People, society and finances are constantly evolving and so products have to innovate to remain relevant. For example, when Liberty launched its first life cover 60 years ago, people were only expected to live until 70. This was a time when companies took care of our retirement, cancer was a disease for older people and children left home once they finished studying.
Now we worry that we’ll live longer than our money will last. Lifestyle issues see younger people experiencing critical illness and many middle-aged people are stuck in a financial sandwich, supporting both their children and parents.
To meet these evolving needs we have changed and innovated our business and our products. While the emphasis has been on simplifying cover, it always helps to understand exactly what cover is provided, what new product innovations are available and what the terminology really means.
Here’s what you need to know…
Liberty Lifestyle Protector: the most comprehensive and flexible insurance product
Premium guarantees: This means that the premium pattern you were quoted is guaranteed for at least 10 years. Your premium increases each year based on your age risk profile, so before you accept the quote, you know exactly how much you will be paying each year.
Why the innovation? To give our customers certainty around premium costs when taking out cover.
Level and age-rated premiums: With traditional level premium increases, premium increases are spread across the period of your expected life, so you effectively cross-subsidise your premiums by paying a higher premium when you are younger.
With age-rated premiums, you will pay less in your younger years, but your premium will increase as you get older. You need to speak to your adviser to understand the implications of these increases in the future.
Why the innovation? Age-rated premiums were introduced to make life cover more affordable for younger people as you pay in line with the risk associated with your age.
Life Protection: This is the classic life cover that pays out when you die. The innovation around life protection is the EduCator benefit, which pays your child’s academic institution directly if the parent dies or is disabled.
Why the innovation? This gives customers peace of mind that the proceeds of their life protection are used for their children’s education.
Living Lifestyle: This is what the industry would refer to as “critical illness” cover. It pays out if you suffer from one of a wide range of conditions, including severe illness or loss of the use of a limb.
Why the innovation? It was recognised that it is necessary to make major lifestyle changes when you become ill or lose the use of a limb and these have a significant financial impact.
Female Living Lifestyle: This covers pregnancy-related complications and congenital birth defects in a child.
Why the innovation? We recognised that the risks associated with pregnancy were not covered by critical illness benefits and that children born with congenital defects can have a severe impact on a family’s finances. This is not something anyone can ever plan for.
Absolute Protector:This is cover that pays if you are unable to work due to illness or an accident. Absolute Protector was the first comprehensive lump sum disability benefit launched in South Africa and covers physical and functional impairments – it pays out if you are unable to function normally on a day-to-day basis. There are no waiting periods on lump sum benefits.
Why the innovation? Death is not the only financial crisis that a breadwinner needs to provide for. This cover has become increasingly important as companies provide fewer benefits to employees.
Vital Living: This falls under Loss of Income Protection and is an affordable, simple and flexible benefit designed for younger customers. It pays out 100% of the sum assured on diagnosis of a serious health event that has the potential to interrupt their career.
Why the innovation? For younger customers, loss of income is a far bigger financial risk than death as they do not have dependants.
Income Protector: This gives you the ability to extend cover beyond just yourself. You can include your spouse and children through the Child Illness Protector, Guaranteed Dependant Protector and Living Lifestyle Dependant Protector.
Why the innovation? We recognise that the breadwinner is not the only person who adds financial value to the family. There is a cost to having to stay at home to take care of a seriously ill child or to find help when the stay-at-home parent becomes ill.
Whole of Life Option: This provides income protection cover after retirement.
Why the innovation? As more and more people work part-time after retirement, there is a need to protect that income.
Policy Protection: This pays your premiums for a period of time should you be retrenched.
Why the innovation? We do not want our clients to lose their valuable cover due to financial changes. A life event when you are already under financial pressure would be disastrous.
Future Protector: This gives our customers the option to increase existing benefits or take out new benefits, such as life cover, critical illness or disability benefits without additional underwriting.
Why the innovation?Our customers need to be able to adapt and change their cover as their needs change. For example, a young person’s need for life cover may not be significant, but they need to have the option to increase it when they start a family.
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