R10 000 for children from 4 anb to 6 anb and R30 000 for
−   T303J/T403J/T503J                                     children from 7 anb up to and including 14 anb. Deferred cover of up to R250 000
                                                          can be chosen at inception; comes into effect at 15 age next birthday.
                                                          Rider benefits:
                                                          •   Waiver of premium in the event of death or disability of the co-assured;
                                                          •   Indexplan (Premium and Cover Growth) to keep pace with inflation.
EduFocus — NB :             For long term savings needs   Minimum premium: R100,00 a month                                                   Proposal form: AEB54
Product name code D048
                                                          Minimum term: 10 years
must be used here.
                                                          Life cover: None
−   Endowment policy
                                                          Rider Benefits:
−   T303/T403/T503
                                                          •   Waiver of premium in the case of death or disability of the co-assured.
                                                          •   Indexplan (Premium Growth) to keep pace with inflation.




GE 6/2005                                                                   arg(BB6)
                                    FEBRUARY 2006

                                        SECTION BC

                              RETIREMENT ANNUITY FUNDS

                                                                                  Page

WHY IT ORIGINATED …………………………………………………………………..                                     BC1
LEGAL REQUIREMENTS FOR RA FUNDS …………………………………………                                  BC1
FUNDS UNDERWRITTEN BY SANLAM ……………………………………………..                                  BC2
– CRAF : Central Retirement Annuity Fund ……………………………………………………                     BC2
– PPS-RAF : Professional Provident Society of SA Retirement Annuity Fund ………….…   BC2
–   ABSA RA Fund : ABSA Retirement Annuity Fund ………………………………………….                 BC2
– PENKOOP SCHEME ……………………………………………………………….……….…                                   BC2
– GENERAL INFORMATION : FUNDS …………………………………………………..                               BC2
THE ONE RETIREMENT ANNUITY …………………………………………………..                                  BC3
–   BASIC COMPOSITION …………………………………………………………….………….                               BC3
–   TABLES AVAILABLE ……………………………………………………………….………….                               BC3
–   INCREASE IN CONTRIBUTIONS ……………………………………………………………                             BC3
–   AGE AT INCEPTION ……………………………………………………………….………….                               BC4
–   RETIREMENT AGE ……………………………………………………………………..…….                                BC4
–   MINIMUM POLICY TERM ……………………………………………………………………..                              BC4
–   COVER LEVELS AVAILABLE ………………………………………………………………...                            BC5
–   RIDER BENEFITS AVAILABLE ………………………………………………………………                             BC5
– RETIREMENT BENEFIT ……………………………………………………………….                                    BC6
    •   Minimum retirement benefit ……………………………………………………………….                      BC6
    •   Lump sum at retirement ……………………………………………………………………                         BC6
    • Pension at retirement ………………………………………………………………………                           BC6
–   ADDITIONAL OPTION …………………………………………………………………………                                BC6
– DEATH BENEFIT ………………………………………………………………………                                       BC6
    •   Determining the death benefit amount …………………………………………………...               BC6
    •   Application of death benefit amount ……………………………………………………...               BC7
    • Payment of death benefit ……………………………………………………….…………                         BC7
–   BRIDGING ………………………………………………………………………………………                                    BC8
–   FULLY PAID-UP POLICY ………………………………………………………….………….                             BC9
–   WAITING PERIOD ………………………………………………………………….………….                                BC9
–   SURRENDER AND LOAN VALUE …………………………………………………………..                             BC9
– CESSIONS ……………………………………………………………………………..                                        BC9
INCOME TAX …………………………………………………………………………….                                         BC10
–   MARRIED PERSONS ………………………………………………………………………….                                 BC10
–   MAXIMUM DEDUCTIBLE CONTRIBUTIONS ………………………………………………                           BC10
–   CONTRIBUTIONS TO MORE THAN ONE FUND ………………………………………….                         BC12
–   EXCEEDING DEDUCTIBLE CONTRIBUTIONS ……………………………………………                          BC12
–   CONTRIBUTIONS IN ARREARS …………………………………………………………….                             BC13
–   YEAR OF ASSESSMENT ………………………………………………………….………….                               BC14
–   TAX CERTIFICATES ……………………………………………………………….………….                               BC14
– TAXABILITY OF BENEFITS ……………………………………………………….………….                              BC14
ESTATE DUTY ………………………………………………………………………….                                         BC16
RETIREMENT PROVISION ……………………………………………………………………                                   BC17
ENQUIRIES ………………………………………………………………………………                                          BC17




GE 4/2004                                  arg(BC)
                                      WHY IT 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 Annuities, 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 may become
    entitled may be commuted (converted) for a lump sum;
−   the retirement age must not be attained before the 55th and not after the day before the 70th birthday;
−   the only payment, in the event of death before retirement, shall be the contributions paid in (with
    interest) as a lump sum plus a pension (life annuity) for the dependants, which can be bought from
    the remaining benefits. One-third of this pension (life annuity) can be commuted (see “Payment of
    death benefits” later in this section).
−   a member may not deal with the policy at all, e.g. surrender it, borrow against it, cede it, or in any
    other way alienate or pledge it; 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 6/2005                                        arg(BC1)
                             FUNDS UNDERWRITTEN BY SANLAM LIFE

The following funds are underwritten by Sanlam Life:


CRAF : Central Retirement Annuity Fund
Sanlam Life employees together with an independent trustee form the Board of Trustees. Sanlam Life
will always remain the underwriter. A person who applies for a retirement annuity (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.
Only professional people qualify as members of the PPS-RAF.


  ABSA RA FUND            : ABSA Retirement Annuity Fund

The marketing of the Absa RA Fund stopped during March 2000. Existing members retain all rights.

The ABSA Retirement Annuity Fund was dissolutioned in 2004 and the benefits were transferred to the
Central Retirement Annuity Fund (CRAF).

 PENKOOP SCHEME
Marketing of the Penkoop scheme was terminated during May 1997. Existing members retain all rights.

The Penkoop Scheme was dissolutioned in 2004 and the benefits were transferred to the Central
Retirement Annuity Fund (CRAF).


 GENERAL INFORMATION : RETIREMENT ANNUITY FUNDS

POLICIES
When a person becomes a member of a fund underwritten by Sanlam Life, he receives a copy of the
policy. Sanlam Life issues the original policy to the trustees for their safekeeping. The Fund is the
owner of the policy.

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).




GE 6/2005                                      arg(BC2)
                                 THE ONE RETIREMENT ANNUITY


BASIC COMPOSITION

The One Retirement Annuity is a universal policy. Refer to Section AB for full particulars on how a
universal policy works.
Retirement annuities correspond in many ways to ordinary endowment assurance, of which the claim
value is paid after a certain period or at prior death. The difference lies in the fact that a prescribed
minimum portion of the claim value of a retirement annuity must be used for:
   •   buying a pension (life annuity) for the member’s dependants/nominees at his prior death; or
   •   buying a pension (life annuity) for the member himself or a joint pension (life annuity) for a
       dependant and himself at retirement.
In the case of retirement annuities the fund is always the policy-owner.


                                         TABLES AVAILABLE


                                                                  TABLE CODES
              THE ONE RA                      Stable Bonus        Balanced Fund
            (different funds)                                                            500 Plus *
                                                Fund **
 Central Retirement Annuity Fund                   334                     434               534
 (CRAF)
 Professional Provident Society
 Retirement Annuity Fund (PPS-CRAF)               334P                 434P                 534P

  * Sanlam Equity Fund, Offshore Equity Fund and Multi-Manager Balanced Fund (High Equity).
** The Stable Bonus Fund is available for new business only for recurring premiums, for terms
   of 10 years and longer.

INCREASE IN CONTRIBUTIONS
• Recurring contributions
   Part 4 of the Regulations to the Long-term Insurance Act (previously Section 59D) does not apply to
   retirement annuities. The client may therefore increase the contributions by any amount (the policy
   will never be restricted). The premium increase, however, must comply with the minimum premium
   increase which applies to all policies.
   The increase in the contribution is used only for retirement benefits, unless the client requests an
   increase in the level of cover (life and/or disability cover).
   For policies in the Stable Bonus Fund ad hoc recurring contributions are permitted only if the policy’s
   outstanding term is five years and longer.

• Ad hoc contributions
   Single contributions to The One RA may be made at any stage (not in the Stable Bonus Fund).




GE 6/2005                                       arg(BC3)
    AGE AT INCEPTION

Stable Bonus Fund (Table 334)
     Minimum       :    1 next birthday for RA's without risk cover (PPS-RA's excluded)
                   :   15 next birthday for RA's with risk cover, as well as any PPS-RA
     Maximum       :   60 next birthday

The Stable Bonus Fund is available only for recurring premiums, for terms 10 years and longer.

Balanced Fund, Sanlam Equity Fund and Fund of Funds (Table 434 and Table 534)


     Minimum                            :     1 next birthday for RA's without risk cover * (PPS-RA's excluded)
     (recurring and single premiums)
                                        :    15 next birthday for RA's with risk cover, as well as any PPS-RA
     Maximum                            :    65 next birthday
     (recurring and single premiums)
However, if the risk benefits concerned only apply to the co-assured (for example waiver of premium
benefits on the death of the co-assured), the minimum entry age is as indicated above for RA's without
risk cover.

* RA's without risk cover are available only if disability cover (OD) is also taken. An RA with only
     waiver of premium benefits is not available.

    RETIREMENT AGE

     Minimum       : 56 next birthday
     Maximum       : 70 next birthday

For administrative reasons these retirement annuities for members who are at inception younger than 15
next birthday, cannot be issued for retirement ages later than 56 next birthday.

Acceleration of maturity date
The chosen maturity date may be accelerated to a date from the member’s 55th birthday (56 anb), on
condition that the policy already has an early retirement benefit.

Deferment of maturity date
The maturity date can be deferred until the day before the member’s 70th birthday (70 anb). The
retirement benefits are increased accordingly.
If the maturity date is deferred and the assured dies after the normal maturity date but before the
deferred maturity date, the death benefit would be calculated as if the assured had retired on the date of
death.

    MINIMUM POLICY TERM
The minimum policy term until the maturity date is as follows:
•    Stable Bonus Fund (Table 334)
     Recurring premiums : 10 years
     Single premium      : not permissible
•    Balanced Fund, Sanlam Equity Fund and Fund of Funds (Tables 434 and 534)
     Recurring and single premiums : 10 years




GE 6/2005                                           arg(BC4)
 COVER LEVELS AVAILABLE
Table 334, Table 434 and Table 534
   •   Maximum cover
   •   Standard cover
   •   Cover according to choice
   •   Without cover (only if OD is also taken)

 RIDER BENEFITS AVAILABLE

RECURRING PREMIUMS
Table 334, Table 434 and Table 534 with cover
   •   On the life of the life assured
        OD          : Disability Pension Benefits
        OP          : Waiver of premium benefits at disability (constant after a claim has been
                        admitted). Not together with OG, M-OP and P benefit.
        OG          : Waiver of premium benefits at disability (growth before and after a claim has
                        been admitted). Not together with OP, M-OP and P benefit. OG is available
                        only if the premium grows at inflation rate.
        DHOD        : Cover Reinstatement Option with OD (available only if OD is taken and not with
                        TD).
        TD          : Future Cover (not available together with DHOD)
        Indexplan :    Premium growth and cover growth
   •   On the life of the co-assured
        P           : Waiver of premium benefits at death of the co-assured. An additional policy
                        fee of R0,75 is payable.
        M-OP        : Waiver of premium benefits at disability of the co-assured (available only if
                        P benefit is taken).

Table 334, Table 434 and Table 534 without cover
   •   On the life of the life assured
        OD         :   Disability pension benefits (compulsory)
        OP         :   Waiver of premium benefits at disability of the assured (benefits remain
                       constant after a claim has been admitted).
        Indexplan :    Only premium growth is available.
   •   On the life of the co-assured
        P          :   Waiver of premium benefits at death of the co-assured. An additional policy
                       fee of R0,75 is payable.
        M-OP       :   Waiver of premium benefits at disability of the co-assured (available only if
                       P benefit is taken).
   NB: RA's without cover are available only if OD forms part of the policy.

SINGLE PREMIUMS
Table 434 and Table 534 with cover
        OD         :   Disability pension benefits.
        DHOD       :   Cover Reinstatement Options with OD




GE 6/2005                                         arg(BC5)
RETIREMENT BENEFIT

MINIMUM RETIREMENT BENEFIT
No minimum is guaranteed.
LUMP SUM AT RETIREMENT
The member may take (commute) a maximum of one-third of the pension (life annuity) as a lump sum.
If the maturity value is less than R22 500, the full claim value may be paid in a lump sum [ IT Act (s.1)].
Please Note:
   It is often advantageous to take the maximum cash amount allowed (see “Taxability of benefits”
   under “Income Tax” later in this section). The full proceeds may be applied to purchase a pension
   (life annuity).

PENSION AT RETIREMENT
The portion of the proceeds not taken in cash must be used to purchase a pension (life annuity). There
are several options regarding the nature of a pension (life annuity), and it is important to bear in mind
that the option taken by you is permanent and cannot be changed at a later stage.
For a full description of the different types of pensions (life annuities) see Section BJ.

  ADDITIONAL OPTION
The member may also apply that the policy be ceded to him or her, on conditions determined by die
Fund. See “Endowment Option with retirement annuities” in section BX.

DEATH BENEFIT

DETERMINING THE DEATH BENEFIT AMOUNT
If the assured dies before the end of the policy term, the death benefit will be determined as follows:
Recurring premiums
   •   Table 334, 434 and 534 : with cover
       The larger of
       − the balance of the investment account and
       − the cover amount.
   •   Tables 334, 434 and 534 : without cover
       The balance of the investment account.
Single premiums
   •   Table 434 and 534 : with cover
       The larger of
       − the balance of the investment account and
       − the cover amount.
   •   Tables 434 and 534 : without cover
       The larger of
       − the balance of the investment account and
       − the cover amount.




GE 6/2005                                          arg(BC6)
APPLICATION OF DEATH BENEFIT AMOUNT
Lump sum
The maximum cash amount available is as follows:
    −   the contributions paid plus 7% interest per annum (compounded annually) plus
    −   one-third of the residual benefits (claim value less contributions + 7% interest)
Pension
Any remaining benefit has to be appropriated for buying a pension (life annuity) for dependants/
nominees which may be guaranteed for a certain term.
Example:
    Assume: Contribution per month        : R100
              Claim value (death benefit) : R50 000
              Premium term up to death    : 5 years
    Paid-in premiums + interest = R7 160
    • Cash amount = R 7 160 + /3 (R50 000 - R7 160)
                                  1

                      = R21 440
    • Amount for pension = R50 000 - R21 440
                            = R28 560

PAYMENT OF DEATH BENEFITS
If no nominee has been nominated
In terms of the law and the rules of the fund concerned, the Trustees are obliged to pay the benefit in the
event of the death of the member to the deceased’s dependants in such proportions as the trustees
deem equitable.
•   If there are no dependants:
    If there are no dependants and the member did not designate a nominee, the benefit is to be paid
    into the estate after at least 12 months have elapsed.

If a nominee has been nominated
A member may, in terms of the provisions of the rules of the Fund concerned, nominate a nominee. The
nominee may be a dependant or a non-dependant (“dependant” includes children of the member who
are of age).
•   If it is a dependant:
    The Trustees of the Fund are not compelled to accept the nomination, however, when they decide to
    which dependant payment will be made, they do take into account that the member nominated a
    specific dependant as nominee.
•   If it is a non-dependant:
    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 after 1 July 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 member 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
    such portion of the benefit as stipulated by the member, is to be paid to the designated nominee.




GE 6/2005                                         arg(BC7)
Testamentary request
Although the benefits cannot be bequeathed in a will, a member can request in his will that the benefits
be paid to a particular person or into a trust created by him. The Trustees, however, are under no
obligation to comply with such a request.
The Trustees of the fund can consider such a request and should they find that the conditions are
compatible with their own obligations as Trustees, and, in the case where a trust was established, find
the Trustees thereof acceptable, then the request may be complied with. (The PPS-RAF requires that
the testamentary Trustees be empowered to receive the benefits.)
This will, however, have no effect on the method of payment. For example, the full claim value will not
be paid in a lump sum.
Revocation of nomination
The assured may revoke a nomination at any time before his/her death. For it to be valid, the revocation
must be in writing and must reach the Fund at Sanlam’s Head Office before the death of the assured.
Note: Although the principles concerned have been given accurately here, you must not give a rash
      interpretation in individual cases. Ultimately, the interpretation and application of the principles
      rest with the Trustees of the fund.

BRIDGING
If the assured suffers a loss of income after the waiting period has expired, he may request to pay a
reduced premium during a bridging period.
The death and disability cover (where applicable) in terms of the policy is maintained for the period of
bridging, even if it is a maximum cover policy. At the end of the bridging period an increased premium,
as determined by Sanlam Life, is payable.

Availability
A proposal for bridging will be considered only if all the following requirements are met:
−   bridging is available only with policies with life cover and policies without cover with rider benefits;
−   the waiting period of the relevant annuity policy must have expired;
−   the loss of income must not be due to retirement or disability;
−   Sanlam Life must be convinced that the loss of income is due to circumstances which make a
    concession desirable;
−   the reduced premium is determined by Sanlam Life.

Bridging period
Maximum period available : 5 years
This period is subject to the following conditions:
−   the bridging facility is available only for the duration of the loss of income;
−   from time to time during this period, Sanlam Life may require the assured to submit proof of his/her
    continuing loss of income. If proof is not submitted, Sanlam Life may recall the concession.

Indexplan
In the case of policies with Indexplan, the date of Indexplan increase is postponed until after the bridging
period (i.e. no increase take place during this period).




GE 6/2005                                           arg(BC8)
FULLY PAID-UP POLICY
If a premium is not paid within the period of grace, the policy is converted into a paid-up policy only if:
−   the waiting period has already expired and
−  the balance of the Investment Account (built up at that stage and determined by Sanlam Life) is
   sufficient to maintain the policy for the duration of the remaining policy term.
When the policy is converted into a paid-up policy, the maturity benefits will be reduced and all other
benefits will lapse. The balance of the Investment Account will be payable at death before maturity.

If a premium is not paid within the period of grace and the waiting period as indicated in the Schedule
has not yet expired, the policy lapses.


WAITING PERIOD
Before an RA policy can be made fully paid-up or the bridging facility is available, a waiting period is
applicable. The waiting period is determined inter alia by the chosen level of cover and the policy term.

                                                           Waiting period
                    Premium term
                                               Without cover           Maximum cover
                                                  policies                policies
                         Years                    Months                    Months
                         1-2                        6                         6
                           3                          8                        8
                           4                         10                       10
                           5                         12                       12
                          6 - 15                     18                       18
                        16 - 20                      18                       24
                        21 - 25                      24                       30
                     26 and longer                   24                       36

We give waiting periods only for without cover policies and policies with maximum cover. For intervening
cover levels the waiting periods are interpolated, with due allowance for the percentage of maximum
cover level taken.


SURRENDER AND LOAN VALUES

Retirement annuity policies have no surrender or loan values.

CESSIONS

Retirement annuity policies may not be ceded, pledged or used as collateral security.




GE 6/2005                                          arg(BC9)
                                  INCOME TAX        − IT ACT (s.11(n))

The Income Tax Act makes certain concessions regarding contributions to RA funds. The concessions
are subject to the following conditions:
    The contributions of a member of an RA fund will qualify for tax relief if he received any income, or a
    combination of the following types of income in the year of assessment:
    −      trade income (e.g. from an occupation, profession, business, service contract or rent from
           property)
    −      taxable interest income
    −      taxable dividend income
    −      pension payments
    −      taxable lump sums from pension or RA funds (see note)
    −      taxable portions of gratuities (see note)
    −      any other taxable income
    Tax-free interest income and tax-free allowances are excluded from the above.
Note: Since 1 September 1995 the said lump sums can no longer be used to manipulate a person’s
      average tax rate. However, the tax deduction still applies to the person’s total taxable income.


    MARRIED PERSONS

A husband and a wife may each be a member of an RA fund in his or her own right.

MAXIMUM DEDUCTIBLE CONTRIBUTIONS (s.11 (n))

Contributions to an RA fund by a member will be deductible from his/her income. Under “income” the
following is understood:
−   nett trade income (in the case of farming income, before certain deductible expenses for
    development and improvements in respect of farming, if applicable, are taken into account)
−   taxable interest income
−   taxable dividends received
−   pension payments
−   taxable lump sums from pension or RA funds
−   taxable portions of gratuities
−   other taxable income
The deduction in respect of an RA contribution may not exceed the income for the fiscal year concerned.
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 (excluding income from “retirement funding employment”), but excluding
            deductions in respect of certain farming expenses, medical expenses, donations to educational
            establishments; or
    (ii)    R3 500 minus any deductions allowed to the taxpayer regarding current contributions to a
            pension fund; or
    (iii) R1 750.




GE 6/2005                                        arg(BC10)
RETIREMENT ANNUITY FUND
Current Contributions
The greatest of
   −   R1 750 or
   −   R3 500 less deductible current pension fund contributions; or
   −   15% of ‘non-pensionable’ taxable income.

Reinstating contributions
Maximum deduction : R1 800 p.a.
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. From 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 on his behalf) to a pension or provident fund.
NB: Exception
    In the case of a former employee who becomes a partner in a partnership and continues to be a
    member of the pension or provident fund the following will apply:
    His/her income from retirement funding employment will be limited to the lesser of
    − the amount which he received from the partnership in the 12 months immediately prior to his/her
        becoming a partner or
    − the amount of his/her share in the partnership profits for the current year.
    When profits that may be earned are divided, the profits exceeding this amount will be looked upon
    as other trade income.
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).




GE 6/2005                                        arg(BC11)
Examples (continued)
   6) A taxpayer’s nett 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 nett 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 nett 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 nett 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).
   10) A former employee of a partnership who is now one of the partners has a share of R30 000 in
      the partnership profit (he is still a member of the pension fund). In the 12 months before he
      became a partner, he earned R20 000 and his pension contribution was 10%. His maximum
      deductible contribution will be:
         −   R1 750 to pension (maximum), and
         −   R1 750 to RA funds.
   11) If the same partner’s share of the partnership profit amounts to R50 000, his maximum
      deductible contribution will be:
         − R1 750 to pension, and
         − R4 500 to RA funds (15% of R30 000).


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 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.




GE 6/2005                                       arg(BC12)
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:
    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 policy 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).
This allowance will only be valid if the contributions prematurely discontinued would have been
deductible in the year in which they ought to have been paid (s.11(n)(bb)).
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 policy 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).




GE 6/2005                                      arg(BC13)
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 in this group 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. The income shown in these accounts is, however, regarded as being for the year of
assessment ending on 28/29 February. The taxpayer is therefore obliged to declare any income he may
have derived from other sources for the year of assessment.

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 1990 can be deducted from his trade income for the year 1 July 1989 to 30 June 1990.

A contribution paid on 1 April 1990 (i.e. before he closes his accounts on 30 June 1990 but after the end
of the tax year which ended on 28 February 1990) will only be deductible for the year 1 July 1990 to 30
June 1991. The year of assessment will, however, end on 28 February 1991.


TAX CERTIFICATES

Sanlam Life provides an annual premium contribution certificate to each RA fund member, indicating
particulars of all the member’s RA contributions and premiums 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.




GE 6/2005                                        arg(BC14)
The lump sum
Certain concessions, however, are made regarding lump sums:
−     Certain amounts are specifically exempted from income tax as shown below.
−     The portion of the lump sum which exceeds the tax-free amount is taxable according to a prescribed
      formula. In essence the formula amounts to the higher of the tax payer’s average tax rate in the
      present year of assessment as calculated before taking into account the taxable portion of the lump
      sum, and that of the previous year. (At death the “average rate” is taken on the income of the
      member up to his death.)
The maximum tax-free lump sum will be the greater of:
−     R120 000, or
−     R4 500 multiplied by the number of full years’ membership of one or more retirement funds, except a
      fund from which the member has withdrawn or resigned. The period during which a member made
      no contributions will be taken into account only if the member has paid all outstanding contributions
      in respect of such an interruption.
The above maximum amount can be increased by contributions not deductible for income tax purposes
in the past. This is a stipulation of the IT Act (Second Schedule).
Notes:
    1) The exemption applies to the combined benefits from all retirement funds (including pension, RA
       and provident funds).
    2) When the above formula for calculating the exempted portion payable out of a pension fund or
       provident fund is applied, only service years which have actually expired or have been purchased,
       will be taken into account.
       Example:
         Suppose a taxpayer became a member of a pension fund at the age of 20 and he retires at 60.
         Service years expired will be 40. If this taxpayer should, however, withdraw from the fund at the
         age of 30, take a cash benefit and join another pension fund at the age of 40 to the age of 60,
         only 20 service years will qualify. However, should he not have opted for the cash benefit, but
         transferred the benefits to the new pension fund, where he was credited with years of service,
         those years also qualify.
    3) 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.
    4) The tax-free lump sum is available for both husband and wife.

At retirement and disablement
A maximum of one-third of the claim value may be taken in a lump sum and the above-mentioned
maximum will apply to the tax-free amount.

At death before retirement − IT Act (Second Schedule)
The exemption is the greatest of:
      (a) R60 000, or
      (b) an amount equal to the commutation value of one-third of the total life annuity which the member
          would have been entitled to if he had retired on the day before his death; or
      (c) one-third of the member’s contributions to the fund plus 7% interest.
The amount thus calculated is, however, subject to the above maximum. See example on the following
page.




GE 6/2005                                         arg(BC15)
Example
    A member dies at age 50. The claim value of the RA policy (without cover) is R150 000, while the
    maximum cash amount which may be taken is R70 000 viz.:
    −   the member’s contributions to the fund (plus interest) to the amount of R30 000; plus
    −   one-third of the balance (R40 000).
    The maximum lump sum which may be taken tax-free, is the greatest of:
       (a) R60 000, or
        (b) R50 000 (1/3 x R150 000), or
       (c) R10 000 (1/3 x R30 000)
    R60 000 may therefore be taken tax-free.



                             ESTATE DUTY − ED ACT (s.3(3)(a)bis.)

Only the lump sum taken under RA funds is subject to estate duty.
Any amount that accrues to a surviving spouse, is however, not subject to estate duty.
Income tax (if any) payable on the lump sum may be deducted to get the nett taxable amount for estate
duty purposes. The estate duty caused by the RA is payable by the beneficiary unless the deceased’s
will specifically provides that the estate itself will be liable for such estate duty.
At first glance it may appear that if the estate is subject to estate duty it would always be better not to
take a lump sum at all. You should bear in mind, however, that the beneficiaries’ liability for income tax
is increased by this, as a result of the higher annuity. Other factors to be taken into consideration are:
−   if the amount of estate duty paid by the deceased is reasonably low, it may be profitable to take at
    least the income tax-free portion of the lump sum. The liability for income tax on the annuity will be
    decreased thereby;
−   if a high amount of estate duty is payable, the estate duty payable (on the lump sum) will have to be
    weighed up against the saving in income tax on the annuity, if the maximum income tax-free lump
    sum is taken, and
−   it is probable that it would seldom be in the interest of a beneficiary to take so much in a lump sum
    that it is subject to both income tax and estate duty.




GE 6/2005                                       arg(BC16)
                                                                : Part of CRAF
                               RETIREMENT PROVISION             (registered RA scheme)
This facility was created for businesses which do not have a pension fund, but contribute instead to
individual RA’s on the lives of their employees/directors.
Registration of scheme
−   The minimum number of members (employees/directors) required for a scheme is five.
−   The employer must (as in the case of provident fund policies), register the particular scheme with
    Employee Schemes: Administration (Head Office).
−   Proposal form for registration of scheme: E174
−   Declaration and indemnity by employer: E2925
−   Confirmation by Business Development Manager of compliance with requirements for new employee
    schemes (only for representatives): E2785.
−   Indexplan, only premium growth and not cover growth (growth type 03) always forms part of the
    policy. Every year the employer has the option whether or not to increase the contribution together
    with the salary increase. See “Indexplan” in Section CM for a full explanation of growth type 03.
Rider benefits available
•   OD
• TD
Income Tax
The contributions which the employer makes to the individual policies may be deductible from his
taxable income (section 11(a) IT Act). However, the contributions will be taxed as taxable income in the
hands of the employee.
Name of scheme
The name of the particular business is linked to the name of the scheme (Retirement provision for
………………….).
To ensure that the scheme is issued correctly, the following requirements must be met:
         1)   The company must be the premium payer.
         2)   Indexplan (growth type 03) must be chosen.
         3)   The registration number of the scheme must be entered.
         4)   The product name code M001 must be entered.




                                             ENQUIRIES

•   Registration of retirement provision for more than 5 members : Employee Schemes : Western
    Cape.
•   IRP5 tax certificates (Head Office):
    With regard to
    −    Lump sum at disability: Policy Disability Claims
    −    Lump sum at maturity date: Policy Values
    −    Premiums: relevant Policy Renewals Department
    −    Instalments (Life and Term Annuities): Policy Claims : Tax
    −    Death Benefit: Policy Death Claims




GE 6/2005                                        arg(BC17)
                 NO LONGER AVAILABLE FOR NEW BUSINESS FROM 1/12/1998

                                    SECTION BD


                               THE ONE MEDICAL PLAN


                                                                       Page
THE NEED FOR MEDICAL ASSURANCE …………………………………………..                      BD1
PRODUCT RANGE ……………………………………………………………………………..                          BD1
TABLES AVAILABLE …………………………………………………………………..                           BD2
GENERAL INFORMATION …………………………………………………………….                           BD3
–   PROPOSAL FORM …………………………………………………………………………….                       BD3
–   AVAILABILITY …………………………………………………………………………………..                     BD3
–   AGE AT INCEPTION …………………………………………………………………………..                    BD3
–   TERM …………………………………………………………………………………………….                          BD4
–   RATE DIFFERENTIATION …………………………………………………………………….                   BD4
–   UNDERWRITING ……………………………………………………………………………….                       BD4
–   COVER IN RESPECT OF AIDS ………………………………………………………………                  BD5
–   PREMIUMS ……………………………………………………………………………………..                        BD5
–   REVISIONS ……………………………………………………………………………………..                       BD5
DESCRIPTION OF BASIC PRODUCTS ……………………………………………...                     BD6
•   HOSPITAL BENEFIT …………………………………………………………………………..                    BD6
    –   BASIC BENEFIT ……………………………………………………………………………                    BD6
    –   ADDITIONAL BENEFIT ……………………………………………………………………                  BD7
    –   MAXIMUM BENEFIT ………………………………………………………………………                    BD7
•   MAJOR MEDICAL BENEFIT ………………………………………………………………….                   BD8
    –   COVER LEVELS ……………………………………………………………………………                     BD8
    –   SURGERY BENEFIT ………………………………………………………………………                    BD8
    –   CONGENITAL CONDITIONS AT BIRTH ………………………………………………..            BD9
    –   EX GRATIA PAYMENTS ………………………………………………………………….                  BD9
    –   MAXIMUM BENEFITS ……………………………………………………………………..                  BD9
•   MAJOR MEDICAL AND HOSPITAL BENEFIT ……………………………………………..             BD10
    –   COVER LEVELS ……………………………………………………………………………                     BD10
    –   MAXIMUM BENEFITS ……………………………………………………………………..                  BD10
RIDER BENEFITS AVAILABLE ……………………………………………………….                        BD11
–   SPORTS INJURY BENEFIT …………………………………………………………………..                  BD12
–   EMERGENCY TRANSPORTATION BENEFIT ……………………………………………..               BD13
–   WAIVER OF PREMIUM BENEFITS ………………………………………………………….                 BD14
           AT DEATH OF PRINCIPAL ASSURED (PM/GM) ………………………………….        BD14
           AT DISABLEMENT OF PRINCIPAL ASSURED (OP/OG) ………………………...    BD14




GE 10/98                              arg(bd)
                                                                              2/…
                            -2-

                                                     Page
INDEXPLAN ……………………………………………………………………………              BD14
PROOF-FREE OPTIONS …………………………………………………………….          BD15
DEATH OF THE PRINCIPAL ASSURED …………………………………………..    BD16
DEATH BENEFITS …………………………………………………………………….           BD16
CASH VALUES ………………………………………………………………………...           BD16
TAX STATUS ………………………………………………………………………….             BD16
SUMMARY OF EXCLUSIONS ……………………………………………………….         BD17
SUBMITTING CLAIMS ……………………………………………………………….          BD18
ENQUIRIES : THE ONE MEDICAL PLAN ………………………………………….   BD18




GE 10/98                    arg(bd)
                                           THE ONE MEDICAL PLAN

    THE NEED FOR MEDICAL INSURANCE

•     For clients who are members of a medical scheme the actual cost of medical treatment can
      substantially exceed the benefits paid by the scheme. This is especially the case where major
      medical treatment or prolonged periods of hospitalisation are required.
•     The effects for those without any form of insurance against medical expenses can be financially
      devastating.

    PRODUCT RANGE

The One Medical Plan consists of the following basic products:
− Hospital Benefit
−     Major Medical Benefit
−     Major Medical and Hospital Benefit
The benefits provided by the three basic products can be illustrated as follows:



                                                      MAJOR MEDICAL
            HOSPITAL BENEFIT                             BENEFIT

     Basic Benefit       Additional Benefit              Surgery Benefit




              MAJOR MEDICAL AND HOSPITAL BENEFIT


     Basic Benefit            Additional Benefit              Surgery Benefit


OneMed can be illustrated as follows:



                                           ONEMED

                 THE ONE MEDICAL PLAN                                    Medical scheme
            (MAJOR MEDICAL AND HOSPITAL BENEFIT)                        portion of Sanmed



OneMed is described in full in Section BE.




GE 10/98                                           arg(bd1)
                                                                               TABLES AVAILABLE

     DESCRIPTION             300 Plus     400 Plus      500 Plus                                                     COVER LEVELS
 Hospital Benefit
                                                                      A Daily Hospital Benefit (DHB) of between R100 and R600 per day
 − Limited term                 371           471           571
 −    Whole-life                381           481           581
 Major Medical                                                        The client chooses one of the following:
 Benefit                                                              − Cover according to choice:
 − Limited term                 372           472           572
                                                                          A benefit amount (in R’000) of between R10 000 and R110 000
 −    Whole-life                382           482           582
                                                                      −   Comprehensive cover :                       R110 000
                                                                      −   Supplementary cover : High             :    R 40 000
                                                                      −   Supplementary cover : Standard :            R 25 000
 Major Medical and                                                    The client chooses one of the following:
 Hospital Benefit                                                     − Cover according to choice:
 − Limited term                 373           473           573
                                                                          Hospital Benefit (DHB) : Between R100 and R600 per day
 −    Whole-life                383           483           583
                                                                          Major Medical Benefit : Between R10 000 and R110 000
                                                                      −   Comprehensive cover:
                                                                          Hospital Benefit (DHB) : R600 per day
                                                                          Major Medical Benefit : R110 000
                                                                      −   Supplementary cover : High
                                                                          Hospital Benefit (DHB) : R200 per day
                                                                          Major Medical Benefit: : R 40 000
                                                                      −   Supplementary cover : Standard
                                                                          Hospital Benefit (DHB) : R100 per day
                                                                          Major Medical Benefit   : R 25 000

Please Note:       If Indexplan is chosen an “I” is added to the table code.




 GE 10/98                                                                             arg(bd2)
                                   GENERAL INFORMATION

    PROPOSAL FORM

Use form AEB41.

    AVAILABILITY

The One Medical Plan is not available for persons receiving free medical treatment, e.g. members of
the South African Defence Force .
Principal assured
A principal assured must be nominated when taking out the policy. The principal assured can add a
spouse and/or dependent children to the policy or remove them as and when required. See “Death of
principal assured” later in this section.

Spouse
A spouse is a person of the opposite sex to whom the principal assured is legally married on the date of
inclusion as an assured, or with whom the principal assured has an agreement recognised as a
marriage in accordance with some law or custom, provided that the principal assured has satisfied
Sanlam that he cohabits with the other person as if legally married.

Dependent children
A dependent child is any child (including an adopted child, step-child or illegitimate child) who is not
married and legally dependent on the principal assured.

AGE AT INCEPTION

                                                             Minimum anb             Maximum anb
Basic policy:
− Principal assured and spouse                                 15 years                 65 years
− Dependent children                                            30 days                 24 years
Waiver of premium benefits:
−    At death of principal assured (PM/GM)                     15 years                 65 years
−    At disability of principal assured (OP/OG)                15 years                 55 years




GE 10/98                                          arg(bd3)
TERM

Principal assured/spouse
•   Life-long (whole-life)
•   Specified term
    −      Minimum term : 10 years
    −  Maximum term : 75 minus the age next birthday at entry of the older of the principal assured
                      and the spouse.
Dependent children
Cover for a dependent child ceases at age 25 next birthday.

RATE DIFFERENTIATION
For the principal assured and spouse rates will be differentiated between smokers and non-smokers.
Other factors affecting the rates are:
    − Male or female
    −      Age at inception of policy
    − Benefit term
Only one rate per child applies, irrespective of age, sex or term of cover.

UNDERWRITING

MEDICAL
Basic policy
A completed proposal form will generally be all that is required. No testing in respect of Aids is required.
Sanlam, however, maintains the right to call for further information and, if necessary, a medical
examination or cotinine testing for smokers.

Waiver of premium benefits
A negative Aids test must initially be supplied if OP, OG, PM or GM is taken together with medical assu-
rance.

Single test rates apply in respect of OP and OG together with medical assurance.

OCCUPATIONAL UNDERWRITING
Basic policy
There is no underwriting for occupation and part-time activities for proposals for The One Medical Plan.

Waiver of premium benefits
If a waiver of premium benefit (OP, OG, PM, GM) is taken as a rider benefit in terms of a policy,
Sanlam’s normal underwriting requirements will apply to the specific benefit only.




GE 10/98                                          arg(bd4)
    COVER IN RESPECT OF AIDS

Basic policy
•     If an assured is identified to be HIV positive for the first time, within two years of the inception
      date, his cover in terms of the policy will expire.
•     If an assured is identified as HIV positive for the first time, more than two years after the inception
      date, benefits will be paid for one year after diagnosis. During this period medical benefits will be
      limited to 25% of the normal benefits, subject to a maximum of R10 000. The medical benefits of
      the assured will expire thereafter.
•   If the principal assured’s medical benefits lapse in terms of this provision, the assured’s spouse will
    automatically become the principal assured. If there is no spouse but there are dependent children,
    the policy provides medical benefits to the dependent children for a period of 3 months. No further
    premiums are payable for this period. After these 3 months the policy will lapse.
Rider benefits
Aids cover is included in the case of all rider benefits. Waiver of premium benefit will therefore be
admitted.

    PREMIUMS

Termination of cover (adjustment of premium)
•     When a principal assured or spouse’s cover under the policy is terminated for whatever reason,
      the premium will be reduced accordingly.
•     In the event of a dependent child’s cover ceasing as a result of death, the premium will also be
      reduced accordingly. If a child’s cover ceases for any other reason, the premium will not be
      reduced automatically, but the child’s premium will be invested in the savings element of the policy.
      The principal assured can, however, request that the premium be reduced rather than being utilised
      in the savings element of the policy.


    REVISIONS
In future there will undoubtedly be changes in the nature and the cost of medical treatment. To ensure
that the benefits and premiums remain up to date with these changes, Sanlam reserves the right to
revise premiums and benefits annually and to amend the policy contract provisions at any time.
Notice of such a revision will be posted to the policy-owner no less than 30 days before such a revision.




GE 10/98                                           arg(bd5)
                         DESCRIPTION OF BASIC PRODUCTS

HOSPITAL BENEFIT
The Hospital Benefit provides benefits for expenses incurred when hospitalised and/or undergoing
radiotherapy or chemotherapy treatment. The Hospital Benefit offers basic benefits for hospitalisation
as well as an additional benefit for prolonged periods of hospitalisation.

A daily hospital benefit amount (DHB) is selected at commencement of the policy.
   • Minimum DHB : R100 per day
    •   Maximum DHB : R600 per day (existing hospital benefits with Sanlam or any other company
        must be taken into account)
Benefits are payable as follows:
BASIC BENEFIT
•   For each day of hospitalisation (after waiting period):
    −      Ordinary care : 1 x DHB
    −      High care       : 1,5 x DHB
    −      Intensive care : 2    x DHB
•   Radiotherapy and chemotherapy treatment:
    −      Out-patient : 1 x DHB per treatment
    −      In-patient   : 1 x DHB per treatment (additional to the daily benefit for hospitalisation)
    Example:
           DHB = R100. The assured is hospitalised for 3 days (additional to the waiting period) during
           which he receives 2 chemotherapy treatments.
           The benefit amount = 3 x R100 + 2 x R100 = R500
Waiting periods
The following waiting period must elapse with respect to each separate period of hospitalisation before
the Hospital Benefit will the effect:
    •    Radiotherapy and chemotherapy treatment ……………………….……………………… : None
         (out or in-patient treatment)
    •   A car accident (occupant/pedestrian) ..……………………………..……………………… : None
        (Only if the assured is hospitalised within 24 hours after the accident – a police case
        number is required as proof of the accident)
    •   Intensive care unit for a full day at any stage ……………………...……………………… : None
    •   Ordinary care and high care ………………………………………………………………… : None
           (If the assured was in intensive care, this waiting period of 3 days is waived)

Notes: 1) The waiting period applies each separate time an assured is hospitalised, even within six
          months of discharge for the same condition.
           2) If a waiting period of three days is applicable, one day’s hospital benefit will be paid
              should the assured be hospitalised for 4 days.
Definition of a full day
−   Radiotherapy or chemotherapy:
    Each day, regardless of the duration, for which the assured is hospitalised to receive radiotherapy
    or chemotherapy.
−   Hospitalisation:
    Each day on which the assured is hospitalised at midnight of that day.




GE 10/98                                            arg(bd6)
ADDITIONAL BENEFIT
•   The additional benefit is a lump sum which is payable once only should the assured be hospitalised
    for 10 days or more.
•   The benefit amount is determined according to
    −      the total number of days hospitalised and
    −      the daily hospital benefit amount (DHB) chosen by the assured.
•   The benefit amount can be claimed
    −      at the assured’s discharge from hospital; or
    −   after the assured has been hospitalised for 30 full days. Even if the assured is hospitalised for
        a longer period, this is the maximum number of days for which he can claim.
The additional benefit is determined as follows:
 Total number of            Calculation of                             Total amount payable once only
days hospitalised            lump sum                         e.g. if DHB = R100          e.g. if DHB = R500
     10 – 14                  1 x DHB              =                  R100                        R 600
     15 – 19                  2 x DHB              =                  R200                        R1 200
     20 – 24                  3 x DHB              =                  R300                        R1 800
     25 – 29                  5 x DHB              =                  R500                        R3 000
   30 and more                8 x DHB              =                  R800                        R4 800


Conclusion: According to the number of days hospitalised and the daily hospital benefit amount
            (DHB) which was chosen, the additional benefit (lump sum) will always be within the
            following limits:
                    Minimum : R100
                    maximum: R4 800
EXAMPLE: TOTAL HOSPITAL BENEFIT PAYABLE
Assume:
•   DHB = R100
•   Assured has been hospitalised for 27 days as follows:
                 2 days in intensive care
                 5 days in high care
                20 days in ordinary care
Calculation:
    −      Day 1 and 2 (intensive care): 2(2 x R100)       = R 400
    −      Day 3 to 7 (high care): 5(1,5 x R100) (see note) = R 750
    −      Day 8 to 27 (ordinary care): 20 x R100          = R2 000
    −      Additional benefit (27 days): 5 x R100             = R 500
                                                                R3 650
Note: Since the assured was in intensive care, the waiting period of 3 days is waived.

MAXIMUM BENEFITS : Hospital Benefit
730 days per assured for each period of hospitalisation.
− Hospitalisation within 6 months after discharge for the same condition will, however, be regarded as
    a continuation of the previous claim.
−   The waiting period applies each time the assured is hospitalised, even within 6 months of discharge
    for the same condition.
−   If 6 months have elapsed since the previous discharge, hospitalisation for the same condition will
    qualify for a further 730 days.
The benefits in respect of an assured cease as soon as that assured has received in total 1 200 times
the DHB amount that applied to claims paid out previously.



GE 10/98                                           arg(bd7)
MAJOR MEDICAL BENEFIT

The Major Medical Benefit is payable when the assured has undergone a listed surgical procedure
which is covered under the Surgery Benefit.
The benefits payable are expressed as a percentage of the selected benefit amount.
LEVEL OF COVER
Minimum benefit amount : R 10 000
Maximum benefit amount : R110 000
•   Cover according to choice
    Any benefit amount (in R’000) of between R10 000 and R110 000.
•   Fixed cover levels
    The client can otherwise select one of the following fixed cover levels:
    −      Comprehensive cover (R110 000)
           This is intended for persons not having any form of medical insurance.
    −      Supplementary cover: High (R40 000)
           High supplementary cover is meant for persons with a medical aid scheme which normally pays
           70% to 80% of the scale of benefits.
    −      Supplementary cover: Standard (R25 000)
           Standard supplementary cover is meant for persons with a medical aid scheme which normally
           pays 100% of the scale of benefits.

SURGERY BENEFIT
The list of procedures covered under this benefit is set out in the Technical guide.
•   Benefits depend only on the procedure undergone and not on the number of days that the
    assured is hospitalised. The benefits are set such that when the maximum benefit amount is
    selected, the benefits aim to offset the full costs associated with the surgery undergone, i.e.
    hospitalisation, surgeon, anaesthetist and medicine.
•   If two or more of the operations or procedures are undergone simultaneously, the operation or
    procedure which has the greatest benefit percentage is payable in full, and half of the benefit is
    payable for the operation or procedure with the next greatest benefit percentage. No benefit is
    payable for the third and subsequent procedures which are performed simultaneously. However, if
    Sanlam at it’s sole discretion is of the opinion that the procedures are unrelated, the separate
    percentages of the benefit amount are payable as indicated in the contract.
•   Benefits are payable upon every repetition of an operation or a procedure. However if an
    operation has to be repeated during the same period of hospitalisation, the full benefit is paid for the
    first opreration or procedure, and half of the benefit for the second and subsequent operations or
    procedures.
•   Benefits will be payable only for operations and procedures performed by a medical practitioner in
    a hospital which is sufficiently equipped for this purpose.




GE 10/98                                          arg(bd8)
CONGENITAL CONDITIONS AT BIRTH
A unique feature of the surgery benefit is that dependent children are automatically covered at birth for
certain surgically or medically correctible conditions, e.g. a cleft lip or congenital dislocation of the hip. This
benefit for congenital conditions is included in all policies at no extra premium.
Any dependent child therefore automatically qualifies for the benefit for congenital conditions at birth (even if
the child has not yet been included in terms of the policy) if the following six requirements are met:
−   the child is born at least one year after the inception date of the principal assured or spouse;
−   only dependent children born to the principal assured or spouse, qualifies for this benefit;
−   the condition is diagnosed within 90 days of the birth;
−   the principal assured notified Sanlam of the condition within 30 days after the diagnosis was made;
−   the operation or procedure for which a claim is submitted, is performed within 5 years of the birth of the
    child and
−   the policy is still in force on the date the operation or procedure is performed.
Note:      If the condition results in a series of operations or procedures, the full benefit is payable
           only when the first operation or procedure is performed.

EX GRATIA PAYMENTS
If the assured undergoes an operation or a major procedure of medical necessity that is not listed,
Sanlam may consider an ex gratia payment (grant or refuse such a claim at its discretion).
The following guidelines will apply:
    •   The client must undergo an operation or major medical procedure which requires hospitalisation.
    •   The cost must exceed R7 000 − or an amount in line with the medical inflation rate adjusted by
        Sanlam from time to time.
    •   The costs of hospitalisation, specialists and anaesthetists have been included in this amount.
    •   Sanlam will consider only the portion of the cost in accordance with the scale of benefits.
    •   The costs of diagnostic procedures are excluded.
    •   The treatment must, at the sole discretion of Sanlam’s chief medical officer, have been medically
        necessary.

MAXIMUM BENEFITS : Major Medical Benefits
Twice the selected benefit amount per assured per policy year.
The benefit for kidney failure requiring long-term dialysis treatment can be claimed once only per assured.
The Major Medical Benefit in respect of an assured will cease when the sum of the percentages of the
benefit amount paid out in respect of that assured, exceeds 1 000%.




GE 10/98                                               arg(bd9)
    MAJOR MEDICAL AND HOSPITAL BENEFIT

This product consists of the Hospital Benefit (basic benefit and additional benefit) and the Major Medical
Benefit (Surgery Benefit). The product is intended for clients who require benefits to offset the costs of
major surgical procedures and hospitalisation.

LEVEL OF COVER
The client chooses one of the following (as for the Major Medical Benefit):
•   Own level of cover or
•   one of the standard levels of cover, viz.:

        Fixed cover levels                  Major Medical Benefit             Hospital Benefit (DHB)

•   Comprehensive cover                           R110 000                         R600 per day

•   Supplementary cover :
                                                  R40 000                          R200 per day
    High

•   Supplementary cover :
                                                  R25 000                          R100 per day
    Standard


MAXIMUM BENEFITS : Major Medical and Hospital Benefit
−   Hospital Benefit
    Benefits are payable for a maximum period of 730 days per life assured for each period of
    hospitalisation.
    Hospitalisation for the same condition within 6 months after discharge will, however, be regarded as a
    continuation of the previous claim. If 6 months have elapsed since the previous discharge,
    hospitalisation for the same condition will qualify for a further 730 days.
−   Surgery Benefit
    Twice the selected benefit amount per assured per policy year. The benefit for kidney failure requiring
    long-term dialysis treatment can be claimed once only per assured.
Note:      The Hospital benefit and Surgery Benefit in respect of an assured will cease when the
           sum of the percentages of the benefit amount paid out in respect of that assured, exceeds
           1 000%.




GE 10/98                                            arg(bd10)
                                                                    RIDER BENEFITS AVAILABLE


                                                                       THE ONE MEDICAL PLAN
                                                                                                       MAJOR MEDICAL         MAJOR MEDICAL AND HOSPITAL
                                                         HOSPITAL BENEFIT
                                                                                                          BENEFIT                     BENEFIT
                RIDER BENEFIT
                                                                          Without                                 Without                      Without
                                                  With Indexplan         Indexplan           With Indexplan      Indexplan   With Indexplan   Indexplan

 SPORTS INJURY BENEFIT                                                                             ü                   ü           ü             ü
  EMERGENCY TRANSPORTATION BENEFIT                      ü                                          ü                               ü
 OP: Waiver of Premiums at disability
                                                        ü                   ü                      ü                   ü           ü             ü
     (constant after a claim arises)
 OG: Waiver of Premiums at disability
                                                        ü                                          ü                               ü
     (grows after a claim arises)
 PM: Waiver of Premiums at death
                                                        ü                   ü                      ü                   ü           ü             ü
     (constant after a claim arises)*
 GM: Waiver of Premiums at death
                                                        ü                                          ü                               ü
     (grows after a claim arises)*

*Available only if a spouse is assured under the policy.
Note: In the case of all medical plans, Indexplan is linked to the medical inflation rate.




GE 10/98                                                                        arg(bd11)
                                         DESCRIPTION OF RIDER BENEFITS


    SPORTS INJURY BENEFIT

This benefit is available as a rider to both the following basic products:
     −   the Major Medical Benefit and
     −   the Major Medical and Hospital Benefit
The Sports Injury Benefit has been specifically designed to dovetail with those of the above products so as
to provide benefits to offset the costs of major sports injuries. The benefits also include benefits payable
in the event of death and paraplegia incurred while participating in a sporting activity.

What is covered?
The Sports Injury Benefit comprises a list of conditions/procedures/operations mostly not covered by the
Major Medical Benefit and which generally occur with sports injuries.
The list of benefits covered is set out in the Technical guide of The One Medical Plan.

Benefit amount
Benefits are expressed as a percentage of the selected benefit amount for the carrier policy (i.e. Major
Medical Benefit or Major Medical and Hospital Benefit).
However, if a procedure or an operation is covered under both the Major Medical Benefit and the Sports
Injury Benefit, only the operation or procedure with the highest benefit percentage will be payable.

Maximum benefits
Twice the selected benefit amount per assured per policy year.
The benefits in respect of an assured will cease when the sum of the percentages of the benefit amount
paid out in respect of that assured, exceeds 1 000%.

Death benefit
The benefit includes death benefits if death resulted from a sporting activity.
The total death benefit payable by any assurer at the death of a child under the age of fourteen, is limited
according to law. This limitation will also be applied if an assured child dies during participation in, or
practice with the intention of participating in sport.

Exclusions
No benefit will be payable in respect of treatment or hospitalisation as a consequence of:
•    Any exclusion which has been placed on the basic product (i.e. Major Medical Benefit or Major Medical
     and Hospital Benefit.)
•    An injury or medical emergency which is directly or indirectly caused by participation in:
     −   aviation activities
     −   any activity involving jumping or falling from heights, with or without any apparatus.
•    An injury or medical emergency arising directly or indirectly from the use of anabolic steroids during the
     three months prior to the injury/medical emergency.




GE 10/98                                              arg(bd12)
    EMERGENCY TRANSPORTATION BENEFIT

A client may have sufficient medical assurance, but the costs of an emergency rescue by air, could still be
financially devastating.
The Emergency Transportation Benefit gives cover should it be an absolute necessity that the assured be
transported to a hospital by means of emergency transport as a result of
    −   a serious accident or injury, or
    −   an acute life-threatening medical condition.

Provisions
−   The actual costs of any emergency transportation (by ambulance, medically equipped emergency
    transport vehicle, aircraft or helicopter) will be payable to the assured. The assured himself is liable for
    the payment of the bill of the organisation providing the emergency transport.
−   There is no choice as regards the benefit amount as the actual cost of an emergency transportation will
    be paid.
−   The emergency transport must be recommended by a medical practitioner and must be to the nearest
    hospital with the necessary equipment to treat the assured.

Availability
•   Policy
    The Emergency Transportation Benefit is available as a rider benefit to any policy in The One Medical
    product range but only if the carrier product includes Indexplan. The reason for this is that Sanlam
    reimburses the actual cost of an emergency transportation, which will increase each year as a result of
    inflation. Premiums will therefore also need to keep pace with inflation.
    If the assured allows Indexplan to lapse after the policy is effected, the Emergency Transportation
    Benefit claim will be paid only proportionally.
•   Area
    The services and cover provided under this benefit are restricted to the following areas:
    −   The Republic of South Africa,
    −   Botswana,
    −   Lesotho,
    −   Namibia,
    −   Swaziland and
    −   Zimbabwe.

Maximum benefits
•   R100 000 per emergency rescue.
•   An absolute maximum of R1 000 000 applies per assured per policy.

Benefit term
−   Emergency transportation as a result of injury:
    The same term as the policy
−   Emergency transportation as a result of illness:
    The same term as the policy, but in the case of a whole-life policy the benefit ceases at the age of 75.




GE 10/98                                               arg(bd13)
Exclusions
−    Any exclusion which is placed on the basic product (i.e. Hospital Benefit, Major Medical Benefit or Major
     Medical and Hospital Benefit) applies to the Emergency Transportation Benefit.
−    From age 75 next birthday the emergency transportation facility as a result of sickness expires – i.e.
     only transportation as a result of a serious injury is covered.


PM/GM:         WAIVER OF PREMIUMS AT DEATH OF PRINCIPAL ASSURED

This benefit offers continued cover for the principal assured’s family in the event of his death (without
paying further premiums). These benefits are available only if a spouse is assured under the policy (if there
is no spouse, the policy will cease to exist at the death of the principal assured in which case there is no
further premiums payable).
The premium for this benefit is a percentage of the part of the premium for the spouse and dependent
children.
The following waiver of premium benefits are available:
    PM     :   Available with policies with or without Indexplan. Premiums remain constant after death.
    GM     :   Available only with policies with Indexplan. Premiums grow after death.
Refer to Section CG for more particulars regarding PM and GM.

OP/OG:          WAIVER OF PREMIUMS AT DISABLEMENT OF PRINCIPAL ASSURED

This benefit offers continued cover for the principal assured as well as his family in the event of his
disablement (without having to pay further premiums).
The following benefits are available for the principal assured:
    OP     :   Available with policies with or without Indexplan. Premiums and benefits remain constant
               after disablement.
    OG     :   Available only with policies with Indexplan. Premium grow after disablement.

OP/OG Benefit term
The same premium term as the policy, but the benefit ceases on the policy anniversary that precedes age
60. Thereafter the premium in respect of these benefits are applied for saving.
Underwriting
Comprehensive occupational underwriting with regard to the principal assured is required to determine the
rate group.
Refer to Section CH for more particulars regarding OP and OG.

    INDEXPLAN
To ensure that a client’s benefits keep pace with inflation, it is recommended to include Indexplan in a
policy.
With Indexplan both the benefits and the premium increase each year in the month of increase in line with
the medical inflation rate as determined by Sanlam.
Month of increase
The month of increase is chosen by the client and can differ from the inception month. The first premium
increase may take place 6 months after the inception date of the policy.




GE 10/98                                             arg(bd14)
Premium increase (at medical inflation rate)
Minimum        :   5% (with no minimum amount)
Maximum        :   None

Skipping of premium increases
If more than two premium incrases are skipped, Indexplan will be cancelled.


PROOF-FREE OPTIONS

OPTION AT TERMINATION OF DEPENDENT CHILD’S COVER
At termination of the cover of a dependent child at the age of 25 next birthday, he/she will have the option to
effect a new medical insurance policy without proof of good health.
The following conditions will apply:
−   The benefits and benefit amounts must be the same as those provided in terms of the old policy.
−   The option must be exercised within 3 months preceding the expiry of the dependent child’s cover.

CONVERSION OPTION
Any of the assureds, in terms of the policy (except the principal assured) may cancel their benefits and take
out a new medical insurance policy with the same benefits and benefit amounts without proof of good
health.

