LIFESTYLE PROTECTOR: Liberty’s premium risk product designed to meet your life’s changing needs. Its many components make it flexible enough to give you the cover you need for your circumstances today and the ability to adapt your cover as your needs unfold in the future.
LIVING LIFESTYLE PROTECTOR: Pays up to 24 times the Absolute Income Protector cover amount as a lump sum if you suffer a critical illness covered by the benefit. The multiple of the cover amount that is paid out will be either 3 or 24 based on the severity of the condition.
LIVING LIFESTYLE DEPENDANT PROTECTOR: Pays out 6 times the Absolute Income Protector cover amount as a lump sum if your spouse or your child suffers a critical illness covered by the benefit.
LIFE ANNUITY : You can use your retirement savings to purchase income for the rest of your life. This income will pay you as long as you are alive. You can also add a spouse, which will enable the income to be paid if either of you are alive.
LIFE COVER: Pays out a lump sum in the event of your death.
LIABILITY DRIVEN INVESTMENT: This refers to an investment strategy designed for an entity, as opposed to a type of product. This approach is essential when the future financial goals of an entity can be defined or estimated in terms expected cash flow payments. These expected payments become the investment benchmark, i.e. investment target. The specific objectives of the entity will determine the extent to which its investment strategy will track the liability benchmark: either to track it as closely as possible, or to deviate from the benchmark by taking on some risk. A Liability driven solution can be a combination of various Liberty products. The underlying products (i.e. building blocks) vary from basic investment portfolios to annuity products.
LIFE ANNUITY: This type of an annuity will guarantee a stream of payments for as long as the policyholder is alive. After the policyholder’s death, the payments might continue to be paid to the policyholder’s nominated beneficiaries, if so chosen by the policyholder at the policy’s commencement date.
LIVING ANNUITY: This type of an annuity will pay out a stream of payments for as long as the policyholder has money left in his/her investment account. Regarding the stream of payments - the policyholder can choose to receive between 2.5% and 17.5% of his/her investment account each year. The Rand value of these payments will vary depending on the investment return earned by the investment portfolios underlying the investment account. The policyholder is exposed to the risk of outliving his/her investment account due to choosing a draw-down rate that is too high and/or as a result of volatile investment markets. It is therefore important for the policyholder to seek financial advice when considering purchasing a living annuity product.
LIABILITY OBLIGATION: This refers to an entity’s responsibility towards its employees or other entities to make good on a contractual financial promise it entered into with the respective part. For example, a pension fund has a liability obligation towards its pensioners to pay them their pensions in terms of the fund rules. Another example is a corporate entity’s liability obligation towards former employees to subsidise their medical aid contributions into retirement.