Lifestyle Protector offers the flexibility to match the duration of your cover to your needs, and is ideal for individuals who wish to tailor their insurance coverage. By taking term cover for a specific need or life stage, you can ensure that you only pay for what you need, while you need it. The term cover is available on the level premium pattern which ensures affordability is maintained and the shorter the term of the cover, the lower the premiums will be.
Although each new policy would incur a separate policy fee, this will be offset by the saving on the premium. There are also additional advantages to keeping cover as separate policies, such as nominating different beneficiaries or ceding a particular policy without affecting others.
Here are some examples of when term cover may be more appropriate than whole of life cover:
Debt protection
You can match the term of the cover to the term of the finance period. For example, a 5 year term for vehicle financing or a 20 year term for a home loan.
Should you further wish to reduce your cover in line with the outstanding loan amount you can do so but you don’t have to.
Supporting children
A very important aspect of life insurance is to provide for your children if you are no longer able to. However, a time will come when the children are financially independent and the cover is no longer required.
Parents may choose to select cover for only the period in which their children remain financially dependent on them for their well-being and education (e.g. till they are 18 or 25).
Business assurance
A business owner who has signed surety for a five-year loan for the business could use a term policy to insure that loan. Term cover can also be used to insure the health of key employees who are instrumental in the running of your business.
Adapting to change
Insurance needs change over time especially when there are major life events. Liberty has automatically included a conversion option on qualifying benefits, which gives the advantage of extending your cover with limited underwriting when one of the following life changes occurs:
- Buying a house
- Marriage
- Becoming a parent
You will be able to extend the term of your cover or even replace your term cover with a whole of life policy to provide for your new family without additional medical tests.
The conversion option can also be exercised at the end of the original term, for example, if you decide to buy a new car after five years.
Get paid out
The elective PayOut feature on term policies may pay 100% of your premiums back at the end of the policy term. Even if you happen to claim, the premiums on any benefits which remain in place until the end of the term will be included in the total PayOut.
Although the PayOut feature comes at an additional cost, it acknowledges that some customers value a feature that provides a tangible benefit which pays something out even if they do claim. |