PROVISIONS (when options are exercised in the case of The One Medical Plan).
Inception date of new policy
The inception date is the date on which cover in terms of the existing policy is cancelled.
Underwriting
•   Proposal form AEB41 must be completed.
•   Proof of good health and a financial report are not required. All the other normal requirements as
    stipulated by Sanlam for new business (and which apply when the option is exercised) are applicable.
•   Each new policy has the same medical loadings or exclusions which apply in respect of the existing
    policy (if any).
Indexplan
In the case of the new policy Indexplan is available without any additional underwriting.
Rider benefits/increased cover
If any rider benefits or increased cover are/is required in the case of the new policy, assurability is required
in respect of the rider benefits and the increased cover.
Term extended
If only the term is extended, full underwriting will not be required.
Waiting periods
If the cover is increased (other than Indexplan), the waiting periods as for a new policy will apply only to the
increased cover.




GE 10/98                                               arg(bd15)
    DEATH OF THE PRINCIPAL ASSURED

•    On death of the principal assured, the assured spouse automatically becomes the principal assured
     and the policy continues, with the premium being reduced accordingly.
•    If the principal assured and spouse both die, the policy offers cover to the assured’s dependent children
     (if any), without any premiums being payable, for a period of 3 months after the last death, after which
     the policy and any benefit payments will terminate. This also applies where only a principal assured
     and dependent children are covered under the policy and the principal assured dies.

    DEATH BENEFITS
On death of the principal assured a part of the investment account is paid out as a death benefit. The
premium will be reduced accordingly and the spouse and children (if any) can continue with the policy. No
benefits are paid on the death of a spouse or any children.

    CASH VALUES
The One Medical Plan is based on the universal life product design. Part of the policy-owner’s premium is
therefore invested in one of Sanlam’s investment portfolios − as chosen by the assured. The product
therefore offers cash and endowment values.
•    The cash value of the policy will be paid out when the policy term expires or on early termination of the
     policy. The balance of the investment account may be left with Sanlam to experience further capital
     gain, with or without having to pay further premiums.
•    The policy cannot be made fully paid-up, except in the case of benefit funds where the cash value may
     not be paid out.
•    The policy cannot be pledged or ceded.
•    The cash value can be less than the balance of the investment account.

    TAX STATUS

INDIVIDUALLY-OWNED POLICIES
The medical, death and maturity benefits are available tax-free. On early termination (surrender) of a
policy, the normal rules in terms of Section 59D will apply.

POLICIES OWNED BY THE BENEFIT FUND
Full details of the tax implications of policies owned by The One Medical Benefit Fund are set out in Section
BF.




GE 10/98                                             arg(bd16)
    SUMMARY OF EXCLUSIONS
No benefit will be payable if treatment, injury, illness, operation, hospitalisation or emergency
transportation arises directly or indirectly from any of the following:
−    Pregnancy or confinement of, or complications arising from the pregnancy or confinement of an
     assured during the first year after the inception date of the assured (see notes).
−    A hysterectomy during the first two years after the inception date of the assured, unless performed as
     a result of obstetric complications or histologically proven malignant conditions (cancer in situ is
     exluded).
−    Wilful exposure to danger, self-inflicted or wilful injury, attempted suicide, abuse of or dependency on
     alcohol, drugs or medicaments not prescribed by a medical practitioner.
−    Military or hostile action, war, terrorist activity, riot, civil commotion or insurrection.
−    Participation, attempted participation or practice with the intention of participating in professional fighting
     sports, or racing with the use of engines of any kind.
−    Any examination, tests or treatment for sexually transmitted diseases (see provisions regarding cover
     for Aids).
−    Plastic surgery for cosmetic purposes or operations for obesity, whether carried out for psychological
     reasons or not. (Reconstructive plastic surgery to repair functional impairment is not excluded.)
−    An ailment caused by any psychological disturbance.
−    An injury or illness as a result of nuclear or chemical contamination.
−    Infertility, impotence, sterilisation or artificial insemination.
−    Orthodontic procedures, unless performed as a result of an injury which the assured sustained after his
     inception date.
−    Diagnostic procedures.
Notes in respect of pregnancies and confinements:
1)    The exclusion also applies during the first year from the following dates:
      − the date of reinstatement if the policy had lapsed; and
      − the date on which the policy-owner increased his medical benefits (this exclusion applies
         only in respect of the amount by which the medical benefits were increased).
2)    A confinement is not a listed procedure. After expiry of the first year, a daily hospital benefit
      (DHV) is payable if the assured is hospitalised for more than three days.




GE 10/98                                                  arg(bd17)
    SUBMITTING CLAIMS
The policy-owner, or the person accepted by Sanlam as his assignee, is responsible for submitting claims.
All payments will be made to the policy-owner or the person accepted by Sanlam as his assignee. If the
policy-owner is not the same person as the principal assured, the policy-owner can request Sanlam to pay
the benefits direct to the principal assured or the person accepted by Sanlam as his assignee.

CLAIMS FORM : AE2310
A One Medical Plan claim form must be completed and sent to department Medical Plan Claims (Client
Services Office) along with supporting documents (hospital and surgeon’s accounts).               When
simultaneously submitting a claim for more than one assured, a separate claim form for each assured has
to be submitted.
Sanlam must be notified in writing of the relevant procedure or hospitalisation within 3 months of
discharge from hospital. In the case of prolonged hospitalisation, a claim can be submitted after the first 30
days and monthly thereafter until discharge.

OVERSEAS CLAIMS
Medical costs
If on any overseas trip an assured incurs medical costs (excluding Emergency Transportation) which can
be claimed in terms of the policy, the assured himself/herself must settle the account. If the claim is
admitted, the benefits will be paid to the assured in the RSA only.
Emergency transport
Overseas claims in respect of Emergency Transportation are limited to Botswana, Lesotho, Namibia,
Swaziland and Zimbabwe.

    ENQUIRIES : The One Medical Plan

•    Addition of spouse/children:
     − Rates:
       Request a computer quotation.
     −   After submission of particulars of new assured(s):
         IA : New Business : Notations
         (Head Office : Extension 8097).

•    Removal of spouse/children:
       IA : New Business : Notations
       (Head Office : Extension 8097)

•    Claims:
     − Claims procedure:
        Branch office/Regional Office.
     −   After submission of claims:
         Client Services Office : Medical Plan Claims
•    Cash values:
       Local regional office
•    Death Claims (i.r.o. principal assured):
        Client Services Office : Policy Death Claims




GE 10/98                                            arg(bd18)
           NO LONGER AVAILABLE FOR NEW BUSINESS FROM 1/8/98



                                SECTION BE



                                 ONEMED



                                                              Page
SPECIAL FEATURES OF ONEMED …………………………………………………...             BE1
SUMMARY OF BENEFITS ……………………………………………………………….                 BE1
COMPOSITION …………………………………………………………………………….                    BE1
  –  ONEMED’S MEDICAL INSURANCE PORTION ……………………………...        BE1
  –  ONEMED’S MEDICAL AID FUND PORTION …………………………………          BE2
GENERAL PARTICULARS ………………………………………………………………                  BE2
  –  COUNTRIES WHERE MARKETING MAY TAKE PLACE …………………..       BE2
  –  TABLES AVAILABLE ……………………………………………………………                 BE2
  –  AGE AT ENTRY ………………………………………………………………….                  BE2
  –  BENEFIT TERM ………………………………………………………………….                  BE2
  –  MODE OF PAYMENT ……………………………………………………………                  BE2
  –  INDEXPLAN ………………………………………………………………………                    BE3
  –  RIDER BENEFITS ……………………………………………………………….                 BE3
  –  UNDERWRITING ………………………………………………………………..                  BE3
  –  INCEPTION DATE (DATE OF ENTRY) ……………………………………….          BE4
  –  COMMENCEMENT OF COVER ……………………………………………….                BE4
  –  ADDITION OR REMOVAL OF MEMBERS ……………………………………            BE4
  –  CASH VALUES …………………………………………………………………..                  BE4
  –  DEATH BENEFIT ………………………………………………………………...                BE4
  –  WAITING PERIOD FOR BENEFITS …………………………………………...          BE4

QUALITY REFERENCE NUMBER ……………………………………………………...              BE5

EXCLUSIONS ……………………………………………………………………………...                   BE6

PAYMENTS ………………………………………………………………………………..                     BE7
  –  HOSPITAL-RELATED EXPENSES ……………………………………………              BE7
  –  NON-HOSPITAL-RELATED EXPENSES …………………………………….            BE7
  –  THRESHOLD VALUES PER CALENDAR YEAR ……………………………           BE7
CHANGE OF OPTION (SCHEME) ………………………………………………………               BE7

PAYMENT OF BENEFIT AMOUNT ……………………………………………………..              BE8
  –  FOREIGN CLAIMS ………………………………………………………………                  BE8
MEDICARD …………………………………………………………………………………                      BE8

ENQUIRIES ………………………………………………………………………………...                   BE9




GE 10/98                          arg(be)
                                                   ONEMED


OneMed is a medical plan designed by Sanlam in co-operation with Sanmed (now Sanlam Health Risk
Management Ltd), and comprises:
−    The One Medical Plan with set benefits; and
−    a medical aid fund portion offered by Sanlam Health Risk Management Ltd.

    SPECIAL FEATURES OF ONEMED

−    The benefits provided by The One Medical Plan are excluded in the rules of the medical aid fund.
−    There is no overlapping of benefits, with the result that the premium is cheaper than for a separate
     policy and a medical aid fund.
−    OneMed offers medical cover against major and minor medical expenses for the entire family for life.
−    All claims are handled by the scheme, irrespective of whether the benefits are covered by the policy
     portion or the medical aid portion of the package. The scheme is ideally placed to process claims
     quickly and efficiently.
−    Cash values are available.

Important: No one may belong to more than one medical aid scheme.

    SUMMARY OF BENEFITS
OneMed offers lifelong cover, against inter alia the following:
•    Hospitalisation from day one.
•    Cover at the Sanlam Health tariff during pregnancy - after a waiting period of 6 months.
•    New-born babies are fully covered from birth (day one). No selection necessary for a member’s
     children born after the member has joined (see “Underwriting” later in this chapter).
•    Major medical expenses.
•    Prescribed medicine.
•    Visits to a doctor.
•    Ophthalmological and dental services.
•    Emergency transportation (actual cost).

    COMPOSITION
ONEMED’S MEDICAL INSURANCE PORTION
The One Medical Plan comprises the following set benefits:
     •   Major Medical Benefit                            : R110 000
     •   A Daily Hospital Benefit (DHV)                   : R200 per day
     •   An Emergency Transportation Benefit (actual cost)
            Maximum benefit per emergency rescue          : R100 000 per person
            Absolute maximum per policy                   : R1 000 000 per person
     •   Indexplan
The contractual provisions are exactly the same as those of a free-standing policy, except for the mode of
payment of the benefits. (See “Payment of Benefit amount” in this section.)




GE 10/98                                           arg(be1)
ONEMED’S MEDICAL AID FUND PORTION
The OneMed scheme from Sanlam Health Risk Management Ltd has been designed to supplement The
One Medical Plan as follows:
−    Benefits paid by The One Medical Plan are excluded by the medical aid fund.
−    All surgical procedures (except for contractual exclusions) not covered by The One Medical Plan are
     paid by the medical aid fund.
Two options are available
     •   0%/100% scheme
     •   50%/100% scheme


    GENERAL PARTICULARS

COUNTRIES WHERE MARKETING MAY TAKE PLACE
•    OneMed may be marketed to permanent residents of the RSA.
•    See policy i.r.o. non-RSA citizens in Section AA under the heading “Policies for non-RSA citizens”.

TABLES AVAILABLE
With The One Medical Plan, only the whole-life version with Indexplan is available:
Tables 383I, 483I and 583I

AGE AT ENTRY
                                      Minimum        Maximum
Principal assured and spouse            15 anb         65 anb
Dependent children                      day one        24 anb

BENEFIT TERM
Principal assured and spouse       : for life
Dependent children                 : up to 25 anb

MODE OF PAYMENT
•    Monthly by debit order is the only mode of payment permitted. However, in the case of benefit funds
     there will be a choice between debit order and premium schedule.
•    The first premium of OneMed cannot be paid in cash/by cheque. This means that the first debit order
     request will collect two premiums in most cases.
Please Note: Double debit order deductions can be prevented by making the inception date far
             enough in the future.




GE 10/98                                            arg(be2)
INDEXPLAN
Indexplan forms part of OneMed automatically. The policy benefits and the premiums will be increased
annually by the medical inflation rate. This rate is determined by Sanlam in consultation with Sanlam
Health Risk Management Ltd and relates to the percentage increase in the cost of medical services over a
period of 12 months.
The following provisions apply:
−   All increases will take place annually on 1 April, irrespective of the inception date. For example, the
    first increase for a package with an inception date of 1 March, will be one month later. However, in the
    case of Sanlam Health Risk Management Ltd, medical fund premiums can be changed with one
    months’ notice to members.
−   No increase may be skipped.
−   Indexplan cannot be cancelled.
−   Increases in benefit amounts are applicable to existing as well as new OneMed policies.
Note:      OneMed will lapse if Indexplan is skipped or cancelled. The policy-owner then has the
           option of continuing The One Medical Plan, where two increases may be skipped or
           Indexplan cancelled altogether.

RIDER BENEFITS
•   The Emergency Transportation Benefit forms part of the package automatically.
•   No other rider benefits may be added - that is, Waiver of Premium Benefits (OP, OG, GM and PM) and
    the Sports Injury Benefit are not available.

UNDERWRITING
All underwriting of new proposals (i.e. for the medical fund part as well as The One Medical Plan) is done
by Sanlam’s underwriters.
•   Section 20(1)f of the Medical Schemes Act
    According to Section 20(1)f medical aid schemes have to accept certain new members, who have
    already been members of another medical aid scheme for two consecutive years, without additional
    exclusions. However, the proposal may be rejected should the risk be too high.
    Section 20(1)f applies only to
    −   persons whose change in medical aid fund membership was necessitated by a change in work. In
        other words, the new employer (who has an agreement with Sanlam Health Risk Management Ltd)
        compels the employee to belong to the company’s medical aid fund;
    −   persons who were dependants on a medical aid scheme but now have to take out their own
        membership;
    and who in both cases apply for OneMed within 3 months.
•   Exclusions
    New members who cancel their medical aid membership to join OneMed (and who do not comply with
    the two requirements of Section 20(1)f mentioned previously, will be accepted in accordance with the
    normal underwriting requirements. They can therefore be accepted with exclusions (if necessary).
•   Rejection
    −   The medical plan/fund could reject the proposal. In such a case the proposal will be rejected as a
        whole.
    −   If one member of a family is rejected, the proposal is rejected as a whole. If the client is interested
        in a scheme which does not include the rejected member, a new proposal form is required by
        Sanlam.




GE 10/98                                           arg(be3)
INCEPTION DATE
The inception date is always the first day of the month following the day of issuing of the policy, except if the
client specifies a later date. (The day of issuing is the day when the underwriting has been completed and
there are no outstanding requirements.)

COMMENCEMENT OF COVER
In the case of OneMed the assured will enjoy cover from the inception date of the policy except in the case
of contractual exclusions, (e.g. pregnancies for 6 months and a breast reduction operation for 2 years).

ADDITION OR REMOVAL OF MEMBERS
•   Newborn babies
    −   Newborn own or adopted babies who are added within the first month after birth, will be accepted
        proof-free.
    −   Within 30 days of a baby’s birth, a copy of the birth certificate must be mailed or faxed to: Sanlam
        Health Risk Management Ltd: OneMed. Fax no. (021) 947-8910/947-5857/947-6642.
•   Other members
    −   If dependants are added to an existing scheme or existing members have to be removed, Sanlam
        Health Management Ltd : OneMed has to be informed. The scheme will arrange that this must be
        done on both The One Medical Plan and the medical aid fund.
    −   Proposal form AEB5 must be completed in respect of a spouse and/or children older than 30 days
        who are added to the policy.
    −   Full underwriting will be done if Section 20(1)f is not applicable to a new member.
    −   The scheme must be informed in writing or by fax should a member be removed.
•   Premiums
    The premium will be recalculated at every change in the number of dependants and/or age of the
    principle member. However, in the case of Sanlam Health Risk Management Ltd, medical fund
    premiums can be changed with one month’s notice to members.

CASH VALUES
The One Medical Plan has a cash value. The policy-owner has the choice of adding additional saving to
the policy by means of a higher premium.

DEATH BENEFIT
At the death of the principal assured, part of the investment account of The One Medical Plan will be paid
out as a death benefit. The spouse and children (if any) can continue the policy at a reduced premium.
No death benefit is payable at the death of the spouse or children.

WAITING PERIODS FOR BENEFITS
There is no waiting period after the inception date for the benefits of OneMed, except for:
•   pregnancy which is excluded for the first six months after the inception date of the assured.
•   a breast reduction operation which is excluded for two years after the inception date of the assured.
After expiry of the waiting periods, OneMed offers full cover at at least the Sanlam Health tariff.




GE 10/98                                            arg(be4)
 QUALITY REFERENCE NUMBER

Sanlam now offers a comprehensive managed health care service to medical schemes and employer
groups. Members of Sanlam Health Risk Management Ltd will have access to this medical quality
reference centre from which a quality reference number must be obtained.
THE PURPOSE OF QUALITY CONFIRMATION
Prior approval is obtained to ensure that
    • Members of Sanlam Health Risk Management Ltd always receive quality care and treatment
        which comply with guidelines on quality;
   •    the length of hospitalisation is appropriate; and
   •    high increases in medical costs are curtailed.

When is a quality reference number required?
Prior approval is required for all admissions to hospital, surgical procedures which cannot be performed
in a doctor’s surgery, and expensive diagnostic procedures such as computer tomography, MR scans
and radio-isotope studies.

PROCEDURE TO BE FOLLOWED
   •    Prior to admission to a hospital, the member, medical practitioner or the hospital must contact
        the quality reference centre at the toll-free number 0800-227-878 to obtain a quality reference
        number from Sanlam Health. Information can also be faxed to: (021) 947-8927.
   •    A qualified medical panel will evaluate the necessity and appropriateness of the proposed
        hospitalisation, operation or procedure according to medically based criteria.
   •    If the requirements are met, a quality reference number will be allocated and an initial period of
        hospitalisation will be approved. (The period can be extended, if required, for medical reasons.)
   •    If the operation or treatment proposed by the member’s doctor does not meet the requirements,
        the matter will be referred to one of the two full-time health care specialists. If there is no
        agreement, the matter will be referred to a panel of specialists and an answer will be obtained
        within 48 hours.
   •    Prior approval is not required in emergencies, but a quality reference number must be obtained
        by the client or the hospital by contacting the toll-free number not later than the first following
        working day.
   •    Provided a procedure falls within the normal benefits of the scheme and is not subject to an
        exclusion, Sanlam Health Risk Management Ltd will pay for it.
   •    Unless a quality reference number has been obtained, Sanlam Health Risk Management Ltd will
        not pay for the hospitalisation, operation or procedure.
   •    If approval is obtained only after the procedure and it was not an emergency, members will have
        to pay an excess of R750 to the hospital direct.
   •    Should the member or his doctor refuse to obtain quality confirmation the member will not have
        any cover and will be responsible for settling the account in full.

Exceeding benefits
Subject to certain provisions, the following principles will apply in cases where quality confirmation is
required:
   • If quality confirmation is obtained and the treatment does not exceed the authorisation, such
        treatment will qualify for benefits.
   •    If quality confirmation is obtained and the authorisation is exceeded, only the benefits in respect
        of the authorised treatment will be paid. The cost involved in the excess will be payable by the
        member himself/herself, on condition that retrospective application may be made for a quality
        reference number for the excess treatment.
Please Note: If the number of days allowed for hospital benefits are exceeded, the full account will
             be divided by the number of actual days hospitalised in order to determine a rate per
             day.




GE 10/98                                            arg(be5)
    EXCLUSIONS

Costs that arise directly or indirectly from – or which can be ascribed to – the following, do not
qualify for benefits:
•    Suicide, attempted suicide or intentional self-inflicted injury, whether the member or dependant is of
     sound mind or not.
•    Costs with regard to the following do not qualify for benefits:
     −     Bandages, cotton wool and similar material, except if provided to and used by the patient during
           his stay in a hospital or nursing home, and drugs, unless prescribed by a medical practitioner or
           dentist.
     −     Insurance examinations, fitness tests, examinations for and with regard to employment,
           examinations for the purpose of lawsuits, plastic surgery and beauty treatment of the member’s
           own choice or recommended for psychological reasons only, examinations and/or treatments in
           cases in which no real or suspected illness exists.
     −     Medical or surgical treatment for a complaint, illness or injury which at the member’s entry to
           the scheme was excluded by Sanlam Health Risk Management Ltd, provided that such
           exclusions are not contrary to the provisions of Section 20(1)f of the Medical Schemes Act.
     −     Examinations and/or treatment for sterility or impotence which have no connection with any
           actual or presumed illness or with an accident or other medical disability; or which is
           recommended for psychiatric reasons only; birth control (except for oral contraceptives),
           artificial insemination and marriage therapy.
     −     Any opthalmic or other examinations for the testing of eyes or vision by anyone other than an
           eye-specialist or registered ophthalmologist, and the cost of any instrument other than
           spectacles or contact lenses, or the repair or adjustment of spectacles.
     −     Transportation costs, except the transportation of the patient by the preferred provider’s
           ambulance service, or by the intervention of the preferred provider’s ambulance service to and
           from a hospital or nursing institution.
     −     Breathing exercises.
     −     Obesity or overweight.
     −     Applicators, toiletries, cosmetics.
     −     Holidays to recuperate.
     −     Hyperbaric oxygen treatment.
     −     Costs exceeding the annual maximum benefits.
     −     After-hours consultation of the member’s choice.
     −     Consultations by telephone.
     −     Accommodation in an old-age home or similar institution.
     −     Services rendered by social workers.
     −     Costs associated with medical reports.
•    The following dental services are excluded from benefits:
     −     resin bonding of metal fillings
     −     mouth guards for sport purposes
     −     metal inlays in dentures or front teeth
     −     bleaching of vital teeth and
     −     costs associated with professional reports.
     −     experimental treatment or treatment not usually done by dental profession.
•    No benefits are allowed in the event where treatment differs substantially from the general practise
     followed by suppliers of services, except where the supplier of services can furnish proof that the
     treatment in question renders a cost-effective result.




GE 10/98                                             arg(be6)
    PAYMENTS

HOSPITAL-RELATED EXPENSES
•    Private hospitals      : Preferred providers     - 100% of the agreed rate
                            : Non-Preferred providers - 85% of the Sanlam Health tariff
•    Provincial hospitals   :100% of costs.

No excess payment is applicable. OneMed pays the greater of
   − the Sanlam Health tariff, and
   − the cover amount of The One Medical Plan
At least 100% of the Sanlam Health tariff is paid for surgical procedures, operations and diagnostic
examinations, regardless of which scheme is chosen.
NB: No benefits are granted for hospital costs unless a quality reference number is obtained before
    admission, or in the case of an emergency on the first business day after admission.

NON-HOSPITAL-RELATED EXPENSES
The client can choose between the following two schemes :
•    0%/100% scheme
     The client pays all medical expenses until the total claims (at the Sanlam Health tariff) exceed the
     threshold value per calendar year. After that OneMed pays 100% of the expenses (at the Sanlam
     Health tariff) for the rest of the calendar year. However, some cases are subject to restrictions
     (submaximum).
•    50%/100% scheme
     The client pays all medical expenses and OneMed pays 50% of the cost (at the Sanlam Health
     tariff) back to the client.
     When a member’s total claims (at Sanlam Health tariff) exceed the threshold value per calendar
     year, OneMed pays 100% of the Sanlam Health tariff for the rest of the calendar year. However,
     some cases are subject to restrictions (submaximum).

THRESHOLD VALUES PER CALENDAR YEAR
The limit does not include hospital-related expenses.
   −      Single member : R4 200
     −     Families         : R6 200

Note: The client must submit all medical accounts within 3 months, even if 0% is paid, so that OneMed
      can determine when the limit has been reached.

CHANGE OF OPTION (SCHEME)

Availability
•    An application to change a scheme can only be considered if:
     − the principal member is not older than 50 years and
     −     if Sanlam Health Risk Management Ltd approves.
•    Where a member older than 50 years wants to change to a lower option, such change will be
     considered by the scheme.
•    In the event of the member or dependant resigning of his own free will, the member and/or
     dependant shall not be re-admitted to the scheme within the same calendar year.

Option dates
•    Members can change annually on 1 January from one benefit package to another, on condition
     that he/she remains a member of the chosen package for a period of at least one year.




GE 10/98                                          arg(be7)
PAYMENT OF BENEFIT AMOUNT
Benefit amount

•   The benefit amount is the larger of the benefits of the medical aid fund according to the Sanlam
    Health tariff and the benefit of the medical insurance (The One Medical Plan).
•   Refer to OneMed Members’ Guide for full particulars on benefits payable.

Claims are payable to:
    •   the supplier of services
        if the total costs are fully covered (i.e. 100%) at the Sanlam Health tariff;
    •   the policy-owner (or person nominated by the policy-owner)
           −   if the benefit amount is less than the total claim, or
           −   should there be a surplus after the supplier of services has been paid.
FOREIGN CLAIMS
The following principles apply in respect of claims for treatment obtained beyond the borders of the
Republic of South Africa.
−   Hospital costs
    Such claims will be referred by Sanlam Health Risk Management Ltd for a retrospective quality
    reference number.
    If a number is allocated, the benefits will be paid at 100% of the cost limited to R50 000 per family
    per calendar year. The R750 excess payment which applies to a retrospective quality reference
    number, will not be levied in such cases. If a number is not allocated, no benefits will be payable.
−   Other medical services
    Benefits payable at 80% of total cost, jointly subject to the maximum of R50 000 of hospitalisation.


MEDICARD
Sanlam, in co-operation with Standard Bank and MediCard, provides a facility to help the client to
budget and manage non-hospital related medical expenses effectively.
The Standard Bank MediCard is a medical credit card which has the following advantages:
•   It can be used as a debit card into which a monthly contribution can be paid to meet each client’s
    provisions for out-of-hospital claims.
•   A credit limit can be negotiated with Standard Bank to make provision for the threshold.
•   As long as there are sufficient funds or a credit limit on the card, a client can pay out-of-hospital
    expenses at cost.
•   The card offers guaranteed payments to service providers such as doctors, dentists and
    pharmacists.
•   Cash discounts can be negotiated with service providers.
•   Funds not used accumulate at interest on the MediCard.
•   These funds can only be accessed by the principal assured and his or her family.
•   There is no use-it-or-lose-it mentality as with traditional 100% medical schemes.




GE 10/98                                               arg(be8)
    ENQUIRIES      : OneMed

•    Underwriting and issuing of new proposals: (New Business: Underwriting)
•    Addition/removal of members/
     OneMed rules/Medical Claims/other enquiries: (OneMed Marketing Support)
     Telephone: (021) 947-5868
                       947-3234
                       947-4201
                       947-6458
                       947-6459
                       947-6454
     Fax no.:    (021) 947-6606
•    Cash values: Local Regional office
•    Death claims (i.r.o. principal assured): IA Policy Claims: Policy Death Claims (Head Office)
•    Quotations and Commission: Local Sanlam office
•    Sanlam Health: Toll-free number: 0800-227-878




GE 10/98                                          arg(be9)
                          FEBRUARY 2006



                           SECTION BE



                           THE 4IN1 PLAN


                                                           Page
THE 4IN1 PLAN …..……………………………………..…………………………….              BE1
THE 4IN1 PLAN : STABLE BONUS FUND, BALANCED FUND, SANLAM
 EQUITY FUND, OFFSHORE EQUITY FUND AND MULTI-MANAGER
 BALANCED FUND (HIGH EQUITY) ………………………………………………            BE2

RIDER BENEFITS ……………………………...……….……………………………..             BE4
–   POLICIES WITH COVER ……………………………………………...…………………….      BE4
–   POLICIES WITHOUT COVER ………………………………………………………………        BE4




GE 2/2005                       arg(BE)
                                          DIE 4IN1 PLAN


Met die 4in1 Plan kan die kliënt met een polis vir beide dekking en ‘n bedrag op die uitkeerdatum
voorsiening maak. Die produk kan nommerpas aan kliënte in die middelmark se behoeftes voldoen.


 Eienskappe          •   Dit is 'n universele uitkeerpolis waarvoor die kliënt ‘n termyn kies. (Sien
                         Seksie AB.)
                     •   Dit is 'n spaarpolis met 'n gekose uitkeertermyn.
                     •   Dit bied dekking (indien gekies) vir die duur van die termyn (Sanlam
                         Aandelefonds, Buitelandse Aandelefonds en Fonds van Fondse ingesluit).
                     •   ‘n Omvattende reeks byvoordele is beskikbaar,             wat   enkelbedrag-
                         ongeskiktheidsvoordele en traumadekking insluit.
                     •   Indien dekking gekies is, is die waarborgtermyn gewoonlik vir die duur van
                         die termyn, maar kan ook korter wees.
                     •   Aan die einde van die termyn is die uitkeervoordeel beskikbaar. Die
                         uitkeervoordeel is belastingvry in die hande van die polishouer, aangesien
                         Sanlam Lewens reeds gedurende die duur van die polis namens die
                         polishouer inkomstebelasting op die beleggingsopbrengs betaal.
                     •   Geen beleggingswaarborge word by polisse in die Gebalanseerde Fonds,
                         Sanlam Aandelefonds, Buitelandse Aandelefonds en Fonds van Fondse
                         gebied nie.
 Termyn              Kliënt kies volgens sy/haar beplanning (sien “Polistermyne” verder in seksie).
 Vigs                Volledige besonderhede oor vigs verskyn in Seksie DE.




GA 6/2005                                        arg(BE1)
                                   Die 4in1 Plan : Stabiele Bonusfonds, Gebalanseerde Fonds, Sanlam Aandelefonds,
                                   Buitelandse Aandelefonds en Multi-Bestuurder Gebalanseerde Fonds (Hoë Aandele)

                                                                                                         Hoër ouderdomme                      Langslewende
                                         Herhalende premie                  Enkelpremie                     (C-tabelle)                         (L-tabelle)
 Minimum premie en polisfooi       Minimum premies/polisfooi word jaarliks hersien en word slegs in Seksie G (Opsommings) aangedui.
 Intree-ouderdomme
 Polisse met dekking:              Minimum: 15 ovv                              15 ovv                           n.v.t.                            n.v.t.
                                   Maksimum: 75 ovv                             75 ovv                           n.v.t.                            n.v.t.

 Polisse sonder dekking:           Minimum:      1 ovv                           n.v.t.                     61 ovv (mans)                          1 ovv
                                                                                                            66 ovv (vroue)
                                   Maksimum: 60 ovv (mans)                       n.v.t.                     80 ovv (beide)                  80 ovv (herhalend)
                                             65 ovv (vroue)                      n.v.t.                                                    90 ovv (enkelpremie)
 Dekkingsvlakke beskikbaar         − Maksimum                        − Maksimum
                                   − Standaard                       − Standaard

                                   − Volgens keuse *                 − Volgens keuse *
                                   − Sonder dekking                  − Sonder dekking                       Sonder dekking                    Sonder dekking

 Wagperiode                            10 jaar = 18 mde. **                  Een maand                  10 jaar = 12 mde. **              10 jaar = 12 mde. **

                                   11 - 20 jaar = 24 mde. **                                        11 - 20 jaar = 24 mde. **         11 - 20 jaar = 24 mde. **
                                   21 jaar plus = 36 mde.                                           21 jaar plus = 36 mde.            21 jaar plus = 36 mde.
                                                                                                                                      Enkelpremie = 1 maand

* By dekking volgens keuse is die minimum bedrag R10 000.                                                                                                      (vervolg)
** Wagperiode kan wissel na gelang van grootte van die premie – sien Opsomming 7 (Seksie G)




GA 6/2005                                                                       BE2
                                    Die 4in1 Plan : Stabiele Bonusfonds, Gebalanseerde Fonds, Sanlam Aandelefonds,
                               Buitelandse Aandelefonds en Multi-Bestuurder Gebalanseerde Fonds (Hoë Aandele) (vervolg)


                                                                                                Hoër ouderdomme                    Langslewende
                                                            Herhalende premie                      (C-tabelle)                       (L-tabelle)
                  Sterftevoordeel                     Sterftevoordeel is grootste          Sterftevoordeel is grootste
                                                      van                                  van
                  Polisse met dekking                  − Saldo van die beleggings-         − Kontantwaarde                 Saldo van die beleggings-
                                                         rekening                          − Inbetaalde premies            rekening
                                                       − Dekkingsbedrag


                  Polisse sonder dekking *             − Saldo van die beleggings-         − Kontantwaarde                 Saldo van die beleggings-
                                                         rekening                          − Inbetaalde premies            rekening

                  Polis-/voordeeltermyn
                   Minimum                                         10 jaar                            10 jaar                          10 jaar
                   Maksimum                                        45 jaar                        24 jaar (mans)                       45 jaar
                                                                                                  19 jaar (vroue)
                    Sonder dekking (sien nota) *                   10 jaar
                  Maksimum uitkeerouderdom                         85 ovv                             85 ovv                   85 ovv (herhalend)
                                                                                                                               95 ovv (enkelpremie)
                  Uitkeervoordeel                     Saldo van beleggingsrekening         Saldo van beleggingsrekening    Saldo van beleggingsrekening
Notas: Spaarpolisse met termyne van langer as 15 jaar sal slegs uitgereik word indien daar aan al die volgende vereistes voldoen word:
          1) die polis moet op die lewe van die kind wees;
          2) die polistermyn moet strek totdat die kind 21 jaar oud word (indien die termyn langer is, moet die betrokke Besigheidsontwikkelingsbestuurder (in geval van
             adviseurs) of Verkoopsbestuurder/Verkoopsondersteuningsbestuurder/Provinsiale Bestuurder (in geval van makelaars)'n skriftelike motivering gee); en
          3) 'n P-voordeel moet as byvoordeel aan die polis gekoppel word.
          4) M-OP is ook beskikbaar.
        Die byvoeging van 'n byvoordeel soos bv. OLV, beïnvloed nie die feit dat dit 'n spaarpolis is nie. Indien OLV dus by 'n spaarpolis gevoeg word, geld die
        termynbeperking van 15 jaar steeds.
*    Die 4in1 Plan sonder dekking is slegs beskikbaar as P-voordeel en/of M-OP daarmee saam geneem word, asook vir Edufokus.




GA 6/2005                                                                            BE3
                                      BYVOORDELE



                                            Polisse met dekking
 Byvoordele     OEA           :   Enkelbedragongeskiktheidsvoordele
 beskikbaar
                OEP           :   Ongeskiktheidsvoordele in Vyf Paaiemente
                OG            :   Premiekwytskelding by ongeskiktheid van versekerde (groei
                                  na eiswording). Nie saam met OP, M-OP en P-voordeel. OG
                                  is slegs beskikbaar indien premie teen inflasiekoers groei.
                OP            :   Premiekwytskelding by ongeskiktheid van versekerde
                                  (konstant na eiswording). Nie saam met M-OP, OG en P.
                OLV           :   Ongeluksvoordeel

                TD *          :   ToekomsDekking (slegs beskikbaar vanaf ouderdom 15
                                  volgende verjaardag).
                TV            :   Traumavoordeel
                DHO           :   Dekkingherstellingsopsie by TV
                DHOE          :   Dekkingherstellingsopsie by OE

                M-OP *        :   Premiekwytskelding by ongeskiktheid van medeversekerde.
                                  (Slegs beskikbaar indien P-voordeel ook geneem word).
                P*            :   Premiekwytskelding by dood van medeversekerde.
                                  'n Addisionele polisfooi van R0,75 word gehef.
                * Nie beskikbaar by tariefgroep 1 nie.
 Indeksplan     Polisse met dekking : Premiegroei en dekkingsgroei is beskikbaar.
 Enkelpremies   Geen byvoordele beskikbaar nie.


                                          Polisse sonder dekking
 Byvoordele     Tabel 303, 403 en 503
 beskikbaar
                OP            :   Premiekwytskelding by ongeskiktheid van versekerde
                                  (konstant na eiswording). Nie saam met M-OP, OG en P.

                M-OP *        :   Premiekwytskelding by ongeskiktheid van medeversekerde
                                  (slegs beskikbaar indien P-voordeel ook geneem word).

                P*            :   Premiekwytskelding by dood van medeversekerde.
                                  'n Addisionele polisfooi van R0,75 word gehef.

                * Nie beskikbaar by tariefgroep 1 nie.
                Nota: Volledige besonderhede oor byvoordele verskyn in Seksie C.
 Indeksplan     Polisse sonder dekking : Slegs premiegroei is beskikbaar.




GA 10/2004                                    BE4
           NO LONGER AVAILABLE FOR NEW BUSINESS FROM 1/8/1998


                              SECTION BF


                     THE ONE MEDICAL BENEFIT FUND


                                                                Page
FUNCTION ………………………………………………………………………………….                       BF1

HOW THE BENEFIT FUND WORKS ……………………………………………………                 BF1
INDIVIDUAL PRODUCTS AVAILABLE ………………………………………………...             BF1

PROOF-FREE LIMITS …………………………………………………………………….                   BF1
POLICY-OWNER …………………………………………………………………………..                     BF3
LIFE/LIVES ASSURED …………………………………………………………………...                 BF3

CONTRIBUTIONS TO THE BENEFIT FUND …………………………………………..            BF3
UNIFORMITY WITHIN A SCHEME ……………………………………………………...              BF3
CASH VALUES …………………………………………………………………………….                      BF3

BENEFITS PAYABLE AND TAX IMPLICATIONS …………………………………….           BF4
–   MEDICAL INSURANCE BENEFITS ………………………………………………….…….…..       BF4
–   DEATH OF THE PRINCIPAL ASSURED ………………………………………………………        BF4
–   DISABILITY ………………………………………………………………………………………..              BF4
–   TERMINATION OF SERVICE …………………………………………………………………..          BF4
–   SPECIAL HIGHER MAXIMUM AGE AT ENTRY ………………………………….………….     BF6
–   SPECIAL HIGHER MAXIMUM MATURITY AGE …………………………………………….      BF6
–   CESSIONS ……………………………………………………………………………...                   BF6
ENQUIRIES ………………………………………………………………………………...                     BF6
PROPOSAL FORMS ……………………………………………………………………...                    BF7
OTHER FORMS ……………………………………………………………………………                       BF7




GE 10/98                          arg(bf)
                           THE ONE MEDICAL BENEFIT FUND
Function               The One Medical Benefit Fund gives employers the opportunity to offer their
                       employees medical insurance benefits in a tax-effective manner. The One
                       Medical Plan and OneMed are used for this purpose.
How the benefit fund   •   The One Medical Benefit Fund was established as an umbrella-type
works                      fund. Any employer can be affiliated to it, with Sanlam handling all the
                           administrative functions.
                       •   For each member of the fund (employee) an individual medical
                           insurance policy from Sanlam is taken out. Existing medical insurance
                           policies from Sanlam can be ceded to the fund.
Individual products    The following products are available for The One Medical Benefit Fund:
available
                       •   Hospital Benefit
                       •   Major Medical Benefit
                       •   Major Medical and Hospital Benefit
                       •   OneMed
Proof-free limits      Sanlam is prepared to grant proof-free limits at smokers’ rates in terms of
                       the policies, with the following provisos:
                       •    An employer-employee relationship must exist between the
                            prospective members and the associate employer. All prospective
                            members (employees) must be employed full-time and actively in
                            service of the employer (see note 2 further in this section).
                       •    Less than 20% of the participating employees may have one or more of
                            the following occupations:          diver, driver (vehicles), explosives
                            handler/worker or transporter, metal worker or smelter, security guard,
                            underground mineworker, heavy-duty machinery operator, member of a
                            security force or any other dangerous occupations.
                       •    More than 80% of the initial members must be younger than 50 years.
                       •   The same policy structure must be applicable to everyone in the group
                           – however, the same benefit amounts need not apply in respect of all the
                           members.
                       •   None of the prospective members (employees) must have been absent
                           on sick leave for more than one week continuously during the 12
                           months preceding the registration date of the fund (see note 2 later in
                           this section).
                       •   To qualify for proof-free limits, the required number of proposals must be
                           impulsed within three months of proposal date. A scheme is therefore
                           cancelled if the required number of proposals has not been sumbitted.
                       •   Proof-free limits apply only to initial members, i.e. those who are
                           employed by a particular employer when the fund is establised and who
                           become members.
                       •   New members added after the introduction date of the fund qualify for
                           the same proof-free limits as existing members provided membership is
                           compulsory.
                       •   If membership is optional, new members will have to submit proof of
                           health.
                       •   Groups consisting of 9 members or less do not qualify for proof-free
                           limits.




GE 10/98                                      arg(bf1)
Proof-free limits   •    The requirements to qualify for a proof-free limit of R250 daily hospital benefit
(continued)              and R45 000 major medical benefit, are the following:
                                Qualifying group                   Required number that must join

                                     10 – 25                               80%; minimum 10
                                     26 – 40                                   20 or more
                                       41+                                        50%
                    •    In order to qualify for the benefits of OneMed (R110 000 major medical
                         benefit and R200 daily hospital benefit) or maximum benefits under a free-
                         standing One Medical Plan (R110 000 major medical benefit and R600 daily
                         hospital benefit), there is a further condition in addition to the above
                         requirements:
                         −    More than 50% of the initial members joining the fund must earn more
                              than R48 000 a year in remuneration from the specific participating
                              employer.
                    •    If the above-mentioned two requirements are not met, the group may still
                         qualify for proof-free limits providing the following joining percentages are
                         adhered to:
                                Qualifying group                          Percentage joining
                                       <30                                         90%
                                       31                                          87%
                                       32                                          84%
                                       33                                          81%
                                  more than 33                                     80%
                    Notes:
                    1) If Sanlam has information at its disposal which indicates that the assured
                       could be an exceptional risk, we reserve the right to set further medical
                       requirements.
                    2) If the assured is not in full and active service or if he or she was absent on
                       sick-leave for more than a week, an abbreviated statement of good health
                       must be completed and further requirements may be set.
                    3) If a waiver of premium benefit (OP, OG, PM, GM) is taken as a rider
                       benefit in terms of a policy, Sanlam’s normal underwriting requirements
                       will apply to the specific benefit only.
                    4)   The contractual exclusions on The One Medical Plan are also applicable
                         where proof-free limits apply.




GE 10/98                                       arg(bf2)
Policy-owner           The One Medical Benefit Fund is the owner of each policy.
Life/Lives assured     The employee (member) is the principal life assured and his/her dependants are
                       the additional lives assured.
Contributions to       •   The employer makes contributions to the fund (policy). It can currently be
the benefit fund           deducted from the employer’s taxable income.
                       •   An employer may not contribute more than 20% of an employee’s
                           remuneration to a pension, provident or benefit fund. If more than 20% is
                           contributed, permission must be obtained from the Commissioner for Inland
                           Revenue.
Uniformity    within   •   The structure of all the policies in a specific proof-free scheme must be the
a scheme                   same (benefit amounts may differ).
                       •   Any combination of products is permissible in the case of schemes accepted
                           with proof of health.
Cash values            No additional saving is allowed.
                       Entry on or          In cases where the employer and member joined the fund
                       before 28/2/94       on or before 28/2/94 a cash value may be paid
                                            •    at cancellation of the policy, and
                                            •    on reaching of the maturity date.
                       Entry since          The following will apply to cases where the employer and
                       28/2/94              member joined the fund since 28/2/94:
                                            •   Cash values may be paid only at death, for medical
                                                costs and disability.
                                            •   The policy lapses if premiums are discontinued within
                                                the waiting period.
                                            •   After the waiting period has expired, automatic non-
                                                forfeiture commences (PIR). The premium debt can
                                                therefore accumulate until the debt exceeds the cash
                                                value (surrender value). As soon as this happens the
                                                policy lapses.
                                            •   At the maturity date in the case of a policy with a specific
                                                term, a continuation may be done. Claims for medical
                                                expenses may continue until death (balance is paid out
                                                to dependants or the estate of the deceased) or until
                                                cash value is depleted, whichever comes first.
                                            Note: Refer to options under “ Termination of service”
                                                  further in this section.




GE 10/98                                         arg(bf3)
BENEFITS PAYABLE AND TAX IMPLICATIONS
Medical insurance   The medical insurance benefits payable in terms of the policy are paid to the
benefits            employee (principal assured).
                    All medical insurance benefits are currently tax-free.
Death of the        •   The benefit amount of the policy is payable to the estate of the principal
principal assured       assured or to the beneficiary nominated by the principal assured.
                        Tax implications for the employer: none
                        −   If the principal assured dies before reaching retirement age, he/she
                            qualifies for a R30 000 exemption in terms of the Income Tax Act. This
                            exemption includes all gratuities received by the employer.
                            Any part of the employee’s gratuity that exceeds the exempted portion
                            (R30 000) will be taxed at his/her average rate up to a maximum of the
                            sum of his/her remuneration from the employer over the preceding 3 tax
                            years.
                            Any balance will be taxed at the principal assured’s marginal rate.
                            The net-after-tax proceeds on the policy will be taken into account for
                            estate duty purposes in the employee’s estate.
                        −   At death of the principal assured after retirement, the full benefit amount
                            is tax-free. However, this amount will still be taken into account for estate
                            duty purposes in the estate of the deceased.
                    •   At the death of a member (employee), Sanlam must be informed as soon as
                        possible and be provided with the relevant documentation.
Disability          •   If there is a waiver of premium benefits on the policy, it can continue without
                        further premium payments in the event of total disability of the principal
                        assured.
                        Tax implications: None
Termination of      •   If the employer and employee joined the benefit fund before 28 February
service                 1994, they had to enter into an agreement (service contract) in terms of which
                        they agreed about what would happen to the benefits on termination of
                        service of the employee.
                    •   Since 28 February 1994 such an agreement has no longer been necessary.
                    Options where participation began before 28/2/94
                    •   Members and employers may continue on the basis of withdrawals still being
                        paid, provided certain conditions are met. This means that additional benefits
                        may be paid to members and employers who were members before this date.
                        In such a case, the agreement between the employer and employee will
                        determine the parties’ obligations and rights.




GE 10/98                                      arg(bf4)
Termination of            The most important benefit available at termination of the assured’s service,
service (continued)       e.g. at retirement or dismissal, is that
                           (i)    the cash value of the policy on the member’s life can be paid to the
                                  employer; and
                           (ii) the policy can be ceded to the employer.
                      •   However, the employer and employee can agree that the following additional
                          options (besides cession to the new employer) be exercised:

                           (i)    The policy can be terminated early and the cash value received by the
                                  employer paid to the employee.
                           (ii)   The employer can cede the policy to the employee with full retention of
                                  benefits.
                          (iii)   The employee can remain a member               of the fund if all parties
                                  concerned agree to this. (Member pays         contributions himself/herself
                                  or makes the policy fully paid-up if it has   a cash value. The member
                                  can claim against the paid-up value           until depleted.)   At early
                                  termination of the policy, the surrender      value of the policy will be
                                  taxable income for the employer.
                      Note: If the policy is ceded to a new employer the member’s dispensation will
                            change to that of membership attained after 28 February 1994.
                      •   If there is a service agreement, the employer will usually be entitled to
                          deduct any payment to the employee form his taxable income. No tax is
                          therefore payable by the employer.
                      •   If the principal assured has already reached the age of 55 (50 for females)
                          and is within 5 years of retirement, the principal assured qualifies for a
                          R30 000 exemption in terms of the Income Tax Act. The part of the gratuity
                          which exceeds the exempted portion, will be taxed at his/her average rate
                          (maximum of the sum of his/her remuneration over the preceding three tax
                          years). Any balance is taxable at the marginal rate.
                      •   If the principal assured has not yet reached the age of 55 (50 for women)
                          and is not leaving the employer’s service as a result of staff reductions, the
                          full benefit amount will be taxed at marginal rate.
                      •   Where the principal assured is under 55/50 years of age and leaves service
                          because his/her post is made redundant or as a result of staff reductions by
                          the employer, the first R30 000 is exempt from tax. The rest will be taxed at
                          his/her average rate, provided he/she was not a director and/or did not hold
                          5% of the shares in the company. Any balance is taxable at the marginal
                          rate.
                      •   Where the policy is ceded to the employee instead of being surrendered, the
                          value of the policy is what is worked with and the principal assured will be
                          taxed as stated above.
                      •   If contributions are stopped prior to the policy having accrued a cash value, it
                          will lapse.




GE 10/98                                         arg(bf5)
Termination of           Options where participation begin after 28 February 1994
service (continued)      •    The member can continue paying the contributions and continue to submit
                              claims for medical expenses in terms of the original policy, until death.
                         •    The member can discontinue contributions and make the policy fully paid-up
                              if it has a cash value, and may then claim against the paid-up value until it is
                              exhausted.
                         •    If the new employer (if applicable) is a participating member on the fund,
                              he/she can continue paying contributions.
                         •    No surrender or endowment values are payable.
Special higher           A special higher maximum age at entry of 70 anb is available on the following
maximum age at           conditions:
entry                    •    The proposal must form part of a proposal for The One Medical Benefit
                              Fund.
                         •    The maximum number of members of a scheme who may be older than 65
                              anb at entry, is the smaller of:
                             −    5% of the total number of principal lives assured, and
                             −    five.
                         •    No proof-free limits are granted to persons older than 65 anb, even though
                              proof-free limits apply to the rest of the scheme.
Special higher           For a policy with a set term:
maximum                  •    the maximum age at maturity is 75 anb, and
maturity age
                         •    the minimum policy term is 5 years.

                         A special quotation can be obtained for a policy with a limited policy term where
                         the spouse of the principal assured is older than 75 anb at maturity and where
                         proof-free limits apply. The proposal must form part of a proposal for The One
                         Medical Benefit Fund.
Cessions                 Cessions are not allowed as long as the fund is the owner of the policy. The
                         policy may not be offered as collateral security.


ENQUIRIES : Benefit Fund
•   Technical enquiries:
    Enquiries about the functioning of a benefit fund can be directed to local legal consultants.
•   Registration of an employer:
    −      Procedure of registration:
           Business Assurance: Administration (at your Client Services Office or at Head Office).
    −      To determine whether a specific employer is registered:
           Business Assurance: Administration
           (Head Office or Client Services Office)
•   Medical claims:
    −      Under The One Medical Plan (if not part of OneMed):
           IA Policy Claims: Medical Plan Claims(Head Office)

    −      OneMed: Sanmed (OneMed: extension 8202)




GE 10/98                                           arg(bf6)
•   Death benefits:
    −      If the assured is alive:
           Policy Services (local Client Services Office)
    −      If the assured has died:
           IA Policy Claims: Policy Death Claims (Head Office)

PROPOSAL FORMS
Participating employers must register as such at Business Assurance: Administration (Head Office)
before any proposals will be processed.
•   Registration of associated employers:
    −      Form AE2479: Registration of scheme
    −      Form AE2480: Application for associate membership
    −      From AE2481: Extract from the minutes.
•   Proposal forms for policies
    −      Proof-free schemes: AEB47
    −      Schemes with proof of health:
           Employer’s proposal: AEB48
           Employee’s proposal: AEB49

OTHER FORMS
AE2478: Appointment of a nominee
AE1882: Application for premium schedule facilities (for paying of contributions by employer)
AE1356: Notice of change of employer
AE1357: Request to cede policy (applicable only to policies taken out before 28 February 1994)




GE 10/98                                            arg(bf7)
                         THE ONE INVESTMENT PLAN FOR INSTITUTIONS
The following variations are available:
•    Capital Growth Plan (Plan 25), consisting of a combination of a term annuity and an investment
     policy (The One Policy for Endowment without cover).

•    Maximum Income Plan (Plan 26), consisting of a term annuity and an investment policy (The One
     Policy for Endowment without cover).
Please Note: 1) The intermediary must present a quotation for a combination of a term annuity plus
                a sinking fund to the institution together with the Plan 25 or 26 quotation.
              2) If the institution decides to invest in a Plan 25 or 26 instead of a term annuity and a
                 sinking fund combination, the institution and the intermediary have to sign a
                 statement (form AE2515). This statement must be submitted together with the
                 proposal form.
Marketing tip:
Plans 25 and 26 are better investments for institutions that are not liable for tax. (In the case of
taxpaying institutions, the exemption of income tax on the capital portion of the term annuity instalment
is forfeited, which makes it an unattractive investment.)

    CAPITAL GROWTH PLAN : PLAN 25
The capital amount is used to purchase a term annuity providing constant instalments for a term of 5 to
10 years. The non-capital portion of every instalment is usually taxable. In the case of non-taxpaying
institutions the full term annuity instalment can be used as the premium for the investment policy.




The One Policy for Endowment (Table 303, 403 or 503) is used as an investment policy. At the end of
the chosen term the cash proceeds of the investment policy are available tax-free.




GE 6/2000                                      arg(bk1)
 MAXIMUM INCOME PLAN : PLAN 26

This plan is designed for non-taxpaying institutions who want an immediate income from their
investment. The capital amount is used to purchase a term annuity providing constant monthly
instalments for a term of 5 to 10 years. From the instalments the smallest possible premium for the
Table 303, 403 or 503 without cover with an illustrative return equal to the initial capital, is recovered.
The balance of each term annuity instalment is available as an income. At the end of the chosen term
the cash proceeds of the investment policy are available tax-free.




    A FEW TECHNICAL ASPECTS
•    The fact that the term annuity is payable in arrears, whereas the premiums on the policy have to be
     paid in advance, is explained as follows:
     − In the case of monthly payment the inception date of the policy is one month after the inception
       date of the term annuity.
     − In the case of annual payment the first premium is withheld from the capital amount and the term
       annuity is therefore purchased for one year shorter than the policy term.
•    In the case of the Maximum Income Plan (Plan 26) you may find that your client does not need the
     full income. In such a case you may request a special quotation with the chosen income and an
     increased premium on the policy which will offer a higher illustrative return than the initial capital
     amount.

•    At the end of the chosen term the entire proceeds of the investment policy or a part thereof can be
     reinvested with Sanlam for further growth, or cash bonuses can be taken.


AIDS AND INVESTMENT PLANS
•    For Aids purposes these policies are regarded as pure savings plans (if no underwriting is required).

•    In case of own combinations (Plan 30) consisting of an annuity or life annuity with a term longer than
     nil years certain or if the initial cover is larger than the purchase sum, medical underwriting is
     required. The policy-owner then has to choose between a single- and multi-test policy.
Should the annuity part of the plan be terminated, normal aids- and underwriting procedures will become
applicable to the investment policy.




GE 6/2000                                        arg(bk2)
                              SECTION BL



                         THE ONE SINKING FUND

                                                             Page
SPECIAL FEATURES …………………………………………………………………….                 BL1

AVAILABILITY ……………………………………………………………………………..                 BL1

GENERAL INFORMATION ………………………………………………………………                 BL1

PRIVILEGES AND CONDITIONS ……………………………………………………….             BL2
–   AD HOC PREMIUM INCREASES ………………………………………………………………        BL2
–   FULLY PAID-UP VALUES ………………………………………………………….…………..       BL2
–   CASH WITHDRAWALS AND LOANS ………………………………………………………….       BL2
–   WAITING PERIOD ………………………………………………………………………………..          BL3
–   ACCOUNTING VALUES FOR INSTITUTIONS ……………………………………………….   BL3
–   DEATH BENEFITS ……………………………………………………………………………….           BL3
– CONTINUATION OPTION ……………………………………………………….………………           BL3




GE 9/2001                       arg(bl-ind)
                         THE ONE SINKING FUND               : Tables 304, 404 and 504

The One Sinking Fund has been specially developed to meet medium- to long-term investment
requirements. It is purely an investment policy and is flexible enough to adapt to the particular needs of
the assured. This product is available for individuals as well as institutions and trusts and is
specially suitable for non-taxpaying institutions.


SPECIAL FEATURES
•   The policy offers no life cover.
•   The policy has no life assured (no medical or occupational underwriting is therefore necessary).
•   Single as well as recurring-premium policies are available.      A single premium together with a
    recurring premium is also allowed on the same policy.
•   Commission is payable as and when premiums are actually paid.            Payment of commission is
    therefore distributed over the term of the policy.


AVAILABILITY
Sinking Fund policies can be marketed in the RSA only.
NB: Pension and provident funds may not invest in The One Sinking Fund.


GENERAL INFORMATION
Modes of payment
    By debit order and cash only.
Age at inception/maturity age
    Not applicable (no life assured)
Benefit term
    Minimum        : 5 years
    Maximum        : 45 years
Cover level available : without cover only
Rider benefits available : None
Premium growth
Premium growth is available at a fixed rate and at inflation rate. The month of increase can be any
month and need not coincide with the policy anniversary.
Proposal form
A special proposal form (AEB64) is available.




GE 9/2001                                        arg(bl1)
INCEPTION DATE (Date of entry)
Recurring premiums
The first day of the month in which Sanlam Life receives the first premium.
Single premiums
The client can choose between
    •   the first day of the month in which Sanlam Life receives the single premium, or
    •   the first day of the following month.


PRIVILEGES AND CONDITIONS
AD HOC PREMIUM INCREASES
The following restrictions in respect of ad hoc premium increases are permitted:
•   Single premiums
    No ad hoc additions are allowed.
•   Recurring premiums
    −   Without Premium Growth
        Ad hoc premium increases can be made. However, the premium may be increased by no more
        than 20%.
    −   With Premium Growth
        No ad hoc premium increases will be allowed (notwithstanding the chosen premium growth
        rate).
•   Combination of recurring and single-premium policies
    The same rules as above apply. Only the recurring portion (if without premium growth) can be
    increased. No increase is permitted on the single premium.

FULLY PAID-UP VALUES
Sinking Fund policies may be made fully paid-up after the waiting period has expired.
No further premiums on a sinking fund policy may be received if 12 or more premiums are outstanding
on the policy. This implies that the assurer must make such a policy fully paid-up automatically
(provided that the waiting period has elapsed). Such a policy may also not be reinstated with further
premium payments.

CASH WITHDRAWALS AND LOANS
Part 4 of the Regulations to the Long-term Insurance Act (previously Section 59D) is also applicable to
Sinking Fund policies and the same provisions apply as in the case of ordinary assurance. See Section
AB of the Product Guide.




