What to do when stop order payments stop

Stop order payments are convenient for both Sanlam and our clients, but what happens when a payment stops?

The stop order mode of payment has many advantages. It’s a convenient method of payment for clients because the payments are deducted directly from their salary and paid over to Sanlam. An advantage for Sanlam is that we’re reasonably assured of receiving our payments for as long as the payer remains employed by the relevant employer.

However, payments to Sanlam via stop order are sometimes stopped. Many parties are involved, including Sanlam, the plan holder and the employer. The reason for non-payment could possibly lie with any of these parties.

Obviously, this can be problematic when it comes to plans with life cover. Reinstatement of plan benefits will be subject to proviso if payments aren’t on time.

Whenever we don’t receive a stop order payment from the employer for any specific month, we automatically consider the stop order to be cancelled. A programmatic letter is generated to inform the client of the non-payment and its consequences. The intermediary receives a copy of this letter, in which we request the client to contact the SPF CCC to arrange for the outstanding payment to be made or a new mode of payment to be set up.

To ensure clients enjoy continuous full benefits of their plans with cover, their payments must be up to date.

Intermediaries writing plans with stop order mode of payment should inform clients of this.

  • Contact the client when you become aware of the non-payment of a specific month’s stop-order payment
  • Ask the client to contact you immediately if the employer hasn’t made the deduction for a specific month from their salary
  • In this case, arrange for the payment to be made in cash immediately. Provide the client with the correct cash reference number and Sanlam bank details
  • Arrange for a new stop order or new mode of payment, if necessary
  • Follow up to check that the new stop order/mode of payment starts transferring payments.