In addition to your SASS benefit you may also apply to be covered for optional death and permanent disability insurance cover. It is called the optional additional benefit cover.
Key points
The additional benefit cover is designed to cover the difference between the employer financed-benefit that you have accrued to date and the benefit that you would have received from the employer at your scheme earliest retirement age.
If you take up the optional additional benefit cover, you will pay 25% of the insurance premium and your employer will pay the other 75% on your behalf.
The amount you that pay is taken out of your Personal Account and comes out of the contributions you have already made.
As an active SASS member, your decision to opt-in to Additional Benefit Cover is for the duration of your time in the scheme, therefore you can’t opt-out later.
The premiums cease when the cover no longer has a value either when you reach 180 points or your earliest retirement age, whichever comes first. The cover will also cease if you defer your benefit in the scheme either at resignation or retrenchment.
Optional additional benefit cover
The additional benefit cover is designed to cover the difference between the Employer Financed Benefit you have accrued to-date and the benefit you would have received from the employer at your scheme earliest retirement age.
This assumes you had kept contributing at the same average contribution rate and is limited to the maximum points per year and overall total of 180 points.
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As you accrue more benefit over time, the value of the additional benefit cover reduces and stops when you reach your scheme’s earliest retirement age. The value of the cover is the difference between the partial permanent invalidity benefit and the Total and permanent invalidity benefit.
As the cover is based on projecting your average contribution rate through to your earliest retirement age, if you are not maximising your employer benefit, the value of your additional benefit cover will also be impacted.
More information about the optional additional benefit cover is available in the SASS Factsheet 4 Optional Additional Benefit Cover
As an active SASS member, your decision to opt-in to additional benefit cover is for the duration of your time in the scheme, therefore you can’t opt-out later.
Tip: Protecting your wealth and your livelihood for unexpected events is an important part of a personal financial plan.
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