GE 9/2001                                        arg(bl2)
WAITING PERIOD
Before a policy can be made fully paid-up or a cash withdrawal or loan can be made, the following
waiting periods are applicable:
            Monthly premium                 Waiting period
            R1 000 or more                    1 month
            less than R1 000                  2 months

ACCOUNTING VALUES FOR INSTITUTIONS
A letter, in which the accounting values of all the Sanlam Life policies of the institution are detailed, is
sent to the institution annually. This letter, which can be used for accounting purposes, will coincide
with the end of the financial year of the institution.

DEATH BENEFITS
No death benefits are available. When the policy-owner dies, a nominated person (nominee) must
continue the policy for the remaining term. If no such person is nominated, it will form an asset in the
estate of the deceased. The executor must nominate a person/institution that can continue the policy in
the remaining term.

CONTINUATION OPTION
Continuation option is available. See section BX chapter 8.




GE 9/2001                                         arg(bl3)
                             FEBRUARY 2006

                               SECTION BM



                        DEFERRED COMPENSATION




                                                                  Page

FUNCTION ………………………………………………………………………………….                         BM1
HOW THE SCHEME FUNCTIONS ………………………………………………………                    BM1
BENEFITS FOR THE EMPLOYER ……………………………………………………...                 BM1
BENEFITS FOR THE EMPLOYEE ………………………………………………………                   BM2
TABLES AVAILABLE …………………………………………………………………….                      BM2
DEATH BENEFIT ………………………………………………………………………….                       BM2
MINIMUM TERM …………………………………………………………………………...                      BM2
AGE AT INCEPTION ……………………………………………………………………...                    BM3
MATURITY DATE ………………………………………………………………………….                       BM3
RATES AND RATE DIFFERENTIATION ……………………………………………….                BM3
PROPOSAL FORMS ……………………………………………………………………...                      BM3
BACK-DATING …………………………………………………………………………….                        BM3
RIDER BENEFITS AVAILABLE …………………………………………………………                   BM4
INDEXPLAN ………………………………………………………………………………..                        BM4
PREMIUM MODE OF PAYMENT ………………………………………………………..                   BM5
UNDERWRITING REQUIREMENTS ……………………………………………………                    BM5
PROOF-FREE LIMITS …………………………………………………………………….                     BM6
SPECIAL OCCUPATIONAL UNDERWRITING ………………………………………..               BM7
INCOME TAX LEGISLATION ……………………………………………………………                    BM8
–   APPLICABLE INCOME TAX LEGISLATION ………………………………………………….        BM8
–   APPLICABLE ESTATE DUTY LEGISLATION ASPECTS …………………………………...   BM8
–   TECHNICAL FUNCTIONING I.R.O THE EMPLOYEE ……………………………………….     BM8
–   TECHNICAL FUNCTIONING I.R.O THE EMPLOYER ……………………………………….     BM9
OPTIONS ……………………………………………………………………………………                          BM10
–   AT RETRENCHMENT / RESIGNATION……………………………………….……………….          BM10
–   AT RETIREMENT……………………………..…………………………………………………...              BM12
–   AT DEATH …………………………………………………………………………………………                   BM13




                                                                     2/…



GE 10/2004                         arg(BM)
                                             -2-



                                                                                    Page

TECHNICAL INFORMATION ………………………………………………………….                                       BM13
–   DEFINITION OF RETIREMENT AGE ………………………………………………………..                            BM13
–   REMUNERATION ………………………………………………………………………………                                     BM13
–   BONUS AS A PREMIUM ………………………………………………………………………                                  BM13
–   SERVICE RENDERED AFTER PAYMENT OF THE BENEFITS …………………………                       BM13
–   ONE-MAN COMPANIES ………………………………………………………………………                                   BM13
–   SOLE PROPRIETORSHIP AND PARTNERSHIPS ………………………………………..                          BM13
–   SPOUSE …………………………………………………………………………………………                                       BM14
–   INSOLVENCY …………………………………………………………………………………..                                    BM14
–   LOANS …………………………………………………………………………………………..                                      BM14
–   NON-TAXPAYING INSTITUTIONS …………………………………………………………..                             BM14
–   TRANSFERABILITY OF POLICIES ………………………………………………………….                             BM14
–   PENSION FUND ………………………………………………………………………………..                                   BM15
–   POLICIES (Conforming) ……………………………………………………………………….                              BM15
    •   Types of policies ……………………………………………………………………………                             BM15
    •   Definition of conforming policy ………………………………………………………….…                    BM15
    •   Advantages of conforming policies …………………………………………………….…                    BM15
    •   Premiums that are not deductible during the term of the policy ……………………….   BM15
    •   Increase in the policy premium ……………………………………………………………                      BM15
    •   Deduction of premiums in tax year in which policy is ceded …………………………..     BM16
    •   Decrease in premiums ……………………………………………………………………..                           BM16
    •   Term of premium payment ………………………………………………………………...                         BM16
    •   Term of the policy …………………………………………………………………………..                           BM16
–   KEY PERSON ASSURANCE …………………………………………………………………                                  BM16
–   PARTNERSHIPS ……………………………………………………………………………….                                    BM16
–   SALE OF BUSINESS …………………………………………………………………………..                                 BM16

ADMINISTRATION INFORMATION …………………………………………………..                                    BM17

MARKETING MATERIAL ………………………………………………………………                                         BM18

ENQUIRIES ………………………………………………………………………………                                            BM18




GE 10/2004                                   arg(BM)
                                  DEFERRED COMPENSATION


Please Note: Only accredited intermediaries may market Deferred Compensation.

    FUNCTION
Deferred Compensation has benefits for both the employer and the employee.
Because this scheme utilises tax concessions this can be attractive, especially to highly paid employees
whose salary increases may become less attractive as a result of rising income tax.
A deferred compensation scheme offers a solution to the problem.

    HOW THE SCHEME FUNCTIONS

•    The employer negotiates an agreement with the employee and undertakes to pay the employee
     upon retirement or to his dependants at his prior death a certain sum to be rendered.
•    The employer can meet his obligations towards the employee by paying the amount due from
     accumulated profits or by borrowing the money.
•    However, in order to have the necessary cash available when the various events occur, assurance is
     by far the most suitable, cheapest and most convenient method of financing.
•    The employer takes out a policy on the life of the employee and upon retirement, death or disability
     of the latter the proceeds are paid to the employer.
•    In terms of a service agreement the employer then pays an amount to the employee, his estate or
     his next of kin.
•    The following forms must be completed and faxed to Employee Schemes at Client Services :
     Western Cape (947-3796) to register such a scheme:
        −    Form E174       : Application to register the scheme
        −    Form AE2176     : Extract from the minutes
        −   Form E2785      : Confirmation by Business Development Manager of compliance with
            requirements for new employee schemes (only for representatives)
        −    E2925           : Declaration and indemnity by employer
     A registration number will be allocated.

    BENEFITS FOR THE EMPLOYER

•    Retains the loyalty of his employees.
•    Additional provision is made for the employee’s retirement.
•    Provides a better remuneration package for the employee by utilising the tax benefits which are
     available.
•    Retains his key staff or make provision for capital to be available if one of these people leaves his
     service.
•    Accumulates additional capital which becomes available at the employee’s retirement.
•    The costs involved in implementing the Scheme (if any) are minimal.




GE 10/2004                                       arg(BM1)
    BENEFITS FOR THE EMPLOYEE

•    By participating in the Scheme, the employee is assured of additional retirement provision.
•    Pays no tax on premiums which are invested on his behalf for his ultimate benefit.
•    Tax benefits which the employee would not have been able to utilise otherwise, become available.
•    Where the employee pays tax at a relatively high marginal tax rate, this is an excellent way of
     building capital.
Please Note: Income tax concessions for both the employer and the employee will be discussed
             later in this section.

    TABLES AVAILABLE

Tables 359, 459 and 559 – with minimum underwriting requirements (limited cover)
A special universal assurance policy with minimum underwriting requirements has been designed to
provide the minimum life cover required by law. In this way the premiums currently qualify as a
deductible expense for the company or employer.
These underwriting requirements are made clear on the proposal form.
Tables 303, 403 and 503 – with normal underwriting requirements (with life cover)
These tables are only recommended where higher cover than the compulsory minimum cover is
required. Refer to Section DD for normal underwriting requirements.
Tables 303, 403 and 503 – without cover
These tables are available only to non-taxpaying institutions. In terms of current income tax legislation,
the premiums of these policies will not be tax-deductible for a taxpaying employer.

MIXING OF TABLES
It is not permitted to mix the type of tables used within a specific scheme (e.g. only Table 359/459/559 or
Table 303/403/503 may be implemented).

    DEATH BENEFIT

Table 359, 459 and 559 (limited life cover)
The minimum cover of R10 000 does not apply to Deferred Compensation because in the case of these
policies the cover is determined by Section 11(w) of the Income Tax Act.
The death benefit amount is calculated as:
     0,80 x n x P
where:     n = the term of the policy subject to a maximum of 20 years;
           P = the total of the premiums payable within the first policy year (premiums for rider
               benefits and loadings excluded).

Table 303, 403 and 503 (with life cover)
The chosen cover may not be less than R10 000 (minimum cover available on a policy).
There is no limit on the maximum death benefit chosen.

    MINIMUM TERM

Tables 403, 503, 459 and 559       : 5 years
Tables 303 and 359                 : 10 years




GE 10/2004                                       arg(BM2)
    AGE AT INCEPTION

Minimum : 15 next birthday
Maximum : Tables 359, 459 and 559 : 65 next birthday
          Tables 303, 403 and 503 : 65 next birthday


    MATURITY DATE

The maturity date is usually the expected retirement age.
Maximum : Tables 359, 459 and 559 : age 70 next birthday
                                    (the maturity age may not exceed the expected retirement age)
          Tables 303, 403 and 503 : age 70 next birthday

    RATES AND RATE DIFFERENTIATION

Tables 359, 459 and 559 (limited cover)
Only one set of rates is available for each table. There is no differentiation between rate groups 2, 3 and
4 rates.
Premiums: Recurring only, monthly, quarterly, half-yearly or yearly.
Tables 303, 403 and 503 (with life cover)
Rate differentiation is applicable (see Section DA).
Premiums: Recurring only, monthly, quarterly, half-yearly or yearly.
Tables 303, 403 and 503 – (without cover)
Normal rates for without cover policies.
Premiums: Recurring only, monthly, quarterly, half-yearly or yearly.

    PROPOSAL FORMS
Proposal by employer: AEB60
This form is completed by the employer for up to 24 employees. The proposal form will be valid for three
months only.
Declaration by employee: AEB58
This proposal form is completed in respect of every employee.

    BACK-DATING
The inception date of a policy with recurring premiums under this scheme can be back-dated as follows:
•    Policy term 6 years or longer
     Up to the first day of the employer’s year of assessment/financial year in which a proposal for the
     policy was submitted.
•    Policy term 5 years
     Up to the beginning of the month in which the first premium is paid.




GE 10/2004                                        arg(BM3)
    RIDER BENEFITS AVAILABLE
If rider benefits are added to any of the tables the normal underwriting requirements will apply.
Tables 359, 459 and 559
OE          −   Lump Sum Disability Benefits (see note)
DHOE        −   Cover Reinstatement Option with OE (available only when OE is taken)
OP          −   Waiver of Premium Disability Benefit – benefits constant after a claim arises (not
                together with OG)
OG          −   Waiver of Premium Disability Benefit – benefits grow after a claim arises (not together
                with OP; available only if the premium grows at inflation rate)
OLV         −   Accident Benefits (see note)
Note:     The maximum OE amount is equal to the death benefit amount. If the death benefit is less
          than R10 000, OE is not available. The OLV amount can exceed the cover amount. Disability
          benefit in five instalments (OVP) is not available in the case of Deferred Compensation.
Tables 303, 403 and 503 (with life cover)
The same rider benefits as with Tables 359, 459 and 559, as well as
TD      − Future Cover.
Tables 303, 403 and 503 – without cover
OLV         −   Accident Benefits (no other benefits are available).

INDEXPLAN
All Deferred Compensation tables contain a standard clause according to which premium increases can
be linked to the assured’s annual salary increase.
One of the following facilities are chosen at inception:
•    Taxable institutions : Growth type 02
     −   The first premium increase can occur during the second policy year only.
     −   The premium increases are limited to a maximum of 15% in any policy year.
     −   Premiums can be increased only once a year.
•    Non-taxpaying institutions : Growth type 04
     −   The first premium increase can be implemented in the first policy year, but only after six months
         have passed.
     −   The premium increases are limited to 20% in any policy year.
     −   Premiums cannot be increased more than twice a year.
General provisions: Growth type 02 and 04
−    Only Premium growth (and not Cover growth) is available.
−    If the employer does not grant any salary increases during a particular year, a growth rate of 0% may
     be requested.
−    There is no limit to the number of premium increases which may be skipped.
Note: Growth type 01: The policy-owner may choose at inception to have the premium increased
      automatically every year on the policy anniversary, at a fixed rate or the inflation rate. A written
      statement as reason for this choice is required. Growth type 01 (with premium and cover
      growth) can not be switched to Growth type 02 or growth type 04.




GE 10/2004                                         arg(BM4)
PREMIUM MODE OF PAYMENT

•    Premiums are payable monthly, quarterly, half-yearly or annually in advance.
•    They can be paid to Sanlam by debit order, premium schedule or cash.
•    The premium schedule mode of payment is preferred for Deferred Compensation. The employer
     sends a cheque covering all the policies monthly in advance, to Employee Schemes (local Client
     Services Office) together with a schedule. The registration number of the employer must be
     mentioned in the schedule.


    UNDERWRITING REQUIREMENTS

Effective Death Benefit Amount
The effective death benefit amount consists of the accumulative death benefit amounts of all Deferred
Compensation policies on the assured’s life. The death benefit amounts of all the existing policies which
were obtained without proof of good health or with a shortened health declaration (irrespective of when
taken out) must therefore be taken into account to calculate the effective death benefit amount.

Special underwriting requirements (“proof-free” cover)
The special underwriting requirements are valid only:
−    If the effective death benefit amount is less than or equal to the “proof-free” limit.
−    For the death benefit amount under Tables 359, 459 and 559 without rider benefits.
−    If Tables 359, 459 and 559 form part of a Deferred Compensation Scheme.
−    If the assured earns a basic income of R5 000 or more per month.
−    If the premium does not exceed 10% of the income received by the assured from his employer.
     This premium includes all premiums in terms of existing Deferred Compensation policies taken out
     after 30 June 1982 on the life of the assured.
−    If the assured is in the full-time and active service of the employer on the date of application.
−    If the assured has not been absent with sick-leave for more than one week continuously during the
     past 12 months prior to the date of application.
The employer has to sign the undertaking on the proposal form to declare that all these requirements
are met.
Sanlam’s normal underwriting requirements apply if all of the above conditions are not met.
Notes:      1)   If Sanlam has information at its disposal which indicates that the assured could be an
                 exceptional risk, we reserve the right to set further medical requirements.
            2)   If the assured is not in full and active service an abbreviated statement of good health
                 must be completed and further requirements may be set.
            3)   If he or she was uninterruptedly absent on sick leave for more than a week a shortened
                 declaration of good health must be completed and additional requirements may be set.

Shortened declaration of health
A shortened declaration of health only is required for an effective death benefit amount which is more
than the “proof-free” limit, but is less than or equal to the limit for the shortened declaration of health.

Normal underwriting requirements
Sanlam’s normal underwriting requirements, as described in Section DD are applicable if:
−    the effective death benefit amount exceeds the limit for the shortened health declaration;
−    rider benefits are added to Table 359/459/559;
−    Table 303/403/503 with life cover are taken.




GE 10/2004                                          arg(BM5)
UNDERWRITING REQUIREMENTS (continued)
Aids cover
•   Policies with limited cover (T359/T459/T559)
    −     Only an initial HIV blood test, if the limits require it.
    −     If special underwriting requirements are involved (“proof-free” cover), no HIV test is required.
          However, Sanlam retains the right to underwrite, should we be in possession of information which
          necessitates underwriting requirements. This includes a requirement for a negative HIV test
          result.
•   Policies with life cover (T303/T403/T503)
    Only an initial HIV blood test, if the limits require it. It will apply to taxpaying as well as non-taxpaying
    institutions.
In cases where a declaration of health − an abbreviated or a complete one − is required of the assured,
Sanlam reserves the right to require a blood test. Should the life assured not be prepared to undergo a
blood test, the proposal will be rejected.

PROOF-FREE LIMITS
Disability and accident benefits will not be granted without proof of good health or with a shortened
declaration of health. For these benefits Sanlam’s normal underwriting requirements must be satisfied.
Consult Section DD.
Limits for life cover

    Number of members of a                       “Proof-free” limit                   Limit for shortened
           scheme                              (per scheme member)                   declaration of health
                                                           R                                   R
                  1- 4                                    nil                               280 000
                  5- 9                                  110 000                             280 000
                 10 - 29                                220 000                             280 000
                 30+                                    280 000                               n.a.

Members of a scheme
The limit for a specific employer’s Deferred Compensation scheme depends on the total number of
members with at least one Deferred Compensation policy (that is Tables 359, 459 and 559). The total
number of members includes existing members as well as applications for new members.
Examples:
(1) A new scheme is established. Initially 3 members join. All 3 applications are for R60 000 life cover
        and consequently a shortened declaration of health by each member is required.
(2) At a later stage 4 new members decide to join, each requiring life cover of R100 000. If the 4
        proposals are submitted as a group, the cover of R100 000 will be allocated “proof-free”, because
        the scheme will then have 7 members. Furthermore, the 3 existing members may increase their life
        cover by an additional R40 000 to R100 000 “proof-free”.
(3) If the membership of the scheme then increases further to 10 or more members, a “proof-free” limit
                                                           th
        of R220 000 applies. As soon as the 30                  member joins, the “proof-free” limit increases to
        R280 000 per scheme member.
These rules apply to new and existing schemes. For existing schemes the existing membership is taken
into account .
Medical loadings
If a specific proposal requires a medical loading, it will be charged on the full cover amount.




GE 10/2004                                              arg(BM6)
SPECIAL OCCUPATIONAL UNDERWRITING

If the effective death benefit amount is less than the limit for the shortened declaration of health, the
following simplified occupational underwriting applies:
−   No loading will be charged for any hazardous part-time activities.
−   Only when boxing, wrestling, diving, racing, underground mining, handling of explosives, or any form
    of air travel forms part of the assured’s occupation, may a loading be charged.
Occupational loadings, if applicable, will be charged on the full cover amount – in other words on the
“proof-free” part as well. Sanlam must be notified if extra premiums are applicable according to
Section DA.




GE 10/2004                                      arg(BM7)
                                      INCOME TAX LEGISLATION


    APPLICABLE INCOME TAX ACT

•    Premiums:
        −    Section 11(w)
        −    Section 7(1)
•    Proceeds: Section 1 “gross income” Paragraph (m)
•    Gratuity: Section 11(a), 23(g)
•    Tax-free gratuity: Section 10(1)(x)
•    Tax Rate: Section 7A(4A), 5(10)
Note: Contact your Legal Advisor for information regarding legislation.

    APPLICABLE ESTATE DUTY ACT

Dutiability of proceeds: Section 3(3)(a)
Note: Contact your Legal Advisor for information regarding legislation.

    TECHNICAL FUNCTIONING I.R.O. THE EMPLOYEE

•    The lump sum received by the employee at retirement (or within 5 years prior to retirement if so
     agreed) is taxable in his hands.
•    At present R30 000 of the lump sum received by the employee or accruing to him is exempt from tax.
     In the case of a married couple each one of them therefore qualifies for the R30 000 exemption.
•    The exemption granted is available cumulatively in the taxpayer’s lifetime. The exemption available
     will be that amount applicable at the date on which the gratuity accrues.
•    The exemption does not apply to lump sums received from a pension, retirement annuity or
     provident fund.
•    The exemption also includes a lump sum, certain accumulated leave and certain benefit fund
     payments.
•    The balance of the money received or accrued that does not qualify for the exemption above, is
     taxed at the employee’s average rate to a maximum of the sum of the preceding three years’
     remuneration, (calculated over the three tax years which preceded the year of accrual/receipt).
•    The balance of the lump sum received, after the above two exemptions have been applied, is taxable
     at the employee’s marginal rate.
•    Income tax implications for the employee in the case of death or disability are the same as at
     retirement if all the requirements are met.




GE 10/2004                                      arg(BM8)
TECHNICAL FUNCTIONING I.R.O. THE EMPLOYER

•   Contributions are invested in the Deferred Compensation Scheme policy by the employer.
•   The contribution invested by the employer may not
      (i)    be derived from the employee’s existing remuneration; or
     (ii)    be derived from a right to remuneration which was waived with the purpose of investing it for
             the employee in the Deferred Compensation Scheme; or
     (iii)   be the subject of any other vested right of the employee.
•   Contributions made by the employer is deductible from his taxable income up to a maximum of 10%
    of the employee’s remuneration. Any amount exceeding this maximum is deductible when the policy
    proceeds are paid.
•   Bonuses declared from time to time under the policy are not subject to tax during the policy term.
•   Premiums immediately deductible cannot be “held over” in order to be deducted at the end of the
    term.
•   Contributions may escalate at increases of 0 − 15% without the deductibility of premiums being
    affected. Remember, however, that premiums may be deducted only up to a maximum of 10% of
    the employee’s remuneration during a particular tax year.
•   If the employer has or suffers an accumulated loss in the year during which the policy proceeds are
    received, the proceeds required to extinguish the loss will not be subject to tax.
•   The payment of the gratuity by the employer is deductible as operating expenditure.
•   Provided the requirements of relevant legislation are met, the Scheme will not result in additional tax
    liability for the employer.
•   Depending on the service agreement the employer has the choice of making a payment in the form
    of a lump sum or in instalments (the latter is not favoured in practice) or the employer may cede the
    policy to the employee.
•   In the event of death and disablement the income tax implications are the same as for payment at
    retirement. Payment must still be made in terms of the service agreement.




GE 10/2004                                         arg(BM9)
                  OPTIONS, TECHNICAL AND ADMINISTRATIVE INFORMATION

Please Note: All options available are always liable to the stipulations in the service contract
             existing between the employer and employee.
               The functioning of options when various events occur are given below in terms of
               both the employer and the employee.

OPTIONS

•    AT RETRENCHMENT/RESIGNATION

    For the employer   1.   Surrender of the policy (form E204)
                            Surrender value forms part of “gross income” in the hands of the employer.
                            At the same time the payment to the employee may be deducted against
                            the taxable income of the employer. The income tax liability of the
                            employer is thus neutralised.
                            Please Note:
                            −   Each deduction is considered individually and according to merit.
                            −   The restrictions contained in Part 4 of the Long-term Insurance
                                Act (previously Section 59D) must be kept in mind.
                       2.   Cession to the employee (form E2170)
                            Tax liability is neutralised when the employer cedes the policy to the
                            employee, since the cession value is included in his gross income. A
                            deduction can be made under appropriate circumstances in respect of the
                            amount paid to the employee.
                       3.   Cession to the prospective employer (form E2170)
                            The same as 2 above. If the former employer receives compensation in
                            respect of the policy, this amount will be taxable.
                            Note: Policies without cover may not be ceded to a taxpaying institution by
                                  a non-taxpaying institution.




GE 10/2004                                    arg(BM10)
OPTIONS (continued)
•    AT RETRENCHMENT/RESIGNATION

    For the employee   1.   Surrender of the policy by the employer on the assumption that the
                            employee will receive the surrender value as gratuity.
                            (a)   Before retirement age 55:
                                   (i)    The employee does not qualify for the R30 000 exemption
                                          (sect. 10(1)(x)).
                                   (ii)   The full amount is taxable at the employee’s marginal rate.
                                  (iii)   The R30 000 exemption as well as the average rate con-
                                          cession will be available at retirement due to redundancy.
                                          Please Note:
                                          It is not available at retrenchment where such employee
                                          was a director of a company, and who holds more than
                                          5% of the company’s shares.
                            (b)   At retirement after age 55, at disablement (irrespective of age), or at
                                  retrenchment:
                                   (i)    The employee qualifies for the R30 000 exemption
                                          (sect. 10(1)(x)).
                                   (ii)   The portion of the employee’s gratuity which exceeds the
                                          exempt portion (b)(i) above, will be taxed at his average rate
                                          up to a maximum of the sum of the preceding three years’
                                          remuneration (sect. 7A(4A)). Directors do not qualify for this
                                          unless PAYE was withheld from their salaries.
                                  (iii)   The amount which exceeds (b)(ii) above, will be taxed at the
                                          employee’s marginal rate.




GE 10/2004                                     arg(BM11)
OPTIONS (continued)
•    AT RETRENCHMENT/ RESIGNATION (continued)

    For the employee   2.   Cession of the policy to the employee
                            (a)   Before retirement age:
                                    (i)   The income tax implications are the same as those in
                                          paragraph 1(a) above.
                                   (ii)   The taxable value of the policy is determined according to the
                                          formula prescribed by the Commissioner for the South African
                                          Revenue Services.
                            (b)   At retirement, at disablement or at retrenchment:
                                    (i)   The income tax implications are the same as those in
                                          paragraph 1(b) above.
                                   (ii)   The taxable value of the policy is determined in accordance
                                          with the formula laid down by the Commissioner for the South
                                          African Revenue Services (LOA agreement).


•    AT RETIREMENT

    For the employer   1.   Surrender
                            The policy can be surrendered by the employer and the policy proceeds
                            paid to the employee.
                       2.   Maturity
                            Where the policy has already matured, or will mature, the policy proceeds
                            can be paid to the employee.
                       3.   Cession
                            Where the policy does not mature at retirement, it can be ceded to the
                            employee or the prospective employer.
                       4.   Income tax implications
                            The policy proceeds received by the employer are taxable in the
                            employer’s hands. When the employer pays the amount to the employee,
                            the payment can be claimed as a deduction.




GE 10/2004                                     arg(BM12)
•    AT DEATH

    For the employer      •   the employer can pay the full proceeds obtained under the policy to the
                              employee’s estate;
                          •   the employer can pay an annuity or lump sum to the employee’s dependants
                              from the proceeds of the policy;
                          •   a combination of the above.
                          •   contact your Legal Advisor when an annuity is considered.


TECHNICAL INFORMATION

DEFINITION OF RETIREMENT AGE
An employee can qualify for tax relief when
•    the age of 55 years has been reached and retires; or
•    an employee retires as a result of poor health.

REMUNERATION
Remuneration consists of payment which the employee receives from the employer. Remuneration
includes the following amounts:
     Taxable portion of fringe benefits (e.g. 50% of a car allowance), salary, leave gratuity, allowances,
     wages, payment for overtime, bonus, gratuity, commission, superannuation allowance, stipend, any
     amount in respect of services rendered, any amount in respect of services terminated, any amount
     due under a service contract.
     The above-mentioned income can be received either in cash or otherwise.

BONUS AS A PREMIUM
The employee may not forfeit his regular bonus for an investment in a Deferred Compensation Scheme.
However, where the bonus has not yet been received by or accrued to the employee (i.e. payable at the
discretion of the employer), he does not forfeit his bonus and it can therefore be used to fund the
Deferred Compensation Scheme.

SERVICE RENDERED AFTER PAYMENT OF THE BENEFITS
Deferred Compensation cannot be applicable to service after payment of benefits.

ONE-MAN COMPANIES
If such a payment is made to the sole shareholder only, the employer would have difficulty in meeting
the requirements of section 11(a) and 23(g) of the Income Tax Act since it would be problematic to
prove that the expenditure to the employee was made in the production of income.

SOLE PROPRIETORSHIP AND PARTNERSHIPS
The Deferred Compensation Scheme can be applied but only in respect of employees who are
employed by the owner. The benefits and concessions offered by the Income tax Act are not available
to the owner of the sole proprietor as he cannot employ himself. The same applies to partners in a
partnership.




GE 10/2004                                       arg(BM13)
SPOUSE
Only employees of the employer qualify as assureds under the Deferred Compensation Scheme, if the
spouse of an employee is not also an employee of the employer, he/she will not be entitled to participate
in the Deferred Compensation scheme.

INSOLVENCY
   •   Insolvency of the employee
       As long as an insolvent employee remains in the service of the employer, or if an insolvent
       employee is rehabilitated before receipt of the gratuity, the employee’s insolvency has no effect
       on the Deferred Compensation Scheme.

   •   Insolvency of the employer
       At the insolvency of the employer, the Deferred Compensation Scheme comes to an end, and the
       policy forms part of the employer’s insolvent estate. An employee's claim in respect of the
       Deferred Compensation Scheme enjoys prefferance above rival creditors.

LOANS
   •   Loans by the employer
       The employer may take out a loan with the policy as security. The loan is part of the employer’s
       taxable income where such a loan is obtained from the assurer in question. Premiums will
       remain deductible. If the loan is obtained from an institution other than the assurer, the loan is
       tax-free, but the premiums will not be deductible as long as any amount on the loan is
       outstanding.

   •   Loans by the employee
       The employee may not borrow against the policy.

NON-TAXPAYING INSTITUTIONS
   •   Definition
       This is an institution exempt from paying tax in terms of the Income Tax Act.

   •   Participation in the Deferred Compensation Scheme
       Non-taxpaying institutions may participate in the Deferred Compensation Scheme.

   •   Tax implications
       There are no tax implications and no restriction on the premiums (the State President’s
       Regulation does not apply here). However, the employee’s situation is the same as an employee
       in the service of a taxable employer.

TRANSFERABILITY OF POLICIES
   •   Employer to employer
       The Deferred Compensation Policy can be transferred from one employer to another.
       Exception: Policies without cover, except when both employers are non-taxable institutions and
       the necessary agreements are in place.

   •   From one life assured to another
       A Deferred Compensation policy does not provide for the replacement of a life assured.
       If lives are replaced under the policy or if the policy makes provision for replacement of lives, the
       policy no longer complies with the State President’s Regulation and the premiums will no longer
       qualify as a deduction.




GE 10/2004                                      arg(BM14)
   •   Employer to employee
       The policy can be ceded from the employer to the employee, but the tax implications must always
       be kept in mind.

   •   Deduction of premiums after termination of service of the employee
       The employer can retain the policy.
       Currently it is departmental practice to allow the deductions.

PENSION FUND
NB: Participation in the Deferred Compensation Scheme is still advantageous to an employee
    who already contributes to a pension because additional retirement provision is obtained
    this way.
   •   Effect of Deferred Compensation Scheme on pension fund benefits for the employee
       Deferred Compensation Scheme has no effect on pension fund benefits, provided that the rules
       of the pension fund include or can include contributions to the Deferred Compensation Scheme
       as part of the pensionable income. Keep in mind, however, that the full pension fund
       contributions for both the employer and the employee may perhaps not be deductible.

POLICIES (Conforming)
   •   Types of policies
       Any policy can be used for funding the Deferred Compensation Scheme. In order for premiums
       to qualify as a deduction for the employer, it must be a conforming policy.

   •   Definition of a conforming policy
       A conforming policy is a policy that an employer takes out on the life of an employee or director
       which satisfies the conditions of Section 11(w) read together with the State President’s
       Regulation, in order for the premiums to qualify as a deduction in accordance with the policy.
       Sanlam has a special product series for this purpose.

   •   Advantages of conforming policies
       Premiums are deductible from the employer’s taxable income to a maximum of 10% of the
       employee’s remuneration (i.e. the remuneration package of the employee can be improved.)

   •   Premiums that are not deductible during the term of the policy
       All premiums not deductible during the policy term (i.e. those over the 10%), will be deductible at
       the end of the term, i.e. when the proceeds in terms of the policy are received.

   •   Increase in the policy premium
       The premiums can be increased on certain conditions.
          −   Premiums must be increased by a fixed or determinable amount based on the provisions
              with regard to the increases as contained in the policy contract on the inception date.
          −   The premiums may be increased by a maximum of 15% a year (of the previous year’s
              premium) in the case of taxable institutions and 20% in the case of non-taxable
              institutions.
          −   Premium increases must take place on a regular basis.
          −   In order to be fully deductible, the premiums may not exceed the maximum of 10% of the
              employee’s remuneration.
       Also see Indexplan (Section CM) for further details.




GE 10/2004                                      arg(BM15)
   •   Deduction of premiums in tax year in which policy is ceded
       Technically, the premiums can be deducted by the prospective employer (if applicable) only if the
       policy was ceded at the beginning of the tax year.

   •   Decrease in premiums
       The premiums can be decreased if the amended policy complies with the State President’s
       Regulation.

   •   Term of premium payment
       Premiums have to be paid for the full term of the policy or up to the earlier death or disablement
       of the life assured. If the premiums are discontinued, the assurer can issue a fully paid-up policy.

   •   Term of the policy
       −   The maturity date of the policy will usually be the same as the envisaged date of retirement of
           the employee and has an influence on the initial cover in terms of the policy.
       −     The maturity date of the policy can be postponed by means of the continuation option.
       −   The term of the policy or the premium term can be reduced by means of a surrender on the
           envisaged date (surrendering the policy will have an adverse effect on the investment
           characteristics of the policy.)
       −     The minimum term of the policy is 5 years.

KEY PERSON ASSURANCE
Key person assurance and a Deferred Compensation Scheme can be combined. The premiums
payable in terms of the policy which funds the key person assurance and the Scheme, will have to meet
with the requirements of Section 11(w) to qualify as a deduction.

PARTNERSHIPS
The Deferred Compensation Scheme cannot be used in the case of partners of a partnership. It can,
however, be used for the employees of a partnership.

SALE OF BUSINESS
If the employer’s business is to be sold, the Deferred Compensation Scheme will continue as before. If
necessary, the policy will be ceded to the new owner of the business. The same applies if the company
changes its name.




GE 10/2004                                       arg(BM16)
                           ADMINISTRATION INFORMATION

 Service contract   Need for taking a   The resolution of the board or members’ decision is
                    board decision      essential in the case of a company/close corporation.
                                        (Extract from the minutes AE2176)

                    Need for a          −    Where the employer did not as an established practice
                    service contract         make similar payments to his employees in the past,
                                             the service contract is an essential require-ment.

                                        −    The service contract must preferably be in writing.

                                        −    It may serve as proof of existence of the Deferred
                                             Compensation Scheme, should the Commissioner for
                                             the South African Revenue Services insist on it.

                    Contents of the     The most important information to be included is the
                    service contract    following:
                                             •   The description of “normal retirement age”.
                                             •   The employee’s rights in the case of early
                                                 retirement as a result of ill-health or disability.
                                             •   The rights of the employee’s dependants, should
                                                 the employee die before retirement.
                                             •   The results should the employee leave the
                                                 employer’s service before retirement.
                                             •   The nature of the remuneration under the Deferred
                                                 Compensation Scheme, i.e. will it
                                                  (i)    be paid out in the form of regular income? or
                                                 (ii)    be paid out as a lump sum? or
                                                 (iii)   be paid out in the form of a combination of (i)
                                                         and (ii) or
                                                 (iv)    can the policy be ceded to the employee?
                                             •   The stipulations applicable should the employee’s
                                                 services be terminated.

                    Drafting the        The contract can be drafted by the employee’s or
                    contract            employer’s attorney. Sanlam’s Legal Advisors are also
                                        available for providing advice.

                    Amending the        The service contract may be amended, provided such
                    service contract    amendments to the service contract are signed by both
                                        the employer and the employee and authorised in the
                                        original agreement.




GE 10/2004                                  arg(BM17)
    Service contract       Rights of the            The purpose of the service contract is to allocate certain
                           employee under           benefits to the employee in the case of death, retirement,
                           the service              disability or resignation, i.e. he is not entitled to any
                           contract                 benefits before any one of these events has occurred.

                           Forms that can           −    Notice of cession: AE2170
                           be used
                                                    −    Surrender form: AE204
                                                    −    Maturity: Release form: AE456
                                                    −    Loan form: AE206
                                                    −    Extract from minutes: AE2176
                                                    −    Registration of a new scheme: E174
                                                    These forms are signed by the employer. If the employer
                                                    is declared insolvent, the liquidator must sign the relevant
                                                    forms.


MARKETING MATERIAL
An information brochure for employees can be ordered from Supply Services.
−     Item number : NE552


ENQUIRIES           : Deferred Compensation

•     Technical enquiries:
      Enquiries may be directed to your local Legal Advisor or department Employee Schemes
•     Registration of an employer:
      −   Procedure of registration: Employee Schemes
      −   To determine whether a specific employer is registered: Employee Schemes
•     Death benefits:
      −   If the assured is alive:
          Policy Services (local Services Office)
      −   If the assured has died:
          Sanlam Life Policy Claims : Policy Death Claims (Head Office)




GE 10/2004                                              arg(BM18)
                           FEBRUARY 2006
                             SECTION BN

                     CENTRAL PROVIDENT FUND (CPF)
                                                              Page
FUNCTION OF A PROVIDENT FUND……………………………………………………               BN1
HOW THE FUND WORKS…………………………………………………………………...                 BN1
REGISTRATION………………………………………………………………………………                     BN1
REGISTRATION FORMS…………………………………………………………………….                  BN1
MEMBERSHIP………………………………………………………………………………...                    BN1
LIFE ASSURED……………………………………………………………………………….                    BN2
POLICY-OWNER……………………………………………………………………………...                   BN2
CONTRIBUTIONS TO THE FUND………………………………………………………….               BN2
REMUNERATION……………………………………………………………………………..                    BN2
COVER OPTIONS…………………………………………………………………………….                    BN2
RATE DIFFERENTIATION…………………………………………………………………..                BN2
AIDS COVER………………………………………………………………………………….                     BN2
RIDER BENEFITS AVAILABLE…………………………………………………………….               BN2
MAXIMUM OE AMOUNT…………………………………………………………………….                   BN2
INDEXPLAN…………………………………………………………………………………..                     BN3
MINIMUM PREMIUM…………………………………………………………………………                    BN3
PREMIUM PAYMENTS………………………………………………………………………                    BN3
AGE WHEN JOINING THE FUND………………………………………………………….               BN3
MINIMUM POLICY TERM……………………………………………………………………                  BN3
RETIREMENT DATE………………………………………………………………………...                  BN3
DEATH BENEFIT…..…………………………………………………………………………                   BN4
MATURITY BENEFIT………………………………………………………………………..                  BN4
WAITING PERIOD BEFORE 5/6/2000 FOR ALL TERMS………………………………       BN4
WAITING PERIOD AFTER 5/6/2000 FOR ALL TERMS…………………………………       BN4
POLICY VALUES……………………………………………………………………………..                   BN4
TECHNICAL AND ADMINISTRATIVE INFORMATION………………………………….         BN5
–   DISMISSAL, RETIREMENT, RESIGNATION…………………………………………………….    BN5
–   BOARD DECISION / MEMBERS’ DECISION…………………………………………………….    BN5
–   ONE-MAN COMPANIES…………………………………………………………………………….            BN6
–   SOLE PROPRIETORSHIPS………………………………………………………………………..          BN6
–   SPOUSE………………………………………………………………………………………………                 BN6
–   INSOLVENCY………………………………………………………………………………………...             BN6
–   CASH WITHDRAWALS……………………………………………………………………………..            BN6
–   CASH WITHDRAWALS AFTER CESSIONS……………………………………………………..      BN6
                                                               2/…


GE 10/2004                       arg(BN)
                             -2-

                                                            Page

–   LOANS………………………………………………………………………………………………...             BN6
–   LIFE COVER………………………………………………………………………………………….            BN6
–   NON-TAXPAYING INSTITUTIONS………………………………………………………………...    BN6
–   BACK-DATING……………………………………………………………………………………….            BN6
–   TERM – EXTEND / REDUCE..……..………………………………………………………………     BN6
–   BUYING BACK OF SERVICE YEARS…………………………………………………………….     BN7
–   PREMIUM REDUCTION…………………………………………………………………………….          BN7
–   PARTNERSHIPS……………………………………………………………………………………..           BN7
–   SELLING OF A BUSINESS…………………………………………………………………………        BN7
–   CONTINUATIONS WITHIN THE FUND…………………………………………………………..    BN7
–   ADMINISTRATION…………………………………………………………………………………..          BN8
–   PROPOSAL FORMS………………………………………………………………………………...          BN8
–   RULES OF THE CPF………………………………………………………………………………..         BN8
–   MARKETING MATERIAL……………………………………………………………………………          BN8
–   MIXING OF TABLES…………………………………………………………………………………          BN8
ENQUIRIES……………………………………………………………………………………                    BN8




GE 10/2004                     arg(BN)
                            CENTRAL PROVIDENT FUND (CPF)


Function of a        A provident fund serves as a retirement instrument for employees. With the
provident fund       Central Provident Fund the employer can offer his employees a more
                     competitive and flexible remuneration package.
How the fund works   •   The Central Provident Fund was established as an umbrella fund.
                         Employers can become affiliated to the Central Provident Fund. For each
                         member of the fund (employee) an endowment policy (The One Policy for
                         Provident Funds) is taken out with Sanlam Life.
                     •   Sanlam Life administrates the fund.
Registration         Before any policy in respect of an employer’s employee will be accepted and
                     processed, the employer must be registered as an associated employer of the
                     Central Provident Fund at Employee Schemes.
                     In their application, employers will furthermore undertake to:
                     •   notify the Central Provident Fund of the employees in respect of whom they
                         have to make contributions;
                     •   transfer contributions (premiums) to Sanlam Life in accordance with the
                         rules of the fund within 7 days of the date on which they become payable;
                     •   comply with the rules of the Central Provident Fund.
Registration forms   The following forms should be completed to register such a scheme;
                          – Form E174: Application to register
                          – Form AE1000: Application to participate
                          – Form AE1003: Extract from the minutes
                          – Form E2785: Confirmation by Business Development Manager of
                            compliance with requirements for new employee schemes (only for
                            representatives)
                          – Form E2925: Declaration and indemnity by employer
                     Employee Schemes will register the scheme and allocate a registration number
                     to it.
Membership           •   Employees in the service of the employer on the date on which he institutes
                         the fund and who qualify for membership, have the option of becoming
                         members of the fund during the first year of its establishment.
                     •   After the first fund anniversary such persons can no longer become
                         members unless their remuneration on the entry date of the Fund, was too
                         small to qualify them for membership.
                     •  All employees who enter the service of the employer on or after the
                        inception date of the Central Provident Fund and who qualify for
                        membership, have to participate in the fund.
                     Category(ies)
                     •   The category of employee who qualifies for membership is determined by
                         the employer himself.
                     •   Employers can determine more than one category of qualifying employees
                         according to income groups, for example. Maximum of 5 categories.
                     •   The category as well as the remuneration must be described on form
                         AE1003.
                     •   The maximum contribution is 20% of the employees' remuneration
                         (excluding overtime payment).
                     •   The employer must contribute the current contribution in respect of every
                         participating member. It may not be smaller than the minimum premium
                         applicable to Sanlam Life policies.
                     •   In addition to this the employer may also make contributions in respect of an
                         employee’s past service. Remember the maximum contribution remains
                         20% of remuneration.
                     •   In order to initially become a member of the fund, (i.e. entry to the fund) the
                         employee must:
                         – be in the full-time service of an associated employer;
                     •   earn at least the minimum prescribed basic monthly remuneration –
                         currently R2 000 per month (since 2001).


GE 2/2005                                      arg(BN1)
Life assured           The employee (member) is the life assured.
Policy-owner           The Central Provident Fund is the policy-owner. Employees (members) may
                       therefore not deal with it before assuming ownership for some reason or
                       another (e.g. resignation).
Contributions to the   •   The Fund will only accept employer contributions.
fund                   •   The employer determines what percentage of the employees remuneration
                           should be used to calculate the current contribution.
                       •   The employer may not contribute more than 20% of an employee’s
                           remuneration to a pension, provident and/or benefit fund – maximum of
                           20%.
Remuneration           Remuneration is the amount that an employer pays an employee annually for
                       that employee’s services,
                       •   excluding overtime pay, but
                       •   including (according to the employer’s choice) an additional amount that
                           the employer bears or pays in respect of the employee’s services.

Cover options          Policies without life cover (T359F/ T459F/ T559F)
                       •   Only without-cover policies are available.

                       Policies with life cover (T303F/ T403F/ T503F)
                       •   The following cover options are available:
                           – Maximum
                           – Standard
                           – According to choice
                           – Without cover
Rate differentiation   Policies without life cover
                       •   None

                       Policies with life cover
                       •   Normal rate differentiation is applicable.
Aids cover             For policies with life cover, Aids cover is always included.
Rider benefits         Policies without life cover
available              •   Premium growth
                       •   Waiver of premium disability benefits with growth until a claim arises – OP.
                       •   Only premium growth is available in the case of without-cover policies in the
                           500 Plus series (T559F).
                       Policies with life cover
                       •   Lump sum disability benefits (OEA)
                       •   Cover Reinstatement Option (DHOE)
                           Please Note: OE and DHOE could have a dampening effect on the
                                         growth of the policy. The aim of a Central Provident
                                         Fund is additional retirement provision.
                       •   Premium growth.
                       • Waiver of premium disability benefits with growth until a claim arises – OP.
                       Note: No other rider benefits are available.
Maximum OE             The maximum OE amount equals the death benefit amount.
amount




GE 2/2005                                         arg(BN2)
Indexplan             All Provident Fund policies contain a clause in terms of which premium
                      increases are linked to the assured’s annual salary increases.
                      Sanlam Life must be advised in writing of the new premium being paid in
                      respect of each employee.
                      General                 The following stipulations are applicable to all Provident
                      stipulations            Fund policies:
                                              –    Only premium growth but not cover growth is
                                                   available with growth type 03.
                                              –    If no salary increase is given in a particular year,
                                                   premium growth of 0% can be requested.
                                              –    There is no limit on the number of premium
                                                   increases that may be skipped.
                      Growth type 01          Automatic premium growth (reason for this choice must
                                              be motivated in writing):
                                              –    Growth type 01 (with premium and cover growth)
                                                   can be switched to Growth type 03, if the employer
                                                   so requests. Cover growth is removed.
                                              –    Choice between a fixed rate or CPI.
                      Growth type 03          Premium growth in relation to salary increases:
                                              –    The first premium growth can take place one
                                                   month after the inception date.
                                              –    Premiums may be increased more than once a
                                                   year.
                                              –    There is no maximum premium increase. The
                                                   maximum premium contribution still remains 20%
                                                   of the basic remuneration.
Minimum premium       Monthly                 •    10 years and longer :     R 100,00
                                              •    shorter than 10 years :   R 200,00
                      Annually                •    10 years and longer :     R1 140,00
                                              •    shorter than 10 years :   R2 280,00
Premium payments      The premiums are payable up to
                      •   retirement or
                      •   the policy anniversary after the early death of the life assured.
                      Frequencies: Monthly, quarterly, half-yearly and annually.
                      Mode of payment: Debit order, electronic premium schedule or cash.

Age of when joining   Minimum:       15 anb
the fund
                      Maximum:       65 anb
Minimum policy        Tables 403F, 503F, 459F and 559F         : 5 years
term                  Tables 303F and 359F                     : 10 years
Retirement date       •   The date on which the member actually retires from the service of the
                          employer; or
                      •  In the case of a member who is not in service at an employer, a date
                         decided on by the member, which must fall on or after the member's 55th
                         birthday, but before or on his 70th birthday, or the date on which the insurer
                         pays disability benefits to the member in terms of clause 20.
                      Note: The maturity date should preferably coincide with the envisaged
                              retirement date.




GE 2/2005                                         arg(BN3)
Death benefit          At early death of the life assured, the larger of the following is payable:
                       •   The balance of the investment account, and
                       •   the cover amount (death benefit amount)
                       Note: At the member’s death the Trustees of the Fund decide how the benefits
                             must be paid to the member’s dependants and/ or nominees (see
                             Section BC "Payment of death benefits").
Maturity benefit       Policies with a           At survival of the policy term, the larger of the following
                       guarantee amount          is payable:
                                                 •   The minimum maturity amount, and
                                                 •   the balance of the investment account.
                       Table 559F/ Policies      At survival of the policy term, the balance of the
                       without a guarantee       investment account is payable.
                       amount
                       NB: If the member reaches retirement age after the maturity date of the
                           policy, the Fund must continue the policy until the actual retirement
                           date.
Waiting period         Twelve months
before 5/6/2000 for
all terms
Waiting period after   Policies Without          Two months
5/6/2000 for all       Cover
terms
                       Policies With Cover       Six months
Policy values          No cash withdrawal or loan is allowed while the CPF is the policy-owner. On
                       leaving the company’s service, the policy can be surrendered or made fully
                       paid-up.




GE 2/2005                                         arg(BN4)
                    TECHNICAL AND ADMINISTRATIVE INFORMATION


Dismissal,              Options available to the employer
Retirement,             •   As long as the policy remains in the Central Provident Fund the Central
Resignation                 Provident Fund can surrender it at the request of the employer, with the
                            surrender value being paid to the former employee directly. (Tax
                            implications: none for the employer.) Therefore the policy need not be
                            ceded to the assured at first, but can be surrendered by the fund directly.
                        •   The policy is ceded to the employee. The employee may surrender the
                            policy and provided that at least 5 years of the policy term has lapsed, the
                            surrender value will not be limited by the Regulations as contained in Part
                            4 of the Long-term Insurance Act (previously Section 59D) (refer to
                            Section AD).

                        Options available to the employee
                        •   A new employer can continue paying premiums for the benefit of the
                            member provided he is also affiliated to the Central Provident Fund. (Tax
                            implications: none for the original employer.)
                        •   The policy may be surrendered by the Central Provident Fund prior to
                            retirement age. The tax-free lump sum is the greater of R1 800 plus any
                            part of the benefit which is transferred to an approved pension fund,
                            provident fund or RA fund. Any balance is taxed at the average rate.
                        •   If the policy is surrendered on reaching retirement date the formula for
                            calculating tax-free amount is as follows:
                            1/10 of the highest average annual salary (max. R60 000) over any 5
                            consecutive years of service x number of years of service (max. 50 years),
                            subject to a maximum of the greatest of R120 000 and R4 500 x number
                            of completed years of service plus the member’s contributions not
                            previously allowed as deductions.
                            The portion of the lump sum from a provident fund which exceeds the tax-
                            free portion, is taxed at the taxpayer’s average rate.
                        •   If a member takes part of the benefit in the form of a pension, the full
                            pension will be taxable as such.
                        •   The policy may be ceded to the employee. The underlying reason for the
                            cession, namely retirement or withdrawal owing to resignation, will
                            determine the tax implications.
                            The surrender value of the policy shall be deemed to be a lump sum
                            benefit accruing to such member on the date of such cession.
                        •   The policy benefits can be paid as a lump sum at retirement, or any part of
                            the proceeds can be used to purchase a pension.
Board decision/         •   A board/member’s decision is essential in the case of a company/close
Member’s decision to        corporation.
join as participating   •   An extract from the minutes (AE1003) of a meeting held by the
employer                    board/members, must be completed and signed by each employer
                            affiliated to the Central Provident Fund.




GE 2/2005                                       arg(BN5)
One-man            •   The provident fund can be established as a benefit for the only shareholder as
companies              well as all qualifying members of such company.
Sole proprietor-   •   The provident fund can be utilised in sole proprietorships, but only in respect
ship                   of employees in the employ of the owner. The owner of the sole proprietor-
                       ship cannot be his own employee.
Spouse             •   Only employees of the employer qualify as members of the provident fund.
                       The spouse can therefore only participate in the Central Provident Fund if he
                       or she is also employed by the same employer.
Insolvency         •   As long as an insolvent employee remains in the service of the employer, or
                       an insolvent employee is rehabilitated prior to receipt of the provident fund
                       benefit, the insolvency of the employee has no effect on the provident fund,
                       since the policy belong to the Central Provident Fund.
                   •   The insolvency of the employer does not have a direct influence on the
                       provident fund policy because the employer is not the owner of the policy.
                       However, the people involved must decide on the future of the policy. The
                       payment of premiums by a new employer or cession to the member, for
                       example, could be considered.
Cash withdrawals   A member of the Central Provident Fund does not have access to any benefit
                   under such policy(ies), except should the member
                   •   die
                   •   retire from the service of the participating employer; or
                   •   resign from the service of the participating employer.
Cash withdrawals   If the policy has been in force for 5 years or more at retirement (having been
after cessions     ceded to the assured), the assured can make use of the continuation option. If
                   the 20% rule with regard to premiums over the last 5 years has been complied
                   with, cash withdrawals can be made.
Loans              Loans will not be granted on a policy while such policy is an asset of the Central
                   Provident Fund.
Life cover         •   Life cover in the case of the provident fund
                       No life cover has to be taken on the provident fund policy.
                   •   Higer life cover
                       There is no restriction on the maximum life cover that may exist on a policy.

Non-taxpaying      •   The employee’s situation is the same as that of an employee in the service of
institutions           a taxpaying employer.
Term – extend/     •   The term of the policy can be extended by means of the continuation option.
reduce
                   •   The term of the policy or the premium term can be reduced by means of a
                       surrender. It must be kept in mind that surrendering a policy will have an
                       adverse effect on the proceeds of the policy.
Back-dating        •   Terms of up to 5 years
                       Until the beginning of the month in which the first premium is received.
                   •   Terms of up to 6 years and longer
                       Until the first day of the financial year of the employer in which he proposed
                       for the policy.




GE 2/2005                                      arg(BN6)
Buying back of    The employer can make retroactive contributions in respect of the member to the
service years     Fund for any period before the commencement of the member's membership.
                  The elapsed period for which the retroactive contribution is made, is determined
                  at the member's death or retirement according to the formula:
                            A
                  Y     =        x C – C, where
                            B
                  Y     =   the period of elapsed service that must be calculated;
                  A    =     the total contributions to the Fund in respect of the member (that is
                             current and retroactive contributions).
                  B    =     the current contributions to the Fund in respect of the member.
                  C    =     the years of contributing membership at retirement or death.
Premium           The premiums can be reduced to the minimum premium applicable at that stage.
reduction
Partnerships      The provident fund cannot be used for the partners in a partnership. However, it
                  can be used for the employees of a partnership.
Selling of a      Membership of the Central Provident Fund can continue as before, provided the
business          new owner of the business has been or will be registered as a participating
                  employer of the Central Provident Fund.
Continuations     If the actual retirement date is after the maturity date of the policy, the Fund must
within the Fund   continue the policy until the actual retirement date.
                  Term            The policy is continued until retirement, but not for more than 5
                                  years. If the actual retirement date is more than 5 years away,
                                  an additional continuation will be done on that date.
                  Premium         If the premium is increased by more than 20% annually, and the
                                  member is due to retire within the next 5 years, there may be
                                  certain restrictions at retirement, if the member then takes
                                  cession of the policy.
                  Investment      •   Balanced Fund
                  options         •   Multi-Manager Balanced Fund
                                  •   Guaranteed Capital Fund
                                      Note: This option is available only for members who at
                                            termination of service and in terms of the Central
                                            Provident Fund Rules, decided to retain their benefits,
                                            fully paid-up, in the Central Provident Fund.




GE 2/2005                                     arg(BN7)
Administration     •   Surrendering the policy
                       A surrender form (AE204), signed and stamped by the employer on behalf of
                       the Central Provident Fund, must be handed in at Employee Schemes, or be
                       faxed to them.
                   •   Cession of the policy to the employee
                       A notice of cession form (AE1357), signed and stamped by the employer on
                       behalf of the Central Provident Fund, must be handed in at the nearest Sanlam
                       Life office.
                   •   The new employer carries on paying the premiums for the benefit of the
                       member
                       A notice of change of employer (form AE1356), signed and stamped by the
                       new employer, as well as the new employer’s registration number must be
                       handed in at the nearest Sanlam Life office.
                   •   Death claim
                       A death claim must be reported in writing or by telephone to the Death Claims
                       department of Sanlam Life, which will then ask for the necessary forms and
                       requirements. A death certificate at least is always required.
                   Note: In order to speed up the finalisation of policies in the case of death,
                         retirement, etc., the employee’s tax particulars are required with a written
                         declaration regarding the existing situation in respect of the employee.
Proposal forms     •   Proposal by employer: AEB57
                       This proposal form is completed by the employer for up to 22 employees. This
                       proposal form will be valid for three months only.
                   •   Declaration by employee: AEB56
                       Completed in respect of every employee.
Rules of the       The fund rules are available on "Notes" on SL "General Mail : Fund Rules". It will
Central            be accepted that the employer who signed his application for participation, is
Provident Fund     familiar with the rules.
Marketing          An information brochure for employees can be ordered from Supply Services:
Material              Item number : NE562
Mixing of tables   It is not permitted to mix the type of tables used within a specific scheme (e.g. only
                   Table 359F/ 459F/ 559F or Table 303F/ 403F/ 503F).
Enquiries          Technical           Enquiries may be directed to your local legal advisor or
                   enquiries           department Employee Schemes.
                   Registration of     –   Procedure of registration:
                   an employer             Employee Schemes
                                       –   To determine whether a specific employer is registered:
                                           Employee Schemes
                   Death benefits      –   If the assured is alive:
                                           Client Contact Centre
                                       –   If the assured has died:
                                           Policy Claims : Policy Death Claims (Head Office)




GE 2/2005                                        arg(BN8)
                              FEBRUARY 2006


                                SECTION BP


                          THE ONE POLICY FOR TWO


                                                                   Page


 HOW THE POLICY WORKS ………………………………..……………………                       BP1
 − GENERAL INFORMATION ………………………………………………………………                    BP1
 − RIDER BENEFITS AVAILABLE …………………………………………………………                 BP2
 APPOINTMENT OF BENEFICIARIES ………………….……………………….                   BP2
 − MUTUAL APPOINTMENT OF BENEFICIARY TO RECEIVE DEATH BENEFITS .   BP2
 CESSIONS ………………………………………………………………………….                            BP3
 SPLITTING A JOINT-LIFE POLICY …………………..…………………………                 BP3
 COMPULSORY PREMIUM GROWTH RATE ………………………..…………                    BP4
 MEDICAL UNDERWRITING AND AIDS ………………………………...………                  BP4
 PRODUCT NAME CODES ………………………..……………………………...                      BP4
 THE ONE POLICY FOR TWO: INDIVIDUALS ……..…………………………                BP4
 FORMS ………………………………………………………………………………                              BP4




GE 5/20003                         arg(BP)
                                                    SECTION BP

                                          THE ONE POLICY FOR TWO


The One Policy for Two protects two people comprehensively because it takes the financial needs of
both into consideration and can be adapted to suit their future needs. This policy is available also for
one person (See later in this section).

