Advisers’ next big thing
Cape Town - Ring-fencing future revenue takes early tactics and forethought. For advisers, now is the moment to identify the clients of the future and get them onto the books. The South African graduate market is massive and relatively untapped, presenting enormous opportunities for savvy advisers who can relate to what Gen Zs really want when it comes to financial products and advice.
Sanlam's enhanced Professional Student Package for those studying towards an NQF 8 qualification in a specified field is now available to students in their second year of study – a market first. Another unique enhancement that Sanlam has introduced is offering occupational disability benefits to professional students in their third academic year.
Introducing the Graduate Student Package
Spotting a gap for graduates, Deon Theunis, Head of Intermediary Support at Sanlam Risk & Savings, says Sanlam has created a Graduate Student Package that provides comprehensive cover on its premier platform for all qualifying NQF 7 (3-year degree or 4-year diploma) students from their second year of study.
The group's new graduate student package answers the long-standing call to offer cover for students that don't form part of the professional student market, allowing them to access the Wealth Bonus® benefit and take full advantage of compound interest.
Ringfencing revenue from day one: The Graduate Student Package's potential
According to Theunis, Sanlam's Graduate Student Package starts from as little as R90 per month. "The risk premiums of employed graduates currently on our books are on average 14 times the initial monthly premium of the Graduate Student Package, presenting the immeasurable potential for advisers." The graduate market is relatively untapped and staggering in size, being some 3.5 times bigger than the professional market.
The parent gap
Historically, students have been a difficult market to tap into. Student packages are traditionally offered from the fourth academic year, with advisers reaching the student market by activating on campus. Not all advisers are able to do this, and so these students are often overlooked despite their potential. Sanlam has recognised this and suggests advisers speak to parents during the annual review season to discuss their children's options.
By highlighting the threefold factors of time and compound interest, good health, and early positive habit formation fostering lifelong strong financial management skills, advisers can help students put their financial foundations in place.
Fostering financial literacy early on
Financial literacy is a significant issue in South Africa. Theunis says that by empowering advisers to engage meaningfully with young people through critical risk cover, Sanlam is helping future generations become financially savvy. Student debt is also a significant concern, and risk cover is a critical means of mitigation when "life happens".
Additional cover can be added to the student package according to the individual's needs, such as funeral cover for their extended family. "By offering proper cover that continues to meet the needs of students as they progress in their careers, advisers can build long-lasting relationships with young clients."
Advisers are crucial to helping young people accrue early financial foundations that will stand them in good stead for the rest of their lives. The graduate market is exciting because of its untapped potential and because it offers an excellent opportunity for a timely intervention.
By helping more full-time students become financially confident, advisers can usher a new generation towards full economic inclusion and self-sufficiency. That's where the real opportunity exists to change the course of one young person's life, and to change the nation's economic outlook as well.