We do our utmost to eliminate financial strain during times of need and difficult circumstances, such as death. Group Life Assurance Benefit pays out a lump sum when it’s needed most.

We want to provide members with as much information as possible to enable them to better understand what they are covered for in the event of a death.

Please see below for a breakdown of Group Life Assurance Benefit cover.

Members are covered as follows:

• 10 times a member’s annual salary (for salary-based plans)
• 100 times the total annual death, disability and retirement benefit contributions made by and on behalf of the member (for rand-based plans)

The member’s cover will end based on the following criteria (whichever comes first):

• The employer participation is cancelled.
• The member leaves the employer.
• The member leaves the retirement fund, where cover is taken on an approved basis.
• The member reaches the Benefit Termination Age, as outlined in the Employer Participation Schedule.
• The member turns 70 years of age.
• The member receives a benefit from any retirement fund that his or her employer operates or participates in for the benefit of their employees, where this cover is taken on an approved basis.
  

How does it work?

• Your policy is renewed on a yearly basis, to assess changes in your circumstances and to determine your new outstanding loan amount and new premium.

• This will be valid for a specified guaranteed period. The cost of the life insurance policy is usually added as a nominal fee to a consumer’s monthly payment.

• No cover will be payable if you lose your job because of ill health, labour disputes, resignation, if the dismissal is your fault, the expiry of your contract or if you had prior knowledge of the retrenchment.

• Cover does not include instalments in arrears.

Who is the policyholder?

Any registered credit provider or provider of goods and services on an instalment basis is the policyholder. This may include, but is not limited to:

• Banks

• Non-bank vehicle financiers

• Micro lenders

• Retailers

• Agricultural trusts

• Other credit providers

Maximum cover:
Cover cannot exceed the original amount that was agreed upon and this amount will be sent to the credit provider in writing.

Cover will cease when:

• The period covered by your last premium has ended.

• You reach the maximum cover age.

• You are no longer eligible for insurance in terms of the policy.

• You are no longer bound in terms of the credit agreement.

• Your absence from the country exceeds the periods permitted by Liberty Corporate in terms of the policy. Territories include South Africa, Lesotho, Namibia, Botswana, Mozambique and Swaziland.

Cover will be provided for a maximum of 12 months outside of the mentioned territories, subject to the continued payment of premiums.

What extra options are available?

Conversion option:
This option is available for 60 days after you leave the scheme and allows you to continue your cover if you leave the scheme, with minimal or no underwriting.