HOW THE POLICY WORKS
•     It is an endowment policy where the cover amount is paid out on the death of the first-dying life
      insured.
•     The policy ceases once the cover amount has been paid out.
•     The policy offers a choice of rider benefits.
•     Premium growth is compulsory and premiums for the first few years are used mainly to fund
      essential life cover, while in the latter part of the policy term premiums are used mainly for capital
      growth.
•     The maximum term is 30 years.
•     Policies with terms longer than five years offer cash benefits after only five years.
•     The minimum maturity value will always be greater than or equal to the initial cover amount -
      provided the premium increase is maintained.
•     The proposer/owner can be any of the following:
      −   the life insured (single-life policy)
      −   both the lives insured (joint-life policy)
      −   only one of the lives insured (joint-life policy) or
      −   a third party with an insurable interest in the life (lives) insured (single-life policy/joint-life policy).

GENERAL INFORMATION

    Type of policy          The One Policy for Two is an endowment policy in terms of which two lives can
                            be insured at the same time.
    Choice of cover         Cover according to choice is always indicated with this policy.
    Investment series       Investments are possible in the 300, 400 and 500 Plus series.
    Chosen term             Minimum:           5 years
                            Maximum:           30 years

    Inception age           Minimum:           15 next birthday
                            Maximum:           65 next birthday

    Maturity age            Maximum:           70 next birthday
    Premium                 Frequency: monthly, quarterly, half-yearly, or annually
    payment                 Mode of payment: Debit order, stop-order, or cash
    Life Cover              •   The cover amount is always the same for each life insured.
                            •   The cover amount is paid out on the death of the first-dying life insured.
    Guaranteed              The guaranteed minimum maturity value of the policy is calculated at a rate of
    minimum                 4,5% p.a. and is equal to the initial cover amount specified. This guarantee is
    maturity value          based on compulsory premium growth of 10% per year.

    First life insured      Clients can decide/indicate who the first life insured must be.




GE 5/2003                                               arg(BP1)
RIDER BENEFITS AVAILABLE

    Both lives insured     Disability       •   OE can be added up to a maximum of the life cover that is
    or                     benefits             taken.
    any one of the         (OEA/OEP)        •   The benefit can apply to one or both lives insured.
    lives insured                           •   The OE types may differ, e.g. OE2A/OE2P for one life
                                                insured and OE3A/OE3P for the other. OE limits are
                                                determined as for a single-life policy.
                                            •   OE3AS and OE3PS is not available.
                                            Note:    In the case of a joint-life policy, each life insured’s OE
                                                     limit is determined separately. This may result in the
                                                     OE cover of the two lives insured differing from each
                                                     other. However, neither life insured’s OE cover may
                                                     exceed the death cover.
                           Trauma           Trauma Benefit can be added to the policy in the same way as
                           benefit (TV)     disability benefits.

    Only first life        Waiver of        Regular occupational (OG3) or regular              or   alternative
    insured                premium          occupational disability (OG2) is available.
                           benefit (OG)
                                            Please Note:       Although it deviates from the normal OG
                                                               requirements, OG is still available. See
                                                               Section CH.
                           Future Cover     If chosen, Sanlam’s normal rules regarding HIV/Aids will apply
                           (TD)             when this option is exercised.


     APPOINTMENT OF BENEFICIARIES

If no beneficiaries have been appointed, the payment of the death benefits takes place as follows:
•     50% to the surviving owner and
•     50% to the estate of the deceased.

MUTUAL APPOINTMENT OF BENEFICIARY TO RECEIVE DEATH BENEFITS

The proposers/owners (if both are lives insured) can appoint each other as beneficiary to receive the
death benefits. Because the death benefits in such a case do not form part of the deceased owner's
estate, they are not subject to executor's fees. The death benefits will, however, be subject to estate
duty, as for estate duty purposes they are deemed to be an asset in the deceased owner's estate.

An appointment can be revoked but vests on the death of the first-dying life insured.

The following scenarios are possible:

•     Both a man and his wife are the lives insured. Only the man is die proposer/owner. He can appoint
      his wife as the beneficiary. If he dies first, 100% of the death benefits is payable to his wife in terms
      of the appointment. If, however, his wife (as co-life insured) dies first, the death benefit pays out to
      him (as the only policyholder).
•     Both the man and his wife are the lives insured, but only one of the two is the proposer/owner. The
      proposer/owner appoints someone other than the other life insured as a beneficiary. At the death of
      the first-dying life insured 100% of the death benefits is payable to the beneficiary in terms of the
      appointment. The surviving life insured, (even if he or she was the policy-owner) does not receive
      anything.
•     Both the lives insured are also the proposers/owners. They can mutually appoint each other as
      beneficiary. On the death of the first-dying life insured 100% of the death benefits (50% as co-owner
      and 50% as beneficiary) is then payable to the surviving life insured/owner.




GE 5/2003                                           arg(BP2)
MUTUAL APPOINTMENT OF BENEFICIARY TO RECEIVE DEATH BENEFITS (continued)

•   Both are lives insured and proposers/owners. Both appoint someone other than each other as a
    beneficiary. On the death of the first-dying life insured the death benefits must pay out, which then
    means that 50% is paid out to the surviving life insured/owner and 50% to the beneficiary of the
    deceased life insured/owner.
•   The policy is issued with the husband and wife as lives insured and owners. They get divorced. The
    one life insured/owner cedes his/her 50% ownership interest to the other life insured. That other life
    insured/owner appoints someone else as a beneficiary to receive the death benefits. On the death
    of the first-dying life insured (who is now no longer also a co-owner) 100% of the death benefits is
    still payable to the surviving life insured (who is now the only owner). If the life insured - who is the
    only owner of the policy after the divorce - dies first, the full death benefits are payable to the
    beneficiary.
Although it is possible to nominate a person other than the co-life insured as a beneficiary (in which case
50% of the death benefits will be paid to the surviving life insured and 50% to the appointed person),
such an appointment can cause a great deal of confusion and endless problems regarding, for example,
the division of the benefits and liability for estate duty. It is therefore recommended that such an
appointment not be considered or - if for some reason it is indeed a consideration - that legal advice be
obtained.
If both lives insured are also proposers/owners and no beneficiary has been appointed, the surviving life
insured will receive 50% of the benefits, while 50% will be paid to the deceased's estate. If, therefore, it
is the wish of the lives insured (as co-owners) that the surviving life insured must receive the benefits in
full, they must appoint each other as beneficiary.

Policy Service will in all circumstances allow only one beneficiary per owner.


    CESSIONS

Cessions are available, but then both owners (if more than one) must sign and give permission.

    SPLITTING A JOINT-LIFE POLICY

In the case of a joint-life policy it may be necessary to split the policy, e.g. in the event of a divorce.
•   There is a special contractual stipulation which allows the policy-owner(s) to terminate and split the
    policy and take out two separate policies for the lives insured.
•   If a co-owner of the policy does not cede his/her 50% of the policy to the other co-owner, it must be
    surrendered and two single-life policies can be taken out without proof of assurability and HIV
    testing.
•   The cover amount for each policy may be no greater than half of the amount at risk (cover amount
    less surrender value).
•   Each policy's term must be equal to or shorter than the remaining term of the joint-life policy
    (minimum 5 years).
•   The single-life policy taken out in this way, must also comply with Sanlam’s new business
    requirements at that stage.




GE 5/2003                                           arg(BP3)
COMPULSORY PREMIUM GROWTH RATE

•    A guaranteed minimum maturity value equal to the initial life cover is made available on condition
     that the premium grows by 10% every year.
•    Cover growth is also available (60% of premium growth). Obtain a special quotation from your
     regional office.
•    If the client requires cover growth this must be written by hand on the proposal form.
•    Growth takes place on policy anniversary only.
What happens if premium growth is skipped?
•    If premium growth is skipped or cancelled, the minimum maturity value will no longer be equal to the
     death benefit amount.
•    The contract provides two guarantees: one which takes full premium growth into account and one
     which does not take premium growth into account at all.
•    As soon as premium growth is skipped or cancelled, the lower guarantee will apply.
Note: In such a case the guarantee will usually no longer apply in respect of the minimum maturity
      value, or only a reduced guaranteed maturity value, as indicated in the contract, will apply. In
      such a case the guaranteed term in respect of the initial cover amont will be shorter than the
      policy term.

MEDICAL UNDERWRITING AND AIDS
•    A full medical declaration is required for both the lives insured.
•    Only an initial blood test is done. If the limits so require, both lives insured must undergo a blood
     test.

PRODUCT NAME CODES
Product name code:         −   For joint lives insured: D073
                           −   For the single-life product: B002 (The One Policy for Endowment)
The relevant box must be marked on the proposal form.

THE ONE POLICY FOR TWO: INDIVIDUALS
•    This product is also available to single persons.
•    In such a case the product name is The One Policy for Endowment.
•    It is an ordinary endowment policy for one person, but with compulsory premium growth of 10% per
     year and a minimum guaranteed maturity value equal to the initial life cover.
•    The same rider benefits available under The One Policy for Two are also available in the case of The
     One Policy for Endowment under the same provisions which apply to the first life insured.
•    The rest of the particulars are the same as for The One Policy for Two.


    FORMS

Proposal form       : AEB69
Notations           : AEB6




GE 5/2003                                           arg(BP4)
                             SECTION BO



                         PRESERVATION FUNDS



                                                                Page
WHAT IS A PRESERVATION FUND? ………………………………………………….               BO 1
PERMISSIBLE TRANSFERS …………………………………………………………...                 BO 2
PROPOSAL PROCEDURES ……………………………………………………………                     BO 2
–   REGISTRATION OF ASSOCIATED EMPLOYERS …………………………………………..     BO 2
–   PROPOSAL PROCEDURE FOR EMPLOYEES ……………………………………………...       BO 2
–   POLICIES WITH/WITHOUT WITHDRAWAL BENEFITS …………………………………….   BO 3

GENERAL INFORMATION ………………………………………………………………                    BO 3
–   PREMIUMS ………………………………………………………………………………………..                BO 3
–   TABLES AVAILABLE ……………………………………………………………………….……             BO 3
–   AGE AT INCEPTION ……………………………………………………………………………..            BO 3
–   MATURITY OR RETIREMENT AGE ………………………………………………………..….        BO 3
–   MINIMUM TERM ………………………………………………………………………………….               BO 3
–   COVER LEVELS ………………………………………………………………………………….               BO 3
–   RIDER BENEFITS AVAILABLE …………………………………………………………………          BO 3
–   UNDERWRITING …………………………………………………………………………………                BO 4
–   POLICY LOANS …………………………………………………………………………………..              BO 4
–   CESSIONS ………………………………………………………………………………………...               BO 4
PAYMENT OF BENEFITS ………………………………………………………………..                  BO 4
–   RESIGNATION FROM A PRESERVATION FUND …………………………………………..     BO 4
–   POLICIES WITH WITHDRAWAL BENEFITS ………………………………………………….      BO 4
–   PRESERVATION PROVIDENT FUND …………………………………………………………          BO 5
–   PRESERVATION PENSION FUND …………………………………………………………….          BO 5
TAX ………………………………………………………………………………………….                         BO 5
FUND RULES ………………………………………………………………………………                       BO 6
MARKETING MATERIAL ………………………………………………………………...                  BO 6
ENQUIRIES ………………………………………………………………………………...                     BO 6




GE 2/2001                         arg(bo)
                                          PRESERVATION FUNDS


WHAT IS A PRESERVATION FUND?

·   A preservation fund is a registered and approved pension or provident fund.
·   It is a fund in which employees who terminate service with a participating employer because of
    dismissal (including due to staff reduction (retrenchment)), resignation or the dissolution of the
    employer’s pension or provident fund, can invest their accrued fund benefits.
·   A member’s accrued benefits in a particular provident or pension fund may not be transferred to
    more than one preservation fund, but the benefit may be divided between a preservation fund and
    an RA fund.
·   The following are retained (preserved) by a preservation fund until retirement:
    -   accrued retirement benefits and
    -   complete years of service.
Sanlam Life’s Preservation Funds
Sanlam Life has established the following two preservation funds:
    -   The Sanlam Preservation Pension Fund and
    - The Sanlam Preservation Provident Fund,
    which fund member benefits on members’ lives by means of policies.
                                2
Sanlam Personal Portfolios (SP ) operates the following:
    -   The Personal Portfolio Preservation Pension Fund and
    -   The Personal Portfolio Provident Fund.
Note: The information which follows is only applicable to the Sanlam Preservation Pension and the
      Sanlam Preservation Provident Funds. Information in respect of the preservation funds of
      Sanlam Personal Portfolios must be obtained from them.
How a preservation fund works
·   Sanlam Life’s preservation funds fund member benefits with individual single-premium policies on
    the life of the member in question.
·   Sanlam Life will therefore pay the benefits via this fund to the insured (in the event of withdrawal,
    disability or retirement) or to his dependants, nominees or estate (in the event of death).
·   The same tax concessions as in the case of pension and provident funds are applicable to the
    retirement and death benefits. NB - Retirement includes early retirement because of disablement.
·   It is not possible to transfer benefits from the Public Service Pension Fund to a preservation fund.
    Should such transfers be allowed the transfer benefits will also lose its tax-free status.

Policy-owner
The relevant Sanlam Life preservation fund is the proposer and owner of the policy.

Life assured
The employee (member) is the life assured.




GE 9/2003                                          arg(bo1)
PERMISSIBLE TRANSFERS

·   Only transfers from an employer pension fund or another preservation pension fund to the Sanlam
    Preservation Pension Fund are permissible.
·   Likewise, only transfers from employer provident funds or another preservation provident fund to the
    Sanlam Preservation Provident Fund will be accepted.
·   In addition, only benefits of a pension or provident fund can be transferred in the case of
    -   an employee leaving the service of a participating employer as a result of resignation or
        dismissal or retrenchment, or
    -   the fund is dissolved completely with regard to a participating employer and employees.
·   The member's gross benefits in the transferring fund must be transferred to the preservation fund,
    except if they were reduced as a result of:
    -   the stipulations of Section 37D of the Pension Funds Act e.g. house loan;
    -   the member transferring a portion to a RA fund; or
    -   the payment of a portion to a non-member in terms of a divorce order.
    A transfer to a preservation fund is prohibited if the gross benefits have been reduced for a reason
    other than that stated above.
·   A transfer from a preservation fund to an RA fund is not permissible.
·   Employees whose retirement provision structure changes from a pension fund to a provident fund,
    will also not be able to transfer accumulated pension benefits to a preservation pension fund in the
    case of this type of restructuring, unless the relevant pension fund is dissolved completely.
·   A transfer between two preservation pension funds or two preservation provident funds respectively,
    is permitted only if the employer of the member concerned is a participating employer in respect of
    the receiving preservation pension fund or preservation provident fund.


    PROPOSAL PROCEDURES

REGISTRATION OF PARTICIPATING EMPLOYERS
·   An employer must register with one of Sanlam Life’s preservation funds as a participating employer
    before any accrued benefit in respect of an employee may be accepted. This registration must take
    place before the employee terminates service or before the employer fund dissolves.
·   As in the case of the Central Provident Fund (CPF), a registration system has been introduced for
    Sanlam Life’s two preservation funds. The same registration procedure as in the case of the CPF
    must therefore be followed. The following registration form must be completed to register such a
    scheme:
        Form AE2521      : Application for registration
    The form must be faxed to Employee Schemes. The fax numbers are (021) 947-3796 or (021) 947-
    5183.
Please Note: Once the transfer from a particular fund has been completed, the transferring fund
             has no responsibility or liability towards the relevant member or the receiving
             preservation fund.

PROPOSAL PROCEDURE FOR EMPLOYEES
The employee must be in the service of the employer at the time of registration (of the employer).
Proposal form (AEB63) can be used for both the Preservation Pension Fund and the Preservation
Provident Fund.




GE 9/2003                                           arg(bo2)
POLICIES WITH / WITHOUT WITHDRAWAL BENEFITS
·    The agreement between the transferring fund and the life assured (member) determines whether
     the benefit amount is withdrawable before the chosen retirement age or not.
·    The benefit amount of a policy with a withdrawal benefit usually consists of contributions made to
     the transferring fund by the member.
·    The benefit amount of a policy without a withdrawal benefit usually consists of contributions made
     by the employer on behalf of the member to the transferring fund (blocked policy). A “B” appear
     after the table code on the policy record.
·    If the benefit amount partly consists of both an amount that is withdrawable before retirement and
     an amount that is not withdrawable, a division of the amount should be indicated on the proposal
     form (AEB63) at Acknowledgement of Transfers between Approved Funds. Only one proposal form
     is required and two separate policies will be issued.
·    See “Policies with withdrawal benefits” under PAYMENT OF BENEFITS later in this section.


    GENERAL INFORMATION : Preservation Funds

PREMIUMS
Premium frequency
Only single premiums are permissible – minimum R5 000.

TABLES AVAILABLE
-    Preservation Pension Fund       : Tables 360, 460 and 560
-    Preservation Provident Fund     : Tables 361, 461 and 561

AGE AT INCEPTION
Minimum       : 15 next birthday
Maximum       : Stable Bonus Fund                                   : 69 next birthday
                Balanced Fund, Sanlam Equity Fund and
                Fund of Funds                                       : 65 next birthday

MATURITY OR RETIREMENT AGE
Minimum       : 56 next birthday
Maximum       : 70 next birthday
If a member retires from a (future) employer’s service as a result of reaching retirement age or
disability, he must also retire from the particular preservation fund. A member can also not retire from a
preservation fund while he is still in the service of an employer.

MINIMUM TERM
Stable Bonus Fund policies                                    : 1 year
Balanced Fund, Sanlam Equity Fund and Fund of
Funds policies                                                : 5 years

COVER LEVELS
Stable Bonus Fund and Balanced Fund policies                   : Only Without Cover (cover equal to the
                                                                 single premium)
Sanlam Equity Fund and Fund of Funds policies                  : Only Without Cover

RIDER BENEFITS AVAILABLE
No rider benefits are available.




GE 9/2003                                          arg(bo3)
UNDERWRITING
No underwriting with regard to occupation, part-time activities, health or Aids is applicable.

POLICY LOANS
No loans are permitted.

CESSIONS
No cessions are permitted as long as the policy is in the fund.


    PAYMENT OF BENEFITS

RESIGNATION FROM A PRESERVATION FUND
·    The rules of these funds permit members (employees) to withdraw from the fund at any stage
     before the chosen retirement age should the agreement between the transferring fund and the life
     assured (member) not forbid it.
·    The accrued benefit of a preservation fund is in the case of early withdrawal fully payable in a cash
     amount (as in the case of withdrawal from an ordinary pension or provident fund). Such withdrawal
     will not be regarded as retirement.
·    At withdrawal from a preservation fund, depending on the member’s instructions, the Fund will
     -   pay the value of the policy to the member, or
     -   cede the policy to the member.
·    However, if a member retires at an earlier stage in terms of another pension or provident fund of an
     employer, he must also retire from the preservaton fund. In this case it will not be regarded as a
     withdrawal from the fund and the normal rules as in the case of retirement will apply.

POLICIES WITH WITHDRAWAL BENEFITS
The accrued benefit can be taken fully or partially in cash before retirement.
The rules of both preservation funds stipulate that a member may receive a withdrawal benefit once
only. Therefore, if a member effects a partial withdrawal, he loses access to any further capital until
his retirement. The balance of the capital will be available only at retirement (or disability or death). If
the gross benefits have not been transferred to the preservation fund (except if a portion has been
transferred to an RA fund), the preservation fund may not pay any withdrawal benefit to the member.

Waiting Period
A waiting period of one month applies before a withdrawal is permitted.

Sanlam limitation i.r.o. partial withdrawals
The total withdrawal value is determined by Sanlam Life. However, if only a portion of the benefit can
be withdrawn, the following applies:
     -   Minimum partial withdrawal permissible      : R1 800
     -   Maximum partial withdrawal permissible      : Total cash value minus R3 000
If remaining amount is less than R3 000, the full value of the policy must be taken.




GE 9/2003                                           arg(bo4)
PRESERVATION PROVIDENT FUND
Death benefits
-    Death before retirement:
     At death, the claim value is payable in the form of a pension that may be commuted partially or
     entirely. The same principles that apply to an RA fund are applicable in respect of the appointment
     of nominees, who have to be approved by the trustees of the fund.
-    Death after retirement:
     If, at retirement, the member chose a pension that is payable for a certain term, and the member
     dies within the certain term, the remaining instalments are payable to the member's nominees.
Retirement and disability benefits
The benefit at retirement, whether as a result of poor health or otherwise, is a pension that can be
partially or entirely commuted. The same pension options are available as in the case of RA funds.
Should the member retire, or withdraw due to ill health, the fund may cede the policy to the member.

PRESERVATION PENSION FUND
Death benefits
-    Death before retirement:
     At death, the claim value is payable in the form of a pension that may be commuted partially or
     entirely. The same principles that apply to a retirement annuity fund are applicable in respect of the
     appointment of nominees, who have to be approved by the trustees of the fund.
-    Death after retirement:
     If, at retirement, the member chose a fund pension that is payable for a certain term, and the
     member dies during that certain term, the remaining payments will be payable to the member’s
     dependants or nominees (depending on the discretion of the trustees).

Retirement and disability benefits
If the member retires due to ill health or reaches his normal retirement age, the value of the policy must
be utilised to purchase a pension on the life of the assured. The same choices as for RA’s are
available. No more than one third of the full benefit may be taken in cash.

    TAX

·    There is no tax payable on the transfer of retirement benefits to a preservation fund.
·    The tax payable by the member on the benefits he/she receives from a preservation fund, will be the
     same as for ordinary pension/provident funds:
     -    Lump sums are taxable. Depending on the term of contributory membership, a part of the lump
          sum may be available tax-free - see “Years of service” below.
     -    Pension instalments are fully taxable as gross income.

Years of service
The member’s years of service with the employer from whose fund the transfer to the preservation fund
is made, are transferred to the preservation fund in question. The member therefore retains the portion
of the accrued tax concession in respect of lump sums from pension and provident funds. However, the
extent of this concession is derived from the member’s period of pensionable service with the employer
in question and he therefore does not build up years of service in a preservation fund for tax purposes.
However, if the member makes a withdrawal prior to retirement or part of the transfer benefit is
transferred from the transferring employer fund to an RA fund, the credit for years of service will be
reduced pro rata.




GE 9/2003                                           arg(bo5)
    FUND RULES

The complete rules of both funds are available on Notes, SPF General Mail under "FUND RULES".

    MARKETING MATERIAL
If you require more information the following brochure can be ordered from Drake & Scull: Supply
Services: NE582.

    ENQUIRIES : Preservation Funds

·    Technical enquiries:
     Enquiries may be directed to your local legal advisor or Client Contact Centre.
·    Registration of an employer:
     -   Procedure of registration: Employee Schemes
     -   To determine whether a specific employer is registered: Employee Schemes
·    Death benefits:
     -   If the assured is alive: Client Contact Centre
     -   If the assured has died:
         SPF Policy Claims : Policy Death Claims (Head Office)




GE 9/2003                                            arg(bo6)
                        SECTION BS



             ROLLING GUARANTEED EQUITY GROWTH




                                                      Page
HOW IT WORKS …………………………………………………………………………             BS1
ADVANTAGES …………………………………………………………………………..             BS1
CHOICES AVAILABLE …………………………………………………………………           BS2
INCEPTION DATE ……………………………………………………………………….           BS2
MINIMUM PURCHASE SUM …………………………………………………………...        BS2
NEW BUSINESS CEILING (CAP) ……………………………………………………..     BS3
COSTS …………………………………………………………………………………….               BS3
CALCULATING THE INVESTMENT RETURNS …………………………………….    BS3
TAX LIABILITY …………………………………………………………………………..          BS3
MINIMUM MATURITY VALUE …………………………………………………………         BS3
GUARANTEES ………………………………………………………………………….              BS3
CONDITIONS APPLYING TO VALUES ………………………………………………      BS4
DEATH BENEFITS………………………………………………………………………..           BS4
VALUES…………………………………………………………………………………...              BS4
CONTINUATIONS..……………………………………………………………………….           BS4
CONVERSIONS ………………………………………………………………………….             BS4
CLIENT PROFILE ……………………………………………………………………….           BS4
CESSIONS AND POLICY–OWNERSHIP …………………………………………….      BS4
LOANS ……………………………………………………………………………………                BS4
PROPOSAL FORM ……………………………………………………………………...           BS4
PROPOSAL PROCEDURES …………………………………………………………..          BS5
PAYMENT OF PURCHASE SUM ……………………………………………………..        BS5
PRODUCT NAME CODE ……………………………………………………………….           BS5
COOLING–OFF PERIOD AND REPLACEMENT ………………..………………….   BS5
ENQUIRIES ………………………………………………………………………………              BS5
EXAMPLE: HOW THE CAP WORKS …………………………………………………        BS6




GE 6/99                      BS
                     ROLLING GUARANTEED EQUITY GROWTH


 Rolling         This product offers clients the opportunity to invest on the Johannesburg Stock
 Guaranteed      Exchange without running the risk of losing investment amounts. This is made
 Equity Growth   possible because:
                 •   growth vests every year and
                 •   growth can never be negative in any policy year.
 How it works    It is a single-premium sinking fund policy with a term of 5 years. The proceeds
                 of the policy are linked directly to the Top Share-Index (ALSI 40) of the
                 Johannesburg Stock Exchange (JSE), and are subject to:
                 •   a guarantee that the proceeds of the policy will never be negative over any
                     policy year, even if the ALSI 40 index drops during the policy year.
                 •   a maximum growth that over any policy year may never exceed the ceiling
                     rate (cap) that applies for the policy term. This rate will change from time to
                     time for new business. Please consult the quotation system (SanQuote)
                     for the correct ceiling rate currently applicable.
                 •   a minimum maturity value equal to the single premium (before the recovery
                     of costs).
 Advantages      •   Invest on the Johannesburg Stock Exchange without some of the risks
                     usually associated with such an investment.
                 •   The minimum maturity value equals the single premium (e.g. before the
                     recovery of costs).
                 •   The investment is made in the form of a sinking fund policy and at the death
                     of the policy-owner it must be continued by the nominee for policy-
                     ownership.
                 •   The policy’s investment growth vests annually on the policy anniversary
                     (good growth earned in one policy year is maintained, even if the market
                     crashes).
                 •   No additional costs are recovered.      All costs are disclosed in full and
                     guaranteed over the policy term.




GE 6/2000                                 arg(bs1)
 Choices          The product can be structured as follows:
 available
                  •   A Capital Growth Plan:
                      The investment is in the form of a single-premium sinking fund policy.
                  •   An Income Plan:
                      −   The investment is a combination of a term annuity and a single-premium
                          sinking fund policy.
                      −   The client has a choice between a maximum income and any income (as
                          long as the minimum requirements regarding the term annuity instalment
                          are complied with) less than the maximum.
                          In the case of maximum income, the investment is structured in such a
                          way that the illustrative maturity value of the sinking fund policy at the
                          higher illustrative rate (currently 12% a year) equals the purchase sum of
                          the investment.
                          NB:        The actual maturity value will depend on the actual growth on
                                     the single-premium portion over the policy term and therefore
                                     the purchase sum is not guaranteed.
 Inception date   The inception date is determined as follows:
                             Date on which
                            purchase sum is                            Inception date
                                received
                                 th
                              16 of month
                                                                        st
                                to end of                              1 of month + 2
                                  month
                                st
                               1 of month
                                                                        st
                           up to and including                         1 of month + 1
                                 th
                              15 of month
                  •   As in the case of single-premium endowment policies, growth on the
                      purchase sum is added to the purchase sum to cover the period from the
                      date of payment until the inception date.
                  •   The inception date of the term annuity is determined as usual.
                  •   The inception dates of the policy and the term annuity will therefore always
                      differ.
 Minimum          The minimum amount that can be invested in this product is R15 000.
 purchase sum
                  Note:    If the income option is chosen, the investment amount must be such
                           that the single premium of the policy is at least R15 000, and the
                           annuity at least meets Sanlam’s minimum instalment requirements.




GE 6/2000                                    arg(bs2)
 New business         •   This is the maximum growth per year that can be earned on the policy in
 ceiling (“cap”)          any policy year.
                      •   The cap is determined contractually and applies for the full term (five
                          years) of the policy.
                      •   This rate may be adjusted from time to time for new business and
                          depends on interest rates and market conditions.
                      •   See example further in section.
                      NB:      Initially it may be (say) 25%, and a month later (say) 28%, etc. The
                               cap may also vary depending on the date of payment. If therefore, a
                               quotation is obtained and the money isn’t paid on the date entered
                               into the computer, a new quotation with the correct date of payment
                               must be obtained.
 Costs                There will be an initial levy of 5% of the single premium in respect of the
                      policy.
 Calculating the      •   The daily unit price equals the index of the Top 40 Share-Index of the
 investment returns       Johannesburg Stock Exchange (ALSI 40).
                      •   The policy’s maturity value is equal to the units on maturity date multiplied
                          by the unit price (determined by the Top 40 Share-Index) on this date.
                      •   Units will be adjusted annually to make provision for the negative growth (if
                          applicable) or growth higher than the cap.
                      •   The growth in the Top 40 Share-Index does not include the re-investment
                          of dividends.
                      Notes:    1)   The index is published in the financial papers daily.
                                2)   Every year on the policy anniversary the policy-owner will
                                     receive a notice indicating the growth that is vesting on his/her
                                     policy for the year.
 Tax liability        •   The maturity value of an endowment policy is not taxable in the hands of
                          the policy-owner in terms of current legislation.
                      •   In the case of an income option, only the non-capital portion of the term
                          annuity instalments is taxable provided that the stipulations of section 10A
                          of the Income Tax Act are adhered to.
 Minimum              The minimum maturity value is equal to the single premium. This excludes
 maturity value       the purchase sum in respect of the term annuity (if the income option is
                      chosen).

 Guarantees           •   Annual vesting (lock-in) guarantee: the growth over any policy year will
                          never be negative.
                      •   In the case of a Capital Growth Plan the original capital is guaranteed
                          back at the end of the policy term.
                      •   In the case of an Income Plan the single premium which goes to the
                          single-premium sinking fund, is guaranteed at the end of the policy term.
                      •   All costs are fully disclosed and are guaranteed over the policy term.




GE 6/2000                                    arg(bs3)
 Conditions           Sanlam reserves the right to adjust values in terms of the policy if a change in
 applying to values   legislation or provisions have a negative impact on the investment. All
                      quotations and policy contracts will indicate this.
 Death benefits       No death benefits are available. At the death of the policy-owner the policy
                      must be continued for the remaining term by a nominee. If an annuity is
                      applicable, it can be surrendered.
 Values               The policy does not have cash values, therefore surrenders and partial
                      surrenders are not possible. The only values that will be quoted are
                      illustrative values at 6% and 12%.
 Continuations        •   At the end of the policy term, the policy-owner has the option to continue
                          the policy in the Stable Bonus Fund, Balanced Fund, Equity Focus Fund,
                          Offshore Equity Fund, Fund of Funds or the Guaranteed Capital Fund.
                      •   Continuations with cash withdrawals can be done in the Guaranteed
                          Capital Fund.
 Conversions          No conversions are permitted with this policy.
 Client profile       The policy is available to:
                      −   individuals
                      −   non-taxpaying institutions and
                      −   trusts where all the beneficiaries are natural persons and/or non-taxpaying
                          institutions.
 Cessions and         •   The policy may be ceded (form AE2170). If, however, the tax status of the
 policy-ownership         cedent differs from that of the cessionary, the policy values may differ from
                          what they would have been for the cedent.
                      •   A cession in favour of a tax-paying institution may not be recorded.
                      •   A nomination for policy-ownership must be done:
                          −   If the Rolling Guaranteed Equity Growth with income is chosen and
                              someone other than the policy-owner’s spouse is nominated for
                              ownership at death, in terms of section 10A of the Income Tax Act
                              there is no capital element exemption for the new annuitant.
                          −   This exemption applies only to the policy-owner and his or her spouse,
                              provided the latter has been nominated for ownership.
                      Note:     The client must be informed of the tax implication of such a
                                nomination.
 Loans                The policy does not have a loan value.
 Proposal Form        Use form AEB39 only.




GE 6/2000                                     arg(bs4)
 Proposal       The following procedure must be followed:
 procedures
                •   Regions must simply allocate a policy number(s) to the application. No
                    LID record or data-capturing must be created or processed.          No
                    documents must be faxed to the New Business office.
                •   Please arrange for the necessary documents to be indexed and scanned.
                •   Route the application to New Business: Issuers at Head Office. The unit
                    and route codes are:
                    −   Unit code: 4205
                    −   Route code: BA1A
                    −   Contact Person: Riana van den Berg
                                        (021) 947-3907
                •   A unit code, route code, contact person and telephone number must form
                    part of the information and documents which are routed.
 Payment of     If an income is chosen (and there are therefore two policy numbers involved),
 purchase sum   the purchase sum must be paid under the two policy numbers in the correct
                proportion.
 Product name   The product name code is D092.
 code
 Cooling-off    The cooling-off period and normal policy regarding replacements apply to this
 period and     product.
 replacement
 Enquiries      Product             Sanlam Life
                information and     Product Development, Product Advice
                quotations          (021) 947-8035

                Value enquiries     Policy Values (021) 947-4436
                regarding
                specific policies
                Issuing of          New Business (021) 947-8523/4
                policies




GE 6/2000                             arg(bs5)
Example:
   Suppose the cap for a particular policy is 25% and the JSE ALSI 40 index is 100 when the policy is
   taken out.

    Year                JSE                    JSE             Growth in             Growth in
                   ALSI 40 index         ALSI 40 index at        index              investment
                   at beginning of         end of year            (%)             amount of policy
                        year                                                            (%)

      1                  100                    122               22,0                  22,0
      2                  122                    110              -10,9                   0,0
      3                  110                    165               50,0                  25,0
      4                  165                    110              -33,3                   0,0
      5                  110                    130               18,2                  18,2

   If in the above example, a single premium of R100 000 was invested, the proceeds may be
   calculated as follows:
          Allocation amount = 95% of R100 000
                            = R95 000
          Allocation amount plus growth at end of year 5
                            = R95 000 x 1,22 x 1,25 x 1,182
                            = R171 242




GE 6/2000                                        arg(bs6)
           NO LONGER AVAILABLE FOR NEW BUSINESS FROM 1/9/1999

                               SECTION BG


                         The One FamilySupporter
                                                                 Page
COMPOSITION ………………………………………………………………………...                       BG1
SPECIAL FEATURES …………………………………………………………………                       BG1
GENERAL INFORMATION …………………………………………………………..                     BG2
–   TABLES AVAILABLE ………………………………………………………………………..               BG2
–   AGE AT ENTRY ………………………………………………………………………………                  BG2
– BENEFIT TERM ………………………………………………………………………………                    BG2

PREMIUMS ……………………………………………………………………………..                         BG3
–   PREMIUM PAYMENT TERM ……………………………………………………………….               BG3
–   PREMIUM DECREASE ……………………………………………………………………...               BG3
– AUTOMATIC NON-FORFEITURE (PIR) ……………………………………….…….             BG3
DEATH BENEFIT ………………………………………………………………………                        BG4
–   ASSUREDS …………………………………………………………………………………..                   BG4
–   COMMENCEMENT OF COVER ……………………………………………………………                BG5
– DEATH BENEFIT AMOUNTS ………………………… ……………………………..                 BG6
SAVINGS BENEFIT …………………………………………………………………...                     BG8

RIDER BENEFITS AVAILABLE ……………………………………………………..                  BG9
– WAIVER OF PREMIUM BENEFIT (PB and GB) ……………………………………..         BG9
– INDEXPLAN ………………………………………………………………………...                       BG9
UNDERWRITING REQUIREMENTS ………………………………………………..                   BG10
–   RATE DIFFERENTIATION ………………………………………………………………….              BG10
–   NEW PROPOSAL (Basic Policy) …………………………………………………………..         BG10
–   WAIVER OF PREMIUM BENEFITS ……………………………………………………….            BG10
– ADDING ASSUREDS TO AN EXISTING POLICY …………………………………..          BG10
AIDS COVER …………………………………………………………………………..                        BG11

POLICY VALUE ………………………………………………………………………..                       BG11
–   CASH VALUE …………………………………………………………………………………                   BG11
–   LOAN VALUE …………………………………………………………………………………                   BG11
– FULLY PAID-UP VALUE ……………………………………………………………..                  BG11
TAX ………………………………………………………………………………………                            BG11

POLICY OWNERSHIP ………………………………………………………………...                     BG12
–   NOMINATION OF BENEFICIARY(IES) AND NOMINEE(S)………………………………    BG12
– CESSIONS ……………………………………………………………………………………                      BG12
IDENTIFICATION POLICY ……………………………………………………………                    BG13

CLAIMS PROCEDURES ……………………………………………………………...                     BG14

REVISIONS ……………………………………………………………………………..                        BG15

PROOF-FREE OPTION (At expiry of a child’s cover) ……………………………..   BG15



GE 3/99                             arg(bg)
                              The One FamilySupporter


    COMPOSITION

•     The One FamilySupporter consists of
      −   the death benefit and
      −   an optional Savings Benefit.
•     The basic policy offers death cover to a maximum of 17 persons:
      −   The principal assured (male or female)
      −   A spouse
      −   The principal assured’s two parents or two parents-in-law (maximum of 4 persons)
      −   The principal assured’s dependent children (maximum of 10 persons)
      −   One other person who is financially dependent on the principal assured.
•     Only the savings premiums are invested in an investment account.


    SPECIAL FEATURES
•     The One FamilySupporter provides cover for life to all assureds except to children.
•     The death benefit amount is paid out after receipt of the necessary documents.
•     An abbreviated declaration of health is required and cover for Aids is always included.
•     With the waiver of premium benefit, the premiums of all other lives assured will be waived when
      the principal assured dies (principal assured and savings premiums excluded).
•     When a child’s death cover expires, he/she can take out additional assurance up to a maximum
      of R30 000 within 3 months, without proof of good health. An HIV blood test is required and if it is
      HIV positive, the option will be denied.
•     This product makes provision for an optional Savings Benefit according to which savings for
      specific needs can be made in cycles. At the end of every cycle, the cash will be available to the
      policy-owner.
•     The death benefit amount and Savings Benefit grow if Indexplan is taken.




GE 3/99                                            arg(bg1)
                                      GENERAL INFORMATION

    TABLES AVAILABLE

Policies without Savings Benefit
    − Limited premium term : Table 67
     −    Whole-life premium term: Table 68
Policies with Savings Benefit
    − Limited premium term : Tables 367, 467 and 567
     −    Whole-life premium term: Tables 368, 468 and 568

    AGE AT ENTRY
                                                                  Minimum              Maximum
Basic policy
•     Principal assured:
      −   Limited premium term                                     15 anb               50 anb
      −   Whole-life premium term                                  15 anb               70 anb
•     Spouse                                                       15 anb               70 anb
•     Parents/Parents-in-law                                       None                 70 anb
•     Dependent children                                           None                 24 anb
•     Another dependant                                            None                 70 anb

Waiver of premium benefit (PB and GB)
                                                                  Minimum              Maximum
Principal assured
     − Limited premium term                                        15 anb               50 anb
      −   Whole-life premium term                                  15 anb               65 anb

BENEFIT TERM

•     Basic policy
     −    Dependent children     : until 25 anb (refer to note)
     −    All other assureds     : for life
•     Waiver of premium benefit : for life
Note: A child’s cover expires on the policy anniversary preceding his/her 25 th birthday.




GE 3/99                                               arg(bg2)
                                             PREMIUMS


    PREMIUM PAYMENT TERM
•     The principal assured can choose between
      −   a whole-life premium term: until the death of all assureds
      −   a limited premium term     : until age 66 next birthday of principal assured
•     The limited premium term is available only if the principal assured’s age at inception is less than 50
      next birthday.
•     If the limited premium term is chosen, the benefits remain constant after the premium term has
      expired (i.e. after the age of 65).
•     If the waiver of premium benefit becomes operative, all further premium payments are discontinued
      irrespective of the premium payment term.
•     If any one of the assureds dies or if the cover for dependent children expires, the total amount of
      the premium is automatically reduced by the sum of that specific assured’s premium.

    PREMIUM DECREASE

If any one of the assureds dies, or if the cover for dependent children expires (25 anb), the total amount
of the premium is reduced automatically by the sum of that specific assured’s premium and the policy
continues unchanged.

    AUTOMATIC NON-FORFEITURE (PIR)

POLICIES WITH A SAVINGS BENEFIT
•     If the waiting period has expired
     If premiums fall into arrears and the policy includes an optional Savings Benefit, the outstanding
     premiums plus interest will automatically be deducted from the cash value of the Savings Benefit.
     This can happen only if the waiting period of 15 months of the relevant savings cycle has expired.
     When the debt exceeds the cash value of the Savings Benefit, the policy will lapse.
•     If the waiting period has not expired
     The policy will lapse if a premium is skipped.

POLICIES WITHOUT A SAVINGS BENEFIT
Policies without an optional Savings Benefit will lapse if premiums are not paid.




GE 3/99                                               arg(bg3)
                                              DEATH BENEFIT


    ASSUREDS

PRINCIPAL ASSURED
•    A principal assured must be nominated.
•    All additional assureds must be related to the principal assured.
If the principal assured dies, the following will apply:

Policies with waiver of premium benefits
•    If the principal assured dies, a new principal assured is not appointed.
•    No new assureds can be added to the policy after the death of the principal assured.

Policies without waiver of premium benefits
If the principal assured dies, a new principal assured can be appointed.
•    If a new principal assured is added:
      −   The policy-owner (proposer) can add any other person as a principal assured to the policy –
          irrespective of his/her relationship to any of the existing assureds.
      − All new assureds who are subsequently added must be related to the new principal assured.
•    If no new principal assured is added to the policy:
      −   All new assureds who are added thereafter must be related to the spouse.
      −   If there is no principal assured or spouse assured, no new assureds can be added to the policy
          until a new principal assured has been appointed.

SPOUSE
•    A spouse can be added to or altered on a policy at any stage. A declaration of health is then
     required and the premium is recalculated.
•    A spouse is a person of the opposite sex
      −   to whom the principal assured is legally married, or
      −   with whom the principal assured has a relationship that is regarded as a marriage according to
          any law or custom, provided that the principal assured must satisfy Sanlam that he/she lives
          with the other party as if they were legally married.
•    Only one spouse per policy is permitted and must be specified in the policy contract. A second
     spouse can possibly be added to the policy as another dependant.

PARENTS AND PARENTS-IN-LAW
A parent is the natural parent, foster or step-parent, who was responsible for the upbringing of the
principal assured or spouse. A maximum of two parents and two parents-in-law can be assured.




GE 3/99                                               arg(bg4)
CHILDREN
A dependent child is any child including an adopted child, step-child or illegitimate child, who at the date
of becoming an assured on the policy is
    • younger than 24 years;
     •       unmarried and
     • legally dependent on the principal assured for support (including where the obligation for
       support has been established owing to customary or indigenous law).
A maximum of ten children can be assured.

Baby Benefit
The child of a female principal assured or female spouse enjoys free cover for the first 6 months after
birth (even if the child was not added to the policy as an assured).
•    Baby Benefit amount: R1 000 (see note)
•     When is it paid out?
     At the death of a baby
                           th
             − after the 28 week of pregnancy
             − within 6 months of birth.
Note: Babies who have already been added to the policy as assureds, receive:
           – R1 000 (Baby Benefit) plus
           – 50% of the benefit amount assured.

ANOTHER DEPENDANT
Another dependant is any person (only one) such as a brother, a sister or a second spouse, who is
financially dependent on the principal assured.


    COMMENCEMENT OF COVER

•     Principal assured, spouse and children
     The first premium is payable on the contract commencement date. Sanlam’s obligations in terms of
     this contract take effect only after the first premium is paid.
•     Principal assured, spouse, parents, parents-in-law and the other dependant
         −    Natural death: A waiting period of 6 months applies from commencement of cover before a
                             claim is admitted.
         −    Non-natural death: No waiting period applies.




GE 3/99                                               arg(bg5)
    DEATH BENEFIT AMOUNTS

The principal assured selects the levels of cover of the assureds (within limits). There is no limit as to
the number of The One FamilySupporter policies that a person may take out. However, the total
benefit amount under these policies, which he/she may enjoy at Sanlam, is limited.

Provisions in respect of the choice of cover amounts
The following provisions apply when choosing the various cover amounts for each assured:
•   The cover in respect of the spouse may not be less than 25% of that of the principal assured.
•      All parents must be on the same level of cover.
•      All children must be on the same level of cover.
      Note: The total amount of all benefits (with all assurers) payable at the death of a child younger
            than 14 years is limited to the amount determined by legislation applicable on the date of
            the claim (see “Cover for Children” on the next page).
•      Any amount in multiples of R500 between the minimum and maximum is available for each
       assured.
•      No assured’s benefit amount may be greater than that of the principal assured. The total cover
       which any assured may have with Sanlam is limited.

COVER ACCORDING TO CHOICE
                                                 Per Policy                               In total
           Assured
                                    Minimum                    Maximum (1)            at Sanlam (1)

    Principal assured                R5 000                      R20 000                 R20 000
    Spouse                           R2 000                      R20 000                 R20 000
    Parents and
    parents-in-law                   R1 000                      R10 000                 R20 000

    Children (2)                     R1 000                      R 5 000                 R20 000
    Dependent person                 R1 000                      R 5 000                 R20 000


(1) The benefit amounts of policies with Indexplan can grow to more than the maximum benefit
    amounts that applied at inception.
(2) At the death of children younger than 6 years only 50% of the chosen death benefit amount will be
    paid out.

FIXED COVER LEVELS

               Assured                        Standard cover                       High cover
    Principal assured                             R10 000                           R15 000
    Spouse                                        R 5 000                           R 8 000
    Parents and parents-in-law                    R 2 000                           R 3 000
    Children                                      R 2 000                           R 3 000
    Dependent person                              R 2 000                           R 3 000




GE 3/99                                             arg(bg6)
COVER FOR CHILDREN
The same benefit amount must be chosen for all the dependent children (in other words, from anb 1 up
to anb 24).

The following procedure must be used to determine how much cover is available for each individual
child:

 Step 1:     Select the level of cover for the children. It must be within the limits set for each policy (see
             previous page).
 Step 2:     (a)    Determine the amount of cover which is available in terms of Section 55 of the Long-
                    term Insurance Act (previously Section 50):
                    •    Children anb 1 up to anb 6:        R10 000 less all existing life cover at Sanlam
                                                            or from any other source.
                    •    Children anb 7 up to anb 14:       R30 000 less all existing life cover at Sanlam
                                                            or from any other source.
             (b)    Determine how much cover the child may still get from Sanlam under The One
                    FamilySupporter:
                       •   R20 000 less existing cover under other FamilySupporter policies.
 Step 3:     The available cover for the specific child is the lesser amount of (a) and (b).
 Step 4:     Compare the available cover with the cover requested (by the principal assured) for
             children. If a child’s available cover is less, the cover of all the children will have to be
             limited.

NB: In the case of existing cover the following will not be taken into account:
    − the baby benefit, and
       − the fact that only 50% of the benefit amount is payable at the death of children younger than
         six.
Example:
                           Total life cover
                                              Existing cover
                           with Sanlam as                           Available        Cover        Allowable
     Child     anb                            Under The One
                            well as other                            cover         requested        cover
                                              FamilySupporter
                              assurers*
 Child 1       anb 3            None                None             R10 000        R3 000          R3 000
 Child 2       anb 6          R 8 000              R4 000            R 2 000        R3 000          R2 000
 Child 3       anb 8          R10 000              R5 000            R15 000        R3 000          R3 000
 Child 4      anb 12          R25 000             R19 000            R 1 000        R3 000          R1 000
 Child 5      anb 15          R30 000             R10 000            R       0      R3 000          R     0
* Sanlam cover includes FamilySupporter policies.
Calculate Child 4’s available cover as follows:
    Step 1: (a) R30 000 – R25 000 = R5 000
             (b) R20 000 – R19 000 = R1 000
      Step 2: Available cover = R1 000.
      Step 3: Available cover is less than chosen cover.
Conclusions:
1.    Child 5 cannot be accepted under the policy.
2.    The available cover for Child 4 is only R1 000. The proposer will have to adjust the benefit amount
      for all the children to R1 000 or remove Child 4 from the proposal.
3.    If Child 4 is removed from the proposal, only R2 000 is available for the first three children, because
      the available cover for Child 2 is R2 000.




GE 3/99                                              arg(bg7)
                                          SAVINGS BENEFIT


How the Savings Benefit works
•   The policy-owner has the option of saving in 5- to 10-year cycles.
•   The additional savings premiums can be invested in any of the existing investment portfolios
    (Stable Bonus Fund, Balanced Fund, Equity Focus Fund, Offshore Equity Fund and Fund of
    Funds).
•   At the end of each cycle, the maturity amount is paid out to the policy-owner.
•   The proceeds of the savings portion are not linked to any assured’s life. They are payable only
    −     at the end of the savings cycle; or
    −     at an early cash withdrawal (after a waiting period of 15 months); or
    −     at termination of the policy, voluntarily or as a result of the death of the last assured, where the
          cash value is payable after the waiting period (15 months), or
    −     at admission of a waiver of premium benefit claim (PB/GB) (after a waiting period of 15
          months).
    Note: All policy debt (e.g. premiums in arrears) will be withheld from the proceeds of the savings
          premium before the Savings Benefit is paid out to the policy-owner at the end of a cycle.
•   Sanlam accepts that a policy-owner who has saved on a policy for a specific term or cycle will
    continue to pay the additional savings premium (for the same term as previously), unless the policy-
    owner informs Sanlam to the contrary.

Policies with waiver of premium benefits
Waiver of premium is not applicable to the savings premium. If savings premiums are paid on a policy
that has a waiver of premium benefit and the principal assured dies, the cash value of the savings
element of the policy will be paid out. After that the Savings Benefit will no longer be available under
the policy.

Policies with a restricted premium term
The last savings cycle of a policy with a limited premium term must expire no later than when the
principal assured reaches age 66 next birthday. As a result the last savings cycle may not start later
than at 61 anb (minimum term always five years). The Savings Benefit is no longer available after that.




GE 3/99                                              arg(bg8)
                                      RIDER BENEFITS AVAILABLE


    WAIVER OF PREMIUM BENEFITS (PB AND GB)
In terms of the Waiver of Premium Benefit at the death of the principal assured, the premiums in respect
of the remaining assureds are waived when the principal assured dies.
The client can choose between two types of waiver of premium benefits:
    PB: After the death of the principal assured the death benefits of the remaining assureds stay
           constant.
      GB:   After the death of the principal assured the death benefits of the remaining assureds increase
            annually (available only if Indexplan is taken).

Provisions in respect of waiver of premium benefits:
1)    It is not available in the case of policies where the principal assured is the only person assured.
2)    Waiver of premium benefits are not applicable to the additional savings premium. After the death of
      the principal assured no additional savings benefits are available under the policy.
3)    A waiver of premium benefit claim will not be admitted if the death of the principal assured results
      from suicide within 24 months of the inception date/reinstatement of policy.
4)    A policy-owner cannot add lives assured to the policy once a waiver of premium benefit claim has
      been admitted.
5)    Waiver of premium benefits are available only to the person who was the principal assured at the
      time the policy was taken out.

INDEXPLAN
The One FamilySupporter can be taken with or without Indexplan (Growth type 01).
•     Indexplan includes premium growth and cover growth.
•     The premium increase is calculated on the full premium (including the optional savings premium).
•     The first premium increase may take place only in the second policy year.
•     Two premium increases may be skipped. If more than two increases are skipped, Indexplan will
      lapse.
•     If Indexplan is cancelled, the policy will continue at the same premium and levels of cover as on the
      date of cancellation.
•     If the limited premium term with Indexplan is chosen, the premium and death benefits will grow until
      the end of the limited premium term. After the premium term has expired, the death cover remains
      constant at the level which applied before the term expired.

Premium growth
−     The premium grows annually by the increase in the inflation rate (consumer price index).
−     The maximum premium growth rate is 20%.
−     The minimum growth rate is 5%.
−     There is no minimum premium growth amount.

Cover growth
−     The cover amount grows by at least 60% of the premium growth rate.
−     The cover growth rate is determined annually by Sanlam.




GE 3/99                                          arg(bg9)
                               UNDERWRITING REQUIREMENTS


    RATE DIFFERENTIATION

•     No rate differentiation is applicable.
•     There is only one fixed rate per child.
•     For all other assureds two sets of rates are available, namely
       − whole-life premium term or
       − limited premium term
•     Rates are further determined by the assured’s age and sex.
•     Rates for policies with or without Indexplan are the same.

    NEW PROPOSAL (BASIC POLICY)

Occupational Underwriting
No underwriting in respect of occupation or part-time activities is required.
Full particulars in respect of the principal assured’s occupation are required for statistical purposes only.

Medical Underwriting
−     The proposer must answer four medical questions with regard to all the lives assured.
−     No medical examinations will be required and no loading will be levied. Sanlam, however, has
      the right to reject an application totally or partially.
−     The principal assured must undergo an HIV test if the sum of the benefit amounts of the principal
      assured, spouse and children (in other words the parents, parents-in-law and other dependant
      excluded) is R15 000 or more. Sanlam will bear the cost of the test. If the principal assured tests
      positive for HIV, the application will not be accepted.

    WAIVER OF PREMIUM BENEFITS (PB/GB)
Occupational Underwriting
No underwriting in respect of occupation or part-time activities is applicable.

Medical Underwriting
−     If waiver of premium benefits are required, the principal assured must               follow the normal
      underwriting procedures according to the requirements for basic rates (refer to      Section DD for the
      medical requirements applicable to basic rates).
−     A complete statement of health in respect of the principal assured is required.      On the grounds of
      this underwriting, the principal assured will be accepted or rejected (only i.r.o.   waiver of premium
      benefits on his/her life).
If the principal assured is rejected for PB/GB, his/her spouse can be appointed principal assured so that
PB/GB can possibly be added to the policy. If, however, the spouse is also rejected for medical
reasons, it will not be possible to obtain PB/GB.

    ADDING ASSUREDS TO AN EXISTING POLICY
Spouse/principal assured
−     The four medical questions must be answered.
−     If the cover amount of the new assured (spouse/principal assured) is R5 000 or more, that specific
      person must undergo an HIV test.




GE 3/99                                           arg(bg10)
Other assureds
(parents/parents-in-law/children/other dependant)
−     The four medical questions must be answered for each assured who is added to the policy. (No
      HIV test are required.)


                                         COVER FOR AIDS)

The policy always offers cover for Aids (for PB/GB as well). The death benefit will therefore be paid
out and the waiver of premium benefit will become operative if an assured dies as a result of Aids.


                                          POLICY VALUES


CASH VALUE
BASIC POLICY
Cash values in respect of the basic policy will be available only after a very long period and are
expected to be low.

SAVINGS BENEFIT
Cash values in respect of the additional savings portion are available
−     after the waiting period has expired (after 15 months),
−   subject to the provisions of Part 4 of the Regulations issued in terms of the Long-term Insurance Act
    (previously Section 59D).
Refer to “Savings Benefit” earlier in this section.

LOAN VALUE

No loans are permitted.

    FULLY PAID- VALUE (VOP value)
The One FamilySupporter cannot be made fully paid-up.


                                                  TAX

PREMIUMS
If an employer pays the premiums of The One FamilySupporter for one of his employees, the premiums
are:
−     tax-deductible for the employer (in terms of Section 11(a) and
−     taxable as an income for the employee.




GE 3/99                                           arg(bg11)
                                         POLICY–OWNERSHIP

•   Only individuals (natural persons) can be policy-owners.
•   The policy-owner need not be a life assured.
•   The policy-owner is entitled to all benefits in terms of the policy
•   The policy-owner may name at most two nominees who may receive the death benefit on his/her
    behalf.
•   The policy-owner may nominate a maximum of two beneficiaries (in order) to whom policy-
    ownership should pass at his/her death.
•   An employer such as a company or close corporation, for example, may take out The One Family
    Supporter for his employees. In such a case the employer pays the premiums, but the employee is
    the policy-owner.
Note: The policy is not terminated on termination of service. The employee can continue with the
      policy and pay the premiums himself, or his new employer can continue with premium
      payments.

NOMINATION OF BENEFICIARY(IES) AND NOMINEES
When a policy is taken out, or at any stage after that, the policy-owner can name (or change)
beneficiaries or nominees. The nomination must be done in writing and is deemed valid only if confirmed
in writing by Sanlam.

NOMINEES
The policy-owner can nominate a person/persons (maximum 2 nominees) to whom Sanlam must pay
the death benefits at the death of an assured. In such an instance the death benefits will be paid to the
first person who submits a successful claim (policy-owner or one of the nominees). Such a payment will
absolve Sanlam from any further claims in respect of this specific assured.

BENEFICIARIES
The policy-owner can also nominate a beneficiary of ownership (maximum 2) who will become the new
policy-owner when the former dies. If two beneficiaries are nominated, a sequence will have to be
stipulated.
If the policy-owner does not nominate a particular person as his beneficiary of ownership, one of the
surviving assureds will automatically become the new policy-owner and in the following sequence:
1) Principal assured                           4) Children
2) Spouse                                      5) Parents-in-law
3) Parents                                     6) Other dependant
If the policy-owner is an assured and he/she should die, the death benefit i.r.o. that policy-owner will be
paid to:
     •     a nominee if nominees were appointed, or
    •     the new policy-owner if nominees were not appointed.
Each new policy-owner can nominate his/her beneficiary(ies) for ownership as well as the nominees
who should receive the death benefit.

