When you enter into an investment you typically want high returns over time. However, achieving these returns involves taking on a certain degree of risk.
With the cyclical nature of the economy and the financial markets, taking risk exposes you to possible losses at the end of the investment term, a situation that many want to avoid at all cost.
With Liberty Life"s optional investment guarantees, you get to experience the financial highs of uncapped growth inherent in volatile financial markets, knowing that should markets hit a low, you have a proverbial "safety net" to protect you against losses.
Investing with peace of mind
If you want great returns during the good times and the certainty of a minimum guarantee should markets perform poorly, you should opt for portfolios which offer investment guarantees.
- Liberty Life offers a large selection of portfolios with investment guarantees
- Liberty Life has a trusted and established track record, having been a key player in the industry for over 50 years
- Furthermore, Liberty Life also has a strong financial adviser network to support and service your individual investment needs
How do investment guarantees work?
When you invest your money with Liberty Life, it will be invested on your behalf in an investment portfolio via an investment product. Your financial adviser will be able to assist you in your choice of the most suitable product and portfolio.
Investment portfolios have exposure to different asset classes (Property, Bonds, Cash or Equities) and therefore have different levels of associated risk. Each of these portfolios has a risk profile, based on how the underlying assets are expected to perform over time and how much variation there could be in these returns. This results in some portfolios being more risky than others. It is generally accepted that riskier portfolios should provide investors with higher expected returns over time, but it also creates the potential for losses at the end of the investment period.
When you invest in an investment portfolio, you are fully exposed to the risk of the assets underlying your chosen portfolio as indicated by the illustration below. If your portfolio does not perform, your investment could lose value.
Example: Illustration of a Moderate Portfolio choice
If you choose an investment guarantee, the risk is reduced as you can be sure of at least a minimum return at the end of the term of your investment. You don"t have to worry about the downside of volatile investment markets if you remain invested for the guarantee term of 5 years.
Characteristics of investment guarantees offered by Liberty Life
- The investment guarantees are designed to offer a wide range of options covering most of the risk profiles
- Initially, the selected guarantees apply on the fifth policy anniversary and Liberty Life reserves the right to offer them again for another five years thereafter.
- You must remain invested for at least five years in order to benefit from the selected guarantee
- Liberty Life offers a new generation investment guarantees that increases over time in line with investment growth, providing more peace of mind and more value to you.
- Over the first five years, the investment guarantee is based on the original amount invested
- At the end of the five year period, you will receive an investment guarantee top-up (which will be added to the investment), if the investment performed below the guaranteed minimum return
- The guaranteed value will however be reduced by any advances/withdrawals taken and any associated early termination charges and service fees
- After the first five years, any investment guarantee that Liberty Life may offer will be based on the value of the investment at the start of the new five-year period (less any advisory fees deducted)
Liberty offers Investment Guarantees on both recurring premium as well as single premium policies.