An education empowers children and allows them choices in today’s competitive world when entering the labour market.  It is every parent’s desire to provide the best for their child/ren, however concerns such as whether there will be enough money for a good school, special needs or ambitions like studying for a degree may have them tossing and turning at night.

Recent figures released by Stats SA indicate that South African households will have to make more room in their budgets to pay for rising tuition fees. The recent increases in fees are not adequately cushioned by household income and as such, many South Africans are unable to further their own or their loved one’s education.

The death of a parent can have a considerable financial impact on the ability of the surviving parent or legal guardian to pay for a child’s education and other related expenses.  At Sanlam Corporate: Group Risk (SGR), we believe insurance can make a difference … we truly believe education is incredibly important as it not only enables individuals to earn a living, but also aids the economy by increasing the country’s value of skilled workforce, thereby allowing South Africa to compete globally and succeed in combating poverty and inequality by growing the South African economy.

The Universal Education Protector (UEP) insurance assists with the education expenses the employee was responsible for at the time of death, and would have become responsible for in the future, for all the deceased employee’s eligible children.  From 1 January 2022 the UEP insurance will include the following additional benefits (in summary), in addition to the revised annual benefit maximums:

  1. A minimum allowance benefit

A minimum benefit of R1,100 per annum will be provided per eligible child and can be utilised for any school-related expenses, e.g. prescribed books, stationary, uniforms, school fee donations, electronic and/or sports equipment.  The minimum allowance benefit (i.e. it is not an education/tuition benefit) becomes payable for each academic year of the child’s school education, if:

  • the eligible child attends a recognised educational institution (from Grade 0/R to Grade 12); and
  • any book allowance expenses claimed for (for an applicable academic year), do not exceed the minimum allowance amount.  In other words, the allowance benefit will be reduced by the book allowance expenses claimed/paid.

The minimum allowance benefit is however not payable if a child attends a tertiary institution.

2. Changing from no-fees to fee-paying school

If circumstances require it, an eligible child can change from a no-fees / fee-exempt school to a fee-paying school, subject to a maximum tuition fee payment of R11,500 per annum, in the following circumstances:

  • In the academic year following the SGR member’s death;
  • when progressing from Pre-primary school (Grade 0/R) to Primary school (Grade 1); or
  • when progressing from Primary school (Grade 7) to High school (Grade 8).

3. Home-schooling will qualify for benefits

The definition of educational institution was expanded to include the following online home-schooling platforms:

  • Institutions registered with the South African Comprehensive Assessment Institute (Sacai), which monitors education providers who adhere to the Department of Basic Education’s CAPS curriculum; and
  • Institutions that provide the CAPS (public schooling) or IEB (private schooling) curriculums are included, or an international qualification (GED – Grade 12 certificate equivalent).

In a previous article we also highlighted the latest addition to the Reality Access for SGR loyalty programme’s menu of value-added loyalty benefits and services:  the IVY Online education platform.  Click here for more information.

4. Repeating a year

Tuition fees and the allowance benefit in respect of a particular grade of school education will remain payable irrespective of whether the eligible child failed or passed the previous academic year of school education (i.e. Grade 1 – Grade 12).  

Although benefits will remain payable for repeat years, UEP benefits are limited to the maximum number of years for the applicable level of education of the child (e.g. maximum of 5 years to complete high school).

5. Gap year

Years of education must run consecutively without interruption.  Eligible children will however be allowed to take one gap year between the completion of their high school education (Grade 12) and the start of their tertiary education, during which no UEP benefits will become payable.

6. Changing to another tertiary degree/diploma/certificate

Eligible children are able to change their first undergraduate degree or NQF recognised tertiary level first diploma/certificate, provided that:

  • the tuition fees paid will be limited to the fees that would have been payable for the remaining amount of the original degree/diploma/certificate; and
  • the benefit period will be limited to the remaining term of the original degree/diploma/certificate.

Click here to view the sales brochure for the 2022 benefit maximums and complete product features. 

Sanlam supporting communities

Takalani Sesame launched in 2000 and has been educating South African children through edutainment for 20 years – and counting.  Sanlam has been its broadcast sponsor from the start – our investment in Takalani Sesame not only promotes literacy, numeracy and basic life skills, but also instils a greater sense of self in children and nurturing their readiness for lifelong learning – making kids smarter, stronger and kinder.

Access to basic education and early childhood development programmes are critical for all children to reach their full human development potential. The aim of this distinct South African television and community programme is to provide fun and effective learning by promoting literacy, numeracy, and basic life skills.

We’re celebrating our 20-year partnership with all-new episodes and adventures.  Visit Takalani Sesame for more information.

Follow us on our journey of empowerment as we made dreams come true by furthering education and empowering suppliers.