CESSIONS
The policy cannot be pledged or ceded as collateral security. Ownership can, however, be changed by
means of a cession between individuals




GE 3/99                                           arg(bg12)
                                       IDENTIFICATION POLICY


The identification policy will always be strictly adhered to as explained below. Proposals which do not
meet all the requirements will not be processed in order to prevent problems when a claim is submitted.
NB:     It is important to take note that CLAIMS WILL NOT BE ACKNOWLEDGED if the
       identification which is provided when the claim is submitted, differs from the identification
       which was provided initially.

RSA POLICIES (policies stamped and issued in RSA)
Assureds
•     An RSA identity number is compulsory for all assureds above the age of 18. (See Note)
•     All lives assured below the age of 18 years will be required to submit an RSA idenity number if they
      are in posession of such a number. (See Note)
•     Should the life assured below the age of 18 years not have an RSA identity number, the proposer
      must sign the declaration with regard to identity documents on the relevant proposal form.
      − AEB44: Proposal for a new policy
        A separate declaration by the proposer appears on the proposal form.
      −   AEB4: Addition/removal of additional assureds
          The declaration forms part of the general declaration by the proposer/principal assured.

Nominees and beneficiaries
An RSA identity number is always compulsory in the case of nominees and beneficiaries. If the person
does not have a valid RSA identity document he/she cannot be nominated or named as a beneficiary.
Note: Only an RSA identity number is acceptable.

DECLARATION BY THE MARKETER/BROKER
The marketer/broker must always sign the declaration on the proposal form that he/she has seen the
RSA identity documents of all assureds, nominees and beneficiaries and that the information on them
agrees with the information on the relevant proposal form.
      −   AEB44: Proposal for a new policy
          A separate declaration by the proposer appears on the proposal form.
      −   AEB4: Addition/removal of additional assureds
          The declaration in this regard (on the proposal form), forms part of : “Further information
          supplied by the marketer/broker”.
Please Note: All those concerned must please ensure that the above-mentioned policy is applied
            strictly and without any exception.
Enquiries
Product Advice, telephone (021)947-8035.




GE 3/99                                           arg(bg13)
                                           CLAIMS PROCEDURES



    SAVINGS BENEFIT

•          The proceeds of the savings premium will be paid out from Head Office only.
•          The proceeds of the savings benefit is payable to the policy-owner only.

    DEATH BENEFIT

•          When an assured dies, the benefit amount will be paid out of the receipt of the necessary
           documents.
•          Payment will take place at the nearest Sanlam office.
•          The benefit amount is paid to the policy-owner or a nominee, depending on who submits the claim.
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 assureds 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:

    (i)      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 assured, 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 of the deceased was due to unnatural causes, a police statement must be
                 submitted.
    (ii)     Of the person who requests payment
             •   Proof of identity of the person requesting payment.

Note: The waiting period for payment of death benefits is 6 months if the principal assured and/or
      spouse, parents, parents-in-law and other dependants die of natural causes.




GE 3/99                                               arg(bg14)
                                              REVISIONS

Sanlam reserves the right to revise the premium, benefits and provisions annually on the policy
anniversary if necessary.
If a revision of premiums is done after a waiver of premium benefits claim has been admitted, the
benefits will be adjusted instead of the premium.
The policy-owner will be informed in advance about any adjustments.

                                            −
                                       PROOF− FREE OPTION(

                                                                                       th
A dependent child’s death cover expires on the policy anniversary preceding his/her 25 birthday. If the
child submits proof to Sanlam’s satisfaction that he/she is HIV negative, he/she has the option to effect
new life cover proof-free.
•   Maximum cover available: R30 000
•   Option period: Within 3 months of the expiry of the cover.
•   Medical underwriting: Only an HIV negative blood test is required (normal rules in respect of Aids
                          apply).
•   New assurance which can be effected in terms of the option:
    −     Whole-life assurance
    −     Endowment assurance
    −     Retirement Annuity assurance
•   Assurance effected in terms of the option is subject to the normal requirements for new assurance
    which apply on the date on which the option is exercised (proof of good health excluded).




GE 3/99                                         arg(bg15)
                              LEVEL TERM ASSURANCE : TABLE 6


HOW LEVEL TERM ASSURANCE WORKS
•   Level Term Assurance offers cover for the duration of the policy term only.
•   The constant guaranteed death benefit is only payable at death during the term.
•   No benefits are payable
    − at the end of the policy term if the assured survives the term, or
    − at early termination of the policy.
•   Level Term Assurance
    −     does not share in profits (i.e. the death benefit never grows);
    −     does not have a surrender value, and therefore not a loan or fully paid-up value either.
•   The death benefit is currently tax-free.
•   Term assurance can be replaced in full or in part with permanent assurance (with-out proof of good
    health), if a permanent assurance option (PVO or OV-PVO) is added to the policy. See Section DE
    for full details of these options, especially in respect of cover for Aids.




                                     DEATH BENEFIT


                                   Selected Term

GENERAL INFORMATION
Rates
•   The rates for Table 6 are not guaranteed for the full term.
•   Sanlam reserves the right (taking into account the claim experience), to revise the premiums of
    existing policies annually on the policy anniversary.
•   Policy-owners and intermediaries will be informed in writing about adjustment (if any).

Age at inception
    Minimum        : 15 next birthday
    Maximum        : 65 next birthday

Term
    Minimum        : 5 years
    Maximum        : Shorter of
                     −     30 years and
                     −     the number of years up to the policy anniversary preceding age 70.




GE 7/99                                             arg(bh1e)
RIDER BENEFITS AVAILABLE
On the life of the assured
OEA               −    Lump Sum Disability Benefit
OEP               −    Disability Benefits in Five Instalments
OP                −    Waiver of Premium Disability Benefit (not together with P and M-OP)
PVO               −    Permanent Assurance Option (not with OV-PVO)
OV-PVO            −    Permanent Assurance and Disability Benefits Option (not with PVO)

On the life of the co-assured
P             −       Waiver of Premium Benefit at death of the co-assured (not with OP)
M-OP          −       Waiver of Premium Benefit in the event of disability of the co-assured (not with OP;
                      only available together with P benefit)



Notes: 1) An additional policy fee of R0,75 is levied for P benefit.
          2) It is not necessary to take disability benefits before OV-PVO can be added to the policy.

COVER IN RESPECT OF AIDS
Cover for Aids is always included. An HIV blood test is required initially if the test limits are exceeded.




GE 7/99                                                arg(bh2e)
                                SECTION BI


                       INCOME PROTECTOR : TABLE 48


                                                                  Page
SPECIAL FEATURES………………………………………………………………………..                     BI 1
WHO QUALIFIES?……………………………………………………………………………                       BI 1
AGE AT INCEPTION…………………………………………………………………………                      BI 2
BENEFIT TERM……………………………………………………………………………….                       BI 2
PREMIUMS…………………………………………………………………………………….                         BI 2
–   REVISIONS…………………………………………………………………………………………...                BI 2
ASSURED INCOME (Restrictions)………………………………………………………………...          BI 2
–   THE SANLAM LIFE'S RESTRICTIONS ………………………………………………………….        BI 2
–   THE SANLAM LIFE'S LIMITATION………………………………………………………………..        BI 3
–   EXAMPLE 1…………………………………………………………………………………………..                 BI 4
–   EXAMPLE 2…………………………………………………………………………………………..                 BI 5
MONTHLY TAXABLE EARNINGS (Definition)……………………………………………            BI 6
INDEXPLAN…………………………………………………………………………………...                       BI 6
RIDER BENEFITS AVAILABLE…………………………………………………………….                  BI 8
–   WAIVER OF PREMIUM BENEFIT…………………………………………………………………            BI 8
UNDERWRITING……………………………………………………………………………...                      BI 8
WAITING PERIOD…………………………………………………………………………….                      BI 8
BENEFITS DURING DISABILITY…………………………………………………………..                BI 8
–   BENEFITS PAYABLE………………………………………………………………………………..              BI 8
PARTIAL RECOVERY……………………………………………………………………….                      BI 9
CONTINUATION OF DISABILITY………………………………………………………….                 BI 9
RESIDENCE OF ASSURED (during payment of benefits)……………………………………   BI 9
INCOME TAX………………………………………………………………………………….                        BI 9
POLICY VALUES……………………………………………………………………………..                      BI 9
CEASING OF COVER………………………………………………………………………..                     BI 10




GE 5/2003                       arg(bi Index)
                                 INCOME PROTECTOR: TABLE 48


Sanlam Life’s Income Protector compensates the assured for loss of income owing to disability during
the policy term, where the disability continuously and totally prevents the assured from exercising the
regular occupation that he held immediately before the disability.

 SPECIAL FEATURES

   –   Disability must be experienced directly or solely as a result of an injury or illness.
   –   The benefits are payable monthly after the disability has lasted continuously for the duration of
       the waiting period.
   –   These income benefits are paid for the further duration of the disability.
   –   The payment of income benefits are ceased when the assured recovers.
   –   If the assured recovers partially, a proportional part of the benefit may be payable (see “Partial
       recovery” later in this chapter).
   –   After recovery income benefits will be payable again in the case of a further illness/injury once
       disability has lasted continuously for the waiting period.
   –   In terms of current legislation these premiums can be deducted from the assured’s taxable
       income for income tax purposes. (See “Income tax” later in this chapter).
   –   Cover for Aids is always excluded.

 WHO QUALIFIES?

Income Protector is not available for:
   •    most of the occupations that fall under Category II (See Section DA);
   •    most people who take part in dangerous part-time activities (See Section DB);
   •    persons (males and females) who engage in an occupation from their home, except for those
        who qualify for membership of PPS on the basis of those activities,
   •    students and scholars;
   •    other persons who do not have an earned income and
   •    persons who qualify for rate group 1 rates.


NB: The normal principle with regard to the change in occupation or activity applies. More details
    appear in Section DA.




GE 9/2003                                         arg(BI 1)
AGE AT INCEPTION

Minimum      : 18 next birthday
Maximum : 60 next birthday

 BENEFIT TERM

Until policy anniversary preceding ages 55, 60 or 65.
(This term is always subject to a minimum of 5 years.)

 PREMIUMS
Only recurring premiums are available.

REVISIONS
The rates for Income Protector (Table 48) are not guaranteed for the full term.
Sanlam Life strives to keep premiums constant (level) wherever possible, however, the right to revise
the premium is reserved. Taking into account the actual experience in respect of claims, an annual
decision will be made whether the premiums should be adjusted or not on the policy anniversary.
Policy-owners and intermediaries will be informed in writing in advance about adjustments (if any).


: ASSURED INCOME : Restrictions

MINIMUM
There is no minimum assured income. However, the minimum premium is applicable.

MAXIMUM
New disability income benefits are limited to the smaller of (a) and (b).
    where (a) = the Sanlam Life's restriction and
             (b) = the Sanlam Life's limitation

(a) The Sanlam Life's restriction
    Disability income benefits (individual and group with all assurers) are limited to (i) minus (ii)

      (i)    =    75% of the assured’s monthly taxable earned income received from his occupation
                   plus
                  the greater of R1 667 and (25% of the assured’s monthly taxable income).
      (ii)   =     Existing provision (individual and group at all companies):
                      •    All disability income benefits (e.g. Income Protector, disability pension, etc.
                           with the exclusion of PPS shares)
                      •    All waiver of premium disability benefits (e.g. OP, OG, M-OP, etc.)
                      •    All lump sum disability benefits or disability benefits in five instalments (e.g.
                           OEA, OEP, ODA, pension fund lump sum, etc.)
                  NB: Trauma Benefits (TV) are taken into account only when claims are paid. It
                      should be pointed out to the assured that he/she could possibly be overassured.




GE 9/2003                                            arg(BI 2)
   Lump sum benefits are converted to equivalent income benefits by dividing the lump sum amount by
   120.
   Notes i.r.o. (a) Sanlam Life's restriction:
     1) The restriction in (a) is equivalent to the restriction which applies in the case of a claim in
        respect of occupational disability. It is also identical to the restriction in respect of lump sum
        benefits. The values are simply divided by 120 to obtain a monthly equivalent.
     2) The income in (i) will, however, be limited to 75% for the third year and consecutive years of
        disability when a claim arises.
(b) The Sanlam Life's limitation

    The total disability income benefits (group and individual at Sanlam Life) are limited to
      −      the smaller of (i) or (ii)
      − minus (iii)
      where
             (i)    =   75% of the first R12 000 monthly taxable income
                        plus 50% of the following R18 000 monthly taxable income
                        plus 25% of the balance of the monthly taxable income
            (ii)    = R25 000 a month

            (iii)   =   Income and waiver of premium disability benefits (individual and group at Sanlam
                        Life)
                        •    All Income Protector policies (e.g. T48)
                        •    All waiver of premium disability benefits (e.g. OP, OG and M-OP)
                        •    Pension benefits

                        The following are excluded:
                        −   PPS shares
                        −   Lump sum disability benefits (OEA, ODA)
                        −   Disability benefits in five instalments (OEP)
                        −   Trauma benefits (TV)
                        −   Benefits at other companies

   Notes i.r.o. (b) Sanlam Life's limitation:
     1) The limit in (b) is the absolute maximum in terms of income benefits which Sanlam Life (taking
        existing income benefits at Sanlam Life into account), is prepared to grant to a person,
        regardless of whether the policy-owner can receive more benefits according to the application
        in (a), the Sanlam Life's restriction, or not.
     2) When the total income disability benefits (group and individual at Sanlam Life) exceeds
        R10 000 a month, form E2297 must be completed.
Examples appear on the following pages




GE 9/2003                                              arg(BI 3)
 EXAMPLE 1

ASSUME
A person with a monthly taxable income of R5 000 proposes for Income Protector with an assured
income of R2 000 a month.
Existing provision
−     R100 000 lump sum disability benefits (OEA) or Disability Benefits in Five Instalments (OEP) at
      Sanlam Life
−     R100 000 Trauma cover with another assurer
−     Waiver of premium of R150 p.m. on a policy with another assurer
−     Income Protector (T48) with guaranteed income of R2 000 p.m.

CALCULATION
Total existing provision
Lump sum:      R100 000 ÷ 120                          =          R 833,33
Trauma                                                 =          R      0
Income and waiver of premium benefits                  =
           R2 000 + R150                                          R2 150,00
           Total (to the nearest rand)                 =          R2 983,33

Application of restrictions

The maximum amount available is the smaller of (a) and (b), where
(a)     =    (i) minus (ii)
             (i)   =   75% x R5 000 + the greater of R1 667 and (25% x R5 000)
                   =   R5 417
             (ii) =    R2 983 (Trauma is not included with existing provision).
             The amount available with (a) therefore is:
                   =   R5 417 – R2 983
                   =   R2 434 (to the nearest rand)
(b)     =    The smaller of (i) and (ii) minus (iii) where
             (i)   =   75% of R5 000
                       plus R0 (there is no balance above R12 000)
                   =   R3 750
             (ii) =    R25 000
             (iii) =R2 000 (Lump sum disability benefits or Disability Benefits in Five Instalments and
                             Trauma benefits are excluded as well as the waiver of premium benefits
                             with another assurer.)
             The amount available with (b) therefore is
                   =   R3 750 – R2 000
                   =   R1 750
        The maximum amount available is the smaller of (a) and (b)
      = R1 750 (R1 750 as calculated according to (b) is smaller than R2 434 as calculated according
              to (a))
Conclusion:
Consequently the person does not qualify for the full R2 000 p.m. in terms of a Table 48 (for which he
now proposes), but only for R1 750.




GE 9/2003                                             arg(BI 4)
 EXAMPLE 2

ASSUME
A person with a monthly taxable income of R25 000 wants to propose for the maximum permissible
monthly assured income by means of Table 48. His existing provision taken into account, the additional
Income Protection benefits he can obtain are calculated as follows:
Existing provision
      −           R150 000 Lump sum disability benefits (OEA) or Disability benefits in Five Installments (OEP)
      −           R150 000 Trauma cover (TV)
      −           Pension fund benefits at Sanlam Life: Lump sum        : R250 000
                                                    Income Benefits : R5 000 p.m.
      −           PPS: Ordinary shares           : 250
                       Supplementary shares : 500 (A class)
      −           Waiver of premium benefits (of Sanlam Life) on a policy of R200 p.m.

CALCULATION
Total existing provision
          −       Lump sum (R150 000 + R250 000) ÷ 120                 =       R3 333,33
          −       Trauma                                               =       R        0
          −       Income and waiver of premium benefits:
                      PPS shares                                       =       R       0
                      Other : R5 000 + R200                            =       R5 200,00
                      Total (to the nearest rand)                      =       R8 533,33
Application of limits

The amount available is the smaller of (a) and (b), where

(a)           =      (i) minus (ii)
                    (i) = 75% x R25 000 + the greater of R1 667 and (25% x R25 000)
                         = R25 000
                    (ii) =   R8 533 (Trauma benefits and PPS shares are not included with existing provision.)
                    The amount available with (a) therefore is:
                    = R25 000 – R8 533
                    = R16 467
(b)           =     The smaller of (i) and (ii) minus (iii), where
                    (i) = 75% of R12 000
                              plus 50% of R13 000 (the balance of the income above R12 000 p.m. - person
                              earns less than R3 000)
                         =    R15 500
                  R25 000
                    (ii) =
                  R5 200 (PPS shares, Lump sum Disability Benefits or Disability benefits in Five
                    (iii) =
                           Instalments and Trauma benefits are excluded)
          The amount available with (b) therefore is:
          = R15 500 – R5 200
          = R10 300
The maximum amount available is the smaller of (a) and (b)
    = R10 300 (R10 300 as calculated according to (b) is smaller than R16 467 as calculated
               according to (a))
Conclusion:

The person therefore qualifies for a further monthly income of R10 300.




GE 9/2003                                                  arg(BI 5)
MONTHLY TAXABLE EARNINGS *

Definition          Monthly taxable earnings is the assured’s average monthly income received during
                    the 12 months before disability.
Calculation of      • The total of all income and remuneration received during the 12 months before
earnings              disability from engaging in his occupation,
                    • plus taxable rider benefits
                    • minus all expenses and costs incurred with a view to earning such income and
                      remuneration (this is all amounts which are allowed as tax deductions, except
                       contributions to approved funds)
                    • divided by 12.
Income              In determining the total income any form of income from the following are excluded:
excluded                −      interest
                        −     dividends and
                        −     rental

* Tax avoidance such as registration of family trusts, formation of close corporations, etc., sometimes
  makes it impossible for Sanlam Life restrictions to be applied as set out above.
    Guidelines

    In order to determine a loss of income Sanlam Life requires the earning of income.               If the
    policyholder is not liable for tax, Sanlam Life requires the following:
    − Tax assessments in which tax payable is indicated as "nil".
    − A statement with reasons and an indication from the policyholder, setting out which of the
      assessed losses and expenditure Sanlam Life must ignore for purposes of calculating "net
      income".
    − Reasons for the disability leading to a loss of income.
    − If someone were to be appointed to do the assured's work, such a person's salary would be a good
      indication of loss of income.
    − Use this estimated monthly amount as "monthly taxable earnings".

    INDEXPLAN

INCOME PROTECTOR WITHOUT INDEXPLAN
The assured pays a level premium for a constant benefit. If a claim is admitted, a constant monthly
premium will be paid to the assured for the duration of the disability, but not later than up to the end of
the selected benefit term (subject to restrictions as named before).

INCOME PROTECTOR WITH INDEXPLAN
•      Indexplan is available with Table 48 and can be added if the client wishes to protect the income that
       is being assured against the erosive effect of inflation.
•      Indexplan increases will always occur on the policy anniversary.
•      The premium increases annually at the inflation rate.
•      The benefits grow annually on the policy anniversary before and after a claim has been recognised.
•      The policy-owner can choose that the income benefit grows at
       − 75% of the inflation rate or
       − 100% of the inflation rate.




GE 5/2003                                            arg(BI 6)
The skipping of premium increases

•   The skipping of premium increases in terms of Indexplan is not permitted.
•   When a premium increase is skipped, the Indexplan facility will fall away and there will be no further
    growth in the premium (revisions excluded) and benefits from then on.
•   All growth up to that stage will be maintained. The premium cannot be reduced to the premium for
    Table 48 without Indexplan.

75% growth in benefits
The premium (policy fee included) increases annually on the policy anniversary at the inflation rate (with
a maximum of 20% per annum) while the benefits will grow at 75% of the inflation rate. There will be
increases in the benefits and premium before and after a claim arises.
Example
    • At inception:
           Premium : R100 per month
           Assured income benefit : R5 000 per month
   • On the first date of increase and an assumed inflation rate of 15% per annum
           Premium                 = R100 + (15% x R100)
                                   = R115,00 per month
           Assured income benefit = R5 000 + [(75% x 15%) x R5 000]
                                   = R5 562,50 per month
100% growth in benefits
The premium (policy fee included), increases annually on the policy anniversary at the inflation rate (with
a maximum of 20% per annum) while the benefits will grow at 100% of the inflation rate. There will be
increases in the benefits and premium before and after a claim arises.
Example
    •   At inception:
             Premium : R100 per month
             Assured income benefit : R5 000 per month
    •   On the first date of increase and an assumed inflation rate of 15% per annum
            Premium                   = R112 + (15% x R112)
                                      = R128,80 per month
            Assured income benefit = R5 000 + (15% x R5 000)
                                      = R5 750,00 per month
    NB: 1) Sanlam Life will waive the full increasing premium during the period in which a
           disability claim is admitted.
         2) Annual increases at the inflation rate are subject to a maximum of 20% p.a.
         3)   The inflation rate is regarded as the rise in the consumer price index, measured over
              the latest calendar year for which the figures are available.




GE 5/2003                                          arg(BI 7)
    RIDER BENEFITS AVAILABLE

No rider benefits are available.

WAIVER OF PREMIUM BENEFIT
Waiver of premium benefits are included automatically with Income Protector. According to the policy
contract of Table 48 premium payments are waived
      −   if disability has lasted for 12 months and is still continuing;
          or
    − while an income benefit is payable in terms of the policy.
As soon as the assured recovers, the payment of premiums must be resumed.


 UNDERWRITING

The normal requirements i.r.o. occupational underwriting (Section DA), part-time activities (Section DB)
as well as medical requirements (Section DD) are applicable for Table 48.
NB:     In an exceptional case, Sanlam Life reserves the right to reject or amend the proposal
       according to its normal underwriting principles applicable to the product in question.


    WAITING PERIOD

Disability must have lasted continuously for the waiting period before any benefits will be payable. The
assured may choose his own waiting period. The following waiting periods are available:
          1, 3, 6, 12 or 24 months
When deciding on the waiting period, you should bear in mind that Table 48 compensates an assured
only if he suffers a loss of income.
Short waiting periods are not usually advisable in cases where the assured’s income is unevenly
distributed through the year, because it is difficult to prove that the assured suffers a loss of income. For
such assureds, we would not recommend a waiting period of less than 6 months. (For example, in the
case of a farmer who receives payment for his harvest once a year, it could take a considerable length
of time to determine what loss of income is brought about by the farmer’s disability.)

    BENEFITS DURING DISABILITY
While the assured suffers total or total and permanent disability and after the disability has lasted
continuously for the duration of the waiting period, Sanlam Life will compensate him further for loss of
income. The assured income (subject to the restrictions as set out in the contract) is paid out to him by
means of a fixed monthly amount.

BENEFITS PAYABLE
•     First 24 months or shorter period:
      Income Protector provides regular occupational benefits for 24 months. Benefits are therefore
      payable for 24 months if the assured cannot engage in his regular occupation in which he engaged
      before disability.
•     After 24 months
      Afterwards the assured will be compensated for loss of income if the disability is of such a nature
      that he cannot engage in his regular or an “reasonable alternative” occupation. A reasonable
      alternative occupation is an occupation in which the assured can be reasonably expected to
      engage, taking into account his education, training, status or experience.




GE 5/2003                                              arg(BI 8)
    PARTIAL RECOVERY

In certain circumstances (at Sanlam Life's discretion) proportional benefits will be paid to the assured if
he recovers partially after experiencing total disability and receiving income benefits.
The assured must be partially disabled and able to work, but not able to earn his full income.
The benefits paid will depend on the nature of the disability, the type of work he can perform and the
income that, in Sanlam Life’s opinion, he is able to earn.


    CONTINUATION OF DISABILITY
When the assured receives income benefits, Sanlam Life may at any time, and as often as Sanlam
considers it necessary, require proof from the assured that the
−     loss of income and
− disability
are continuing
This information is needed to determine whether the assured is still entitled to the income benefits.

     RESIDENCE OF ASSURED
    (during payment of benefits)

The income benefit is payable only while the assured is resident in the RSA, Namibia, Lesotho or
Swaziland.
The benefits are suspended and the policy lapses if, while benefits are being paid, the assured lives
or travels outside these areas for longer than three months during any period of twelve months.


    INCOME TAX

Premiums
The premiums paid under Income Protector are seen as an expenditure to secure an income and (in
terms of current legislation) are as such taken into account as a deduction from taxable income.
These premiums can be deducted from the taxable income over and above any contributions towards
retirement annuities (RA’s). In the marketing situation it is very beneficial if the nett premium (in other
words after tax) is illustrated to the client.
Income benefits
Any income benefit that the insured receives during disability, is regarded as taxable income in his
hands. Since the income is not a term annuity/life annuity because it can end at any time if the insured
should recover, Sanlam withholds no employee tax (PAYE) as in the case of life annuities and term
annuities. Sanlam only provides a letter that indicates the total payments in a tax year, and the onus is
on the insured to pay any tax owed on this to the SARS.


    POLICY VALUES

•     Income Protector does not have a surrender value, loan value or a fully paid-up value.
•     The policy cannot be pledged or ceded.
•     Income Protector does not offer death benefits or maturity values. The policy lapses at the end of
      the benefit term. Refer to “Ceasing of cover”.




GE 5/2003                                          arg(BI 9)
 CEASING OF COVER

The policy, as well as income benefits (in the case of a policy where a disability claim has been
admitted), shall lapse
    −   on the termination date (end of premium term); or
    −   at the death of the assured.
No further benefits shall be paid (not even a proportional part) whether a disability claim has been
admitted or not.




GE 5/2003                                       arg(BI 10)
                           SECTION BR

                  GUARANTEED PLAN FROM SANLAM
                                                                  Page

HOW THE PLAN WORKS ………………………………………………………………                       BR1
OPTIONS AVAILABLE WITH THE PLAN …………………………………………….                BR1
PROVISOS REGARDING THE GUARANTEED AMOUNT …………………………               BR2
DEATH BENEFIT PAYABLE AT THE DEATH OF THE POLICY-OWNER ……...      BR2
TAX LIABILITY …………………………………………………………………………...                     BR2
TECHNICAL PARTICULARS …………………………………………………………..                    BR2
AD HOC-CONTRIBUTIONS …………………………………………………………….                     BR2
OPTIONS AT THE DEATH OF THE POLICY-OWNER ……………………………..            BR3
NOMINATION FOR OWNERSHIP ……………………………………………………..                   BR3
SURRENDER ………………………………………………………………………….….                         BR3
LOANS ………………………………………………………………………….…………                           BR3
CESSIONS ………………………………………………………………………….…….                         BR3
CONVERSIONS …………………………………………………………………………..                        BR3
ADMINISTRATIVE PARTICULARS ……………………………………………………                   BR4
−   Proposal form …………………………………………………………………………………..               BR4
−   Quotations ………………………………………………………………………………………                  BR4
−   Validity period of the quotation ……………………………………………………………….    BR4
−   Policy regarding the inception date ………………………………………………………….   BR4
−   Commission …………………………………………………………………………………….                  BR4
−   New Business ………………………………………………………………………………….                 BR5
ENQUIRIES ……………………………………………………………………………….                         BR5




GE 6/99                             arg(br)
                              GUARANTEED PLAN FROM SANLAM


 Availability     Available only for individuals, trusts and non-taxpaying institutions.
                  Note:    In the case of trusts all the beneficiaries must be individuals or non-
                          taxpaying institutions.
 How the plan     A lump sum is invested for a set term in such a way that fixed proceeds at maturity
 works            (always 5 years) are guaranteed. A sinking fund policy is used for this purpose.
 Options avail-   The Guaranteed Plan offers the investor a choice between guaranteed capital growth
 able with the    with or without guaranteed income.
 plan
                  •   Capital Growth
                      The investor has two different options for obtaining capital growth, namely:
                      –   Guaranteed Capital Growth
                          The full sum is invested in the Guaranteed Plan. Thus it will grow to the
                          maximum without any risk of exposure to economic and market conditions.
                          The maturity value is guaranteed contractually.
                      –   Vigorous Capital Growth (To be compiled by you)
                          A portion of the lump sum is invested in such a way that the original lump sum
                          is guaranteed at the end of the 5-year term. The remaining portion of the
                          original lump sum is invested in any of Sanlam’s unit trusts. The result is an
                          investment that offers a combination of vigorous capital growth and moderate
                          risk.
                  •   Guaranteed Income (if selected)
                      –   A portion of the original lump sum is invested in such a way that the original
                          lump sum is guaranteed at the end of the 5-year term.
                      –   The remaining portion is used to purchase a term annuity which will provide a
                          regular guaranteed income for the term.
                      –   The highest possible guaranteed income will be provided while the original
                          lump sum is protected.
                      –   An income may be specified in which case the remaining lump sum (after the
                          term annuity has been purchased) is invested at a guaranteed rate.




GE 6/2000                                          arg(br1)
 Provisos          •   The guaranteed amount is maintained irrespective of any change in the
 regarding the         investment conditions or a decrease in the long-term interest rates (in the case
 guaranteed            of an income option).
 amount
                   •   Sanlam, however, reserves the right to adjust the guaranteed amount if a
                       change in legislation or measures has a detrimental effect on the investment.
                       All quotations and policy contracts make provision for this.
 Benefit payable   •   When one takes out a policy it is compulsory to nominate a nominee for policy-
 at the death of       ownership.
 the policy-
 owner             •   The guaranteed amount is payable only on the maturity date.
                   •   If the policy-owner dies before the maturity date, no benefits are paid out and
                       the policy is continued until the maturity date.
                   •   If the new policy-owner terminates the policy earlier, only the cash value is
                       payable.
 Tax Liability     •   According to current legislation the nett after-taxed proceeds of the investment
                       policy is available at the end of the term.
                   •   In the case of an income option only the income element of the term annuity is
                       normally taxable. Therefore, the capital element of the annuity will be tax-free,
                       provided the requirements of section 10A of the Income Tax Act are met.
 Technical         Product       The product name code is D077.
 particulars       name
                   code
                   Term          •   The investment is made for a term of 5 years.
                                 •   After the term of 5 years the guaranteed proceeds at maturity is
                                     available.
                                 •   The investor then has the option of allowing it to continue in one
                                     of Sanlam’s investment portfolios, with or without income.
                   Minimum       R10 000,00 is the minimum lump sum that can be invested.
                   lump sum      Note: If the income option is chosen, the investment amount must
                                       be such that the single premium of the policy is at least
                                       R10 000, and the annuity at least meets Sanlam’s minimum
                                       instalment requirements.
 Ad hoc            Ad hoc contributions are not permitted.
 contributions




GE 6/2000                                        arg(br2)
 Options at      •   When taking out the policy, the policy-owner can nominate a person or institution
 the death of        for ownership.
 the policy-
 owner           •   This nomination vests at the death of the policy-owner.
                 •   The new owner who has been nominated can then decide to either continue with
                     or surrender the investment.
                 •   The executor of the estate has the same options as above if a nomination for
                     ownership was not made when the policy was taken out.
 Nomination      •   The proposal form makes provision for the nomination for ownership.
 for ownership
                 •   Only one person, trust or non-taxpaying institution may be nominated as owner.
                     Note: In the case of trusts all the beneficiaries must be individuals or non-
                           taxpaying institutions.
                 •   However, if the policy-owner is married in community of property and someone
                     other than the spouse is nominated, form E827 must be filled in. This form must
                     be submitted together with the proposal form.
 Surrender       •   The policy can be surrendered partially or in full.
                 •   The surrender value is subject to market interest rates.
                 •   The normal restrictions contained in Part 4 of the Regulations issued in terms of
                     the Long-term Insurance Act (previously Section 59D) regarding surrenders, are
                     applicable.
 Loans           Loans against the policy are not permitted.
 Cessions        •   The policy can be ceded (form AE2170) to
                     –   individuals
                     –   trusts and
                     –   non-taxpaying institutions.
                     Note: In the case of trusts all the beneficiaries must be individuals and/or a
                           non-taxpaying institution.
                 •   If the tax status of the cedent differs from that of the cessionary, it could mean
                     that the guarantee will have to be recalculated.
                 •   The policy-owner will have to be notified of the change in the policy.

 Conversions     Conversions are not permitted.




GE 6/2000                                         arg(br3)
 Administrative   Proposal        •   The proposal form is AEB34.
 particulars      form
                                  •   If Vigorous Capital Growth is chosen, the application form for
                                      the Sanlam unit trust portion (item number TE7) must also be
                                      filled in.
                  Quotations      •   Quotations for the Guaranteed Plan are available on
                                      Sanquote.
                                  •   These quotations can also be obtained from Product Advice:
                                      Product Development (see “Enquiries”).
                  Validity        •   A valid quotation is obtainable only with a payment date of not
                  period of the       more than four calendar days in the future. If the maturity
                  quotation           sum of a Sanlam policy is to finance the investment, an
                                      advance guarantee is applicable.
                                  •   If the date of payment differs from the date on which the lump
                                      sum was paid in at a Sanlam cashier, a final quotation with
                                      the correct date of payment must be obtained.
                  Policy          The policy regarding the inception date is the same for the single-
                  regarding the   premium policy and the term annuity. The inception date of the
                  inception       Guaranteed Plan is determined by the date on which the
                  date            investment amount is paid in at a Sanlam cashier.
                                  On or before the 15th of the month: The first day of the month in
                                  which the investment amount was received.
                                  After the 15th of the month: The first day of the month following
                                  the month in which the investment amount was received. Note
                                  the policy regarding inception date if an advance guarantee
                                  applies.


                                  Note: The guaranteed proceeds at maturity are calculated from
                                        the actual date of payment.
                  Commission      Commission is payable at the normal commission percentages
                                  for single-premium sinking fund policies.     The commission
                                  percentage can be reduced at the request of the intermediary in
                                  order to increase the competitiveness of the quotation. The
                                  proposal form and the quotation make provision for this. If
                                  income is taken the normal term annuity scales will apply to the
                                  term annuities.




GE 6/2000                                     arg(br4)
 Administrative   New             When the investment amount is paid in at a Sanlam cashier, a
 particulars      Business        policy number will be allocated at the regional office. This number
 (continued)                      must be indicated on the proposal form.
                                  NB:
                                  −     No date capturing or creation of member record must be
                                        done.
                                  −     Documents must not be faxed to HO, but must be indexed
                                        and scanned.
                                  −     The proposal must be routed to New Business: Policy
                                        Issuers, where it will be issued.
 Enquiries        Enquiries will be handled as follows:
                  Product enquiries/Quotations: Product Advice (021) 947-8035
                  Administration and Issuers: New Business: Policy Issuers (021) 947-8523/4
                  Policy value enquiries: Policy Values (021) 947-4436, (021) 947-5977/8




GE 6/2000                                       arg(br5)
          NO LONGER AVAILABLE FOR NEW BUSINESS FROM 09/10/1998


                               SECTION BV


                          GEARED EQUITY GROWTH



                                                                 Page

DESCRIPTION ……………………………………………………………………………..                      BV1
BENEFITS ………………………………………………………………………………….                        BV1
INCEPTION DATE …………………………………………………………………………                      BV1
MINIMUM SINGLE PREMIUM …………………………………………………………...                 BV1
COSTS ………………………………………………………………………………………                          BV2
PROCEEDS ………………………………………………………………………………...                       BV2
INDICES AND PRICES ……………………………………………………………………                    BV2
TAX LIABILITY …………………………………………………………………………….                     BV3
MINIMUM MATURITY VALUE …………………………………………………………...                 BV3
GUARANTEES …………………………………………………………………………….                        BV3
PROVISOS APPLICABLE TO VALUES ………………………………………………..               BV3
POLICY-OWNERSHIP (after death) ……………………………………………………              BV4
DEATH BENEFITS ………………………………………………………………………..                     BV4
CONTINUATION …………………………………………………………………………..                      BV4
CONVERSIONS ……………………………………………………………………………                        BV4
AVAILABILITY ……………………………………………………………………………..                     BV4
CESSIONS ………………………………………………………………………………….                        BV4
SURRENDER VALUE …………………………………………………………………….                      BV4
LOAN VALUE ……………………………………………………………………………...                      BV4
PROPOSAL PROCEDURE ………………………………………………………………                      BV5
PRODUCT NAME CODE …………………………………………………………………                      BV5
QUOTATIONS ……………………………………………………………………………..                       BV5
ENQUIRIES ………………………………………………………………………………...                      BV5




GE 6/99                            arg(bv)
                                       GEARED EQUITY GROWTH

DESCRIPTION
Geared Equity Growth is a single-premium sinking fund policy with a term of five years. The proceeds of
the policy are approximate to the initial allocation amount (investment amount/purchase price less initial
cost) plus the growth of the All-share Top 40 index (ALSI40) of the Johannesburg Stock Exchange, subject
to:
    •     an extra bonus at the end of the term on the growth achieved by the investment, and
    •     a minimum maturity value equal to the single premium (before the recovery of costs) invested.
Please Note: Geared Equity growth is only available as a capital growth plan.

BENEFITS
•   The minimum maturity value is equal to the single premium (before the recovery of costs) invested
    (capital retention).
•   The policy is not terminated at death. (Nomination for policy-ownership is required.)
•   Aside from the growth in the ALSI40, the policy-owner receives an additional bonus at maturity (a
    percentage of the growth over the term on the investment) at a rate that applies contractually for the
    duration of the policy term.
•   No additional costs are recovered. All costs are disclosed in full and guaranteed over the policy term.
Note:       The additional bonus rate may fluctuate from time to time for new business.                   (See
            “Guarantees” later in this Section.)

INCEPTION DATE
The inception date of the policy is determined as follows:
        Date on which single premium is received               Inception date
        16th of month until end of month                       1st of month + 2
        1st of month up to 15th of month                       1st of month +1

Growth on the single premium is added to the single premium at the higher illustrative rate for the period
from the date of payment until the inception date.

Examples
•   Single premium is paid to a Sanlam cashier on 1 April. The inception date is therefore 1 May.
•   Single premium is paid to a Sanlam cashier on 30 April. The inception date is therefore 1
    May.
•   Single premium is paid to a Sanlam cashier on 30 April. The inception date is therefore 1
    June.

MINIMUM SINGLE PREMIUM
The minimum single premium is R15 000.




GE 6/99                                             arg(bv1)
COSTS
The only cost is an initial levy of 5% of the initial single premium.

PROCEEDS
The maturity value of the policy is equal to the allocation amount multiplied by the growth in the price, plus
the additional bonus.

Example
Single premium                                  = R100 000
Allocation amount                               = 95 percent of R100 000 (the initial levy is 5 percent)
                                                = R95 000
Assume the following:
    •   Initial price (on inception date)       = 1 000
    •   Final price (on maturity date)          = 1 750
    •   Additional bonus (contractual)          = 18 percent
Maturity value of policy after 5 years before addition of bonus

           =     R95 000 x 1 750
                              1 000
           =     R166 250
The allocation amount has therefore increased by R71 250.
The bonus = 18 percent of R71 250.
Total maturity value of policy after 5 years, including bonus
           =     R166 250 + (18% x R71 250)
           =     R179 075

INDICES AND PRICES
•   The price used to purchase units on inception date, is equal to the average index over 5 business days
    before month-end in the ALSI40.
•   The final price is equal to the sum of the prices on the first business day of each month in the last policy
    year, plus the closing price on the last business day of the month immediately before the policy
    matures, divided by 13.




GE 6/99                                              arg(bv2)
Examples
Single premium is paid on 16 March.
Inception date is therefore 1 May.
The last 5 business days before 1 May 1998 are 23, 24, 28, 29 and 30 April.
Suppose indices on these dates are 1 000, 1 004, 1 010, 1 008 and 1 012.
The initial price at which units are purchased
        = (1 000 + 1 004 + 1 010 + 1 008 + 1 012) ÷ 5
        = 1 007
Assume the prices on the first business day of each month in the last policy year are 1 950, 1 960,
1 975, 1 920, 1 950, 1 960, 1 990, 1 990, 2 050, 2 010, 2 070 and 2 080 respectively, and the price
on the last business day in April 2003 is 2 095.
The final price at which the maturity value is calculated
        = (1 950 + 1 960 + 1 975 + 1 920 + 1 950 + 1 960 + 1 990 + 1 990 + 2 050 + 2 010 + 2
          070 + 2 080 + 2 095) ÷ 13
        = 2 000

TAX LIABILITY
In terms of the Income Tax Act, The assurer (Sanlam) pays tax in respect of life, endowment and sinking
fund policies, except if the policy-owner is a non-taxpaying institution. Therefore, the policy proceeds are
tax-free in the hands of the policy-owner, representing an after-tax return.

MINIMUM MATURITY VALUE
The minimum maturity value is equal to the original single premium.

GUARANTEES
•   The additional bonus rate is guaranteed contractually over the term of the policy.
•   The original capital is guaranteed at the end of the investment term.
•   All costs are disclosed in full and are guaranteed over the term of the policy.

PROVISOS APPLICABLE TO VALUES
Sanlam reserves the right to adjust values in terms of the policies if a change in legislation or provisions
would have a negative effect on the investment. All quotations and policy contracts therefore include the
following wording:
    “If there is a change in the tax status of the policy-owner or should a government at any time effect
    legislation or measures which, with regard to the fund that Sanlam keeps for this policy, and other
    similar policies,
    −   alter a tax rate or fee; and
    −   require that underlying assets be invested in another way,
    Sanlam may recalculate the maturity value, given the change in tax status, legislation and regulations.”




GE 6/99                                             arg(bv3)
POLICY-OWNERSHIP (after death)
Because no surrender values are available in terms of the policy, a nomination for policy-ownership is a
requirement to ensure that finalisation of the estate is not delayed.

DEATH BENEFITS
•   No death benefit is paid before the end of the policy term.
•   In terms of the conditions contained in the policy contract, the policy may not be surrendered.
•   It is essential that a beneficiary be appointed.
•   At death of the policy-owner, the policy is transferred to the beneficiary.
•   The policy continues in terms of the original contract and matures to the beneficiary on the maturity
    date contracted originally.

CONTINUATION
•   At the end of the policy term, the policy-owner has the option of continuing the policy in the Stable
    Bonus Fund, Balanced Fund, Equity Focus Fund, Offshore Equity Fund, Fund of Funds or Guaranteed
    Capital Fund for further capital growth.
•   Continuations with cash withdrawals can take place in the 300 Plus portfolio.

CONVERSIONS
No conversions are permitted with this product.

AVAILABILITY
The policy is available to individuals, non-taxpaying institutions and trusts, the beneficiaries of whom are all
natural persons and/or non-taxpaying institutions.

CESSIONS
•   The policy can be ceded (standard form).
•   If the tax status of the cedent (the person ceding the policy) differs from that of the cessionary, the
    policy values may also differ from what they would be for the cedent.
•   A cession may not be recorded in favour of a taxpaying institution.

SURRENDER VALUE
No surrenders or partial surrenders are available.

LOAN VALUE
The policy does not have a loan value.




GE 6/99                                                arg(bv4)
PROPOSAL PROCEDURE
The following procedures must be followed:
•   Regions must simply allocate a policy number and create the member record. No documents must be
    faxed to the New Business office.
•   Please arrange for the necessary documents to be indexed and scanned.
•   Route the proposal to New Business: Issuers at Head Office. The unit and route codes are:
       −   Unit code             4205
       −   Route code            BA4A

       −   Contact number:       (021) 947-3907

       −   A unit code, route code, contact person and telephone number must be included in the
           information and documents which are routed.

PRODUCT NAME CODE
The product name code is D103.

QUOTATIONS
•   Quotations for Geared Equity Growth are available on SanQuote.
•   A PCPlan-code will be made available each week. No quotations can be requested without this code.
•   The additional bonus rate is also indicated on the quotation. Quotations are only valid for a specific
    payment date. If the payment date changes, a new quotation must be obtained.
•   Quotations are always valid until the first Saturday after the quotation was requested.
•   If the money is paid to a Sanlam cashier after expiry of the period of validity, a new quotation must be
    requested, since the original bonus rate may have changed in the meantime.

ENQUIRIES
Product information and quotations:           Sanlam Life : Product Development: Product Advice at (021)
                                              947-8035.
Value of specific policies:                   Client Services: Actuarial Support at (021) 947-4436.
Issuing of policies:                          New Business (021) at 947-3907 (issuing) or 947-8524
                                              (contracts).
Any other enquiries can be made through the normal channels.




GE 6/99                                            arg(bv5)
                              SECTION BW



                               STRATUS


                                                               Page
DESCRIPTION ………………………………………………………………………….                      BW1
INVESTMENT FUNDS ………………………………………………………………...                   BW1
REMUNERATION ….…………………………………………………………………..                     BW1
−   INITIAL ADVISORY FEE ……...……………………………………………………………..        BW1
−   MONTHLY INVESTMENT REVIEW FEE …………….…………………………………….        BW1
DEATH GUARANTEE …..……………………………………………………………..                   BW2
INVESTMENT GUARANTEE ………………………………………………………….                   BW2
CALCULATION OF INITIAL UNITS ……………..…………………………………..            BW2
ACTUAL PRICES ...…………………………………………………………………….                   BW3
CHARGES ……………………………………………………………………………….                        BW3
−   INVESTMENT REVIEW FEE ………………………………………………………………..           BW3
−   GROSS FUND MANAGEMENT FEE ……………………………………………………….           BW3
−   SERVICE FEE …………………………………………………………………………………                BW3
−   CHARGE FOR DEATH GUARANTEE …….…………………………….…………………          BW3
−   INCOME TAX ……………………………………………………………………………….....             BW3
−   COMPULSORY COSTS ….………………………………………………………………….              BW3
CASH WITHDRAWALS ….…………………………………………………………….                    BW4
LOANS … ………………………………………………………………………………...                      BW4
SWITCHING BETWEEN INVESTMENT FUNDS …..……………………………….            BW4
INCEPTION DATE ...……………………………………………………………………                   BW4
POLICY FEE ….………………………………………………………………………...                    BW4
MINIMUM SINGLE PREMIUM ………..……………………………………………….                BW5
RIDER BENEFITS ..…………………………………………………………………….                   BW5
TERMS ...…………………………………………………………………………………                       BW5
PRODUCT NAME CODE ………………………………………………………………                     BW5
OPTION AFTER 5 YEARS …..………………………………………………………..                BW5
CEDING THE POLICY AND NAMING OF BENEFICIARIES ..……………………       BW5
INTERMEDIARY ………………………………………………………………………..                     BW5
ADMINISTRATIVE INFORMATION …...……………………………………………..             BW5
−   PROPOSAL FORM …….……………………………………………………………………..              BW5
−   QUOTATIONS ….……………………………………………………………………………..               BW5
−   QUATERLY INVESTMENT STATEMENTS ..……………………………………………...      BW5
−   SURRENDERS, CASH WITHDRAWALS AND LOANS …...……………………………..   BW5
−   NOTATION FORM (POLICY ALTERATIONS) …………...………………………………..   BW5
−   OPTION FORM FOR CONTINUATION …………………………………………………….         BW5
EXTENDED STRATUS ………………………………………………………………...                   BW6




GE 6/2000                         arg(bw)
                                              SECTION BW


                                                STRATUS




    DESCRIPTION

Stratus is an investment where clients can take out a non-RA single-premium policy in one of six
investment funds for maximum capital growth, with the option of guaranteeing their original capital (see
death and investment guarantee later in this section).


    INVESTMENT FUNDS

One of the following six funds can be chosen:
−    Balanced Fund (400 Plus);
−    Equity Focus Fund (RSA 500 Plus)
−    Offshore Equity Fund;
−    Fund of Funds
−    Guaranteed Capital Fund
−    Offshore Balanced Fund


    REMUNERATION

INITIAL ADVISORY FEE
•   The initial advisory fee is a contract between the intermediary and the client. It is therefore not
    payable by Sanlam Life.
•   The standard initial advisory fee is 3 per cent of the initial amount. The intermediary may, however,
    negotiate with the client for an initial advisory fee of nil percent up to and including 6 per cent. If no
    other percentage is indicated, it is assumed that the standard fee has been agreed upon.
•   The initial advisory fee may not be split by mutual consent, except in the case of reference contracts.


MONTHLY INVESTMENT REVIEW FEE
In addition to the initial advisory fee, the intermediary can also negotiate with the client for a monthly
investment review fee.
The standard fee is 0,6 per cent per year of the fund value, payable at the end of every month.
Intermediaries can negotiate with clients for an investment review fee of nil per cent up to and including
0,6 per cent. The fee that will be paid monthly in arrear, is the annual scale divided by twelve. If no
other percentage is indicated, it is assumed that the standard fee has been agreed upon.
•   Owing to the normal policy restrictions in terms of a regulation of the new Long-term Insurance Act
    (the regulation was previously Section 59D), this fee is still paid out as commission during the first
    five years of the duration of the policy. VAT in respect of the amounts paid during this period,
    therefore still falls under the self-invoicing process Sanlam Life normally applies to commission.
•   However, the amounts paid after the expiry of the first 5 years of the duration of the policy, fall
    into the same category as the advisory fee. As in the case of the advisory fee, the onus is therefore
    on intermediaries who are registered for VAT, to ensure that the fee agreed on already includes VAT
    and that the VAT is declared and paid correctly. From this point onwards, these fees therefore no
    longer fall under the self-invoicing process normally applied by Sanlam Life with regard to
    commission.




GE 12/2000                                          arg(bw1)
•   Intermediaries will also not be permitted to split the investment review fee amongst themselves.
The client can instruct Sanlam in writing at any time to change or cancel the investment review fee, or to
pay it to another intermediary in future. If the fee is reduced or cancelled, the client will receive the
benefit.

    DEATH GUARANTEE

Clients can decide whether they want to have the investment amount guaranteed at death. If they
choose such a guarantee, Sanlam Life guarantees at least the initial investment (initial amount), before
the deduction of the initial advisory fee, at the death of the life assured.
If a death guarantee is chosen, the death benefit is therefore the policy investment as on the date on
which Sanlam Life receives notice of the death of the life assured, with a minimum of the initial amount,
provided that no loan or cash withdrawal was made.
If a death guarantee is not chosen, the death benefit is equal to the value of the policy investment on
the date on which Sanlam Life receives notice of the death.
By means of a notation, the death guarantee can be :
    •   increased;
    •   added to policies which do not have it;
   • cancelled.
The death guarantee is not available in the case of the Guaranteed Capital Fund. The cost of the
guarantee is indicated on the quotation.


    INVESTMENT GUARANTEE

This guarantee is available only in the case of the Balanced Fund (400 Plus). In terms of this option
benefit the client can insure that after 5 years, on a specific day (the investment guarantee date), the
investment will achieve a return of at least 4,5% a year on the guaranteed amount (application amount,
i.e. the amount remaining after the deduction of the initial advisory fee and the cost of the investment
guarantee).
On the investment guarantee date the value of the policy is the greater of the number of units multiplied
by the price or the investment guarantee, provided that no loan or cash withdrawal was made. On any
other day it is always the number of units multiplied by the price.
By means of a notation the investment guarantee can be :
    •   increased
   • added to a policy that does not have it.
The cost of the guarantee is indicated on the quotation.

    CALCULATION OF THE INITIAL UNITS

The policy’s units are purchased at the buying price for the chosen investment fund, as on the day on
which the money is paid to any contracted bank (at present ABSA or First National Bank), an ATM or via
the Internet. The buying price is currently always 2 per cent more than the selling price (therefore:
buying price = selling price x 1,02).

    Example
    Initial amount (amount of cheque)             :   R100 000
    Negotiated initial advisory fee (including
    VAT, if applicable)                           :  R 3 000
    Premium for policy                            :  R100 000 – R3 000
                                                     = R97 000
    If the selling price of the chosen investment fund is 314,56 cents, the number of units purchased is:
               R97 000 ÷ (R3,1456 x 1,02)
               = 30 232,0827 units

Note: This example is for a policy without death and investment guarantees.


GE 12/2000                                            arg(bw2)
    ACTUAL PRICES

We envisage having these prices published in the daily press. The price for a particular day for
publication in the press, can only be determined at the end of that day. The prices in the press will
therefore always be the prices of at least the previous day.

When available?

•   In the case of policies in the Balanced Fund and the Equity Focus Fund, the actual price for a
    particular day will be published the next day.
•   In the case of the Fund of Funds, the Offshore Equity Fund and the Offshore Balanced Fund, details
    will be published two working days later.


    CHARGES

The following charges apply:

INVESTMENT REVIEW FEE
The prices used to calculate units, always assume an investment review fee of 0,6 per cent.

GROSS FUNDS MANAGEMENT FEE
The gross funds management fee is a percentage of the value of the investment fund as on the date of
calculation, and is taken into account when unit prices are calculated.
The various investment funds’ annual gross funds management fee are currently as follows:

     •   Balanced Fund (400 Plus)             :   1,1%
     •   Equity Focus Fund (RSA 500 Plus)     :   1,1%
     •   Fund of Funds                        :   1,1%
     •   Offshore Equity Fund                 :   2,0%
     •   Guaranteed Capital Fund              :   1,1%
     •   Offshore Balanced Fund               :   2,0%

These percentages may vary from time to time.
SERVICE FEE
From 18/10/99, an additional 0,5% p.a. is being levied as a service fee in respect of all the above-
mentioned funds.

CHARGE FOR DEATH GUARANTEE

NB : This charge only applies if a death guarantee is chosen.

A monthly premium is calculated, currently equal to 2 per cent per year of the difference between the
value of the policy investment as at the time of calculation and the death guarantee. This charge is
recovered at the end of every month by cancelling units. The percentage of the charge may vary from
time to time.

INCOME TAX
Income tax, where applicable, is taken into account in accordance with the so-called four-fund
dispensation. Any income tax which Sanlam Life pays, is taken into account when the unit prices are
calculated.

COMPULSORY COSTS
Compulsory costs on the assets or income of the relevant fund, are recovered from the assets in the
fund. These levies amount to 0,7 per cent per year. The levies are taken into account in the pricing.

GE 12/2000                                        arg(bw3)
    CASH WITHDRAWALS

Fully or partly

•    Cash withdrawals can be made at any time.
•    The normal policy restrictions in terms of the Insurance Act regulations (previously Section 59D)
     apply to these policies.
•    The client must request the cash withdrawal amount in rands and cents.

    LOANS

•    Loans are available two months after inception date.
•    A loan levy, of R550,00 is charged. The policy units then decrease accordingly.
•    The policyholder cedes his rights in terms of the policy to Sanlam Life as security for the loan he
     takes out with Sanlam Life.
•    No interest is charged on loans against Stratus policies at present.
•    Repayment can be made at any time.
•    The maximum loan amount is determined by a minimum of R10 000 that must remain on the policy.
     The maximum and minimum amounts that may be borrowed, exclude the loan levy. The normal
     policy restrictions in terms of the Insurance Act regulations (previously Section 59D) apply.


    SWITCHING BETWEEN INVESTMENT FUNDS
•    Clients can switch investment funds at any time. However, the entire policy must be switched from
     one investment fund to another.
•    The first two switches of a particular year are free. An administrative fee of R250,00 is always
     involved for any switches thereafter.
•    In the case of switches from the Guaranteed Capital Fund, a switching fee (2% of the selling
     price of the fund to which the switches has taken place) is involved.
•    A one-off compulsory charge of 0,7% of the assets of the investment fund to which the policy is
     being switched, is taken into account in the price used to do the switch.

    INCEPTION DATE

The inception date is the day on which the lump sum is paid to any contracted banks (currently ABSA
and FNB), an OTM or via Internet. It can therefore be any day of the month.


Please note:
• Intermediaries must deposit their clients’ cheques as soon as possible, since that date determines
   the inception date and the price at which units are purchased. If the market fluctuates
   significantly between the day on which the client hands the intermediary the cheque, and the day
   on which the cheque is deposited, it may result in claims against the intermediary and Sanlam.
   Intermediaries themselves will be held liable for such claims.
• The price at which units are purchased, is not known on the day of deposit. It will therefore not
  be possible to issue a policy on the last day (in the case of Fund of Funds and Offshore Equity
  fund policies, the last two days) of a marketing month (cut-off date) if the proposal is only
  submitted that day.

    POLICY FEE

No policy fee is payable.




GE 12/2000                                          arg(bw4)
  MINIMUM SINGLE PREMIUM

The single premium is R10 000. This excludes the initial advisory fee (including VAT if applicable). The
premium to be invested, must therefore be at least R10 000. The minimum investment amount is thus
R10 000, plus the initial advisory fee (including VAT if applicable).


  RIDER BENEFITS

No rider benefits are available at present.

  TERMS

After five years (restricted period) the value of the policy investment is available at any time.


  PRODUCT NAME CODE

The product name code is D116.

  OPTION AFTER 5 YEARS

Cash bonuses are available after 5 years.


  CEDING THE POLICY AND NAMING A BENEFICIARY

The normal rules apply.

  INTERMEDIARY

The policy-owner has the right to replace the initial intermediary with another by means of a notation.
The investment review fee (existing or reviewed fee) will then be paid to the new intermediary.


