Did you know a Sanlam Risk Cover plan can help your clients with liquidity in their estate while saving on executor’s fees?
Where the risk policy is written (with no beneficiary nominated) to allow for cash in the estate (note: policy number to be specified in the will), Sanlam Trust will allow for a 2% reduction of executor’s fees on the value of that policy.
Opportunity for intermediaries when doing estate planning
The table below shows an example of the saving on the executor’s fees from Sanlam Trust when a risk policy is in place:
When you write your client an Express policy, not only are they covered, but they’ll also be able to make provision for liquidity in their estate:
- A shortened electronically fillable form is available for this purpose
- On Express, the applicant and life insured is always the same person, making it more appropriate for this purpose
- Underwriting on Express is limited, making it very competitive compared to similar products in the market
- The policy can be written with only Death cover
- Make sure no beneficiary is placed – cover must be payable to the estate
- Add the Cashback benefit in order to ring-fence your client and reward them for their loyalty with a 100% payback of premiums after 15 years
- Always ensure the specific policy number is written into the will.
Sanlam Trust has a handy liquidity calculator to help you calculate the estate liquidity. It also features a flash fact explaining all the costs payable from estate funds.
Sanlam Trust stats on liquidity in estates
- 60% of estates don’t have enough cash to settle debt or pay costs
- Clients most often nominate beneficiaries on their long-term insurance policies
- 36% of estates are renounced because of insufficient liquidity or assets
- Just 18% of clients with wills have a Matrix Risk policy.
For information on the costs payable from estate funds, click here.