Sanlam tailors product suite for graduates
According to the 2013 Student Village Student Spending Report, students spend more than the average South African and 20% of students already have credit cards. These are frightening findings, says financial services provider Sanlam, if one considers how
In August, the Sanlam group launched Sanlam for Graduates, a suite of investment and risk products designed to help graduates with either a three-degree or four-year diploma make the best use of their financial resources into the future.
Nishen Naidoo, solutions manager at Sanlam Personal Finance, says Sanlam recognises that graduates have worked hard and have made many sacrifices to obtain a tertiary qualification. “We have created this offering to acknowledge and reward them. Research shows graduates have low lapse rates and generally remain loyal clients for longer than the average middle income South African, so from a business perspective this is a market we believe will deliver over the long-term.”
Turning to the product benefits, Naidoo said Sanlam for Graduates is available to young (20 to 35 years old) and established (35 and older) graduates. “Our rates are highly competitive and a sickness benefit – on offer to individuals with a 3-year degree or 4-year diploma for the first time in South Africa – can be adapted to each client’s circumstances and needs. It offers a variety of products from retirement annuities to income protection and dread disease cover.”
The RAs offered under this suite of products are from Sanlam’s new Cumulus Echo range, which pay out bonuses to reward clients for long-term savings.
Naidoo said that, pleasingly, 70% of students polled by Student Village already have some emergency savings. “With so many students already exhibiting early signs of financial discipline, we feel confident that this suite of products will have strong take-up among graduates.”