  ADMINISTRATIVE INFORMATION


 Proposal form                        AEB45
 Quotations                           PCKwot and MegKwot
 Quarterly investment                 Policyholders will receive an investment statement.
 statements
 Surrenders, Cash                     •   Use form A2823 to request any of these transactions (this form
 withdrawals and Loans                    can be ordered from Supply Services at Head Office in the
                                          usual way).
                                      •   Completed forms must be faxed to (021) 947-2798.
                                      •   Indicate clearly on the fax that the surrender, cash withdrawal
                                          or loan is in respect of a Stratus policy.
                                      •   Contact (021) 947-4031 or (021) 947-4437 for enquiries on the
                                          processing of cash values.
 Notation form                        AEB46
 (policy alterations)
 Option form for continuation         AEB48




GE 12/2000                                          arg(bw5)
                                                           CHAPTER 10



                    STRATUS CONTINUATIONS (OLD ADMINISTRATION SYSTEM)


                                                                                                                        Page

DESCRIPTION ..................................................................................................          BX10/1
REMUNERATION .............................................................................................              BX10/2
INVESTMENT FUNDS ......................................................................................                 BX10/2
INITIAL TERM ...................................................................................................        BX10/2
LIVES INSURED ...............................................................................................           BX10/2
THE INVESTMENT GUARANTEE ....................................................................                           BX10/2
CAPITAL GUARANTEE AT DEATH ….............................................................                               BX10/3
DEATH BENEFIT …...........................................................................................              BX10/3
PREMIUMS …....................................................................................................          BX10/3
ALLOCATION PERCENTAGE ……………………………………………………..                                                                            BX10/3
CALCULATION OF INITIAL UNITS …..............................................................                            BX10/3
ACTUAL PRICES …..........................................................................................               BX10/4
INCEPTION DATE ….........................................................................................               BX10/4
POLICY CHARGES ….......................................................................................                 BX10/4
− INVESTMENT REVIEW FEE …....................................................................                           BX10/4
− SERVICE FEE …...........................................................................................              BX10/4
− FUND MANAGEMENT FEE …......................................................................                           BX10/4
− PERFORMANCE FEE …..............................................................................                       BX10/4
− COMPULSORY COSTS …...........................................................................                         BX10/5
− CAPITAL GUARANTEE AT DEATH ……………………………………………                                                                          BX10/5
FULL OR PARTIAL CASH WITHDRAWALS ..................................................                                     BX10/5
REGULAR CASH WITHDRAWALS ................................................................                               BX10/5
− MINIMUM REQUIREMENTS .......................................................................                          BX10/5
− TAX ...............................................................................................................   BX10/5
LOANS .............................................................................................................     BX10/6
SWITCHING BETWEEN INVESTMENT FUNDS ............................................                                         BX10/6
CESSIONS AND APPOINTMENT OF BENEFICIARIES/NOMINEES .............                                                        BX10/6
ADMINISTRATIVE INFORMATION .................................................................                            BX10/6




GE 4/2004                                                  arg(BX10 Index)
                                            CHAPTER 10


              STRATUS CONTINUATIONS (OLD ADMINISTRATION SYSTEM)



In chapter 8 of this section of the Product Guide, Stratus Continuations are described. The
continuations referred to in chapter 8, are continuations that are being administered on Sanlam
Life’s new administration system, and apply to the majority of continuations. However, there are
some products of which the continuations are administered on the old administration system,
because the new administration system cannot handle certain aspects. Until the new administration
system can handle all these aspects, intermediaries will have to take note of the exceptions and
handle them as such.

Particulars of continuations on the respective operating systems differ.          The most important
differences are:

   •   the investment funds in which a policy can be continued and in which regular withdrawals
       are possible;
   •   the number of investment funds in which a policy can be continued;
   •   that no further premiums may be paid on policies on the old administration system, while it
       is, however, possible on policies on the new administration system; and
   •   the death benefit guarantee which is available on continuations on the old administration
       system, but not on the new administration system.

The information which follows is the particulars that apply to continuations on the old
administration system.

  DESCRIPTION

A continuation in Stratus (on the old administration system) is an investment where clients can continue
the maturity value or the value of the policy investment of their non-Stratus policy, without premium
payments, in one of the available investment portfolios. Clients can also choose to receive regular cash
withdrawal amounts.

These continuations apply to continuations of policies with more than one life insured and/or more than
one proposer.

Certain continuations are also possible in the Stratus Guaranteed Property Investment. See Section
BX6.

For all other continuations, see chapter 8 on Stratus Continuations.

With Stratus Sanlam Life is trying to offer clients transparent, low-cost products. After recovery of
certain costs, Sanlam Life purchases units for the client with his investment.

The client may choose only one investment fund per policy, and can switch between available funds at
any time.




GE 6/2005                                      arg(BX10/1)
  REMUNERATION

The remuneration to the intermediary is as follows:

INITIAL ADVISORY FEE

The initial advisory fee is payable on the continuation amount. The intermediary agrees with the client
on the initial advisory fee that must be paid. Although the standard initial advisory fee is 3%, any
percentage between 0% and 6% of the continuation amount can be chosen. If no fee has been filled in
on the proposal form, Sanlam Life will assume that the standard initial advisory fee of 3% has been
agreed upon.

MONTHLY INVESTMENT REVIEW FEE

The intermediary agrees with the client on the monthly investment review fee, if any, to be paid to the
intermediary. This fee is paid monthly in arrears, and is a percentage of the market value of the assets
in the fund. Any percentage from 0% to 0,6% a year can be chosen. If no investment review fee has
been filled in on the proposal form, Sanlam Life will assume that the standard fee of 0,6% per year has
been agreed upon.

As with the advisory fee, the fee agreed upon already includes VAT. The onus therefore is on
intermediaries who are registered for VAT to ensure that the responsibility for and payment of VAT takes
place correctly.

Please Note: The policyholder may notify Sanlam Life at any time to change the investment review
             fee or to stop paying it, or to pay it to another intermediary in future. If this fee is
             reduced or stopped, the client will receive the benefit of it.

  INVESTMENT FUNDS

Six investment funds are available for continuations, of which one per policy can be chosen.

Available investment funds:

   −   Sanlam Equity Fund
   −   Fund of Funds
   −   Guaranteed Capital Fund
   −   Balanced Fund
   −   Offshore Equity Fund
   −   Offshore Balanced Fund

NB: Only the Guaranteed Capital Fund is available for regular cash withdrawals.

  INITIAL TERM

No term applies for continuations. There is no specific date on which the policy will mature. The policy
will continue until the policyholder claims the proceeds. The policy value is available at any time.

  LIVES INSURED

There may be more than one life insured on the policy. This will ensure that the policy will not be
terminated at the death of the policyholder. The policy will be terminated at death of the (last surviving)
life insured.


  THE INVESTMENT GUARANTEE

No investment guarantee is available.




GE 6/2005                                      arg(BX10/2)
    CAPITAL GUARANTEE AT DEATH

The policyholder can add the Capital Guarantee at Death to the policy, irrespective of the chosen
investment fund. It guarantees the continuation amount at the death of the (last surviving) insured. This
guarantee is optional.


    DEATH BENEFIT

IF THE GUARANTEE AT DEATH APPLIES

At death of the (surviving) life insured, the greater of the
•    value of the policy investment as on the date on which Sanlam Life receives notice of the death, and
•    the death benefit amount
will be payable.

IF THE GUARANTEE AT DEATH DOES NOT APPLY

At death of the (last surviving) life insured, the value of the policy investment as on the date on which
Sanlam Life receives notice of the death, will be payable.

At death of the policyholder, the policy will continue if there are other surviving co-insureds on the
policy. However, the cash value of the policy will be an asset in the deceased’s estate for estate duty
purposes.

    PREMIUMS

No premium payments are permitted in addition to the investment amount (continuation amount less any
advisory fee).

The minimum investment amount is as follows:
     −   For capital growth                                          : R 7 500
     −   For regular cash withdrawals in the Guaranteed Capital Fund : R15 000

    ALLOCATION PERCENTAGE

The allocation percentage for these investment amounts is currently 102%. Sanlam Life therefore
invests 102% of the investment amount for the client.


    CALCULATION OF INITIAL UNITS

The policy units are purchased at the buying price for the chosen investment fund. At present the
purchase price is always 2% more than the selling price, except in the case of the Offshore Equity Fund
and the Offshore Balanced Fund where it is 3%.

Example of a continuation in Stratus
Continuation amount (maturity amount of policy being continued): R100 000
Advisory fee agreed upon (VAT included, if applicable)            : R 3 000
Investment amount for continued policy                           : R97 000
Allocation percentage = 102%
Allocation amount        = R97 000 x 1,02
                         = R98 940
Assuming that the purchase price of the investment fund chosen is 314,560 cents. Therefore the
purchase price in rand is R3,1456 and the number of units that are purchased equals:
                         98 940 ÷ 3,1456 units
                         = 31 453,459 units



GE 6/2005                                         arg(BX10/3)
    ACTUAL PRICES

These prices are published every day in the press and on the Sanlam web site. The price for a
particular day for publication can only be determined at the end of that day. The prices in the press and
on the web site therefore are always those of at least the previous day.

AVAILABILITY OF PRICES

•    For policies in the Sanlam Equity Fund, Guaranteed Capital Fund and the Balanced Fund, the actual
     price for a particular day will be known the following day.
•    With the Fund of Funds, the Offshore Balanced Fund and Offshore Equity Fund a particular day’s
     actual price will be known two working days later.


    INCEPTION DATE

The continuation date is the same as the date on which the existing policy matures.

    POLICY CHARGES

Sanlam Life uses policy charges to, among others, pay for policy expenses, which may change from
time to time. Therefore Sanlam Life may, from time to time, in addition to the increase with the inflation
rate, change any of the policy charges below, and also the way in which Sanlam Life recovers any of
these policy charges.

At present, the policy charges are the following:

INVESTMENT REVIEW FEE

At the end of every month, Sanlam Life recovers an investment review fee – currently one-twelfth of
0,60%, including VAT if applicable – from the market value of the assets in the fund. If this investment
review fee differs from the investment review fee which the intermediary agreed upon with the
policyholder, Sanlam Life will slightly increase the number of units it holds for the policyholder’s benefit
at the end of every month in order to compensate for the difference.

If the policy is invested in the Guaranteed Capital Fund, Sanlam Life does not recover the investment
review fee from the market value of the assets in the fund, but simply slightly decreases the number of
units held for the policyholder’s benefit each month.

SERVICE FEE

For the duration of the policy Sanlam Life recovers a service fee at the end of each month. This fee
currently equals one-twelfth of 0,50% of the market value of the assets in the fund. Sanlam Life may
change this fee from time to time.

FUND MANAGEMENT FEE

For the duration of the policy Sanlam Life recovers an annual fund management fee at the end of each
month. This fee is currently equal to the percentages indicated below of the market value of the assets
in the respective investment funds:

•    Balanced Fund                      :   1,10%
•    Sanlam Equity Fund                 :   1,10%
•    Fund of Funds                      :   1,10%
•    Guaranteed Capital Fund            :   1,10%
•    Offshore Equity Fund               :   2,00%
•    Offshore Balanced Fund             :   2,00%

PERFORMANCE FEE

Sanlam Life will recover a performance fee for the fund manager if the investment return of an
investment fund is in excess of the benchmark for that specific investment fund. This applies to any
investment fund in which the policy is invested, except for the Guaranteed Capital Fund. This fee is
taken into account when Sanlam Life calculates the daily prices of units.

GE 6/2005                                       arg(BX10/4)
COMPULSORY COSTS

Before Sanlam Life calculates the daily prices of the units, it recovers stockbrokers’ fees, VAT included,
from the market value of the assets in the investment fund. With the exception of the Guaranteed
Capital Fund, this statutory charge includes a one-off marketable securities tax.

CAPITAL GUARANTEE AT DEATH

A monthly charge is recovered, currently one-twelfth of 2,00% of the difference between the value of the
policy investment and the death benefit amount. Sanlam Life will recover this charge, if any, by
cancelling the number of units necessary to cover the charge.


    FULL OR PARTIAL CASH WITHDRAWALS

•     A full or partial cash withdrawal can be made. No termination fee is currently charged. However,
      Sanlam Life may change this at any time.
•     Cash withdrawals can be made at any time.
•     The client must request the cash withdrawal amount in rands and cents.

For regular cash withdrawals, refer to “Regular cash withdrawals” further in this section.


    REGULAR CASH WITHDRAWALS

Should the policyholder wish to receive monthly cash withdrawal amounts, the policy must be continued
in the Guaranteed Capital Fund. The bonus, as declared on the last day of each month, will be paid to
the policyholder. These payments will take the form of cash withdrawals and could vary from month to
month as the value of the assets in the Guaranteed Capital Fund fluctuates. To pay these cash
withdrawal amounts, Sanlam Life will sell units to the value of the amount of the bonus.

MINIMUM REQUIREMENTS
    Minimum investment amount           R15 000
    (continuation amount less initial
    advisory fee, if any)
    Minimum cash withdrawal             R150,00 per frequency (both monthly and annually)
    amount
                                        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.

TAX

In terms of current legislation these regular cash withdrawal amounts are not taxable in the hands of the
policyholder. Sanlam Life already pays tax on any taxable profits in the investment portfolio of the
policy. The regular cash withdrawal amounts are therefore after-tax money.




GE 6/2005                                       arg(BX10/5)
    LOANS

•    In the case of these continuations there will be no waiting period before a loan can be made against
     the policy.
•    A loan levy of currently R700 is charged.
•    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 Policyholder Loan Fund. The latter fund does not participate in any
     growth. Settling the loan would result in a switch of units in the Stratus Policyholder Loan Fund to
     units in the policy's investment fund - at the then prevailing selling price of the relevant investment
     fund. If the price of the units in the policy'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 policy'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, 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 policyholder does not get during the loan period, can be regarded as “interest paid”
     over the loan period.
•    The minimum loan amount is R1 000. The remaining value of the policy investment must be at least
     R10 000 after the loan has been granted.
•    Repayments can be made at any time.
•    The minimum repayment amount is the smaller of the outstanding loan amount and R10 000.
•    Conditions pertaining to the loan will be determined when the loan is entered into.


    SWITCHING BETWEEN INVESTMENT FUNDS

•    Policyholders can switch between investment funds at any time.
•    The first two switches between investment funds every year are free. For the third and further
     switches in the same policy year Sanlam Life charges an administration fee (currently R300,00) for
     each switch. Switches are made at the selling prices of the funds from which and to which the
     switches are made.
•    Depending on the investment fund from which or to which the switch is made, Sanlam Life will also
     charge a switching fee for each switch in a policy year. At present no switching fee is payable,
     except when a switch is done to the Offshore Equity Fund or the Offshore Balanced Fund. For
     switches to this fund Sanlam Life currently charges a switching fee of 1%. This fee is levied on all
     switches, including the first and second in a policy year.

Sanlam Life may change the fees at any time.


    CESSIONS AND APPOINTMENT OF BENEFICIARIES/NOMINEES

•    All normal rules apply (as in the case of Sanlam Life’s other endowment policies).
•    With outright cessions the tax status of the new owner can change the tax status of the policy. This
     will result in switching.
•    There is no limitation on the number of beneficiaries that may be appointed. However, only one
     nominee may be appointed for policy-ownership.

    ADMINISTRATIVE INFORMATION


    Proposal forms          AEB48
    Quarterly investment    Policyholders will receive an investment statement.
    statements
    Enquiries               Product enquiries       Sanlam Personal Finance : Client      (021) 947-8035
                                                      Solutions : Product Support
                            Commission              New Business: Commission              (021) 947-5002
                            enquiries                Support




GE 6/2005                                        arg(BX10/6)
                        EXTENDED STRATUS



                                                        Page

DESCRIPTION ………………………………………………………………………….               BW7
INVESTMENT SERIES ………………………………………………………………...           BW7
REMUNERATION ….…………………………………………………………………..              BW8
DEATH …………………………………………………………………………………...                BW8
ALTERATIONS AND MINIMUM PREMIUM INCREASE …………………………..   BW9
INVESTMENT GUARANTEE ………………………………………………………….            BW9
CALCULATION OF INITIAL UNITS ……………..…………………………………..     BW9
ACTUAL PRICES ...…………………………………………………………………….            BW10
LEVIES …………………………………………………………………………………..                BW10
−   INVESTMENT REVIEW FEE ………………………………………………………………..    BW10
−   GROSS FUND MANAGEMENT FEE ……………………………………………………….    BW10
−   SERVICE FEE …………………………………………………………………………………         BW10
−   INCOME TAX ……………………………………………………………………………….....      BW10
SWITCHING BETWEEN INVESTMENT FUNDS …………………………………...     BW10
CASH WITHDRAWALS ….…………………………………………………………….             BW11
LOANS …………………………………………………………………………………....               BW11
INCEPTION DATE ...……………………………………………………………………            BW11
POLICY FEE ….………………………………………………………………………...             BW12
PREMIUM GROWTH …………………………………………………………………..              BW12
DEBIT ORDER DISCOUNT …………………………………………………………..           BW12
AGE AT ENTRY …………………………………………………………………….….              BW12
MINIMUM CONTRIBUTIONS ………..……………………………………………….          BW13
RIDER BENEFITS ..…………………………………………………………………….            BW13
TERMS ...…………………………………………………………………………………                BW13
OPTIONS AT THE END OF THE ORIGINAL TERM ……………………………….   BW13
CESSION AND NOMINATION OF BENEFICIARIES ………………………………    BW14
ADMINISTRATIVE INFORMATION ………………………………………………….         BW14




GE 10/2000                    arg(bw6)
                                        EXTENDED STRATUS




  DESCRIPTION

Stratus is an investment where clients can take out a no-risk policy (without cover) in one or more of ten
investment portfolios (maximum 10). The products are low-cost unit-linked products where units are
purchased with the client’s investment after certain costs have been deducted from it. Investments may
be made in more than one fund per policy and switches can take place at any stage between the
available funds. Depending on his or her needs, the client may choose from the following products or
plans:
   −   Capital Growth (with a life assured)
   −   Capital Growth (without a life assured)
   −   Retirement Annuities: CRAF or PPS RA
   −   Guaranteed Return
   −   Guaranteed Income
   −   Guaranteed Investment (combination of the last-mentioned two products)

The client has the option of making one of the following payments:
   −   Initial amount (lump sum)
   −   Recurring amount (not available in the case of Guaranteed Return, Guaranteed Income and
       Guaranteed Investment)
   −   Combination of an initial/recurring amount (must be chosen when the policy is effected and is not
       available in the case of the Guaranteed series).


  INVESTMENT SERIES

Ten portfolios are available, one of which may be chosen to a maximum of ten per policy. However, the
amount invested in each policy must meet the minimum requirement of R100,00 per fund (see
“Minimum contributions” further in this section). The actual spreading of the contributions to the funds
is: Spread percentage x premium, less fees.

The portfolios are as follows:
   −   Vesting Bonus Fund
   −   Equity Focus Fund
   −   Fund of Funds
   −   Offshore Equity Fund
   −   Offshore Balanced Fund
   −   Guaranteed Capital Fund
   −   Balanced Fund (with guarantee or without guarantee)
   −   World Wide Property Fund
   −   World Wide Balanced Fund
   −   World Wide Equity Fund
Please note: Only one option of the Balanced Fund (in other words with guarantee, or without
             guarantee) may be taken. It can be taken either on its own, or together with any of, or
             together with all nine of the remaining portfolios.




GE 2/2001                                         arg(bw7)
    REMUNERATION

The remuneration structure of the various products is as follows:
a) Capital Growth (with a life assured) and Retirement Annuities:
    −   Up-front commission on the initial amount (choice from 0% to 100% of the maximum permitted).
    −   Up-front commission on the recurring amount (choice from 0% to 100% of the maximum
        permitted).

b) Capital Growth (without a life assured)
    −   An advisory fee of between 0% and 6% is negotiable on the recurring and/or initial amount. The
        standard fee is 3%. The negotiations are strictly between the intermediary and the client. The
        fee for the recurring and initial amount may differ. If no fee has been filled in on the proposal
        form, it is assumed that the standard fee was agreed upon (i.e. 3%). The fee may be split
        (maximum of 2 intermediaries).
    −   A monthly investment review fee of between 0,0% and 0,6% is also negotiable with the client.
        The standard fee is 0,6%. The fee, which is payable monthly in advance, is the annual scale
        divided by twelve. If no fee has been filled in on the proposal form, it is assumed that the
        standard fee (0,6%) was agreed upon. This fee may not be split.
        −   Owing to the normal policy restrictions in terms of a regulation of the new Long-term
            Insurance Act (the regulation was previously Section 59D), this fee is still paid out as
            commission during the first five years of the duration of the policy. The handling of VAT
            on the amounts paid during this period therefore still links up with the self-invoicing process
            that Sanlam Life usually applies to commission.
        −   However, the amounts paid after the expiry of the first five years of the duration of the
            policy fall in the same category as the advisory fee. As in the case of the advisory fee, the
            fee as agreed upon, already includes VAT. The onus is therefore on the intermediaries
            registered for VAT, to ensure that the justification and transfer of VAT take place correctly.
            From that moment these fees therefore no longer link up with the self-invoicing process that
            Sanlam Life usually applies to commission.
    Note:
       The client (policyholder) can instruct Sanlam Life at any time in writing to amend or terminate
       the investment review fee or to pay it to another intermediary in future. If this fee is reduced or
       terminated, the client will have the benefit thereof.
c) Guaranteed Return, Guaranteed Income and Guaranteed Investment:
   – Up-front commission of between 0% and 100% of the maximum permitted, is negotiable.


    DEATH

At the death of the policyholder/life insured, the values are calculated as on the day on which Sanlam
Life received notification of the death and not the date of the actual death.
•   In the case of Capital Growth (without life insured) and the Guaranteed series of products, no
    specific value is payable at the death of the original policyholder. Usually the policy is transferred to
    the nominee for policy-ownership (new owner). If no nominee for policy-ownership has been
    appointed, the policy becomes an asset in the estate of the deceased policyholder.
•   In the case of the other products, the death benefit is always the greater of the value of the policy
    investment as on the date on which we are notified of the death, and the investment guarantee, if
    applicable.




GE 2/2001                                           arg(bw8)
    ALTERATIONS AND MINIMUM PREMIUM INCREASE

The following alterations may be made to all the products except the Guaranteed Return, Guaranteed
Income and Guaranteed Investment:
•    Addition of an ad hoc lump sum (minimum of R2 000). See ad hoc single premiums on Guaranteed
     Return hereafter.
•    Increase in/reduction of recurring amounts. Minimum increase is R70,00 per month. (An alteration
     fee of R200,00 is charged for each alteration). The premium or contribution after a reduction must
     be at least R150,00 per month.
• Clients may switch between investment portfolios at any time.
Ad hoc single premiums can be added to Guaranteed Return:
•    The outstanding policy term of the relevant policy must be at least two years.
•    R10 000 is the minimum admissible ad hoc single premium.
•    As much as 20% more than the original single premium can be added.
        Example: Original single premium = R100 000
                  An ad hoc single premium from R10 000 to R120 000 can be added.
•    The guarantee rate applicable for additions is determined according to the date of the addition. This
     rate can therefore differ from the original rate that applied when the policy was taken out.

No other alterations may be made.

    INVESTMENT GUARANTEE

This guarantee is available only with, and applicable to The Balanced Fund with guarantee. This
portfolio guarantees that on an investment guarantee date or up to the date on which Sanlam Life is
notified of the death of the life insured, the investment will render a return of at least 4,5% per year on
the allocation amount, (i.e. the amount remaining after costs have been recovered by means of the
cancellation of units). The first investment guarentee date is the same as the option date. If the policy-
owner should continue with the investment in the Balanced Fund after the option date, there will be an
investment guarantee date every five years thereafter.
If the policyholder increases his or her investment in the Balanced Fund with guarantee within three and
a half years before any investment guarantee date, we will charge a participating fee. We will determine
the amount of this fee at the time of such increase.
On the investment guarantee date the value of the policy is the greater of the units multiplied by the
price, or the investment guarantee, provided no loan or cash withdrawal was made. On any other day it
is always the units multiplied by the price.
This guarantee cannot be removed or added after the inception of the policy.
If the investment is withdrawn from the Balanced Fund with guarantee or transferred to another fund, the
investment guarantee is cancelled.
The guarantee applies at death, irrespective of when it occurs.


    CALCULATION OF INITIAL UNITS

The units of the policy are purchased at the buying price of the chosen investment fund. The buying
price is always 2 per cent more than the selling price (except in the case of The Guaranteed Capital
Fund, where it is 0%).
    Example
    Initial amount (amount of cheque)            : R100 000
    Negotiated initial advisory fee
    (including VAT, if applicable)               : R 3 000
    Premium for policy                           : R100 000 – R3 000
                                                    = R97 000
    Say the buying price of the chosen investment fund is 314,560 cents, then the number of units
    purchased will be equal to: (97 000 x 100) ÷ 314,56 units
                                   = 9 700 000 ÷ 314,56 units
GE 2/2001                                           arg(bw9)
                                  = 30 836,724 units
    Note: This example
    ACTUAL PRICES is for a policy that does not invest in The Guaranteed Capital Fund.

These prices are published in the press daily. The price for a particular day for publication in the press
can be determined only at the end of that day. The prices that appear in the press are therefore always
those of at least one day before.

Available when?
•   In the case of policies in the Vesting Bonus Fund, Equity Focus Fund, Guaranteed Capital Fund and
    Balanced Fund, the actual price on a particular day is always known the next day.
•   In the case of the Fund of Funds, Offshore Equity Fund, Offshore Balanced Fund, World Wide
    Property Fund, World Wide Balanced Fund and World Wide Equity Fund, the price will be known two
    working days later.


    LEVIES
The following levies apply:

INVESTMENT REVIEW FEE
Units are cancelled to recover this fee.

GROSS FUND MANAGEMENT FEE
The gross fund management fee is a percentage of the value of the investment portfolio at the time it is
calculated, and is taken into account when the unit prices are determined.
The annual gross fund management fees of the respective investment portfolios are currently as follows:

         •   Vesting Bonus Fund                        :    2,20%
         •   Equity Focus Funds                        :    1,10%
         •   Fund of Funds                             :    1,10%
         •   Offshore Equity Fund                      :    2,00%
         •   Guaranteed Capital Fund                   :    1,10%
         •   Offshore Balanced Fund                    :    2,00%
         •   Balanced Fund                             :    1,10%
         •   World Wide Property Fund                  :    1,60%
         •   World Wide Balanced Fund                  :    1,60%
         •   World Wide Equity Fund                    :    1,60%
These percentages may change from time to time.

SERVICE FEE
An additional 0,5% p.a. is being levied as a service fee in respect of all the above-mentioned funds.

INCOME TAX
Where applicable, income tax is taken into account in accordance with the four-fund dispensation. Any
income tax paid by Sanlam Life is taken into account in the calculation of the unit prices. With the
Guarantee Income, income tax is payable by the annuitant, being gross income in his/her hands.


    SWITCHING BETWEEN INVESTMENT FUNDS

•   Clients can switch between investment funds at any time.
•   The first two switches of a particular year are free. For the third and further switches in the same
    policy year, an administrative fee of R250,00 is charged for each switch. Switches are done at the
    selling prices of the funds from and to which the switches are made.
•   In the case of switches from the Guaranteed Capital Fund, Sanlam Life also charges a switching
    fee of 2% on that part of the policy investment switched from this fund. The fee is levied on all
    switches, including the first and second in a policy year.
GE 2/2001                                         arg(bw10)
• CASH WITHDRAWALS

•   Cash withdrawals may be full or partial withdrawals. A fee is charged if the withdrawal takes place
    before the option date.
•   Partial cash withdrawals from the Guaranteed Income are not permitted as yet.
•   No withdrawals are permitted in the case of RAs, although early retirement (within the rules) is
    possible.
•   Cash withdrawals may be made at any time.
•   The normal policy restrictions in terms of the Long-term Insurance Act (previously Section 59D)
    apply to cash withdrawals on these policies.
•   The client must request the cash withdrawal amount in rands and cents.
•   The client has two options on policies with underlying investment portfolios:
    (a) Cash withdrawal from one specific fund or
    (b) proportionate cash withdrawal from all funds on the policy.


    LOANS
•   Loans are available two months after the inception date.
•   A loan levy of R550,00 is charged.
•   Units representing the value of the loan plus fees, are cancelled. When the loan is repaid, units to
    the value of the loan are again purchased to the client's advantage at the then prevailing purchase
    price. If this price is higher than what it was at the time the loan was made, fewer units can be
    bought than the number withdrew when the loan was made. This represents a cost comparable with
    interest over the loan period.
•   The minimum loan amount is R5 000. The minimum remaining value of the policy investment after a
    loan has been granted, must amount to at least R10 000.
•   Repayments may be made at any time.
•   Conditions of the loan will be determined when the loan is negotiated. The normal policy restrictions
    in terms of the Long-term Insurance Act regulations (previously Section 59D) apply.
•   No loans are available in the case of RAs, Guaranteed Return, Guaranteed Income and Guaranteed
    Investment.


    INCEPTION DATE

The inception date is determined by the type of contribution that is made and is as follows:

Recurring contribution
•   The inception date can be any day of the month. The day on which the first premium is payable is
    the inception date of the policy.
•   If the mode of payment is a debit order, the inception date can be any day up to and including the
    28th of the month.
•   If the mode of payment is a stop-order, the inception date is always the first of a month.

Initial amount (lump sum)
•   The inception date is the date on which the initial amount is paid in at any contracted bank branch
    (currently ABSA or First National Bank), an ATM or via the Internet. It can be any day of the month
    up to and including the 31st. The exception is Guaranteed Income, where it cannot be the 30th, 31st
    or 1st of a month. Payments on these days will mean an inception date of the 29th.
•   In the case of Guaranteed Investment, the Guaranteed Income will determine the inception date, in
    line with the above. (The two policies of which the Guaranteed Investment consists, i.e. Guaranteed
    Income and Guaranteed Return, must have the same inception date.)




GE 2/2001                                          arg(bw11)
Combination of initial and recurring contributions
•     This combination may be taken when the policy is effected only.
•     In line with what was said at "Recurring contribution", the recurring contribution will determine the
      inception date.

Please note:
• Intermediaries must pay in clients’ cheques as soon as possible, as that date determines the
   inception date and the price at which units are purchased. Should there be significant market
   fluctuations between the day on which the client handed the cheque to the intermediary and the
   day on which the cheque is paid in, it could result in claims against the intermediary and Sanlam
   Life. Intermediaries will be liable for such claims.
• The price at which units are purchased is not known on the date on which the cheque is paid in.
  It is therefore not possible to issue a policy on the last day (in the case of Fund of Funds,
  Offshore Equity Fund, Offshore Balanced Fund, World Wide Property Fund, World Wide
  Balanced Fund and World Wide Equity Fund) or the last two days of the marketing month
  (computer cut-off date) if the proposal is only submitted on that day.
• Back-dating of policies are not permissible.

     POLICY FEE

•     In the case of Guaranteed Income, Guaranteed Return and Guaranteed Investment policies a once-
      off policy fee is recovered from the initial amount invested.
•     In the case of all the other policies, a fee of R5,00 is recovered at the beginning of every month by
      means of the cancellation of units.

    PREMIUM GROWTH

Fixed growth rate
Any percentage premium growth between 5% (minimum) and 20% (maximum) can be chosen.                      A
maximum of two premium increases may be skipped, after which the premium growth lapses.

Consumer Price Index
An illustrative rate of 8% is used in the case of CPI.


     DEBIT ORDER DISCOUNT

Debit order discount is 3%.


     AGE AT ENTRY

                                                    Minimum age at entry         Maximum age at entry
                    Product
    Capital Growth (with life assured)                     1 anb                         90 anb
    Capital Growth (without life assured)                   n.a.                           n.a.
    Retirement Annuities                                   15 anb               Determined by maximum
                                                                                    age – min. term
    Guaranteed Return                                       n.a.                           n.a.
    Guaranteed Income                                        n.a                           n.a.
    Guaranteed Investment                                   n.a.                           n.a.

Retirement ages in the case of RAs:
      −   Minimum retirement age         : 56 anb
      −   Maximum retirement age         : 70 anb
GE 2/2001                                            arg(bw12)
    MINIMUM CONTRIBUTIONS

The minimum contributions per policy or choice of plan are as follows:

                                                      Initial amount       Ad hoc           Recurring
                       Product                                             addition        amount per
                                                                                             month *
    Capital Growth (with life assured)                   R10 000           R2 000              R150
    Capital Growth (without life assured)                R10 000           R2 000             R150
    Retirement Annuity                                   R 2 500           R2 000              R150
    Guaranteed Return                                    R10 000           R10 000               –
    Guaranteed Income                                       **                 –                 –

    Guaranteed Investment                                R10 000           R10 000               –


    *NB:    The minimum amount that must be invested in each chosen fund is R100,00. Validation
            of the amount is calculated as follows: Fund spread percentage x gross contractual
            premium, e.g.:
                – Monthly contractual premium : R150,00
                – Number of funds                 : 2
                – Percentage fund spreading      : 50%
               Therefore, 50% x R150,00 = R75,00, which is not permissible. Minimum is R100,00 for
               each fund. Client can choose only one fund or increase the premium to R200,00. The
               same applies to lump sum contributions.
**         Initial amount must render an income of at least R100 per month or R600 per annum.

     RIDER BENEFITS

No rider benefits are currently available.

     TERM

•    Retirement Annuities have a chosen retirement date or retirement age.
•    In the case of endowment policies a term of between 5 and 30 years may be chosen, after which, in
     other words from the option date, it becomes an open term. Special permission must be obtained for
     terms longer than 10 years. Reasons will therefore have to be given for terms longer than 10 years.
•     In the case of Guaranteed Income the maximum term is 20 years.
•    In the case of the Guaranteed Return and Guaranteed Investment the term is a fixed 5 years.


     OPTIONS AT THE END OF THE ORIGINAL TERM

The options below are available at the end of the original term. The policyholder will be informed in
good time in writing of all the options and a copy of the letter will be sent to the intermediary concerned.

•    The automatic procedure is to continue the policy at the end of the chosen term with further premium
     payments. The policyholder must inform Sanlam Life whether the policy should be continued
     without premium payments or be paid out as his/her investment.
•    The policyholder will be notified in his/her annual statement (policy statement) of an imminent
     maturity date/retirement date.
•    In the case of a Retirement Annuity where the life assured turns 70, the option letter will be sent out
     approximately two months before his/her birthday.
•    During the open term the plan may be terminated at any time. There is no penalisation.



GE 2/2001                                          arg(bw13)
     CESSION AND NOMINATION OF BENEFICIARIES

•    All the usual rules apply.
•    In the case of outright cessions the tax status of the new owner may change. This will result in a
     switch.
•    RAs may not be ceded.


    ADMINISTRATIVE INFORMATION

    Proposal forms        AEB2000:     Capital Growth: with life insured and Retirement Annuity
                          AEB2001:     Capital Growth: without life insured
                          AEB2002:     Guaranteed    Income,    Guaranteed    Returns   and      Guaranteed
                                       Investment
    Quotations            SanQuote
    Surrenders and        •   Use form E2823 to request any of these transactions. (Order this form in the
    cash withdrawals          usual manner from Supply Services at Head Office.)
                          •   Fax completed forms to (021) 947-9440 (Mail Distribution Centre)
                          •   Indicate clearly on the fax that the surrender or cash withdrawal is in
                              respect of a Stratus policy.
                          •   Enquiries:   Unissued proposals     New Business:
                                           and reissues           Helpline               (021) 947-2777

                                           Commission             Southern Client
                                           enquires               Contact Centre         (021) 916-1616

                                                                  Northern Client
                                                                  Contact Centre         (021) 303-8303

                                                                  Toll-free for
                                                                  intermediaries         0800 33 66 33




GE 2/2001                                           arg(bw14)
                                          FEBRUARY 2006



                                             SECTION CA


                                         FUNERAL BENEFIT


The Funeral Benefit will immediately make a part of the death benefit available to a beneficiary who has
been nominated by the policyholder.

 Availability      The Funeral Benefit is included automatically if the insured qualifies for rate group 1
                   rates. However, to simplify a payment in terms of this funeral benefit, a beneficiary
                   can be appointed to receive the benefit. If no beneficiary for the funeral benefit has
                   been appointed, the benefit amount will be paid out in the case of a
                   policyholder/insured to the latter's estate. However, this may delay the allocation of
                   the funds.
                   This benefit will be available only for the following recurring-premium policies with
                   cover:
                   −   The 4in1 Plan (T303, T403, T503)
 Benefit           100 x basic monthly premium
 amount
                   (basic monthly premium = contractual (stop-order) premium minus premiums for rider
                                              benefits and loadings)
                   Maximum:        R10 000 per life assured.
                                   If the policyholder has more than one policy with a funeral benefit,
                                   the total funeral benefit will be restricted to a maximum of R10 000 in
                                   terms of all his/her policies with Sanlam.
                   Policy debt:    Policy debt shall be retained from the benefit amount on a
                                   proportionate basis.
                   Indexplan:      The benefit amount does not increase with Indexplan.
 Beneficiary       It is possible to nominate on beneficiary for the Funeral Benefit and another for the
                   rest of the policy.
                   Particulars     When applying for a policy, the following particulars of the
                   of bene-        beneficiary are essential in order to qualify for the Funeral Benefit:
                   ficiary:        •   the identity number or date of birth of the beneficiary, as well as
                                   •   the relationship between the assured and the beneficiary.
                   Cessions:       •   If the policy is ceded outright, the appointment of the beneficiary
                                       shall lapse.
                                   •   If the policy is ceded as collateral security, the rights of the
                                       beneficiary shall be subordinate to those of the cessionary.




GE 10/2004                                         arg(CA1)
Payment of   •   The Funeral Benefit is paid in a lump sum.
benefit
             •   Payment will be handled at Sanlam Head Office : Policy Death Claims.
             •   All four of the following documents will be necessary for the payment of the
                 Funeral Benefit:
                 1.   The death certificate of the life assured.
                 2.   Proof of identity of the assured by means of a legal identity document. (On
                      application, the identity of the assured will be checked against the identity of
                      the deceased.)
                 3.   The policy contract.
                 4.   Proof that the person requesting payment is one of the following:
                      (i) If the policy was ceded, the person or institution to whom the policy was
                           ceded, or
                      (ii) the beneficiary appointed specifically for this purpose.
             Note: If the details of the proof of identity of the designated beneficiary do not agree
                    with those of our records, payment of the Funeral Benefit will be refused.




GE 10/2004                                    arg(CA2)
                                           FEBRUARY 2006

                                              SECTION CB

                                COVER REINSTATEMENT OPTIONS


DHOE and DHOD            DISABILITY COVER REINSTATEMENT OPTION

As soon as a disability claim has been admitted and Sanlam has proof that the assured is HIV negative
at that stage, the policyholder has the option to effect new life assurance on the life of the life assured
without proof of good health.

To be able to exercise the option the policyholder must effect the new assurance within the option
period.

The life cover which has decreased as a result of the disability claim can therefore be reinstated.

GENERAL INFORMATION (when DHOE or DHOD is added to a policy)
 Availability          DHOE:      Available only in case of ordinary assurance (recurring-premium
                                  policies) if OE is taken.
                       DHOD:      Available only in case of retirement annuities (recurring and single-
                                  premium policies) if OD is taken.
 Not available         DHOE and DHOD are not available:
                       • in case of policies with cover growth without premium growth;
                       • in case of policies where the cover growth is more than 60% of the premium
                         growth rate;
                       • together with Future Cover (TD) on the same policy; or
                       • with special disability benefits for aviation personnel (OE3S).
 Age at inception      DHOE: 15 to 55 next birthday (females as well)
                       DHOD: 15 to 60 next birthday (females as well)
 Benefit term          DHOE: Up to policy anniversary before age 60
                       DHOD: Up to policy anniversary before age 65
 Option amount         Minimum: R10 000
                       Maximum:
                       • The option amount may not exceed the smaller of the initial death benefit and
                         the OE or the OD cover amount.
                       • The total of all DHOE plus DHOD option amounts with Sanlam may not
                         exceed R500 000.
                       • DHOE/DHOD for housewives (woman/man) and students is R250 000.
                       • If the policy includes premium growth and cover growth, the option amount
                         and option premium will increase annually by the relevant growth rate. A
                         maximum is set only on the initial benefit amount. The option amount can
                         grow without restriction by means of Indexplan increases.
 Rates                 The rate is always 80% of the relevant OE or OD rate (extra premium included
                       when applicable).




GE 2/2005                                          arg(CB1)
PROVISIONS (when DHOE and DHOD options are exercised)
 Option period    A period of 3 months which begins on the later of
                  •   the date on which Sanlam accepts liability for the payment of the disability
                      benefits (thus the date in the letter to the client) and
                  •   the date on which the benefits will be payable.
 New assurance    DHOE:       If the existing policy is
 available                    • whole-life assurance, the new assurance may also be whole-life or
                                   endowment assurance.
                              • an endowment policy, the new policy must also be an endowment
                                   policy.
                              NB: Whole-life assurance on which DHOE could be taken is not
                                     being marketed since February 2004.
                  DHOD:       The new policy must be retirement annuity assurance.
 Term of new      The term of the new policy is limited to the outstanding term of the existing policy.
 policy           DHOE:       If the outstanding term of an endowment policy is shorter than 5 years,
                              a new policy with a 5-year term will be issued in terms of the
                              requirements of the Long-term Insurance Act.
                  DHOD:       If the outstanding term of the policy is shorter than the minimum term
                              of a similar policy, a policy with a minimum term is issued, i.e.:
                              •   Stable Bonus Fund: 10 years
                              •   Balanced Fund, Sanlam Equity Fund, Offshore Equity Fund and
                                  Multi-Manger Balanced Fund (High Equity): 5 years
 Life cover       The maximum life cover available in terms of the policy is limited to the option
 available        amount chosen initially, plus cover growth, if applicable.
 Underwriting     •   Proposal form AEB52 must be completed.
                  •   Proof of good health and a financial report are not required. All the other
                      normal requirements as stipulated by Sanlam for new business (and which
                      apply when the option is excercised) are applicable.
                  •   Each new policy has the same medical loadings or exclusions which apply in
                      respect of the existing policy (if any).
                  Indexplan          In the case of the new policy Indexplan is available without any
                                     additional underwriting. If cover growth is added, proof of
                                     assurability must be provided.
                  Rider benefits     If any rider benefits are required in the case of the new policy,
                                     assurability is required in respect of the rider benefits.
                  Term               If only the term is extended, full underwriting will not be
                  extended           required.




GE 2/2005                                     arg(CB2)
 DHO: COVER REINSTATEMENT OPTION WITH TRAUMA BENEFIT (TV)
Upon survival of a trauma claim and provided Sanlam has proof that the assured is HIV negative at that
stage, the policyholder has the option of taking out new life assurance on the life of the life assured
(without proof of good health).
To be able to exercise the option the policyholder must effect the new assurance within the option
period.
The maximum life cover available for the policy is limited to the TV amount chosen initially, plus cover
growth, if applicable.

GENERAL INFORMATION (when DHO is added to the policy)
 Availability         DHO is available at an extra premium only if the Trauma Benefit (TV) is taken.
 Not available        DHO is not available in the case of policies with cover growth without premium
                      growth or in cases where the cover growth rate is more than 60% of the premium
                      growth rate.
 Age at inception     15 to 60 next birthday (including females).
 Benefit term         Minimum      : 5 years
                      Maximum      : The shorter of    −     the premium term of the policy
                                                       −     the term up to policy anniversary preceding
                                                             age 65.
 Option amount        The option amount is equal to the initial TV cover amount plus cover growth
                      where Premium Growth and Cover Growth have been added to the policy.
 Rates                The rate for DHO is always 100% of the relevant TV rate (extra premium included
                      when applicable) rounded off to the nearest cent.

PROVISIONS (when the DHO option is being exercised)
 Option period        New assurance can be taken out 3 months after admission of a trauma claim.
                      The option is valid for 3 months. The option therefore expires 6 months after the
                      claim has been admitted.
 New assurance        −    Matrix TopCover or Matrix TermCover
 available            −    The 4in1 Plan or
                      −    any other type of assurance which Sanlam approves.
 Term of new          The term of the new policy is limited to the outstanding term of the existing policy.
 policy               If the outstanding term of an endowment policy is shorter than 5 years, a new
                      policy with a 5-year term will be issued in terms of the requirements of the Long-
                      term Insurance Act.




GE 2/2005                                         arg(CB3)
 Life cover     The maximum life cover available in terms of the policy is limited to the TV
 available      amount chosen initially, plus cover growth, if applicable.
 Underwriting   •   Proposal form AEB52 must be completed.
                •   Proof of good health and a financial report are not required. All Sanlam’s
                    normal requirements for new business (which apply at the time at which the
                    option is exercised) will be applicable.
                •  The new assurance is subject to the same medical loadings or exclusions
                   which are applicable to existing assurance (if any).
                Rider benefits: No rider benefits or other benefits may be added to the new
                                 policy without proof of good health. Normal underwriting
                                 requirements will apply in respect of all rider benefits or other
                                 benefits which are added to the new assurance.




GE 2/2005                                  arg(CB4)
                                   FEBRUARY 2006


                                      SECTION CD


                                 DISABILITY BENEFITS


                                                                                Page
 GENERAL INFORMATION …..………………………………………………..…………………                             CD1

 −   DEFINITIONS OF DISABILITY .…………………………………………………………………                       CD2
       •    Personal disability .…………….………………………………………………………….                  CD2
       •    Recognised disability ..…...………………………………………………………………                CD2
       •    Occupational disability ..………………………………………………………………….                CD2
 −   DISABILITY IN THE CASE OF STUDENTS …..……………………………………………….                  CD4

 OEA, OEP and ODA: DISABILITY BENEFITS …...…..…………………………………                     CD5

 −   COVER AMOUNT: DISABILITY BENEFITS ………..…………………………………………                    CD6

 −   OEA, OEP and ODA: RESTRICTIONS …….………………………………………………….                     CD7
       •    The Sanlam Life restriction ……………………………………………………………..               CD7
       •    The Sanlam Life limit ……………………………………………………………………..                  CD8
       •    Housewives (woman / man) / children/ students …..…..……………………………..   CD8
 −   CLAIMS: OEA, OEP and ODA ………...………………………………………………………..                     CD8

 −   HOW TO CALCULATE NEW ASSURANCE LIMITS (NUB)
       •    Example 1 ….……………………………………………………………………………..                         CD11
       •    Example 2 ….……………………………………………………………………………..                         CD12
 OE3AS, OE3PS, OD3AS, OP3S and M-OP3S: SPECIAL REGULAR
 OCCUPATIONAL DISABILITY BENEFITS FOR AVIATION PERSONNEL …….....                CD13




GE 8/2000                                arg(CD)
                                           SECTION CD


                                      DISABILITY BENEFITS

GENERAL INFORMATION

 Disability benefits   •   Lump Sum Disability Benefits (OEA)
 available
                       •   Disability Benefits in Five Instalments (OEP)
                       •   Disability Pension Benefits (ODA)
                       •   Waiver of Premium Disability Benefits (OP, OG and M-OP).
                           Refer to Section CH for full particulars.
                       •   Cover Reinstatement Option in the case of disability (DHOE and DHOD).
                           Refer to Section CB for full particulars.

 Types of              Claims in respect of these disability benefits are admitted in the case of
 disability
                       •   Personal disability
                       •   Recognised disability and/or
                       •   Occupational disability
 Admission of          An assured is regarded as being disabled if he/she suffers disability
 claims                (according to Sanlam Life’s definition of disability) solely as a result of
                       •   an injury or
                       •   illness.
 Change of             •   If the assured changes his/her occupation after the inception date of a
 occupation / Home         policy and the occupation involves activities which the assured performs in
 as work base              and from his/her home for the purpose of deriving financial gain from them,
                           the assured must notify Sanlam Life accordingly. In the case of Income
                           Protector, Sanlam Life my cancel the policy or increase the premium.
                           Fax to: Medical Underwriters: Occupational Underwriting - (021) 947-5290
                           or sales office can activate policy and route to 4021/PROD.
                       •   Sanlam Life can then ascertain whether, according to the assured’s new
                           occupation and Sanlam Life’s criteria applicable at the time, his disability
                           benefits must be changed or cancelled or whether the premium should be
                           increased.
 Applicants with       The application for disability benefits received from persons who have lost the
 physical handicaps    use of one eye, arm or leg and who are proposing for assurance, will also be
                       considered. If granted, the benefits may, however, be altered by endorse-
                       ment.
 Housewives            Housewives (woman / man) qualify for Personal or Recognised Disability only
 (woman / man)         and not for Occupational Disability.




GE 10/2004                                       arg(CD1)
DEFINITIONS OF DISABILITY

 Personal                  Definition       The assured is totally and permanently and continuously
 Disability                                 prevented from
                                            •    performing the normal actions and functions in relation
                                                 to the care of his or her person or
                                            •    attending to his or her personal affairs.
                           Example          •    A person totally paralysed in one half of his body owing
                                                 to a stroke, and unable to eat normally, clothe or wash
                                                 him/herself.
 Recognised                Definition       It is the total and permanent loss of the use of
 Disability                                 • both eyes;
                                            • both hands;
                                            • both feet; or
                                            • one hand plus one foot.
                           Example          A person who suffers from permanent paralyses in his lower
                                            body.
 Occupational              Require-         1.    A claim will be considered only if the assured
 Disability                ments                  •   is actually following an occupation when the
                           (Important)                disability originates (i.e. pensioners or unemployed
                                                      persons do not qualify); and
                                                  •   a loss of income (wages or profit) result from the
                                                      disability.
                                            2.    If an employer declares an assured occupationally
                                                  disabled, it does not necessarily mean that he will be
                                                  considered disabled according to Sanlam Life’s
                                                  definition of disablement.         Pension funds/group
                                                  assurance rules and those of Sanlam Life might differ.
                                            3.    Lump Sum Disability Benefits (OEA and ODA) or
                                                  Disability Benefits in Five Instalments (OEP) will be
                                                  granted only if the disability is total, permanent and
                                                  continuous.
                                            4.    Waiver of premium benefits (OP, OG and M-OP) and
                                                  Income benefits (Table 48) are granted if the disability
                                                  is total.
Definition of an unemployed:
All persons who cannot be classified under 1 or 2 below.
1.   Married persons: Where one of the parties receives a fixed income, whether from an occupation
     or rental, and the income is sufficient to maintain the housekeeping and pay for the policy premium,
     the insured who does not earn an income must be regarded as a housewife (woman / man).
2.   Unmarried persons: Irrespective of his age, if the person receives a fixed income which in terms
     of his/her circumstances, should be sufficient to look after himself and pay for an insurance policy
     premium, the case can be classified according to his income and qualification (according to
     Category I).




GE 10/2004                                       arg(CD2)
DEFINITIONS OF DISABILITY (continued)
 Occupational       Regular Occupational Benefit:
 Disability         (e.g. OE3A, OE3P, OP3, OG3 and M-OP3)
 (continued)
                    Definition         The assured must be unable to carry on with the regular
                                       occupation he was engaged in immediately prior to the
                                       disability.
                    Availability       Available only for
                                       •     persons who qualify for rate group 4 or rate group 3
                                             rates, and
                                       •     professional and semi-professional people carrying on
                                             safe occupations, such as, for example, doctors,
                                             accountants, administrative managers etc.

                    Regular or alternative occupational benefit:
                    (e.g. OE2A, OE2P, OD2A, OP2 and M-OP2)
                    Definition         The assured must be unable to carry on with the following:
                                       •     The regular occupation he was engaged                   in
                                             immediately prior to the injury / illness; as well as
                                       •     an occupation in which he can reasonably be expected
                                             to engage in (taking into account his knowledge,
                                             training, experience or ability).
                    Examples           1.      A surgeon could occupy a senior lecturing post at a
                                               university.
                                       2.      The regular occupation of a teacher who, 8 years
                                               previously changed occupation to become a full-time
                                               pilot, can regard teaching as an “alternative”
                                               occupation. With additional in-service training he will
                                               also be able to do general office work.
                                       3.      A policeman or artisan with a Senior Certificate
                                               (Grade 12) could do general office work with further
                                               in-service training.
                    Warning            The benefit is not payable if the assured can practise an
                                       “alternative” occupation but is not able to obtain
                                       employment.      It is therefore, not unemployment
                                       assurance.




GE 10/2004                                  arg(CD3)
DISABILITY IN THE CASE OF STUDENTS

 Personal and    Claims in terms of Lump Sum Disability Benefits (OEA), Disability Pension
 Recognised      Benefits (ODA), Disability Benefits in Five Instalments (OEP) and Waiver of
 Disability      Premium Benefits (OP and OG) will be granted only in the case of :
                     •   Personal Disability and
                     • Recognised Disability,
                     provided no occupation is engaged in for purposes of remuneration or
                     profit.
 Occupational    Claims in terms of Occupational Disability Benefits will be granted to full-time
 Disability      students in possession of a Senior Certificate and who are in their final year at
                 a recognised
                     •   university
                     •   teacher’s training college or
                     •   university of technology (technikon)(for a National Diploma).
                 Occupational Disability Benefits will be granted as follows:
                 •   Regular or “alternative” occupational benefit:
                     The assured must be unable to engage in an occupation which he can
                     reasonably be expected to engage in, taking into account his training or
                     experience.
                 •   Regular occupational benefit:
                     Available only for full-time students who qualify for PPS membership.
                     The assured must be unable to engage in an occupation which he can
                     reasonably be expected to engage in, taking into account his education,
                     training or experience.




GE 10/2004                              arg(CD4)
                                      DISABILITY BENEFITS

We distinguish among four different types of disability benefits, i.e. lump sum disability benefits in five
instalments, lump sum benefits and waiver of premium benefits, as well as Income Protector.

 OE : Ordinary assurance
OEA : Lump Sum Disability Benefits
The benefit amount will be paid out in a lump sum if the assured should become totally and
permanently disabled before the policy anniversary preceding age 60. The lump sum will be paid out
after the disability has lasted continuously for the duration of the waiting period.
OEP : Disability Benefits in Five Instalments
The benefit amount is payable in five equal yearly instalments. OEP cannot be selected together with
the other disability benefits (OEA).

 OD    : Retirement Annuities
The benefit amount will be paid out in the form of a disability pension if the assured becomes totally
and permanently disabled before the policy anniversary preceding age 65. The disability amount is
made available after the disability has lasted continuously for the duration of the waiting period.

 Waiting period           OE2A/OD2A/OE2P: Regular or alternative             6 months
 (before benefit is                       occupation                         (see note)
 paid out)
                          OE3A/OD3A/OE3P: Regular occupation               12 months
                          Note:     For OE2A/OD2A and OE2P, the waiting period has been extended
                                    to 12 months for disability caused by psychological disturbances and
                                    back problems, as a waiting period of six months is too short to
                                    determine the permanence of the disability.

 Availability             •   OE is available only in the case of the following recurring-premium policies
                              with cover:
                              −   The 4in1 Plan (Tables 303, 403, and 503)
                              −   Deferred Compensation (Tables 359, 459 and 559) *
                          •   OD is available only with The One Retirement Annuity (Tables 334, 434
                              and 534).
                              OD can be added to
                              −   recurring and single-premium policies; and to
                              −   policies with or without cover.
                              Note: The One Retirement Annuity without cover is available only if OD is
                                    taken as well.
 Age at inception         OE : 15 to 55 next birthday (for females as well).
                          OD : 15 to 60 next birthday (for females as well).
 Benefit term             OE : Up to policy anniversary preceding age 60.
                          OD : Up to policy anniversary preceding age 65.

* OE2P/OE3P is not available in the case of Deferred Compensation policies.




GE 10/2004                                       arg(CD5)
COVER AMOUNT : DISABILITY BENEFITS

GENERAL INFORMATION

 OE             •   The OE cover amount may not exceed the amount of the initial death
                    benefit. It may be equal to or less than the initial death benefit amount
                    (refer to note).
                •   OE will share in profits together with the main policy. It will therefore grow
                    if the death benefit amount of the basic policy grows.
                •   The amount of the death benefit on the basic policy is reduced by the OE
                    cover amount if an OE claim is granted. If the OE benefit amount is equal
                    to the death benefit amount, the policy is terminated when a claim is
                    granted in respect of OE. Refer to “Claims Policy when disability benefits
                    overlap” in Section CL.
                Note:     In the case of policies with a premium less than the higher minimum
                          premium, the OE cover amount must always be equal to the death
                          benefit amount. If the OE new business limits are exceeded as a
                          result of this, OE will not be available.
 OD             The disability cover can be:
                    •   equal to the life cover;
                    •   less than the life cover, in which case it is expressed as a percentage of
                        the life cover;
                    •   more than the life cover even if no life cover is taken on the policy.
                        Then a separate OD cover amount is specified.
                The disability amount under The One RA is the larger of:
                    −   the balance of the investment account or
                    −   the OD cover amount.
                    OD will share in the profits together with the main policy.
                The death benefit amount on the basic policy is reduced by the OD cover
                amount if an OD claim is granted.




GE 10/2004                              arg(CD6)
RESTRICTIONS : OEA, OEP and ODA

    Minimum                 R10 000
    Maximum                 Lump Sum Disability Benefits (OEA), Disability Benefits in Five Instalments
                            (OEP) as well as Disability pension benefits (ODA), are limited to the smaller
                            of (a) and (b),
                                        where (a) = the Sanlam Life restriction and
                                              (b) = the Sanlam Life limit.
    (a) The Sanlam Life     The total of all disability benefits in five instalments, income and lump sum
        restriction         disability benefits (individual and group) at all companies is limited as follows:
                            •   90 x monthly taxable income *
                            •   plus the larger of
                                    −   R250 000 or
                                    −   30 x monthly taxable income *
                            •   minus existing provision.

                            Existing provision
                            When determining the total of disability benefits in five instalments, and income
                            and lump sum disability benefits, the following are included:
                            −   All lump sum disability benefits
                                (e.g. OEA, ODA, group assurance and pension fund lump sums, etc.)
                            −   All disability benefits in five instalments
                                (e.g. OEP) (Full benefit amount which can result in five instalments).
                            −   All disability income benefits
                                (e.g. Income Protector, disability pension, etc.)
                            −   All waiver of premium disability benefits (e.g. OP, OG, etc.)
                            Income and waiver of premium benefits are converted to equivalent lump sum
                            benefits by multiplying the monthly amount by 120.
                            Please Note:      Trauma benefits (TV) are taken into account when a claim
                                              arises, but not when new assurance limits are
                                              determined.

