Sanlam schlenter....?

[dunkyd]

Trying to help an elderly neighbour who got a large payout when leaving teaching in the 90's which went to Sanlam. Later an agent persuaded him to give permission for them to send his money overseas.
In about 2005 they told him he had no money left ???
Anybody know anything about this as the same agent now wants permission to "double" his small life insurance policy...no doubt for more commission.
Thanks

 

[dunkyd]

Can he not possibly cash out his life policy ? How ?
Thanks

 

[Barbarian Conan]

Can he not possibly cash out his life policy ? How ?
Thanks

Disclaimer: I'm a layman who doesn't know what he's talking about and this is not financial advice.

Short answer, no. Life insurance by definition only pays out when you die.

Longer answer - it depends on the product.
There may be some additional features of a specific product that pays out when you become permanently disabled. I think discovery also had a product where it paid out a much smaller amount when you reach 65 or something.

Why would he want a larger life insurance policy? Does he have dependents who would absolutely need the money if he dies?

Did he have a living annuity where he withdrew a fixed amount per month? People usually want to withdraw more than the interest/growth amount, so they start to eat into their capital.
I've been told that when pension people calculate how much you need to retire based on the assumption that you live to 80.

 

[dunkyd]

No depemdants and I hear the policy has not increased in value in last 5 years. Getting more info later...

 

[Nithan15]

Can he not possibly cash out his life policy ? How ?
Thanks

Depends on the fine print on the policy my dad cashed out his this year and it was done without any hassles as it did specify the month and date on the policy.

 

[B-1]

Sounds pretty dodgy. Odds of losing everything is quite small although losing the majority of the capital is possible(unless he was withdrawing regularly). Im betting this guy doesnt work for sanlam at all. Start with the "finacial advisors" details and verify his employment and FSCA details etc.

Also with no dependents a life insurance policy is just making someone else money.