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Income Protection Disability
Your future salary is one of your biggest assets. If you are unable to work and therefore cannot earn an income, your family's life could be jeopardised. Income protection helps you to be able to take care of them financially, regardless of what life event negatively impacts your income.
income protection is known as Income Protector. It is a flexible package of comprehensive benefits that aim to protect you against a wide range of risks that could negatively impact your income. You decide on the extent of your coverage based on your stage of life and the likely risks you will face. The Income Protector package of cover is flexible enough to add more benefits as your needs grow (such as having a family).
The package consists of layers that are designed to work together so that combinations of benefits from each layer can be selected, although itemised selection is allowed for some of the benefits.
How much can you cover?
Income Protector aims to ensure that you are in the same financial position after disability or impairment as you were while working. You can therefore cover yourself for up to 100% of your after-tax insurable monthly income.
Calculating your after-tax insurable monthly income
Your after-tax income is your pre-tax income less any tax payable. Although some people don’t readily know this amount, it can easily be estimated using the pre-tax income amount. Lifestyle Protector provides flexibility for you to choose to cover your estimated or actual after-tax income.
Proof of income
We provide you with a choice to provide proof of income at policy inception or at claim stage, unless your cover amount exceeds a certain limit. Providing proof of your income at policy inception has the following advantages:
· You will not have to provide proof of income at claim stage, should you ever claim. This provides you with greater security and peace of mind.
· If you are self-employed, you could increase your cover amount by adding up to 20% of business expenses that will become personal expenses upon disability. Expenses that are insured under another insurance benefit that aims to cover business expenses and personal expenses that are not business related cannot however be included.
Professionals (as classified by Liberty) can take advantage of special features available under Absolute Income Protector and Extended Absolute Income Protector.
As a professional you qualify for preferential premium rates and higher maximum sum assured limits. Furthermore, if you are younger than 35 at a claim anniversary, the “super in-claim escalation” will apply to you. In the event of a claim, the claim amount will increase at the anniversary of the claim by 150% of the normal claim increase rate which you selected for your benefit. Liberty knows that because you are younger and a professional, you stand to lose more on future potential salary increases. These increases would typically be higher than what would be received by non-professionals. Assessment of your future income
You can review your Absolute Income Protector and Extended Absolute Income Protector sum assured immediately after each policy anniversary to make sure you still have sufficient cover. You can do this without having to provide any medical evidence or declare that you are in good health, provided you meet the qualification criteria and your increase percentage is within the allowable limits. This ensures that your cover keeps up with your actual annual salary increase.
Get the cover you need
Income Protector consists of three layers, each protecting you from different combinations of risks to your income. These three layers are structured so that you can add the benefits that suit your specific needs to protect the lifestyle that you are accustomed to.
The core layer consists of the Absolute Income Protector benefit. It provides income protection of up to 24 months after disability if you are unable to perform your job due to a temporary or permanent disability or if you suffer a permanent impairment. Other benefits include the free Child Illness Protector and optional Overhead Expenses Protector.
The benefits forming part of the extended layer provide you with long-term security and covers you against more permanent disabilities and impairments. The Extended Absolute Income Protector provides you with a monthly benefit starting 24 months after your disability or impairment and can be paid up to your chosen retirement age. Our industry leading Whole of Life cease age option also allows you to protect your retirement income from being eroded by expenses associated with a permanent impairment after retirement.
The comprehensive layer benefits provide holistic income protection by covering you against other risks which may negatively affect you and your family’s income. In combination with the Absolute Income Protector and Extended Absolute Income Protector, these benefits provide you with total income protection for complete peace of mind. The benefits in this layer protect your income against retrenchment, critical illness (for you and your family), dying shortly after becoming disabled and even maternity.
Occupational Disability: A temporary or permanent inability to perform your job due to an injury or illness.
Impairment: A permanent loss of function in any part of the body whether it is physical, functional or mental. Your claim amount depends on the medical severity of the impairment you suffer and not whether you can work or not.
Monthly sum assured: The monthly benefit amount that you will receive if you become disabled or impaired. The percentage paid will depend on the severity of the impairment.
Waiting period: The minimum period of time you must be disabled or impaired before you can start receiving claim payments.
Unlike our competitors we know that your income protection needs do not end at retirement and have therefore introduced the industry’s first income protection benefits for life. Through our Whole of Life term option you are now able to extend your cover beyond retirement.
Harnessing the full potential of Income Protector
To increase the level of protection within Income Protector, you may add optional benefits. The following additional benefits are available:
Retrenchment Protector Protects you from financial loss due to retrenchment by paying you your insured amount for up to six months.
Living Lifestyle Protector Pays you a lump sum of 3 or 24 times the Absolute Income Protector sum assured if you suffer a critical illness.
Living Lifestyle Dependant Protector Pays you a lump sum of six times the Absolute Income Protector sum assured if your spouse or child contracts a critical illness.
Guaranteed Dependant Protector If you pass away before having received at least one year’s worth of claim payments for an Absolute Income Protector claim that is being paid at the time you pass away, your family will be paid the balance of the first year’s claim payments as a lump sum.
Maternity Pause Option Prepays four months’ Income Protector premiums while you are on maternity leave. This benefit gives you security in taking care of your premiums while you are enjoying your new baby.