* Tax avoidance such as registration of family trusts, formation of close corporations, etc., sometimes
    makes it impossible for Sanlam Life restrictions to be applied as set out above.
Guidelines
In order to determine a loss of income Sanlam Life requires the earning of income. If the policyholder is
not liable for tax, Sanlam Life requires the following:
−     Tax assessments in which tax payable is indicated as "nil".
−     A statement with reasons and an indication from the policyholder, setting out which of the assessed
      losses and expenditure Sanlam Life must ignore for purposes of calculating "net income".
−     Reasons for the disability leading to a loss of income.
−     If someone were to be appointed to do the work, should the assured become disabled, such a
      person's salary would be a good indication of loss of income.
−     Use this estimated monthly amount as "monthly taxable earnings" in the formula.




GE 10/2004                                           arg(CD7)
 (b) The Sanlam Life   The total lump sum disability benefits or disability benefits in five instalments
     limit             (group and individual with Sanlam Life) may not exceed the following limits:
                       −   personal lump sum disability benefits
                           or disability benefits in five instalments            : R5 000 000
                       −   personal plus business lump sum disability
                           benefits (see note 3)                                 : R5 000 000

                       −   disability benefits for aviation personnel (OE3A
                           special and OE3P special)                             : R 700 000
                       minus existing lump sum disability benefits and/or disability benefits in five
                       instalments (with Sanlam Life only).
                       Notes     1)    Trauma benefits (TV), income benefits and waiver of premium
                                       benefits are not taken into account when determining the
                                       Sanlam Life limit.
                                 2)    Business lump sum disability benefits are those benefits pay-
                                       able to the employer or partners of the life assured. There are
                                       therefore, no benefits for the assured or his dependants (i.e.
                                       key person or partnership assurance).
                                 3)    When personal plus business disability benefits are taken out,
                                       the total benefits may still not exceed R5 000 000.
 Housewives            The total lump sum disability benefits and/or disability benefits in five
 (woman / man)/        instalments (group and individual with all assurers) may not exceed
 children / students   R250 000.
                       • Disability income benefits must be converted to lump sum benefits
                           (before it is included in this limit): monthly income benefit x 120.
                       •   If at the time of the claim, the assured does not have an occupation and
                           therefore has no income, Sanlam Life will grant the claim only if the
                           assured suffers a personal or recognised disability.
                           Sanlam Life will consider a claim in respect of occupational disability for a
                           final-year student in the following case:
                           −   if the assured has a Senior Certificate (Grade 12 / Standard 10), and
                           −   is enrolled as a full-time final-year student at a university, teachers'
                               college or for a National Diploma at an university of technology
                               (technikon), and
                           he/she becomes disabled for an occupation which he/she, after having
                           obtained the qualification, could reasonably be expected to follow, taking
                           into account his/her training or experience.

CLAIMS

 OEA                   When a claim is granted, the benefits are paid out in a lump sum.
 OEP                   When a claim is granted, the benefits are paid out in five equal yearly
                       instalments.
 ODA                   When a claim is granted, the benefits are paid out as follows:
                           •   Up to one third of the disability amount may be taken in cash and
                           •   a disability pension has to be bought with the remainder. The pension
                               may be with or without a guarantee term and may also be a survivor
                               pension.




GE 10/2004                                     arg(CD8)
CLAIMS (continued)

 Payment of OE2A     •   If the disability amount payable is equal to the total death benefit of the
 and OE3A claims         original policy, the original policy will be terminated.

                     •   If the disability amount payable is less than the total death benefit of the
                         original policy, the original policy will be continued for the reduced death
                         benefit amount.

                     •   OEA benefits are scaled down in the 5 years before age 60. Every year the
                         benefit available is reduced by twenty per cent of the original benefit.
                         This scaling down will take place because a person in this age group can
                         retire early. We can then also offer the product at a better price.

                     •   Disability owing to a psychological disorder or back condition will be
                         handled as follows:
                         Back conditions
                         Only the following cases will be considered for claims:
                         −   paraplegia;
                         −   quadriplegia;
                         −   malignant tumours of the spinal cord and vertebral column; and
                         −   failed back syndrome after multiple spinal surgery, provided that the
                             extent of the functional impairment arising therefrom, is verified by a
                             specialist nominated by Sanlam Life.
                         Psychological conditions
                         Claims will be considered for any psychological condition, except 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; and
                         −   chronic fatigue syndrome and its synonyms (e.g.”yuppie flu”).




GE 10/2004                                   arg(CD9)
  Payment of      •   Benefits are paid out in five equal yearly instalments without any interest.
  OE2P and OE3P
  claims          •   Tax will usually not be payable on these instalments. However, if the claim
                      is admitted in terms of a policy on which the premium was deductible for tax
                      purposes (for example, an employer who took out a policy on the life of an
                      employee), the instalments are fully taxable in the hands of the employer.
                      It is therefore recommended that the lump sum versions (OEA) preferably be
                      taken together with these kind of policies.
                  •   Should a disability claim arise during the scaling down period (in the last five
                      years of the benefit term), each payment paid out annually, will be equal to
                      the scaled down amount at the time, divided by five.
                  •   Sanlam Life could request proof that the person is still disabled each year
                      before an instalment is paid. If it then appears that the assured has
                      recovered sufficiently, no further instalments will be paid out. A policy will
                      then be issued for the balance of the instalments that have not been paid out
                      yet. The remaining life and disability cover then continues for the remaining
                      portion of the original benefit terms. The policyholder will have to pay the
                      premiums on this policy.
                  •   Death benefit during the period of payment of instalments
                      −   Disability equal to total death benefit
                          Should the assured die before all five instalments have been paid, the
                          balance of the instalments will be paid out immediately.
                      −   Disability less than total death benefit
                          Should the assured die before all five instalments have been paid, the
                          balance of the instalments, together with the reduced death benefit (if
                          any) will be paid out immediately.
                  •   Disability as a result of a psychological disorder or back condition will be
                      handled as follows:
                      Back conditions
                      Only the following cases will be considered for claims:
                      −   paraplegia;
                      −   quadriplegia;
                      −   malignant tumours of the spinal cord and vertebral column; and
                      −   failed back syndrome after multiple spinal surgery, provided that the
                          extent of the functional impairment arising therefrom, is verified by a
                          specialist nominated by Sanlam Life.
                      Psychological conditions
                      Claims will be considered for any psychological condition, except 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; and
                      −   chronic fatigue syndrome and its synonyms (e.g.”yuppie flu”).




GE 10/2004                                arg(CD10)
HOW TO CALCULATE NEW ASSURANCE LIMITS (NUB) : OEA, OEP and ODA

The same method is used to calculate OEA, OEP and ODA limits.
EXAMPLE 1
A person with a monthly taxable income of R8 000 proposes for lump sum disability benefits (OEA) of
R200 000. The proposal is not in terms of business assurance.

 Existing                     •    R100 000 lump sum disability benefits (OEA) at Sanlam Life
 provision
                              •    R150 000 lump sum disability benefits at another assurance company
                              •    Pension fund benefits
                                   − Lump sum                      : R120 000
                                   − Income benefits               : R1 100 p.m.

                              •    Income Protector                : R2 500 p.m.
                              •    The premium in respect of an existing Sanlam Life policy, with waiver of
                                   premium disability benefits (OP), amounts to R100 p.m.
                        Total existing provision
                              Lump sums:
                                R100 000 + R150 000 + R120 000                 = R370 000
                              Income and waiver of premium benefits:
                                (R1 100 + R2 500 + R100) x 120                 = R444 000
                                                                   Total       = R814 000

 Application of         The maximum amount available is the smaller of the Sanlam Life restriction
 limits                 (a) and the Sanlam Life limit (b), where
                        (a)       = 90 x R8 000                     = R720 000
                                    plus
                                    the greater of
                                    − R250 000 and
                                    − 30 x R8 000                   = R250 000
                                                           Total    = R970 000
                                  All existing provision is included in the maximum amount available with
                                  (a). The amount available therefore is:
                                    (a) minus existing provision
                                  =  R970 000 - R814 000
                                  =  R156 000
                        (b)       =  limit for personal lump sum disability benefits (proposal not in terms
                                    of business assurance).
                                  = R5 000 000 minus existing lump sum benefits
                                  = R5 000 000 - (R100 000 + R120 000)
                                  = R4 780 000
                        The maximum is the smaller of (a) and (b) = R156 000
                              (R156 000 as calculated according to (a) is smaller than R4 780 000 as
                              calculated according to (b))
                        Conclusion:
                        The full lump sum benefits of R200 000 (for which he now proposes) is there-
                        fore not available, but only R156 000.




GE 10/2004                                       arg(CD11)
EXAMPLE 2
A person with a monthly taxable income of R20 000 wishes to take out lump sum disability benefits to
the maximum which is available in terms of Sanlam Life’s new business restrictions. Taking his existing
provision into account, the following method must be used to establish what lump sum benefits the
person can still take out:

 Existing                −     R150 000 lump sum disability cover (OEA) at Sanlam Life
 provision               −     R150 000 Trauma cover (TV) at Sanlam Life
                         Total existing provision (Trauma excluded)
                             Lump sum = R150 000

 Application of          The maximum amount available is the smaller of the Sanlam Life restriction
 restrictions            (a) and the Sanlam Life limit (b), where
                         (a)     = 90 x R20 000                     = R1 800 000
                                   plus
                                   the greater of
                                   − R250 000 and
                                   − 30 x R20 000                   = R 600 000
                                                         Total      = R2 400 000
                                 All existing provision (except Trauma) is included in the maximum
                                 amount available with (a). The amount available therefore is:
                                     (a) minus existing provision
                                 =    R2 400 000 - R150 000
                                 =    R2 250 000
                         (b) = Personal and/or lump sum disability benefits
                               If the proposal is in terms of personal and not business assurance
                                 (b) = R5 000 000 minus existing lump sum benefits
                                     = R5 000 000 - R150 000
                                     = R4 850 000
                                 The maximum is the smaller of (a) and (b)
                                 = R2 250 000
                                 (R2 250 000 as calculated according to (a) is smaller than R4 850 000
                                 as calculated according to (b))




GE 10/2004                                      arg(CD12)
OE3AS, OE3PS               SPECIAL REGULAR CCUPATIONAL DISABILITY
OD3AS, OP3S and            BENEFITS FOR AVIATION PERSONNEL
M-OP3S:

OE3AS :      Special Lump Sum Disability Benefits (OE3A Special)
OE3PS :      Special Disability Benefit in Five Instalments (OE3P Special)
OD3AS :      Special Disability Pension Benefits (OD3A Special)
OP3S :       Special Waiver of premium Disability Benefits i.r.o. assured (OP3 Special)
M-OP3S :     Special Waiver of premium Disability Benefits i.r.o. co-assured (M-OP3 Special)

                                                          Table codes

 Benefits available                       303                                      334
                                          403                                      434
                                          503                                      534
 OE3AS
 OE3PS
 OD3AS
 OP3S
 M-OP3S

 Who qualifies?          Air traffic controllers of Transnet, pilots, co-pilots and flight engineers with
                         the necessary licences (i.e. persons who qualify for occupational Code
                         1240, 1241, 1740 or 1741).
 Airlines                In order to qualify for these benefits, the assured must be a full-time
                         employee of one of the following airlines:
                         Air Botswana                           Mmabatho Air Services
                         Air Cape                               N.A.C.
                         Air Comores                            Namakwaland Lugdiens
                         Air Mauritius                          Namib Air
                         Air Traffic Navigational Services      National Airways
                         Anglo American (Air)                   Nationwide Air
                         AVEX                                   Progress Air
                         Border Air Charter                     Protea
                         Cargo Air                              Pretoria Air Charter
                         Capitol Air                            Rapid Air
                         Comair                                 Republic Air
                         Court                                  Ross Air
                         East Coast Airlines                    SA Air Link
                         Emric Air                              SA Express
                         Executive Aerospace                    Safair
                         Falconair                              Sentra Airways
                         Grand Central Air                      South African Airways (SAA)
                         Holiquip                               Sun Air
                         Inter Air                              Theron Airways
                         Lesotho Airways                        Transkei Air
                         Lion Air                               Travel Air
                         Lux Air                                United Air
                         Magnum                                 West Air
                         Margate Air Service                    Zimbabwe Air
                         Million Air Aviation
                         If the assured is not an employee of one of the above airlines, he can still
                         propose for the special benefits. Sanlam Life wil consider such applications
                         individually.




GE 10/2004                                       arg(CD13)
 Proposal       A fully completed E98 must accompany the proposal documents.
 procedures
 Age at         15 to 45 next birthday.
 inception
 Premium and    The same term as the policy, but the benefit ceases on the policy anniversary
 benefit term   prior to the following ages in the case of
                • Lump Sum Disability Benefits (OE3AS)                   : 50 up to anb 55
                •   Disability Benefit in Five Instalments (OE3PS)            : 50 up to anb 55
                •   Disability Pension Benefits (OD3AS)                       : 50 up to anb 55
                •   Waiver of Premium Disability Benefits i.r.o. assured
                    (OP3S)                                                    : up to anb 55
                •   Waiver of Premium Disability Benefits i.r.o. co-assured
                    (M-OP3S)                                                  : up to anb 55
 Provisions     •   The same provisions which are applicable to other disability benefits (OE, OD
                    and OP) will apply.
                •   The inability of the assured to operate as a pilot is not the decisive factor
                    when disability is determined.
                •   In the case of this benefit an assured is regarded as being disabled only if
                    he/she suffers disability as a result of injury or illness.




GE 10/2004                                 arg(CD14)
                                          FEBRUARY 2006

                                           SECTION CE

                    OPTIONS AUTOMATICALLY PART OF SOME POLICIES
Some policies have proof-free options which form part of the policy automatically and for which no extra
premium is payable.


                                            EDUFOCUS

POLICY REPLACEMENT OPTION
The assured (or his guardian on his behalf) can withdraw the maturity value of the children’s policy at
the maturity date. If at that stage the policy-owner provides proof to Sanlam’s satisfaction that the
assured is HIV negative, the policy-owner may take out a new policy on the assured’s life without proof
of good health.

 Availability         With all children’s policies (Tables 303J, 403J and 503J) if the maturity date is
                      selected as between 15 and 26 anb.
 Option date          Maturity date of the children’s policy.
 Option period        Within 3 months after the option date.
 Policy available     Any with-cover policy, except term assurance.
 Option amount        The cover amount of the children’s policy on the maturity date.
 Underwriting         Normal requirements for new assurance apply on the date on which the option is
                      exercised (proof of good health excluded).


                                    THE FUNERAL HELP PLAN


OPTION AT EXPIRY OF A CHILD’S COVER
At expiry of death cover (25 anb) new life cover may be taken out proof-free provided it can be proved
that the life assured is HIV negative at that stage.
                                                                 th
 Option date          Policy anniversary preceding the child’s 25 birthday.
 Option period        Within 3 months after the option date (expiry of the child’s cover).
 New assurance         –   Whole-life assurance (Matrix TopCover or Matrix TermCover)
 available             –   Endowment assurance
                       –   Retirement Annuity assurance
 Maximum cover        R30 000
 available
 Underwriting         Assurance effected in terms of the option is subject to the normal requirements
                      for new assurance which apply on the date on which the option is exercised
                      (proof of good health excluded).




GE 2/2004                                          arg(CE1)
                                             SECTION CF


                 PERMANENT ASSURANCE OPTIONS (PVO AND OV-PVO)

PVO: Permanent assurance option
The assured has the option of replacing term assurance by permanent Sanlam assurance without proof
of good health, at any stage prior to the policy anniversary that precedes age 60. This option is subject
to a negative HIV test result.

OV-PVO: Permanent assurance and Disability benefits option
The assured has the option of replacing term assurance by permanent Sanlam assurance without proof
of good health and adding waiver of premium and/or disability benefits to the new assurance at any
stage prior to the policy anniversary that precedes age 55. This option is subject to a negative HIV test
result.

GENERAL INFORMATION (when PVO and OV-PVO are added to a policy)

 Availability            PVO and OV-PVO can only be added to Level Term Assurance (Table 6).
 Not available           PVO and OV-PVO
                             −   may not both be added to the same policy;
                             −   are not available if the assured qualifies for rate group 1 rates.
 Age at inception        PVO           : 15 to 55 next birthday (for females as well)
                         OV-PVO        : 15 to 50 next birthday (for females as well)
 Benefit term            PVO           : policy term (terminates on policy anniversary before age 60)
                         OV-PVO        : policy term (terminates on policy anniversary before age 55)
 Limit                   It must be taken on the full death benefit of the policy.
 Option Amount           The maximum option amount at any stage is equal to the sum assured of
                         Table 6.
 Premium payments        Premiums are payable until the option lapses or is exercised in full.

 Rates for females       The same rates are used for males and females.




GE 3/2001                                        arg(cf1)
PROVISIONS (when PVO and OV-PVO options are exercised)

 New assurance       •   Whole-Life Assurance
 available
                     •   Endowment Assurance and
                     •   Retirement Assurance

 Proposal form       AEB52
 Partial options     If the option is exercised partially, the new policy and the remaining option
                     amount must meet the minimum requirements set by Sanlam at that stage.
 Disability claim    OV-PVO:
                     A disability claim on the new policy (effected in terms of OV-PVO) will be
                     considered only if disability occurred after the inception date of the new policy.


UNDERWRITING (when PVO and OV-PVO options are exercised)

 New assurance       •   Proof of good health and a financial report are not required. All Sanlam’s
                         other normal requirements for new assurance and disability benefits
                         (which apply when the option is exercised) are applicable.
                     •   Each new policy has the same medical loadings or exclusions which apply
                         in respect of the existing policy (if any).
                     •   If higher cover is required on the new policy, proof of assurability is
                         required in respect of the increased cover.
 Indexplan           Indexplan is available on the new policy without any further underwriting.
 Rider benefits      PVO:           If any rider benefits are required on the new policy, proof of
                                    assurability is required in respect of the rider benefits.
                     OV-PVO:        •   Disability benefits in five instalments (OEP) or Lump sum
                                        disability benefits (OEA and ODA) and/or Waiver of
                                        premium benefits (OP and OG) are available proof-free.
                                    •   The assured’s income from his occupation must be
                                        sufficient to justify the disability benefit amount (i.e. in
                                        accordance with the LOA and Sanlam limits).
                                    •   Proof of assurability is required for all other rider benefits.
 Term extended       If only the term is extended, full underwriting is not required.




GE 3/2001                                    arg(cf2)
 PB/GB:         WAIVER OF PREMIUM BENEFIT AT DEATH OF PRINCIPAL ASSURED
                (The One FamilySupporter)
In the event of the death of the principal assured during the term of benefit, the premiums in respect of
the surviving assureds will be waived.
The following waiver of premium benefits are available:
     PB:    The death benefits of the surviving assureds remain constant after the death of the principal
            assured.
     GB:    The death benefits of the surviving assureds grow annually after the death of the principal
            assured.


 Availability         •   PB and GB are available only
                          – in the case of The One FamilySupporter
                          –      for the first principal assured, i.e. the person who was the principal
                                 assured at the time the policy was taken out.
                      •   PB is available in the case of policies with or without Indexplan.
                      •   GB is available only if Indexplan is taken.
 Not available        PB and GB are not available in the case of policies where the principal assured is
                      the only person assured.
 Age at inception     Age of the principal assured:
                      Minimum:       15 anb
                      Maximum:          –   Limited premium term:    50 anb
                                        –   Whole-life premium term: 65 anb
 Benefit term         For life
 Premium              The premium for PB and GB is a percentage of the full premium (the principal
                      assured’s premium portion and the savings portion excluded).
 Medical              •   The principal assured must follow the normal underwriting procedures
 underwriting             according to the requirements for basic rates (refer to Section DD).
                      •   On the grounds of this underwriting, the principal assured will be accepted or
                          rejected (only i.r.o. waiver of premium benefits on his/her life).
                      •   No extra premium is applicable.
                      •   If the principal assured is rejected for PB/GB, his/her spouse could be
                          appointed principal assured so that PB/GB can possibly be added to the
                          policy. If, however, the spouse is also rejected for medical reasons, it will not
                          be possible to obtain PB/GB.
 Restrictions         •   Policies with a savings benefit:
                          Waiver of premium benefits is not applicable to the additional savings
                          premium. After the death of the principal assured no additional savings
                          benefits will be available under the policy.
                      •   Adding assureds:
                          A policy-owner cannot add lives assured to the policy once a waiver of
                          premium benefit claim has been admitted.




GE 10/98                                            arg(cg2)
 PM/GM:         WAIVER OF PREMIUM BENEFITS AT DEATH OF PRINCIPAL ASSURED
                 (The One Medical Plan)
In the event of the death of the principal assured during the term of benefit, the premium payments on
the policy will be discontinued until the end of the term of benefit.
The following waiver of premium benefits are available:
     PM:    Premiums and benefits of the surviving assureds remain constant after the death of the
            principal assured.
    GM:     Premiums and benefits of the surviving assureds grow after the death of the principal
            assured.

 Availability           •   PM and GM will be available only
                            – in the case of The One Medical Plan, and
                            –   should a spouse be assured in terms of the policy.
                        •   PM is available in the case of policies with and without Indexplan.
                        •   GM is available only in the case of policies with Indexplan.
 Age at inception       Minimum :       15 years next birthday
                        Maximum :       65 years next birthday
 Benefit term           Minimum:       The shorter of
                                       – 10 years
                                       – the benefit term of OP or OG if PM/GM is taken together with
                                          OP/OG on the same policy
                        Maximum:       The shorter of
                                       – the premium term of the basic policy (not applicable to whole-
                                          life premium term)
                                       – the term up to policy anniversary before age 80 next birthday
                                          of the principal assured (females also).
 Rates/Premium          •   PM and GM rates are a percentage of the total premium of the spouse
                            and/or dependent children.
                        •   If the benefit term of PM or GM should expire within the term of the basic
                            policy, the premium in respect of the benefit will be applied as follows:
                            – In the case of policies without Indexplan, the premium is reduced by the
                                 appropriate portion.
                            – In the case of policies with Indexplan, the appropriate portion will be
                                 applied i.r.o. the savings portion of the basic policy provided that
                                 Indexplan is in operation at that time.
 Underwriting           •   An HIV-negative blood test must initially be supplied if PM or GM is taken
                            together with medical insurance.
                        •   If a waiver of premium benefit (PM/GM) is taken as a rider benefit in terms
                            of a policy, Sanlam’s normal underwriting requirements will apply to the
                            specific benefit only.




GE 10/98                                          arg(cg3)
                                         FEBRUARY 2006



                                            SECTION CG


                         WAIVER OF PREMIUM BENEFITS AT DEATH



 P:     WAIVER OF PREMIUM BENEFIT AT DEATH OF CO-ASSURED
In the event of the death of the co-assured during the term of benefit, no further premiums will be
payable until the end of the term of benefit.

 Co-assured            The co-assured may be any person with an insurable interest in the life of the
                       assured. It need not be the proposer or premium payer.
 Availability          P benefit may be added to the following assurance:
                            – Ordinary assurance
                                 (Endowment Assurance and Children’s Assurance)
                             – Retirement Annuity Assurance
                       Notes: 1) P benefit has to be effected in order to qualify for M-OP.
                             2) P benefit has to be on the full premium.
 Not available         P benefit is not available in the case of:
                          – Deferred Compensation,
                          – Provident Funds,
                          – together with OP and OG on the same policy, or
                          – for rate group 1 rates.
 Age at inception      Age of co-assured:
                       15 to 65 next birthday (for females as well).
 Benefit term          Minimum :       Shorter of
                                       – 10 years, or
                                       – premium term of policy.
                       Maximum :       Shortest of
                                       – 45 years
                                       – premium term of policy
                                       – term up to policy anniversary preceding age 80 of the co-
                                          assured (females also).
 Policy fee            An additional policy fee of R0,75 is levied.
 Waiting period        There is no waiting period. The premiums are waived from the first day of the
                       month following the death of the co-assured.
 Resumption of         When the term of the P benefit has expired, the premium payments must be
 premiums              resumed until the end of the policy term.




GE 10/2004                                       arg(CG1)
  PB:        WAIVER OF PREMIUM BENEFIT AT DEATH OF PRINCIPAL ASSURED
             (The Funeral Help Plan)
In the event of the death of the principal assured during the term of benefit, the premiums in respect of
the surviving assureds will be waived.

The death benefits of the surviving assureds remain constant after the death of the principal assured.


 Availability         •   PB is available only
                          – in the case of The Funeral Help Plan
                          – for the first principal assured, i.e. the person who was the principal
                             assured at the time the policy was taken out.
 Not available        PB is not available in the case of policies where the principal assured is the only
                      person assured.
 Age at inception     Age of the principal assured:
                      Minimum:       18 anb
                      Maximum:       65 anb
 Benefit term         For life
 Premium              The premium for PB is a percentage of the full premium.
 Medical              •   The principal assured must follow the normal underwriting procedures
 underwriting             according to the requirements for rate group 1 rates (refer to Section DD).
                      •   On the grounds of this underwriting, the principal assured will be accepted or
                          rejected (only i.r.o. waiver of premium benefits on his/her life).
                      •   No extra premium is applicable.
                      •   If the principal assured is rejected for PB, his/her spouse could be appointed
                          principal assured so that PB can possibly be added to the policy. If, however,
                          the spouse is also rejected for medical reasons, it will not be possible to
                          obtain PB.
 Restrictions         A policy-owner cannot add lives assured to the policy once a waiver of premium
                      benefit claim has been admitted.




GE 10/2004                                        arg(CG2)
                                           FEBRUARY 2006

                                              SECTION CH


                              WAIVER OF PREMIUMS AT DISABILITY


  OP, OG AND M-OP:            WAIVER OF PREMIUM BENEFITS IN THE CASE OF
                              DISABILITY
Premiums are waived if, during the term of benefit, the assured (in the case of OP/OG) or the co-
assured (in the case of M-OP) becomes totally or totally and permanently disabled in respect of
his/her
    • regular or “alternative” occupation in the case of OP2, OG2 and M-OP2
   •   regular occupation in the case of OP3, OG3 and M-OP3
   owing to an injury or illness.

In the case of total disability the benefit comes into operation only if the assured (or co-assured in the
case of M-OP) practises an occupation for wage or profit.

 Definitions           OP:               Waiver of premium benefits at disability of the assured. In the
                                         case of policies with Indexplan, premiums and benefits grow
                                         until a claim arises.
                       OG:               Waiver of premium benefits at disability of the assured.
                                         Premiums and benefits grow before and after disability.
                       M-OP:             Waiver of premium benefits at disability of the co-assured. In
                                         the case of policies with Indexplan, premiums and benefits grow
                                         until a claim arises.
 Availability          OP and M-OP:      Can be added to policies with or without Indexplan.
                       M-OP:             Available only if P benefit is taken.
                       OG:               Can be added only to policies with Indexplan where the rate of
                                         increase is linked to the inflation rate. If the fixed rates (10%,
                                         15% or 20%) were taken, OG is not available.

                                         Exception: OG is available in the case of The One Policy for
                                         Two, although the premium grows at a fixed rate.
 Age at inception      15 to 55 next birthday (for females as well).
 Benefit Term          No premiums are payable for the full duration of disability. Payment takes place
                       as follows:
                       At total            OP/OG:       For the policy term but not exceeding the policy
                       disability                       anniversary before age 60.
                                           M-OP:        For the P benefit term, but not exceeding the
                                                        policy anniversary before age 60.
                       At total and        OP/OG:       For the full policy term, even should this extend
                       permanent                        beyond age 60.
                       disability
                                           M-OP:        For the P benefit term (refer to Section CG).




GE 2/2004                                          arg(CH1)
WAIVER OF PREMIUMS AT DISABILITY (continued)
Rates              OP, OG and M-OP benefits have to be on the full premium.                Rates are a
                   percentage of the premium of the policy.
Indexplan          OP and M-OP:        In the case of policies with Premium growth the premium and
                                       policy benefits grow only until a claim arises.
                   OG:                 The premium and other applicable benefits will grow before and
                                       after a claim arises. After maturity, growth in terms of OG will
                                       take place at a maximum of 15% per annum. If Indexplan is
                                       cancelled, there will be no further growth in terms of OG, and
                                       when a claim arises the level premium will be waived.
Waiting period     OP2/ OG2/ M-OP2
                   Waiver of premiums becomes operative after disability
                   •   has continued for 12 months in the case of disability as a result of a psychical
                       condition, or a back condition or impairment.
                   •   has continued for 6 months in the case of disability as a result of any other
                       condition or impairment.
                   OP3/ OG3/ M-OP3
                   Waiver of premiums becomes operative after disability has continued for 12
                   months.
Proof of           Sanlam may require satisfactory proof of continuing disability at any stage after
continuation of    waiver of premium benefits have come into force.
disability         The benefits will lapse if
                   – proof has not been furnished, or
                   – the assured refuses to allow an examination, or
                   – refuses to undergo regular treatment by a medical doctor if there are
                       reasonable prospects that medical treatment may improve his condition.
Resumption of      •   If the assured recovers, the benefit will cease and the policy-owner will have to
premiums               resume payment of the premiums.
                   •   In the case of total disability the benefit shall lapse on the policy anniversary
                       immediately preceding the sixtieth birthday of the assured (except if the
                       assured suffers total and permanent disability at that stage). Premium
                       payments should then be resumed up to the end of the policy term.

Payment in the     Back conditions
case of back and
psychological      Only the following cases will be considered for claims:
claims
                   •   paraplegia;
                   •   quadriplegia;
                   •   malignant tumours of the spinal cord and vertebral column; and
                   •   failed back syndrome after multiple spinal surgery, provided that the extent of
                       the functional impairment arising therefrom, is verified by a specialist nominated
                       by Sanlam.

                   Psychological conditions

                   Claims will be considered for any psychological condition, except 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; and
                   •   chronic fatigue syndrome and its synonyms (e.g. “yuppie flu”).




GE 2/2004                                         arg(CH2)
                                        FEBRUARY 2006



                                           SECTION CI


                                  THE PREGNANCY BENEFIT


If the assured is pregnant the benefits in terms of the policy may, (subject to the requirements of
Sanlam) be kept in force for a bridging period,
    – either without payment of premiums, or
    – against payment of a reduced premium.
Sanlam shall determine whether the option for a specific policy is available at that stage.
GENERAL INFORMATION
 Availability          •   The Pregnancy Benefit can be used for each pregnancy.
                       •   The Pregnancy Benefit is free and is automatically included with the
                           following policies:
                           – The 4in1 Plan
                           – Retirement Annuities
                       •   This benefit cannot be added to existing policies. If a total conversion
                           (NKV) is done, however, the benefit will be added to the new policy
                           automatically.
 Not available         The Pregnancy Benefit is not available in the case of:
                          – Policies where the female assured is older than age 50 next birthday
                          – Some policies with small premiums
                          – Investment Plans
                          – Children’s policies
                          – Term Assurance
                          – The One Policy for Two
                          – LifePlan
 Bridging Period       Maximum: 12 months
 Waiting period        The benefit is available only after 12 months have elapsed since the inception
                       date of the policy.

Refer to “How the Pregnancy Benefit works” on the next page.




GE 10/2004                                      arg(CI 1)
HOW THE PREGNANCY BENEFIT WORKS

•    To make use of this benefit, the assured woman must submit a request in writing accompanied by a
     medical certificate to confirm that she is pregnant.
•    A claim can be submitted on any date during pregnancy but not later than sixty days after the end of
     the pregnancy.

    Payment of           Non-RA policies with sufficient surrender value
    premiums             In the case of non-RA policies with life cover that have sufficient surrender
                         value to supply 12 premiums, the benefit is dealt with as follows:
                         •   During the bridging period the premiums are advanced against the
                             surrender value at a subsidised interest rate.
                         •   After the bridging period of up to 12 months the client has the choice of
                              (i)    redeeming the low interest loan;
                             (ii)    paying off the loan over a term at the normal premium debt interest
                                     rates; or
                             (iii)   cancelling the loan by means of a total conversion (NKV) or a notation.
                                     The premium and benefits can be adjusted according to the client’s
                                     need.
                         Non-RA policies without sufficient surrender value and RA policies
                         •   The following policies are dealt with in a way similar to a bridging in the case
                             of RA policies:
                             – policies that do not have a surrender value (therefore also RA’s), or
                             – policies where the surrender value is not sufficient to advance 12
                                 premiums.
                         •   A reduced premium as stipulated by Sanlam, must be paid by the policy-
                             owner during the bridging period.
                         •   An increased premium (determined by Sanlam) is payable after the bridging
                             period should the assured wish the benefits in terms of the policy to
                             continue unchanged.
    Indexplan            In the case of policies with Indexplan, the date of Indexplan increases is
    increases            postponed until after the bridging period (i.e. no increase takes place during this
                         period).




GE 10/2004                                           arg(CI 2)
                                           FEBRUARY 2006


                                               SECTION CJ


                                          FUTURE COVER (TD)

As soon as the policy-owner proves during the option period that the assured is HIV-negative at that
stage, the policy-owner has the option of taking out further assurance with life cover on the life of the
assured.

The new policy is available during the option period
   •   without proof of good health and
   •   without having to provide a financial report.

GENERAL INFORMATION (when TD is added to a policy)
 Availability        Future Cover is available with:
                     •   The 4in1 Plan
                         (Tables 303, 403 and 503)
                     •   The One Policy for Two
                         (Tables 303H, 403H, 503H, 308H, 408H and 508H)
                     •   The One Retirement Annuity
                         (Tables 334, 434, and 534)
                     Note: No loading (as a result of occupation or part-time activities) is imposed i.r.o.
                           the TD premium – TD is therefore either accepted on ordinary terms or
                           rejected.
 Not available       Future Cover is not available together with Disability Cover Reinstatement Options
                     (DHOE and DHOD) on the same policy or with rate group 1 rates.
 Age at              15 to 50 next birthday (for females as well).
 inception
 Benefit term        Shorter of   – policy term or
                                  – term up to policy anniversary preceding age 60.
 Option dates        Every 12 months (i.e. on the policy anniversary), the assured can take out a new
                     policy with life cover up to the maximum of the available option amount at that
                     stage.
                     Please Note: If Future Cover is added to an existing policy and the date of
                                       alteration is less than 6 months before the next policy anniversary,
                                       the first option date will be on the second policy anniversary after
                                       the notation.




GE 10/2004                                             arg(CJ1)
GENERAL INFORMATION (when TD is added to a policy) (continued)
 Rates for        The same rates are used for males and females except that a female’s age next
 females          birthday is reduced by 7 years. To determine whether the benefit is available, the
                  actual age next birthday should be used.
 Option benefit   The initial amount chosen at inception is
 amount           Minimum      : R250 000
                  Maximum      : R5 000 000 (all other option benefits the assured have with Sanlam,
                                 included)
                  Other option benefits with Sanlam:
                  The value of other option benefits which are included are determined as follows:
                  •   Number of remaining options:
                      –   A maximum number of six per option benefit are taken into account.
                  •   Guaranteed Policy Options (GPO and OV-GPO):
                      –   Initial option amount X number of remaining options
                  •   Increasing Policy Options (TPO and OV-TPO):
                      –   Initial option amount X 4 X number of remaining options
                  •   Index Policy Options (IPO and OV-IPO):
                      –   Policies with Indexplan:
                          Initial option amount X 4 X number of remaining options
                      –   Policies without Indexplan:
                          Initial option amount X number of remaining options
                  •   Existing policies with Future cover (TD):
                      –   Initial option benefit amount chosen at inception minus total option benefit
                          already exercised.




GE 10/2004                                      arg(CJ2)
PROVISIONS (when TD options are exercised)
 Option period    The two months preceding the option date (policy anniversary).
 Option letters   Option letters will be posted to the policy-owners 8 to 10 weeks before the option
                  date. The letter will indicate the option amount available.
 New assurance    •   If the existing policy is ordinary assurance the following new policies are
 available            available:
                      – whole-life assurance (Matrix TopCover or Matrix TermCover)
                      – endowment assurance
                      – retirement annuity assurance
                  •   If the existing policy is retirement annuity assurance, the new policy must be
                      retirement annuity assurance.
 Term of the      Normal new business requirements are applicable.
 new policy
 Inception date   The option date (policy anniversary) is always the inception date of the new policy.
 of new policy
 Underwriting     •   Proposal form AEB52 must be completed.
                  •   Proof of good health and a financial report are not required. All the other
                      normal new business requirements as stipulated by Sanlam (and which apply
                      when the option is exercised) are applicable.
                  •   Each new policy has the same loadings or exclusions which apply in respect of
                      the existing policy (if any).

                  Indexplan          Indexplan is available with the new policy. Proof of health is
                                     required for cover growth - even where cover growth is
                                     compulsory with premium growth with Top Cover products.
                  Rider benefits     If any rider benefits are added to the new policy, proof of
                                     assurability in respect of the benefits is required.
 Assurable        If the policyholder (proposer) and assured are different persons, it is the
 interest         policyholder who has the option of taking out a new policy proof-free on the life of
                  the assured. For each new policy taken out, there must still be an assurable
                  interest between the policyholder and the life assured.
 Number of        There is no restriction on the number of options that may be exercised (only on the
 options          total cover available).
 available




GE 10/2004                                     arg(CJ3)
PROVISIONS (when TD options are exercised) (continued)
 Life cover        •   Option amount of each new policy:
 available
                       The cover amount of the new policy that can be obtained proof-free annually is

 (see example on       Minimum:          5% of the initial chosen option benefit amount (adjusted by the
 the next page)                          inflation rate).
                       Maximum:          15% of the initial chosen option benefit amount (adjusted by
                                         the inflation rate).
                       Inflation rate: The actual inflation rate (no minimum or maximum) is
                                       applicable.
                   •   Total cover available
                       The total amount in life cover that can be obtained in terms of Future Cover, is
                       equal to the option benefit amount chosen initially. This amount is not adjusted
                       by the inflation rate.
                   •   Last option date:
                       On the last option date, the remaining option amount will be available, even if it
                       is less than 5% of the chosen option benefit amount (adjusted by the actual
                       inflation rate).
 Lapse of option   Individual        An option lapses if it is not exercised within the option period.
                   option
                   Total option      Future Cover lapses on the first of the following:
                                     −     no option being exercised for 3 years (at least one option
                                           must be exercised every 3 years);
                                     −     reaching age 60 next birthday;
                                     −     end of the policy term or at early termination of the policy;
                                     −     full option benefit chosen initially already utilised under new
                                           policies.
                   Rider benefit     After Future Cover has lapsed, the premium in respect of the
                   premium           rider benefit is used for savings.




GE 10/2004                                        arg(CJ4)
EXAMPLE:       Calculation of available life cover
Assume:        −     Option benefit amount chosen initially: R1 000 000
               −     Annual inflation rates: 10%
               −     No options exercised on the following policy anniversaries:
                            nd  th     th
                          2 , 4 and 5
Required:      Maximum available option amount (15%) on the various option dates.

Calculation:       Year *          Maximum available option amount                   Cumulative
                                                                                      life cover
                    1        1 000 000 (1,1) x 0,15 = R165 000                     R 165 000
                    2        No option exercised
                    3        1 000 000 (1,1)³ x 0,15 = R199 650                    R 364 650
                    4        No option exercised
                    5        No option exercised
                    6#       1 000 000 (1,1)6 x 0,15 = R265 734                    R 630 384
                                            7
                    7        1 000 000 (1,1) x 0,15 = R292 307                     R 922 691
                                            8
                    8        1 000 000 (1,1) x 0,15 = R321 537
                             (but only R77 309 is available because the total
                             life cover is limited to the option benefit of
                             R1 000 000 chosen initially)                          R1 000 000
                    9        None, since the option benefit has lapsed


               * Year = Policy anniversary
               # This is a compulsory option (if 3 options are skipped Future Cover lapses)




GE 10/2004                                      arg(CJ5)
                                          FEBRUARY 2006

                                             SECTION CK

                                       TRAUMA BENEFIT (TV)

If the life assured experiences a traumatic event (as described later in this section) which is proved to
Sanlam’s satisfaction, the full trauma sum assured will become payable.
Trauma Benefit is an advanced payment of the death benefit.
GENERAL INFORMATION
 Availability      Trauma Benefit (TV) is only available as a rider benefit on
                   −   The 4in1 Plan (Tables 303, 403 and 503) and
                   −   EduFocus (Tables 303J, 403J and 503J)(available for addition only from anb 15
                       by means of a notation)
 Age at            15 to 60 next birthday (including females)
 inception
 Benefit term      Minimum: 5 years
                   Maximum: the shorter of
                             – the premium term of the policy and
                             – the term of the policy up to policy anniversary preceding age 65
 Waiting           A waiting period of 90 days is applicable to cancer from the date on which the TV
 period            cover becomes operative.       This applies to policies with proposal dates of
                   29 September 2001 and later. For policies with proposal dates prior to
                   29 September 2001, there is no waiting period for TV. Should a policy with inception
                   date prior to 29 September 2001 have TV and the policy is altered without the TV
                   cover amount being affected, the old provisions (therefore no waiting period) will
                   apply.
                   Please Note: There are no waiting periods for any of the other traumatic
                                  events covered by TV.
 Trauma sum        Minimum: R10 000
 assured           The maximum TV amount permissible is the smaller of (a) and (b), where:
                   (a) = the Sanlam limit calculated as follows:
                          R1,5 million less (existing Sanlam TV)
                   (b) = the limit with all assurers (including Sanlam ) calculated as follows:
                          R1,5 million less (existing Sanlam TV + existing TV with other assurers)
                   Notes: (1)     Proposals not yet finalised are regarded as existing assurance.
                            (2)   The TV sum assured must not exceed the initial death benefit of the
                                  policy concerned.
                            (3)   The Trauma Benefit shares in the profits with the main policy. The
                                  Trauma sum assured therefore grows with the death benefit.
 TV in the         −   policies with a smaller minimum premium
 case of
                       If TV is added to a policy with a premium less than the higher minimum premium,
                       the TV sum assured must always be equal to the death benefit amount. If the
                       TV new business limits are exceeded as a result of this, TV will not be available.
                   −   policies with Cover Growth
                       In the case of The One Policy with Cover Growth, the TV sum assured will be
                       increased automatically every year by the same growth rate by which the death
                       benefit increases. A maximum is imposed on the initial benefit amount only –
                       the TV cover may increase unlimitedly with Cover Growth.




GE 10/2004                                        arg(CK1)
TRAUMATIC EVENT

A traumatic event means one of the following (in alphabetical order):

 Blindness         The total and permanent loss of the sight of both eyes, or the certification of a patient
                   as legally blind by a registered ophthalmic surgeon.
 Burns             Third-degree burns, i.e. full skin thickness, which cover at least 20% of the surface
                   area of the body.
 Cancer            The incontrovertible presence of uncontrolled growth and spread of malignant cells
                   and the invasion of normal tissue and the definite histological evidence of a
                   malignant growth which requires major surgery or chemotherapy or radiotherapy.
                   Leukaemia, lymphomas and Hodgkin’s disease are included. Carcinoma in situ,
                   some of which are listed below, is excluded:
                   −   carcinoma in situ of the cervix
                   −   basal cell carcinoma of the skin
                   −   squamous cell carcinoma of the skin.

                   Note:    See waiting period earlier in this section.

 Chronic renal     End-stage renal failure presenting itself as chronic irreversible renal failure of both
 failure           kidneys as a result of which regular peritoneal dialysis or haemodialysis is required
                   on a long-term basis.
 Coma              A condition where, for an uninterrupted period of 96 hours, the person
                   −   is unconscious with no response to external stimuli (such as pain impulses) or
                       internal bodily needs; and
                   −   is dependent on life-sustaining aids such as a ventilator and intravenous infusion.
 Coronary          A bypass operation performed on the coronary arteries of the heart for critical
 artery bypass     narrowing of the arteries, which presents clinically as angina. Non-surgical
 surgery           procedures such as angioplasty or balloon procedures, the insertion of stents, or
                   laser treatment, are excluded
 Heart attack      A myocardial infarction which has been diagnosed on all of the following criteria:
                   – A clinical diagnosis based on the presence of typical chest pain; and
                   – New hyperacute electrocardiographical changes; and
                   – Raised levels of heart enzymes, provided that a raised total CPK value will not
                      be accepted as diagnostic in the presence of a normal CK MB fraction.
 Organ             The undergoing of an organ transplant as recipient of a kidney, heart, lung, liver,
 transplant        pancreas or bone marrow.
 Paraplegia        The total and permanent loss of the use of both legs or both arms due to paralysis.
 Stroke            A stroke is the irreversible death of brain tissue owing to bleeding on the brain or a
                   blood clot in the arteries of the brain, which arises as a result of a disease process
                   and not as a result of external injuries, and which leads to permanent neurological
                   dysfunction which, in this regard, does not include the loss of cognitive functions
                   (such as, for example, loss of concentration or memory, amongst others) and
                   transient ischaemic attacks.




GE 10/2004                                         arg(CK2)
TRAUMATIC EVENT (continued)
 Full-blown       Full-blown Aids is regarded as a traumatic event.
 Aids
                  The diagnosis of full-blown Aids must be confirmed by positive laboratory evidence of
                  HIV infection with positive proof of identification, a CD-4 (or T4) count of less than
                  200/mm3, as well as the presence of one of the following conditions (all to the
                  satisfaction of Sanlam's Chief Medical Adviser):
                  −   Pneumocystis carinii pneumonia;
                  −   Cerebral toxoplasmosis;
                  −   Cryptosporidium diarrhoea for more than one month;
                  −   Isospora belli diarrhoea for more than one month;
                  −   Fungal infection of the oesophagus;
                  −   Disseminated atypical mycobacteriosis;
                  −   Extrapulmonary tuberculosis;
                  −   Extrapulmonary cryptococcosis;
                  −   Herpes simplex mucocutaneous for more than one month or viscerally;
                  −   Cytomegalovirus (outside R.E. system);
                  −   Progressive multifocal leuko-encephalopathy;
                  −   Recurring non-typhoid Salmonella bacteraemia;
                  −   Disseminated endemic mycosis, for example histoplasmosis;
                  −   Recurring bacterial pneumonia;
                  −   Kaposi sarcoma;
                  −   Non-Hodgkins lymphoma

TRAUMA CLAIMS
 Death benefit    The death benefit of the policy decreases by the TV sum assured if a TV claim is
 after a trauma   admitted.
 claim
                  Reinstatement of cover
                  Cover Reinstatement Option (DHO) together with TV offers the policy-owner the
                  option to effect new life assurance (without proof of good health) on the life of the
                  assured.
                      – on survival of a trauma claim, and
                      – as soon as proof has been given during the option period that the assured is
                         HIV negative at that stage.
                  See Cover Reinstatement Options (Section CB) for full particulars on DHO.
 TV cover         If the trauma cover is equal to the death benefit amount, the policy is terminated
 equal to         when a trauma claim is admitted.
 death                 Example: Table 303:
 benefits
                          •   Death Benefit:    R100 000
                           • Trauma Benefit: R100 000
                      In the event of a Trauma claim, R100 000 will become payable and the policy will
                      be terminated.




GE 10/2004                                       arg(CK3)
TRAUMA CLAIMS (continued)
 TV cover more    If an assured has trauma cover with more than one assurance company and the
 than maximum     total trauma cover exceeds R1,5 million, Sanlam will limit the benefits. The trauma
 permissible      sum assured which is not paid out, continues in the form of life cover.
 TV cover         If the Trauma sum assured is smaller than the death benefits in terms of the basic
 smaller than     policy and a TV claim arises, only a portion of the policy is paid out while the rest of
 death benefits   the policy remains in force.

                  Example
                  Initial death benefit                    : R100 000
                  Initial TV cover                         : R 70 000 (i.e. 70% of the death benefit)
                  (a) A TV claim arises before The One Policy has reached breakthrough point.
                     Death benefit               =   R100 000
                     Cash Value                  =   R 40 000 (for example)
                     Amount of TV claim          =   70% x R100 000
                                                 =   R 70 000
                      Remaining policy:          30% of the existing policy without TV cover, i.e :
                                                 Death benefit : R30 000
                                                 Cash value    : R12 000 (30% of R40 000)
                  (b) A TV claim arises after The One Policy has reached breakthrough point.
                     Death benefit               = R120 000 (balance of investment account after
                                                    breakthrough point)
                     Cash value                  = R118 000 (for example)
                     Amount of TV claim          = 70% x R120 000
                                                 = R84 000
                     Remaining policy:           30% of existing policy without TV cover – that is, with
                                                 a death benefit of R36 000 and a value of R35 400.




GE 10/2004                                      arg(CK4)
TRAUMA CLAIMS (continued)
 TV together        The Trauma Benefit can be taken as a rider benefit together with other rider
 with other rider   benefits with The One Policy.
 benefits
                    TV and lump sum disability benefits (OEA) or disability benefits in 5 instalments
                    (OEP) overlap if the TV cover plus the OE cover exceed the death benefit of the
                    basic policy. However, the maximum amount that is then paid in the case of a TV
                    or OE claim (separately or jointly) is equal to the death benefit of the basic policy.

                       Example 1:
                         Death benefit : R100 000
                         TV cover      : R 50 000
                         OE cover      : R 50 000
                       There is no overlapping because the TV cover and the OE cover together equal
                       the death benefit. In the event of a TV claim (first), R50 000 will be paid out
                       and the remaining policy will continue with life and OE cover. In the case of an
                       OE claim (first), R50 000 will be paid out and the remaining policy will continue
                       with life and TV cover of R50 000.

                       Example 2:
                         Death benefit : R500 000
                         TV cover      : R150 000
                         OE cover      : R400 000

                       In this case TV and OE overlap by R50 000 (TV + OE is R50 000 more than the
                       death benefit). When a TV claim is admitted, R150 000 will be paid out while
                       the remaining policy will continue with life and OE cover of R350 000. In the
                       event of an OE claim (first), R400 000 will be paid and the remaining policy
                       continues with life and TV cover of R100 000.

                       Example 3:
                         Death benefit : R200 000
                         TV cover      : R200 000
                         OE cover      : R200 000
                       The rider benefits now overlap by 100%. When a TV or OE claim is admitted,
                       R200 000 is paid and the policy terminated.




GE 10/2004                                        arg(CK5)
                                               FEBRUARY 2006
                                                    SECTION CM
                                                    INDEXPLAN

Inflation is the main cause for the increase in the primary assurance of the individual, i.e.:
   −   death benefits
   −   disability benefits
   −   trauma benefits
   −   retirement benefits
   −   savings needs (for example provision for children’s studies) and
   −   medical needs.
Indexplan combats this problem by increasing the premium and certain benefits annually by means of
the chosen rate of increase.
However, Indexplan is not cancelled in the following cases:
   •   Policies with cover growth
   •   Investment Plan policies
   •   Deferred Compensation policies
   •   Policies with compulsory premium growth, e.g. The One Policy for Two

                                 Premium growth                                   Cover growth

 How it works         The full premium increase is used           A part of the premium increase/constant
                      for savings benefits, while life            premium is used for the growth of the cover
                      cover in terms of the basic policy          amount. The balance is used for savings
                      remains constant.                           benefits.
 Underwriting         No underwriting.                            •   New policy: Underwriting is necessary.
                                                                      (See ‘Effective amount’ below.)
                                                                  •   Policy amendments and certain options:
                                                                      Proof of assurability is required if cover
                                                                      growth is added to an existing policy or a
                                                                      new policy is issued in accordance with an
                                                                      option.
 Effective            The effective amount of policies used for medical underwriting does not increase if
 amount               Indexplan is taken, even if Cover Growth is added to the policy.

GROWTH TYPES (Choice of growth available)
When the policy is taken out, the proposer can opt for the premium on the policy to increase in one of
the following ways:

                                                                                Availability
   Growth type                 Growth rate
                                                                  Tables                       Facility
         01                      Fixed rate or                   All policies              Premium Growth
                             inflation rate (CPI)                                        and/or Cover Growth
         02                       Linked to                     Deferred                   Premium Growth
                              salary increases               Compensation
                                                              (Taxpaying
                                                              institutions)
         03                       Linked to                 Provident Funds                Premium Growth
                              salary increases
         04                       Linked to                     Deferred                   Premium Growth
                              salary increases               Compensation
                                                            (Non-Taxpaying
                                                              institutions)
GE 10/2004                                            arg(CM1)
                     FIXED RATE/INFLATION RATE: GROWTH TYPE 01


 Growth rate           Fixed rate:          −    10%
 available                                  −    15%
                                            − 20%
                       Inflation rate       When Indexplan is linked to the consumer price index
                       (CPI)                (CPI), the cover growth rate is determined by the increase
                                            in the consumer price index measured over the most
                                            recent calendar year for which figures are available.
 Illustration rate     The illustration rate for Indexplan can be selected from the following:
                       Inflation rate:      −    Choice between 5% and 10%
 Choice of growth      The following choices are available:
                       •   The 4in1 Plan and The One Retirement Annuity:
                           Premium Growth and Cover Growth
                       •   All other policies:
                           Premium Growth only.
 Premium               On a premium payment date according to policy-owner’s choice.
 increase month
 Annual                Amount:            Only once a year.
 increases
                       Amount             See Summary 6 in Section G for full particulars about the
                       permissible:       minimum and maximum increases.

 First increase        2nd policy year
 after inception       Exception:
                       Retirement Annuities: 1st or 2nd policy year (according to choice).

 Skipping of           Premium increases may be skipped twice before Indexplan lapses.
 increases




GE 10/2004                                      arg(CM2)
COVER GROWTH
•     It is recommended that Cover Growth is added to all policies with cover because in the case of
      Premium Growth without Cover Growth the increase in the premium is utilised for savings only.
      Should death occur prior to the breakthrough point the client will not benefit from the increased
      premiums at all.
•     The lower the rate of cover growth the quicker the growth in cash value and vice versa.

    Policies with           Availability        Cover Growth is available only when Premium Growth is
    maximum cover                               taken.
                            Growth in cover     •    The client has the option of having his cover amount
                                                     increased automatically at:
                                                     −   60% of premium growth rate, or
                                                     −   cover growth according to choice (between 0% and
                                                         60%).
                                                •    Premium increase month:     any month according to
                                                     client’s initial choice.
    Policies with           Growth in cover     To determine the cover growth rate one has to distinguish
    cover levels smaller                        between policies with:
    than maximum                                •    Premium growth rate = 0%
                                                •    Premium growth rate = 10%, 15% or 20%
                                                •    Premium growth rate = linked to inflation (choice
                                                     between 5% and 10%).
                            Maximum             Available per computer quotation and differs from policy to
                            cover growth        policy.

                            Premium             •    The client has the option of having his cover amount
                            growth rate              increased automatically at:
                            at 0%                    −   maximum cover growth, or
                                                     −   cover growth according to own choice (between
                                                         0% and maximum cover growth)
                                                •    Premium increase month: policy anniversary.
                            Premium             •    The client has the option of having his cover amount
                            growth at 10%,           increased automatically at:
                            15% or 20%               −   maximum cover growth, or
                                                     −   60% of premium growth rate, or
                                                     −   cover growth according to own choice (between
                                                         0% and maximum cover growth).
                                                •    Premium increase month:     any month according to
                                                     client’s initial choice.
                            Premium             •    The client has the option of increasing his cover
                            growth rate              amount automatically at:
                            linked to                −   maximum cover growth, or
                            inflation                −   60% of premium growth rate.
                                                •    Premium increase month:     any month according to
                                                     client’s initial choice.


NB: Growth rates are adjusted annually. Please ensure that the growth rates given are
    applicable.




GE 10/2004                                          arg(CM3)
    Rider Benefits         Policies with        The following rider benefits increase by the same
    that increase          Cover Growth         percentage as the cover amount:
    with cover growth      without              −    Lump Sum Disability Benefit (OEA)
                           Premium              −    Disability Pension Benefits (ODA)
                           Growth               −    Disability Benefits in Five Instalments (OEP)
                                                −    Trauma Benefits (TV)
                           Policies with        •    The following rider benefits increase by the same
                           Cover Growth              percentage as the cover amount:
                           and Premium               −   Lump Sum Disability Benefits (OEA)
                           Growth                    −   Disability Pension Benefits (ODA)
                                                     −   Disability Benefits in Five Instalments (OEP)
                                                     −   Trauma Benefit (TV)
                                                     −   Cover Reinstatement Options (DHOE, DHOD and
                                                         DHO).
                                                •    The following rider benefits increase according to the
                                                     increase in the premium:
                                                         −     at disability of the assured (OP and OG)
                                                         −     at disability of the co-assured (M-OP)
                                                         −     at death of the co-assured (P).


NB:      Growth rates are adjusted annually.          Please ensure that the growth rates given are
         applicable.


PREMIUM GROWTH
•     Sanlam strongly recommends clients to always take Cover Growth together with Premium Growth if
      it is available.
•     Premium Growth without Cover Growth should only be used if the need for constant cover and
      increasing savings benefits exist.
•     The increase in premium in the case of Premium Growth without Cover Growth, is used exclusively
      for savings benefits. Should death occur prior to the breakthrough point the client will not benefit
      from the increased benefits at all.

    Rider Benefits         The following waiver of premium benefits will grow in conjunction with the
    that increase with     increase in the premium:
    premium growth             −   at disability of the assured (OP and OG)
                               −   at disability of co-assured (M-OP)
                               −   at death of co-assured




GE 10/2004                                          arg(CM4)
                                SALARY-LINKED INDEXPLAN

GENERAL INFORMATION
 Availability          Indexplan premium increases linked to the annual salary increase of the
                       assured are available only if the employer has registered a scheme at
                       Employee Schemes : Administration (Head Office).

 Facility available    Premium Growth only (not Cover Growth)

 Premium               Skipping of           There is no limit to the number of premium increases which
 increases             increases             may be skipped.

                       No salary             If the employer does not grant any salary increases during a
                       increase              particular year, a premium growth rate of 0% may be
                                             requested.
                       Amount                See Summary 6 in Section G for full particulars regarding
                       permissible           the minimum and maximum increases applicable to various
                                             policies.
                       Premium               On any date the premium falls due according to the policy-
                       increase              owner’s choice.
                       month


  Growth type 02
 Availability          Available only if the taxable employer takes out Deferred Compensation on
                       the lives of his employees.
 General information   See earlier in this section.

 First increase        In 2nd policy year.

 Annual increases      An increase in premiums may occur only once a year.
 Maximum               15% during any policy year.
 premium increase


  Growth type 03
 Availability          Available only if an employer makes contributions to Provident Fund policies
                       (Tables 303F, 403F and 503F).
 General information   See earlier in this section.
 First premium         First or second policy year (according to client’s choice).
 increase
 Annual increases      There is no limit to the number of premium increases which may take place
                       annually.
 Maximum               There is no maximum premium increase.
 premium increase


  Growth type 04
 Availability          Available only if the non-taxable employer takes out Deferred Compensation
                       on the lives of his employees.
 General information   See earlier in this section.
 First increase        First and second policy year (according to client’s choice).
 Annual increases      Two increases per year are permitted.
 Maximum               20% in any policy year.
 premium increase




GE 10/2004                                      arg(CM5)
                                       SECTION CN

                                CONTINUATION OPTION


 Maturity claim    •   About 6 weeks before the maturity date of a non-RA endowment policy,
 letter                Sanlam Life contacts the policy-owner.
                   •   A maturity claim letter, a brochure (promoting continuations) and an option
                       form is posted to the policy-owner.
                   •   Intermediaries note this in their electronic mail boxes.
                   •   A copy of the maturity claim letter can be requested on RSD folders.
                   The policy-owner has the option to:
                   •   continue the full nett policy value, or
                   •   take a portion of the policy value and continue the balance, or
                   •   request that the full nett policy value be paid, (in a Sanlam Unit Trust or in a
                       bank account), or paid out to another person.
 Continuation      The minimum that can be continued is:
 amount            •   R15 000 if withdrawal amounts are taken.
                   •   R7 500 if capital growth is taken.
 Continued term    •   The policy can be continued for a term of 5 to 20 years.          (Guaranteed
                       Capital Fund : maximum 5 years)
                   •   After the chosen term has elapsed, a further option can be exercised.
 Continuation      •   If the policy-owner continues the policy without further premium payments,
 option without        the policy becomes a Stratus policy and all the Stratus benefits and options
 further premium       apply.
 payments          •   Continuation with full capital growth can be chosen with one of the
                       following investment portfolios:
                              − Balanced Fund (400 plus)
                              − Equity Focus Fund (500 Plus)
                              − Fund of Funds
                              − Offshore Equity Fund
                              − Offshore Balanced Fund
                              − Guaranteed Capital Fund
                       Note: See Investment Options for Capital Growth.
                       Investment Guarantee:
                          If the policy-owner continues the policy in the Balanced Fund (400
                          Plus), the option is given to add an investment guarantee to the policy at
                          a once-off cost of 2% of the allocation amount.
                          According to this, Sanlam Life guarantees that the policy value at the
                          end of 5 years will at least total the allocation amount as at the
                          continuation of the policy plus 4,5% growth a year.
                           Note: The allocation amount is the amount remaining after the initial
                                 advisor's fee, as well as the buy/sell spread has been deducted
                                 from the initial amount handed over to Sanlam Life by the
                                 client.
                       Death guarantee:
                           − All the investment portfolios allow the policy-owner to add a death
                             guarantee.
                           − The death guarantee will be equal to the initial continued amount
                             (before any costs are deducted).
                           − The cost of the death guarantee is equal to 2% a year of the amount
                             at risk.
                   •   Continuation with maximum withdrawal amounts can only be continued
                       in the Guaranteed Capital Fund.


GE 6/2001                                      arg(cn1)
                           FEBRUARY 2006

                              CHAPTER 1


              WAIVER OF PREMIUM AT DISABILITY (OPG, OGG)




                                                            Page
OPG AND OGG ……………………………………………………………………….…                   CX1/1
DEFINITIONS ………………………………………………………………………….…                  CX1/1
AVAILABILITY ……………………………………………………………………….…..                CX1/1
AGE AT ENTRY ………………………………………………………………………….                  CX1/2
BENEFIT TERM …….…………………………………………………………………...                CX1/2
RATES ….…………………………………………………………………………………                     CX1/2
RENEWAL OF WAIVER OF PREMIUM BENEFIT ………………………………….         CX1/2
TERM OF BENEFIT PAYMENTS ……….…………………………………………….             CX1/2
WAITING PRERIOD …………………………………………………………………….                 CX1/2
CIRCUMSTANCES UNDER WHICH A DISABILITY CLAIM WILL BE
 ADMITTED ……………………………………………………………………………..                   CX1/3

TEMPORARY EXCLUSIONS FOR SPECIFIC CONDITIONS ……..……………...   CX1/3
PROOF THAT DISABILITY CONTINUES ………..…………………………………..        CX1/4
RESUMPTION OF PREMIUMS OR CONTRIBUTIONS …………………………….        CX1/4
ALTERATIONS …………………..………………………………………………………                  CX1/4
ADMINISTRATIVE INFORMATION …………………………………………………...           CX1/4
–   PROPOSAL FORM …………………………………………………………………………….            CX1/4
–   CLAIMS ……………………………………………………………………………….………...            CX1/4
–   QUOTATIONS ………………………………………….………………………………………             CX1/4
–   ENQUIRIES ………………………….…………………………………………………………             CX1/4




GE 2/2006                        arg(CX1)
                                               CHAPTER 1


                                STRATUS RIDER BENEFITS
                       WAIVER OF PREMIUM AT DISABILITY (OPG, OGG)



Waiver of premium without future growth at disability and waiver of premium with future growth at
disability are waiver of premium 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 payment of recurring premiums
on the policy on which the benefit was taken. This means Sanlam Life will treat the future premiums as
having been paid when payment becomes due.

These rider benefits are available in the case of the following Stratus products with savings premiums:
•    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 premium without future growth at disability
OGG      – waiver of premium 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 policies with premium growth, the premium will grow until a claim arises. The
             premium growth will cease when a waiver of premium claim has been admitted.
OGG      :   The premium will grow before and after a waiver of premium 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 premium growth be cancelled, no further
             growth in terms of OGG will take place, and when a claim is admitted, the level premium (as
             payable at that stage) will be waived.


    AVAILABILITY

This benefit is available for new business as well as conversions:
OPG : OPG is available as rider benefit on policies with or without premium growth.
OGG      : OGG is available as rider benefit only on policies with inflation premium growth.
All occupational classes and rate groups qualify for this rider benefit. See Section DX for particulars
regarding occupational classes and rate groups.




GE 2/2006                                       arg(CX1/1)
    AGE AT ENTRY

15 to 60 next birthday (for women as well)


    BENEFIT TERM

The benefit term is the shortest of
•    the term up to the option date, and
•    the term up to policy anniversary before or on age 65.

    RATES

OPG or OGG benefits must be taken on the full premium. Rates are a percentage of the recurring
premium of the policy after the collection premium has been deducted (if applicable). Sanlam Life may
change this percentage from time to time.


    RENEWAL OF WAIVER OF PREMIUM BENEFIT

Before the cover end date, and subject to our new business requirements at the time, the cover for the
benefit can be extended on request, if the life insured is still alive. 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 premium benefit for the life insured was submitted to Sanlam Life, or Sanlam Life waived the payment
of a premium.

The rate payable at renewal of the benefit is determined by the following:
     −   age next birthday on the renewal date, and
     −   age next birthday at the end of the new benefit term.


    TERM OF BENEFIT PAYMENTS

Sanlam Life will begin to waive payment of the recurring premium from the date on which the disability
claim is admitted, or from the end of the waiting period, whichever date is the latest.

Sanlam Life will waive payment of the recurring premium for as long as the disability continues, but only
up to midnight before the cover end date. From the cover end date, payment of the recurring premium
must be resumed.

If the disability claim is admitted because the life insured, as a result of the disability, is unable to fulfil
the occupational demands of the occupation he engaged in for income immediately before becoming
disabled, Sanlam Life will waive payment of the recurring premium for 24 months only. Thereafter,
Sanlam Life will only continue waiving payment of the recurring premium if the life insured is also unable
to fulfil the occupational demands of another occupation which Sanlam Life may reasonably expect of
him to engage in despite his disability, taking into account his education, training and experience.


    WAITING PERIOD

The waiting period is currently 6 months from the date on which the disability claim has been received.
In future this waiting period also applies if the disability claim is based on a mental or back condition.
Sanlam Life may change this waiting period from time to time.

The waiting period is waived for insureds who are terminally ill.

Should Sanlam Life, by the time that the waiting period has expired, still not have received all medical
and other evidence required by Sanlam Life with regard to the disability, Sanlam Life will only consider
the disability claim after such evidence has been received.




GE 2/2006                                         arg(CX1/2)
    CIRCUMSTANCES UNDER WHICH A DISABILITY CLAIM WILL BE ADMITTED

Sanlam Life will admit a claim if the 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.

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.


    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 contracts. Three years after waiver of premium 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 policy contract, is covered. All psychiatric
conditions other than those mentioned above are covered from the inception date of the disability
benefit.

It is, however, possible that a particular life insured's specific situation may necessitate these conditions
being excluded permanently.




GE 2/2006                                         arg(CX1/3)
    PROOF THAT DISABILITY CONTINUES

While payment of the recurring premium is 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 payment of the recurring premium.

Sanlam Life will also stop waiving payment of the recurring premium if

•    Sanlam Life does 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 stop waiving payment of the recurring premium, payment of recurring premiums must be
resumed.


    RESUMPTION OF PREMIUMS OR CONTRIBUTIONS

If the insured recover, the benefit will cease and the policyholder will have to resume payment of the
premiums.


    ALTERATIONS

OGG may be changed to OPG. OPG, however, may not be changed to OGG.


    ADMINISTRATIVE INFORMATION

    Proposal form       The AEB2051 makes provision for the inclusion of OPG and OGG in the case of
                        the Stratus Endowment, Stratus Retirement Annuity and Stratus EduFocus.
    Claims              Stratus Client Contact Centre : 916-3770
    Quotations          SanQuote
    Enquiries           Sanlam Personal Finance : Client Solutions : Product Support –
                        tel. (021) 947-8035.




GE 2/2006                                         arg(CX1/4)
                         FEBRUARY 2006


                            CHAPTER 2


                WAIVER OF PREMIUM AT DEATH (DP, DG)




                                                      Page
DP AND DG ……………………………………………………………………….……..            CX2/1
PREMIUM GROWTH ………………………………………………………..……….…           CX2/1
INCEPTION AGES ……………………………………….………………………….…..         CX2/1
BENEFIT TERM …….…………………………………………………………………...          CX2/1
QUALIFYING LIVES ….…………………………………………………………………          CX2/2
RATE DIFFERENTIATION ……………………………………………………….…….        CX2/2
LIMITS ……….…………………………………………………………………………....           CX2/2
DURATION OF PREMIUM WAIVING ………………………………..……………….     CX2/2
EXCLUSIONS ………………….………………………………………………………..            CX2/2

AMENDMENTS …………………..………………………………………………………             CX2/2
ADMINISTRATIVE INFORMATION …………………………………………………...     CX2/2
–   PROPOSAL FORM …………………………………………………………………………….      CX2/2
–   CLAIMS ……………………………………………………………………………….………...      CX2/2
–   QUOTATIONS ………………………………………….………………………………………       CX2/2
–   ENQUIRIES ………………………….…………………………………………………………       CX2/2




GE 10/2004                     arg(CX2)
                                               CHAPTER 2



                           WAIVER OF PREMIUM AT DEATH (DP, DG)




Waiver of premium with future growth at death (DG) as well as waiver of premium without future growth
at death (DP) is available. If a claim is admitted, payment of premiums of the policy will be waived. This
means Sanlam Life will treat the future premiums as having been paid when payment becomes due.

    DP AND DG

DP – waiver of premium without future growth at death
DG – waiver of premium with future growth at death


    PREMIUM GROWTH

Premium growth is available according to the choice of growth selected by the policyholder. If DG is
taken, the policy MUST have future premium growth at consumer price index (CPI).

Waiver of premium with future growth at death (DG)

After a claim is admitted, the premiums will continue to increase each year at the rates as set out in the
policy.

If premium growth is ceased before a claim has been admitted, the benefit will be changed to waiver of
premium without future growth at death (DP). This means that, if a claim is admitted, the premiums will
not be increased anymore.

Waiver of premium without future growth at death (DP)

After a claim is admitted, there will be no regular increases in premiums.


    INCEPTION AGES

    •   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 policy anniversary just before or on age 80




GE 2/2006                                       arg(CX2/1)
  QUALIFYING LIVES

Persons who qualify for rate groups 2, 3, 4 and 5 can apply for waiver of premium at death benefits.


  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).


  DURATION OF PREMIUM WAIVING

Payment of the premiums is waived up to midnight before the cover end date. Thereafter payment of
premiums must be resumed.


  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 policy 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.


  AMENDMENTS

DG can be changed to DP. However, DP cannot be changed to DG.


 ADMINISTRATIVE INFORMATION

 Proposal form         The AEB2051 makes provision for the inclusion of DP and DG in the case of the
                       Stratus Endowment, Stratus Retirement Annuity and Stratus EduFocus.
 Claims                Stratus Client Contact Centre : 916-3770
 Quotations            SanQuote
 Enquiries             Sanlam Personal Finance : Client Solutions : Product Support –
                       tel. (021) 947-8035.




GE 2/2006                                       arg(CX2/2)
                           FEBRUARY 2006

                             SECTION DA

              RATE DIFFERENTIATION AND OCCUPATION CODES

                                                              Page


OCCUPATION CODES AND RATE GROUPS ……………………………………….             DA1

CATEGORIES AND PART-TIME ACTIVITIES ……………………………………….          DA1

SMOKING HABITS ……………………………………….……………………………...                 DA2

GENERAL INFORMATION WITH REGARD TO RATE DIFFERENTIATION …….   DA2

−   RATES FOR FEMALES …………………………………………………………………..             DA2
−   CHANGE OF OCCUPATION / ACTIVITIES ………………………………………         DA2
−   MORE THAN ONE OCCUPATION ………………………………………………...            DA3
−   TEMPORARY OCCUPATION ……………………………………………………...              DA3
−   PROPOSALS WITHOUT LIFE COVER …………………………………………...          DA3
−   SINGLE PREMIUMS ………………………………………………………………...               DA3
−   DEFERRED COMPENSATION AND PROVIDENT FUNDS ……………………        DA3
−   THE FUNERAL HELP PLAN ………………………………………………………               DA3
−   CHILDREN’S ASSURANCE ………………………………………………………..              DA3
−   RATE DIFFERENTIATION WITH REGARD TO SPOUSE ……………………...    DA4
−   MARKETERS OF SANLAM ASSURANCE ……………………………………….            DA4
−   PENSIONERS ……………………………………….……………………………….                  DA4
DEFINITIONS ……………………………………….…………………………………….                   DA4
−   BASIC INCOME ……………………………………….……………………………..                DA4
−   ADMINISTRATIVE DUTIES ……………………………………….………………..            DA5
QUALIFICATIONS ……………………………………….………………………………                   DA5
−   MEMBERS OF FPI (PREVIOUSLY ILPA) ……………………….……………….        DA5
−   UNIVERSITY / TEACHERS’ COLLEGE ………….……………………………….         DA5
−   UNIVERSITY OF TECHNOLOGY (TECHNIKON) ………….…………………...      DA5
−   TECHNICAL COLLEGE ………….………………………………………….………               DA6
−   GRADE 12 / STANDARD 10 .….………………………………….………………..          DA6
−   NURSES ………….………………………………………….……………………….                   DA6

CATEGORY I ………….………………………………………….………………………                    DA7
−   RATE GROUP 4 ………...…………………………………….……………………..              DA7
−   RATE GROUP 3 ...…………………………………………….……………………..              DA7
−   RATE GROUP 2 …..….………………………………………….…………………..              DA7
−   RATE GROUP 1 …...………….………………….………………………………….              DA8
         General information …………………………………….………………………..       DA8
                                                              2/…

GE 10/2004                       arg(DA)
                                  -2-



                                                                 Page


CATEGORY II …………………………………….……………………………………...                     DA9
−   LOADINGS AND CLASSIFICATION OF BENEFITS …………………………………..      DA9
−   INFANTS / SCHOLARS …………………………………….………….………………                DA10
−   STUDENTS ……………………………………………………………………………………                    DA12
−   HOUSEWIVES (WOMAN / MAN) …………………………………….………………..             DA14
−   OCCUPATIONS WITH EXTRAORDINARY RISK ….………………………………….         DA16
−   PROFESSIONAL SPORTSMEN ….………………………………….………………..              DA25
−   ARTISTS ….…………………………………...….…………………………………...                 DA27
−   AVIATION : AIR FORCE ….………………………………….………………………..             DA28
−   AVIATION : CIVIL …………………………...….………………………………….….             DA34
−   FIRE BRIGADE / AMBULANCE AND EMERGENCY SERVICES ……………….…….   DA36
−   TRAFFIC SERVICES …………………………...….………………………………….               DA36
−   SECURITY FORCES : NOT AIR FORCE ……………………...….………………….        DA37
−   MINING : CLOSED MINES …………………………...….……………………………             DA39
−   MINING : OPEN MINES …………………………...….………………………………              DA40
−   EXPLANATION OF ABBREVIATIONS …………...….………………………………...        DA41
ENQUIRIES …………………………...….………………………………….……………                     DA41




GE 10/2004                        arg(DA)
                        RATE DIFFERENTIATION AND OCCUPATION CODES


For some time Sanlam has distinguished between different groups of policy-owners by means of rate
differentiation in order to be able to give each policy-owner assurance on the best possible terms.
Differentiation is made according to:
     −   income
     −   educational qualifications
     −   nature of the occupation
     −   smoking habits

Please Note: Occupational underwriting and rate differentiation in respect of Matrix Risk Cover
             are discussed in Section BZ and for Stratus in Section DX.


    OCCUPATION CODES AND RATE GROUPS

Every assured is classified according to an occupation code on the basis of the above guidelines. The
occupation code determines for which rate group he qualifies. According to this an assured can be
assigned to one of the following four rate groups:
     •   rate group 4
     •   rate group 3
     •   rate group 2
     •   rate group 1

CATEGORIES AND PART-TIME ACTIVITIES

CATEGORY I
Applies to all occupations with the exception of occupations in Category II.
The four rate groups apply to the policy as well as the rider benefits. For example, if a person qualifies
for rate group 3 rates, he will also qualify for rate group 3 rates on his rider benefits.

CATEGORY II
For specified occupations with exceptional or special risks for death or rider benefits or both. The
following types of occupations are involved:

−    Infants, scholars, students and housewives (woman / man)
−    Occupations with        : Barman, big-game hunter, diver, driver of vehicles (see note), electrician,
     extraordinary risk        engine driver, fisherman, handler of explosives, leadworker/melter,
                               security guard/National Intelligence Service (NIS), shunter, stuntman,
                               tunnel digger and unemployed (see Section CD).
−    Professional            : Boxer, cricketer, manager/owner of a gymnasium, etc.
     sportsmen
−    Artists                 : Actor, author, model, musician, photographer, etc.
−    Aviation                : Air force (all occupations), civil aviation (air traffic controllers, pilots and
                               other flight personnel).
−    Fire brigade,
     ambulance and
     emergency
     services                : All occupations.
−    Traffic services        : All occupations.
−    Security forces
     (not air force)         : All occupations in the army, navy, police and correctional services.

− Mining                    : All occupations.
Note: A driver of vehicles is a person whose full-time occupation is the driving of a vehicle. It does not
     include a person who travels a lot owing to the nature of his occupation (e.g. an advisor).


GE 10/2005                                          arg(DA1)
In the case of Category II the following apply:
  •       the rate group of the policy and the rider benefits can differ;
  •       all tables and rider benefits are not available for all occupations and
  •       a loading is payable with some occupations.

PART-TIME ACTIVITIES
It is activities in which an assured participates, but which does not form an integral part of his or her
normal full-time occupation and from which no income is earned. Not all policies and rider benefits are
available for these assureds. The activities can influence the rates and a loading will be payable in
respect of some of these policies or rider benefits. See Section DB for full particulars on part-time
activities.

NB: Sanlam reserves the right to refuse the benefit applied for, or to change the classification of
    the occupation and to alter the rates accordingly in any particular case.

 SMOKING HABITS
Whether an assured smokes or not also plays an important role in the rates for which he should qualify.
For this reason a further distinction is made between smokers and non-smokers for each of the above
4 rate groups. A non-smoker is a person who did not use tobacco in any form during the preceding 12
months.
Sanlam reserves the right to verify the status of non-smokers by means of continine tests.
For the following rider benefits a distinction is made between rates for smokers and non-smokers:
      –    OD and OE      : Disability benefits
      –    TV             : Trauma benefit
      –    DHO            : Cover Reinstatement Option with TV
      –    DHOE           : Cover Reinstatement Option with OE
      –    DHOD           : Cover Reinstatement Option with OD


 GENERAL INFORMATION WITH REGARD TO RATE DIFFERENTIATION

RATES FOR FEMALES
The same rates are used for males and females except that a female’s age next birthday is reduced by
7 years. To determine whether the benefit is available, the actual age next birthday should be used.

CHANGE OF OCCUPATION / ACTIVITIES
After the policy has been effected, the assured may change his occupation/activities and follow any
occupation/activities. If the assured changes his/her occupation after the inception date of a policy and
the occupation involves activities which the assured performs in and from his/her home for the purpose
of deriving financial gain from them, the assured must notify Sanlam Life accordingly, except in the case
of Matrix where the life insured is contractually permitted after inception date to practise an occupation
from his/her home without informing Sanlam Life about it. Fax to: Medical Underwriters: Occupational
Underwriting - (021) 947-5290 or sales office can activate policy and route to 4021/PROD.

Sanlam may then determine whether the assured’s new occupation qualifies for an Income Protector or
for the type of disability benefit offered by the specific policy in terms of Sanlam’s criteria valid at the
time. If not, Sanlam may change or cancel the assured’s Income Protector or disability benefits, or
increase the premium. (This provision is applicable to all policies with a date of proposal as from
14/12/96.)
A person who did not smoke when the policy was taken out, and decides to start using tobacco
afterwards, does not have to inform Sanlam. The rates of the policy in question will continue to apply.
Note: This policy always applies except where an A endorsement places certain restrictions on the
      assured’s occupation. An A endorsement is applicable to some occupations in Category II if,
      during the past three years, the proposer participated in, or in future intends to participate in an
      activity or engage in an occupation which might require a loading (extra premium).




GE 10/2005                                               arg(DA2)
MORE THAN ONE OCCUPATION
If any of the occupations fall under Category II, the proposal should be coded 9900 and referred to your
nearest Sanlam office for individual consideration. Otherwise classify according to the principles of
Category I.
TEMPORARY OCCUPATION
Where a person follows a certain occupation temporarily and will most likely change his occupation
shortly, for example after completing a course, he must be classified according to the latter occupation.
For example, a person who has been appointed as a warder at the Department of Correctional Services,
does administrative work temporarily before he is sent to the training college for basic training. Such a
person must be classified as a warder.
PROPOSALS WITHOUT LIFE COVER

– Without rider          : No underwriting is required in respect of occupation or part-time activities.
  benefits
– With rider benefits    : The occupation and part-time activities of the assured or co-assured should
                           be underwritten.
SINGLE PREMIUMS
Single-premium policies are dealt with in the same way as the corresponding recurring-premium policy.

DEFERRED COMPENSATION AND PROVIDENT FUNDS
For Deferred Compensation only one set of rates apply (i.e. no rate differentiation). If rider benefits are
added to the policy there will, however, be rate differentiation.

For Provident Funds there will also be rate differentiation.

THE FUNERAL HELP PLAN
No rate differentiation is applicable to this product. For the principal assured, spouse, parents/parents-
in-law and the other dependant, the rate is determined by the person’s age. There is one fixed rate that
is levied per child and the normal discount for women will apply.

CHILDREN’S ASSURANCE
Infants and scholars are classified under Category II.
If rider benefits are to be added on the life of the co-assured, the occupation and part-time activities of
the co-assured must also be underwritten.
If a child participates in a part-time activity requiring an extra premium, the proposal should be coded
9900 and referred to your nearest Sanlam office for individual consideration.
Note: Different rates apply for boys and girls in the case of EduFocus.




GE 10/2005                                          arg(DA3)
RATE DIFFERENTIATION WITH REGARD TO SPOUSE
•    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.
•    Housewives (woman / man) fall under Category II.
NB: Separate rates apply for males and females for Life annuities.

MARKETERS OF SANLAM ASSURANCE
The rate groups that apply to Sanlam Life advisers, brokers and broker’s consultants are as usual
determined by the insured life's qualifications and income.

PENSIONERS
On the basis of their qualifications and income, pensioners fall under Category I.
For occupational underwriting purposes, the definition of basic income of pensioners is as follows:
     Income benefits from a pension fund and a retirement annuity fund, any regular interest and dividend
     income from a fixed investment, and income from rent.


    DEFINITIONS

BASIC INCOME (Monthly taxable earnings)
It is the greater of the average taxable monthly income of the assured or his/her spouse and is
determined as follows:
•    The total of all income and remuneration received by the assured during the previous 12 months
     – from engaging in his occupation, plus
     – taxable fringe benefits.
•    In the case of self-employed persons, the income should be reduced by all expenses and costs (as
     well as interest on overdrawn bank accounts) incurred with a view to earning such income and
     remuneration and which are therefore allowed as tax deductions (contributions to approved funds
     not taken into account).
•    In determining the total income, any form of income from the following are excluded:
     –   overtime pay
     –   non-taxable fringe benefits
     –   interest
     –   dividends
     –   rental income




GE 10/2005                                         arg(DA4)
Examples:
1)   The basic income of a person who earned a salary of R100 000 over the previous twelve months
     and also enjoyed the benefits of a company car at R20 000 for the year, should be taken as
     R10 000 p.m. (R120 000 ÷ 12).
2)   The basic income of a technician who earns a salary of R3 500 p.m. and overtime pay of R500 p.m.
     should be taken as R3 500 p.m.
3)   A maize farmer’s maize crop yielded R550 000 for the previous year, but he spent R100 000 on
     seed, labour, fuel, etc. His basic income should be taken as:
           (R550 000 – R100 000) ÷ 12 = R37 500.

ADMINISTRATIVE DUTIES

Exclusively administrative
This is someone who works in an office and writes letters, does accounts, etc. He is therefore not
exposed to any hazards. He does not perform any manual work and is not required to travel by car, etc.
Mostly administrative
This is someone who works in an office and writes letters, does accounts, etc. for more than 80% of his
normal working day and less than 20% of his duties consists of light manual work, sales work, travelling,
etc.


QUALIFICATIONS

MEMBERS OF FPI (Previously ILPA)
For purposes of occupational underwriting, the respective FPI qualifications are regarded as equal to the
following qualifications:
     •   CFP : 4 year qualification
     •   AFP : 3 year qualification
     •   RFP : Grade 12 / Std 10

UNIVERSITY / TEACHERS’ COLLEGE
Four year qualifications
The following qualifications are examples of 4-year qualifications at a university/teachers’ college:
         −   a 4-year Bachelors degree
         −   a 4-year Teachers’ Diploma
The following are examples of two qualifications which together require four or more years of study at a
university/teachers’ college:
         −   a 3-year Bachelors degree followed by a one year Honours degree
         −   two 3-year degrees

Three year qualifications
The following are examples of 3-year qualifications at a university/teachers’ college:
         −   a 3-year Bachelors degree
         −   a 3-year Teachers’ Diploma

UNIVERSITY OF TECHNOLOGY (TECHNIKON)
The following are examples of a 4-year university of technology qualification/diploma:
     T4, T5, T6 or National Higher Diploma (NHD), BTec, MTec
The following are examples of a 3-year university of technology qualification/diploma:
   T3 or National Diploma (ND), S4




GE 10/2005                                          arg(DA5)
TECHNICAL COLLEGE
Technical College qualifications (NTS or N) are considered as follows for the purpose of occupational
selection:
N1 and N2 : equivalent to Grade 11 (Std 9)
N3 to N5  : equivalent to Grade 12 (Std 10)
N6        : equivalent to a National Diploma (ND)

GRADE 12 / STANDARD 10
For the purpose of occupational underwriting Grade 12 (Std 10) is a Senior Certificate or equivalent
qualification at a recognised educational institution.


NURSES

– If a nurse has a degree of at least 3 years (university) or a diploma of at least 4 years from a nursing
  college (which is endorsed by a university), the person could qualify for rate group 4 if the minimum
  income requirements are met (at present >R10 000 a month).
– If a nurse has a degree of at least 3 years (university) or a diploma of at least 3 years from a nursing
  college (which is endorsed by a university), the person could qualify for rate group 3 if the minimum
  income requirements are met (at present >R3 000 a month).




GE 10/2005                                        arg(DA6)
                                               CATEGORY I


Notes: 1) First determine whether the assured’s occupation falls in Category II.
      2) If the life assured has nett assets of more than R500 000, Sanlam will consider individually
          the circumstances of such life assured in order to determine in which rate group the life
          assured falls.

Determining the Rate group:
In order to qualify for a specific rate group (e.g. super rates), the requirements of one of the
occupational codes in that rate group must be met.


                                              RATE GROUP 4

Qualify for regular occupational and regular or “alternative” occupational benefits.

 Code:                                               Requirements

 1001        Qualify for PPS benefits.

 1002        A basic income of at least R10 000 p.m. plus
             −    at least a 3-year degree at a recognised university, or
             −    a 4-year diploma at a recognised university of technology (technikon), teachers’
                  college or university.

 1003        A basic income of at least R17 000 p.m.



                                             RATE GROUP 3

Qualify for regular occupational and regular or “alternative” occupational benefits.

 Code                                                 Requirements

 1021        Senior Certificate (Grade 12/ Std 10), plus
             −   a 3-year qualification at a recognised university, university of technology (technikon) or
                 teachers’ college plus
             −   a basic income of at least R3 000 p.m.

 1022        Senior Certificate (Grade 12/ Std 10) plus a basic income of at least R10 000 p.m.

 1023        A basic income of at least R11 000 p.m.


                                              RATE GROUP 2

Qualify only for regular or “alternative” occupational benefits.

 Code:                                                Requirements

 1041        A Senior Certificate (Grade 12 / Std 10), plus
             −   a basic income of at least R3 000 p.m., or
             −   a 3-year qualification at a recognised university, university of technology (technikon) or
                 teachers’ college

 1042        A basic income of at least R6 000 p.m.



GE 10/2005                                           arg(DA7)
                                              RATE GROUP 1

Qualify only for regular or “alternative” occupational benefits.

 Code                                                     Requirements

 1061        Persons who do not meet any of the requirements for rate groups 2,3 or 4.


 GENERAL INFORMATION: RATE GROUP 1
Tables available
All tables are available, except the following:
      – Table 359/459/559           : Deferred Compensation
      – Table 359F/459F/559F : Central Provident Fund
      – Table 303F/403F/503F : Central Provident Fund

Rider Benefits available
All rider benefits are available, except the following:
   –    TD          : Future Cover
   –    P Benefit   : Waiver of premium benefit at death of co-assured.

Funeral Benefit
The Funeral Benefit is automatically available with the following recurring-premium policies with cover:
   –    The 4in1 Plan (T303, T403, T503)

See Section CA for more details on the Funeral Benefit.
Indexplan
Premium Growth as well as Cover Growth is available.

Age at inception
The inception ages are the same as for rate group 2, rate group 3 or rate group 4.

Method of premium payment
All normal modes of payment and frequencies are permitted.

Policy alterations
   –    Total alterations (conversions/NKV’s) will not be available for these policies.
   –    Revisions of benefits (notations) can be done.




GE 10/2005                                           arg(DA8)
                                            CATEGORY II


    LOADINGS AND CLASSIFICATION OF BENEFITS

Loadings are imposed for people who engage in certain dangerous occupations or who take part in
dangerous part-time activities.
Under certain circumstances an endorsement can be placed on the policy. Endorsements are dis-
cussed in full in Section DC.

•    More than one loading (extra premium)
     If an assured is subject to more than one extra premium, because of his or her full-time occupation
     and/or part-time activities, the proposal should be coded 9900 and referred to your nearest Sanlam
     office for individual consideration.

•    Permanent Assurance
     Permanent assurance includes all endowment assurance and retirement annuities.
     The extra premiums are given per R10 000 initial death benefit.

•    P – Waiver of Premium Benefit at death of Co-assured
     To determine the extra premium the rate of the P benefit should be multiplied by the figure
     concerned (e.g. if the indication is “2x”, the rate should be multiplied by 2 to determine the extra
     premium.) This amount must be added to the rate of the policy.

•    Other rider benefits
     Full-time occupation:
         The rate is given according to the occupational group. The rates for the respective groups are
         given in the relevant sections together with the loading rates (extra premium) of the policy.
     Part-time activities:
        To determine the loading (extra premium), the appropriate rate should be multiplied by the figure
        concerned. (E.g. if the extra premium is “2x” the relevant rate should be multiplied by 2 to
        determine the extra premium.) This amount must be added to the rate of the policy.

Please Note: Loadings (extra premiums) which are expressed as a factor (e.g. 1,5x) must be
             calculated on rate group 4 rates. In the case of OE, OD, TV and DHO the rate
             group 4 non-smokers rate must be used.




GE 10/2005                                         arg(DA9)
                                                                       CATEGORY II


For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate group 1 and 2, see page DA7 and DA8.

                                                                                                   RATE GROUP                           EXTRA PREMIUM
                    INFANTS / SCHOLARS                             CODE                                               OD/OE/OG
                                                                                PERM/                                 OP/M-OP
                                                                                               P     TD    OLV                           PERM           P
                                                                               TV/DHO                                DHOD/DHOE
 Infants/scholars: see (1), (2) and (3)
 Qualifications and/or basic income of guardian (normally one
 of the parents):
 −    Senior Certificate (Grade 12 / Std 10), plus
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college plus
     • a basic income of at least R3 000 p.m.
     OR
 −   Senior Certificate (Grade 12 / Std 10) plus a basic
     income of at least R10 000 p.m.
     OR
 −    A basic income of at least R11 000 p.m.                        1501          3           3      3      3             3              None        None
(1) Rider benefits can be added only from age 15 next birthday by means of a revision of benefits (notation).
(2) Disability benefits and waiver of premium disability benefits are payable, provided that no occupation is practised for wage or profit, only in respect of
    personal and recognised disability (not occupational disability).
(3) Scholars and students qualify only for regular or “alternative” occupational benefits.




GE 10/2004                                                                             arg(DA10)
                                                                       CATEGORY II


For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate group 1 and 2, see page DA7 and DA8.

                                                                                                  RATE GROUP                            EXTRA PREMIUM
                     INFANTS / SCHOLARS
                                                                   CODE                                               OD/OE/OG
                         (CONTINUED)                                            PERM/                                 OP/M-OP
                                                                                              P      TD     OLV                         PERM           P
                                                                               TV/DHO                                DHOD/DHOE
 Infants/scholars: see (1), (2) and (3)
 −    A Senior Certificate (Grade 12 / Std 10), plus
      • a basic income of at least R3 000 p.m., or
      • a 3-year qualification at a recognised university,
        university of technology (technikon) or teachers'
        college
      OR
 −    A basic income of at least R6 000 p.m.                         1500          2          2       2      2             2             None        None
 Other                                                               1502          1         No      No      1             1             None         No

(1)   Rider benefits can be added only from age 15 next birthday by means of a revision of benefits (notation).
(2)   Disability benefits and waiver of premium disability benefits are payable, provided that no occupation is practised for wage or profit, only in respect of
      personal and recognised disability (not occupational disability).
(3)   Scholars and students qualify only for regular or “alternative” occupational benefits.




GE 10/2004                                                                     arg(DA11)
                                                                         CATEGORY II

For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate group 1 and 2, see page DA7 and DA8.

                                                                                                   RATE GROUP                          EXTRA PREMIUM
                           STUDENTS                                CODE                                              OD/OE/OG
                                                                               PERM/                                 OP/M-OP
                                                                                             P       TD    OLV                         PERM           P
                                                                              TV/DHO                                DHOD/DHOE
Students: see (1) and (2)
Full-time students who qualify for membership of the PPS:
Classify according to Category I
Full-time students at a recognised university, university of
technology (technikon) or teachers’ college [qualifications
and/or basic income of guardian (normally one of the
parents)]:
−     Senior Certificate (Grade 12 / Std 10), plus
      • a 3-year qualification at a recognised university,
        university of technology (technikon) or teachers'
        college plus
      • a basic income of at least R3 000 p.m.
      OR
−     Senior Certificate (Grade 12 / Std 10) plus a basic
      income of at least R10 000 p.m.
      OR
−     A basic income of at least R11 000 p.m.                       1504          3          3       3       3            3             None        None
(1)     Disability benefits and waiver of premium disability benefits are payable, provided that no occupation is practised for wage or profit, only in respect of
        personal and recognised disability (not occupational disability).
(2)     Students qualify only for regular or “alternative” occupational benefits.




    GE 10/2004                                                                         arg(DA12)
                                                                       CATEGORY II


For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate group 1 and 2, see page DA7 and DA8.

                                                                                                RATE GROUP                            EXTRA PREMIUM

                  STUDENTS (CONTINUED)                            CODE                                              OD/OE/OG
                                                                               PERM/                                OP/M-OP
                                                                                            P       TD    OLV                         PERM           P
                                                                              TV/DHO                               DHOD/DHOE
 Students (continued): see (1) and (2)
 Full-time students who are doing
 −   a 3-year course at a recognised university, or
 −   a 4-year diploma course at a recognised university of
     technology (technikon), teachers’ college or university
     and
 achieve an average year-mark of 60% or more                        1510          3         3        3      3            3             None        None
 Other                                                              1505          2         2        2      2            2             None        None
(1) Disability benefits and waiver of premium disability benefits are payable, provided that no occupation is practised for wage or profit, only in respect of
    personal and recognised disability (not occupational disability).
(2) Students qualify only for regular or “alternative” occupational benefits.




GE 10/2004                                                                   arg(DA13)
                                                                      CATEGORY II

For explanation of abbreviations : see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                                  RATE GROUP                           EXTRA PREMIUM

               HOUSEWIVES (WOMAN / MAN)                           CODE                                              OD/OE/OG
                                                                               PERM/                                OP/M-OP
                                                                                              P     TD    OLV                          PERM          P
                                                                              TV/DHO                               DHOD/DHOE
 Housewives (woman / man): see (1), (2) and (3)
 −   Qualify for PPS benefits
     OR
 −   A basic income of spouse of at least R10 000 p.m. plus
     • at least a 3-year degree at a recognised university, or
     • a 4-year diploma at a recognised university of
       technology (technikon), teachers' college or
       university.
     OR
 −   A basic income of spouse of at least R17 000 p.m.              1506          4           4      4      4             4            None        None

(1) Disability benefits and waiver of premium disability benefits are payable, provided that no occupation is practised for wage or profit, only in respect of
    personal and recognised disability (not occupational disability).
(2) Only the housewife’s (woman / man) own qualification at a recognised university, university of technology (technikon) or teachers’ college is taken into
    account.
(3) Housewives (woman / man) qualify only for regular or “alternative” occupational benefits.




GE 10/2004                                                                            arg(DA14)
                                                                        CATEGORY II


For explanation of abbreviations : see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                                  RATE GROUP                            EXTRA PREMIUM
               HOUSEWIVES (WOMAN / MAN)                             CODE                                              OD/OE/OG
                     (CONTINUED)                                                 PERM/                                OP/M-OP
                                                                                              P       TD    OLV                         PERM           P
                                                                                TV/DHO                               DHOD/DHOE
 Housewives (woman / man) (continued) : see (1), (2)
 and (3)
 −    Senior Certificate (Grade 12 / Std 10), plus
      • a 3-year qualification at a recognised university,
        university of technology (technikon) or teachers'
        college plus
      • a basic income of spouse of at least R3 000 p.m.
      OR
 −    Senior Certificate (Grade 12 / Std 10) plus a basic
      income of spouse of at least R10 000 p.m.
      OR
 −    A basic income of spouse of at least R11 000 p.m.               1507         3          3       3       3            3             None        None
      OR
 −    A Senior Certificate (Grade 12 / Std 10), plus
      • a basic income of spouse of at least R3 000 p.m., or
      • a 3-year qualification at a recognised university,
        university of technology (technikon) or teachers'
        college
      OR
 −    A basic income of spouse of at least R6 000 p.m.                1508         2          2        2      2            2             None        None
 Other                                                                1509         1         No       No      1            1             None         No
(1)      Disability benefits and waiver of premium disability benefits are payable, provided that no occupation is practised for wage or profit, only in respect
         of personal and recognised disability (not occupational disability).
(2)      Only the housewife’s (woman / man) own qualification at a recognised university, university of technology (technikon) or teachers’ college is taken
         into account.
(3)      Housewives (woman / man) qualify only for regular or “alternative” occupational benefits.




GE 10/2004                                                                     arg(DA15)
                                                              CATEGORY II

For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                       RATE GROUP                    EXTRA PREMIUM
                   OCCUPATIONS WITH
                                                            CODE                                          OD/OE/OG
                  EXTRAORDINARY RISK                                 PERM/
                                                                                   P      TD    OLV       OP/M-OP    PERM          P
                                                                    TV/DHO                               DHOD/DHOE
 Armed response (see Security staff)
 Barman (B-endorsement):
 −   A Senior Certificate (Grade 12 / Std 10), plus
     • a basic income of at least R3 000 p.m., or
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college
     OR
 −   A basic income of at least R6 000 p.m.                 1201       2           2       2      1           1       3,00       1,4x
 − Other                                                    1301       1          No      No     No          No       3,00        No
 Big-game hunter (B-endorsement)                            1222       2          2       2      (1)         No       4,40        2x
 Bouncer (B-endorsement):
 −   A Senior Certificate (Grade 12 / Std 10), plus
     • a basic income of at least R3 000 p.m., or
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college
     OR
 −   A basic income of at least R6 000 p.m.                 1201       2           2       2      1           1       3,00       1,4x
 − Other                                                    1301       1          No      No     No          No       3,00        No
 Diver (not Navy) (Complete form E98)                       9900                  Individual consideration           Ind. consideration
(1) OLV rate = R7,00.




GE 10/2004                                                                 arg(DA16)
                                                                CATEGORY II

For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                         RATE GROUP                        EXTRA PREMIUM
               OCCUPATIONS WITH                                                                           OD/OE/OG
                                                              CODE
         EXTRAORDINARY RISK (CONTINUED)                                 PERM/                             OP/M-OP
                                                                                    P      TD    OLV                       PERM       P
                                                                       TV/DHO                            DHOD/DHOE
 Driver of vehicles
 − Taxi driver/ owner including mini buses
     (B-endorsement)                                          1207         1        No     No     No          No            4,40     No
 −   Other:
     – A Senior Certificate (Grade 12 / Std 10), plus
       • a basic income of at least R3 000 p.m., or
       • a 3-year qualification at a recognised university,
         university of technology (technikon) or teachers'
         college
       OR
     – A basic income of at least R6 000 p.m.                 1208         2         2      2      1           1            None     None
     – Other                                                  1210         1        No     No     No          No            None     No
 Electrician:
 −   Domestic: classify according to Category I
 −   Industrial (e.g. Municipalities)                         1451         2         2      2      1           1            None     None
 − High-tension wires (B-endorsement)                         1452         2         2      2      1           1            2,20      1x
 Engine driver                                                1209         2         2      2      2          1(1)          None     None
(1) Engine drivers qualify only for OE2A/P, OD2A, OP2, OG2, M-OP2, DHOE and DHOD. These benefits are all available at basic rates.




GE 10/2004                                                             arg(DA17)
                                                                        CATEGORY II

For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                                 RATE GROUP                        EXTRA PREMIUM
                OCCUPATIONS WITH
                                                                 CODE                                             OD/OE/OG
          EXTRAORDINARY RISK (CONTINUED)                                      PERM/
                                                                                             P     TD    OLV      OP/M-OP           PERM         P
                                                                             TV/DHO                              DHOD/DHOE
 Explosives handler/worker/transporter (1) (B endorsement):

 −   A Senior Certificate (Grade 12 / Std 10), plus
     • a basic income of at least R3 000 p.m., or
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college
     OR
 −   A basic income of at least R6 000 p.m.                        1350          2          2       2     (2)          1             2,20        1x
 −   Other                                                         1351          1          No     No     (2)         No             2,20        1x
 Fisherman:
 − Senior Certificate (Grade 12 / Std 10), plus
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college plus
     • a basic income of at least R3 000 p.m.
     OR
 −   Senior Certificate (Grade 12 / Std 10) plus a basic
     income of at least R10 000 p.m.
     OR
 −   A basic income of at least R11 000 p.m.                       1219          3           3      2      3           2            None        None
(1) Professionals (scientists, engineers, etc.) who handle explosives for experimental purposes are to be classified according to Category I.
(2) OLV rate = R7,00.




GE 10/2004                                                                           arg(DA18)
                                                               CATEGORY II

For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                     RATE GROUP                      EXTRA PREMIUM
                   OCCUPATIONS WITH                                                                   OD/OE/OG
                                                             CODE
             EXTRAORDINARY RISK (CONTINUED)                          PERM/                            OP/M-OP
                                                                                 P     TD     OLV                    PERM         P
                                                                    TV/DHO                           DHOD/DHOE
 Fisherman (continued):
 −    A Senior Certificate (Grade 12 / Std 10), plus
      • a basic income of at least R3 000 p.m., or
      • a 3-year qualification at a recognised university,
        university of technology (technikon) or teachers'
        college
      OR
 −    A basic income of at least R6 000 p.m.                 1229      2         2      2      2           1          None      None
 −    Other                                                  1239      1        No     No      1          No          None       No
 Leadworker/leadmelter (B-endorsement)                       1223      2         2      2     (1)         No          4,40        2x
 Platelayer
 − Leader and higher: classify according to Category I
 − Ordinary / Apprentice                                     1202      2         2      2      1           1          2,20        1x

 Private Detectives (B-endorsement)
 −    A Senior Certificate (Grade 12 / Std 10), plus
      • a basic income of at least R3 000 p.m., or
      • a 3-year qualification at a recognised university,
        university of technology (technikon) or teachers'
        college
      OR
 −    A basic income of at least R6 000 p.m.                 1520      2         2      2      1           1          4,40        2x
 −    Other (B-endorsement)                                  1521      1        No     No      1           1          4,40       No
(1)    OLV rate = R7,00.




GE 10/2004                                                          arg(DA19)
                                                                  CATEGORY II

For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                         RATE GROUP                   EXTRA PREMIUM
               OCCUPATIONS WITH                                                                        OD/OE/OG
                                                                CODE
         EXTRAORDINARY RISK (CONTINUED)                                 PERM/                          OP/M-OP
                                                                                     P     TD   OLV                   PERM        P
                                                                       TV/DHO                         DHOD/DHOE
 Security staff who work in corporate administrative offices/
 National Intelligence Service (NIS):
 −   Senior Certificate (Grade 12 / Std 10), plus
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college plus
     • a basic income of at least R3 000 p.m.
     OR
 −   Senior Certificate (Grade 12 / Std 10) plus a basic
     income of at least R10 000 p.m.
     OR
 −   A basic income of at least R11 000 p.m.                    1194     3           3     2     2         2          None       None
     OR
 −   A Senior Certificate (Grade 12 / Std 10), plus
     • a basic income of at least R3 000 p.m., or
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college
     OR
 −   A basic income of at least R6 000 p.m.                     1195     2           2     2     1         1          None       None
 −   Other                                                      1196     1          No     No    1         1          None        No




GE 10/2004                                                                   arg(DA20)
                                                                       CATEGORY II


For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                             RATE GROUP                  EXTRA PREMIUM
                OCCUPATIONS WITH                                     CODE                                  OD/OE/OG
          EXTRAORDINARY RISK (CONTINUED)                                     PERM/                         OP/M-OP
                                                                                        P     TD   OLV                   PERM            P
                                                                            TV/DHO                        DHOD/DHOE
 Security staff who work in shops, retail centres or in industrial
 companies (B-endorsement):
 −   Senior Certificate (Grade 12 / Std 10), plus
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college plus
     • a basic income of at least R3 000 p.m.
     OR
 −   Senior Certificate (Grade 12 / Std 10) plus a basic
     income of at least R10 000 p.m.
     OR
 −   A basic income of at least R11 000 p.m.                         1394      3        3     No    No       No           1,80       0,8x
     OR
 −   A Senior Certificate (Grade 12 / Std 10), plus
     • a basic income of at least R3 000 p.m., or
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college
     OR
 −   A basic income of at least R6 000 p.m.                          1395      2         2    No    No       No           1,80       0,8x
 −   Other                                                           1396      1        No    No    No       No           1,80        No




GE 10/2004                                                                  arg(DA21)
                                                                  CATEGORY II

For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                         RATE GROUP                      EXTRA PREMIUM
                OCCUPATIONS WITH                                CODE                                     OD/OE/OG
                                                                        PERM/
          EXTRAORDINARY RISK (CONTINUED)                                             P    TD   OLV       OP/M-OP          PERM           P
                                                                       TV/DHO
                                                                                                        DHOD/DHOE
 Security staff who transport or collect money, work at banks
 and/or carry a gun, including armed response
 (B-endorsement)
 −   Senior Certificate (Grade 12 / Std 10), plus
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college plus
     • a basic income of at least R3 000 p.m.
     OR
 −   Senior Certificate (Grade 12 / Std 10) plus a basic
     income of at least R10 000 p.m.
     OR
 −   A basic income of at least R11 000 p.m.                    1594     3           3    No    No           No            4,40          2x
     OR
 −   A Senior Certificate (Grade 12 / Std 10), plus
     • a basic income of at least R3 000 p.m., or
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college
     OR
 −   A basic income of at least R6 000 p.m.                     1595     2           2    No    No           No            4,40          2x
 −   Other                                                      1596     1          No    No    No           No            4,40          No




GE 10/2004                                                                   arg(DA22)
                                                              CATEGORY II


For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                      RATE GROUP                         EXTRA PREMIUM
                OCCUPATIONS WITH                                                                         OD/OE/OG
                                                            CODE
          EXTRAORDINARY RISK (CONTINUED)                             PERM/
                                                                                 P      TD     OLV       OP/M-OP         PERM            P
                                                                    TV/DHO
                                                                                                        DHOD/DHOE
 Security staff: Armed Response
 (B-endorsement)
 −   Senior Certificate (Grade 12 / Std 10), plus
     • a 3-year qualification at a recognised university,
        university of technology (technikon) or teachers'
        college plus
     • a basic income of at least R3 000 p.m.
     OR
 −   Senior Certificate (Grade 12 / Std 10) plus a basic
     income of at least R10 000 p.m.
     OR
 −   A basic income of at least R11 000 p.m.                1594       3         3      No      No           No           4,40           2x
     OR
 −   A Senior Certificate (Grade 12 / Std 10), plus
     • a basic income of at least R3 000 p.m., or
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college
     OR
 −   A basic income of at least R6 000 p.m.                 1595       2        2       No      No           No           4,40       2x
 −   Other                                                  1596       1        No      No      No           No           4,40       No




GE 10/2004                                                          arg(DA23)
                                                                     CATEGORY II


For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                             RATE GROUP                         EXTRA PREMIUM
                OCCUPATIONS WITH                              CODE                                                   OD/OE/OG
          EXTRAORDINARY RISK (CONTINUED)                                PERM/
                                                                                     P         TD         OLV        OP/M-OP    PERM           P
                                                                       TV/DHO
                                                                                                                    DHOD/DHOE
 Shunter:
 − Leader and higher: classify according to Category I
 −   Ordinary / apprentice (B-endorsement)                    1202       2           2          2           1           1        2,20         1x
 Stuntman                                                     9900                       Individual consideration               Ind. consideration
 Tunnel digger (B-endorsement):
 − A Senior Certificate (Grade 12 / Std 10), plus
     • a basic income of at least R3 000 p.m., or
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college
     OR
 −   A basic income of at least R6 000 p.m                    1203       2           2          2           1           1        3,00        1,4x
 −   Other                                                    1303       1          No         No          No          No        3,00         No
 Unemployed (see section CD)                                  1190       1          No         No           1           1        2,20         No
 Other occupations with an extraordinary risk which are not
 mentioned above (1)                                          9900                       Individual consideration               Ind. consideration
(1) Full details concerning activities should be given.




GE 10/2004                                                                   arg(DA24)
                                                                        CATEGORY II

For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                               RATE GROUP                           EXTRA PREMIUM
               PROFESSIONAL SPORTSMEN                                 CODE                                        OD/OE/OG
                                                                              PERM/
                           (see note 2)                                                    P      TD    OLV       OP/M-OP           PERM          P
                                                                             TV/DHO
                                                                                                                 DHOD/DHOE
 Boxer (B-endorsement)                                                1220       2        No      No     No            No            4,40        No
 Motor car/ motor-boat/ motor-cycle racing driver (Complete
  form E98)                                                           9900                Individual consideration                   Ind. consideration
 Jockey (horse racing) (B-endorsement)                                1200       2         2       2       1            1            3,00        1,4x
 Wrestler (B-endorsement)                                             1221       2         2       2      (1)          No            4,40         2x
 Other professional sportsmen:
 Cricketer, golfer, gymnasium manager/owner/ instructor,
 karate instructor, life-saver, soccer player, tennis player, etc.:
 −   Senior Certificate (Grade 12 / Std 10), plus
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college plus
     • a basic income of at least R3 000 p.m.
     OR
 −   Senior Certificate (Grade 12 / Std 10) plus a basic
     income of at least R10 000 p.m.
     OR
 −   A basic income of at least R11 000 p.m.                          1136       3         3       2      3           2(2)           None       None
(1) OLV rate = R7,00.
(2) The benefits shall not come into operation in the case of professional sportsmen if the assured/co-asssured is occupationally disabled.




GE 10/2004                                                                   arg(DA25)
                                                                        CATEGORY II

For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                                RATE GROUP                         EXTRA PREMIUM
                 PROFESSIONAL SPORTSMEN
                                                                      CODE                                       OD/OE/OG
                       (CONTINUED)                                            PERM/
                                                                                            P     TD    OLV      OP/M-OP           PERM        P
                           (see note 1)                                      TV/DHO
                                                                                                                DHOD/DHOE
 Other professional sportsmen (continued):
 Cricketer, golfer, gymnasium manager/owner/ instructor,
 karate instructor, life-saver, soccer player, tennis player, etc.:
 −   A Senior Certificate (Grade 12 / Std 10), plus
     • a basic income of at least R3 000 p.m., or
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college
     OR
 −   A basic income of at least R6 000 p.m.                           1137      2           2      2      2          1(1)           None      None
 −   Other                                                            1138      1          No     No      1           No            None      No
(1) The benefits shall not come into operation in the case of professional sportsmen if the assured/co-asssured is occupationally disabled.




GE 10/2004                                                                          arg(DA26)
                                                                  CATEGORY II

For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                        RATE GROUP                   EXTRA PREMIUM

                        ARTISTS                                 CODE                                  OD/OE/OG
                                                                        PERM/                         OP/M-OP
                                                                                   P      TD   OLV                   PERM         P
                                                                       TV/DHO                        DHOD/DHOE
 Actor, author, commercial artist, dancing instructor, model,
 musician, painter (art), photographer, piano tuner, potter,
 sculptor, singer and other professional artists:
 −   Senior Certificate (Grade 12 / Std 10), plus
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college plus
     • a basic income of at least R3 000 p.m.
     OR
 −   Senior Certificate (Grade 12 / Std 10) plus a basic
     income of at least R10 000 p.m.
     OR
 −   A basic income of at least R11 000 p.m.                    1132      3        3      2     3         2           None      None
     OR
 −   A Senior Certificate (Grade 12 / Std 10), plus
     • a basic income of at least R3 000 p.m., or
     • a 3-year qualification at a recognised university,
       university of technology (technikon) or teachers'
       college
     OR
 −   A basic income of at least R6 000 p.m.                     1133      2        2      2     2         1           None      None
 −   Other                                                      1134      1        No     No    1         No          None       No




GE 10/2004                                                             arg(DA27)
                                                                     CATEGORY II


For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                                RATE GROUP                            EXTRA PREMIUM
                   AVIATION: AIR FORCE
                                                                 CODE                                              OD/OE/OG
                  (see notes on page DA33)                                    PERM/                                OP/M-OP
                                                                                            P     TD     OLV                         PERM           P
                                                                             TV/DHO                               DHOD/DHOE
 THOSE WHO DO NOT FLY:
 Artisans      (aircraft  fitters     excluded)/professionals/
   administrative personnel: classify according to Category I
 Air traffic controllers (2)                                       1241         3           3      3       3          No(2)           None        None
 Aircraft fitter (A-endorsement)                                   1401         2           2      2       2           2              None        None
 Parachutist (BU-endorsement) (Complete form E98)                  1332         2           2      2      (1)          1              4,40         2x
 Reconnaissance commando (BU-endorsement)                          1333         2           2      2      (1)          1              4,40         2x
 Members who engage in bomb disposal or are trained to do
    so (B-endorsement)                                             1206         2           2      2      (1)           1             2,20          1x
 Other members:
 −   Flight sergeant and higher rank: Classify according to
     Category I
 −   Sergeant and lower ranks:
     – A Senior Certificate (Grade 12 / Std 10), plus
        • a basic income of at least R3 000 p.m., or
       • a 3-year qualification at a recognised university,
         university of technology (technikon) or teachers'
         college
       OR
     – A basic income of at least R6 000 p.m.                      1161         2           2      2       1            1             None        None
     – Other                                                       1171         1          No     No       1            1             None          No

(1) OLV rate = R7,00.
(2) Special Own Occupation Disability Benefits are available for air traffic controllers. (see Section CD for full details). Quotations may be obtained from
    your nearest Sanlam office.




GE 10/2004                                                                          arg(DA28)
                                                                  CATEGORY II

For explanation of abbreviations: see page DA 41
NB: The requirements apply to all products unless otherwise stated. For exceptions regarding Rate Group 1 and 2, see page DA7 and DA8.

                                                                                       RATE GROUP                   EXTRA PREMIUM
         AVIATION: AIR FORCE (CONTINUED)                        CODE                                 OD/OE/OG
                                                                        PERM/                        OP/M-OP
                  (see notes on page DA33)                                         P     TD   OLV                    PERM         P