Income
Protection Plan
LIFE INVESTMENTS HEALTH CORPORATE PROPERTIES ADVICE
“The only limit to our
realisation of tomorrow
will be our doubts of
today.”
- Franklin D. Roosevelt
1 / LIBERTY CORPORATE INCOME PROTECTION PLAN
Income Protection Plan
Our Income Protection Plan provides members and their
to work due to serious illness or injury by providing them
with a monthly income over a certain period of time.
How does the Income Protection Plan work? What is a Level Income Protection Plan?
• It pays a monthly income for the disabled employee. The amount paid is based on the plan salary and An income equal to a percentage of the plan salary is payable as long as the member meets the disability
• per month. This maximum may be reviewed annually.
What is a Reducing Income Protection Plan?
• Disabled employees monthly income may increase annually at the lower of the selected escalation rate
anniversary of the date of disability.
•
Protection Policy. amount of R20 000 per month. This maximum may be reviewed annually.
•
vehicle or medical aid scheme as permitted in terms of the policy.
What is a Limited Term Income Protection Plan?
• A continuation option allows employees to continue their cover after leaving their employer due to
are not eligible for the continuation option. This pays an income equal to a percentage of the plan salary for a maximum of two years. This option is
subject to a three-month waiting period, which is included in the period of payment. It can be combined
Which options can employers choose from? subject to a maximum amount of R175,000 per month. This maximum may be reviewed annually.
There are three options to choose from: ASSESSMENT OPTIONS
• Level Income Protection Plan Occupational Progressive Important: Reducing and Level Income Protection Plans offer
• Reducing Income Protection Plan
Payment
Level x x escalation options. An escalation option is not offered on the
• Limited Term Income Protection Plan Reducing x x
Pattern
Limited x
Limited Term Income Protection Plan.
3 / LIBERTY CORPORATE INCOME PROTECTION PLAN
Income Protection Plan
Which assessment options are available?
Benefits payable may be assessed based either on occupational (occupational assessment) or occupational 2. Progressive assessment
and severity of impairment (progressive assessment) basis, which assessment is reflected in the Employer Progressive assessment covers an employee who does not qualify for a benefit in terms of
Participation Certificate. the occupational assessment. Progressive assessment means the disability payable will be
a stated percentage of the disabled employees benefit, in accordance with the employee’s
1. Occupational assessment degree of impairment, according to the American Association Guide.
Occupational assessment covers an employee against the risk of being unable to perform his/her Own
Occupation. The disability benefit is paid for a maximum of 24 months where after the employee is When will the employee’s insurance cover terminate?
assessed against Any Occupation which he or she could reasonably be expected to follow taking into
account his/her education, previous training, abilities, any rehabilitation programme and work experience to
Cover will terminate when (whichever comes first):
determine if the disability benefit may continue.
• The employer participation is cancelled
When will the employee’s benefit terminate?
• The employee leaves the employer
Where an employee is receiving an income disability benefit in terms of this plan, this benefit will • The employee leaves the qualifying employment category
terminate when (whichever comes first): • The employee reaches the Benefit Termination Age as outlined in the employer
participation certificate
• The employee recovers and is no longer occupationally disabled
• The employee dies
• The employee reaches the benefit Termination Age, as outlined in the employer participation certificate
• The employee has claimed for 24 months on the Limited Term payment pattern
• The employee has claimed for a partial impairment for 24 months
• The employee leaves the employer while receiving a partial impairment benefit
LIBERTY CORPORATE INCOME PROTECTION PLAN / 4
5 / LIBERTY CORPORATE INCOME PROTECTION PLAN
Disability and Impairment
Understanding disability and impairment
Any Occupation
Any Occupation means any occupation capable of being undertaken by an employee for remuneration or profit, irrespective whether or not such employee
is employed by the same employer or a third party employer.
Own Occupation
Own Occupation means the regular and/or normal occupation in which the employee is engaged for remuneration or profit by the employer immediately
before the occurrence of the disablement.
Impairment
This means the loss, loss of use or derangement of any body part, organ system or organ function. Permanent impairment means the further recovery of
any bodily injury, illness, disease or surgical operation is not expected in the future, and is unlikely to change in spite of further medical or surgical treatment.
Aggregation (over insurance)
Disability insurance provides a person with insurance against the loss of his/her earning capacity. It is important that the individual is not better off financially
if they claim under their policy as by offering excessive benefits, an incentive to claim could be created. Therefore the right balance is needed between
providing appropriate pay-out levels and avoid creating incentives for individuals to become disabled and avoid returning to work. Any disability benefit may
be limited in accordance with any prevailing regulations and/or limitations proposed by industry bodies
LIBERTY CORPORATE INCOME PROTECTION PLAN / 6
7 / LIBERTY CORPORATE INCOME PROTECTION PLAN
Waivers
Which additional options are available?
1. Employer Contribution and Premium Waiver The Health Premium waiver may not exceed (whichever is less)
The Employer Contribution and Premium Waiver is designed to cover the employer’s retirement • The original medical aid contribution
contribution and risk benefit premiums. • R8 500 per month (this maximum is reviewed annually)
Employers can select a percentage of the plan salary or fixed rand amount, which will escalate on the
same terms as the Income Protection Plan. The employer will use this amount to cover its retirement
3. Income Protection Plan Plus Benefit
contributions and risk benefit premiums for the disabled employee. This means that if an employee claims
for occupational disability, the employer’s retirement contributions and risk premiums will carry on as if The Income Protection Plan Plus Benefit is an extra amount contributed towards the employee’s retirement
recurring contributions and any contractual escalations were to continue being paid. fund to compensate for the loss of retirement funding. This extra amount is the difference between the
escalation of the Income Protection Plan and the plan salary increase, which the employee would have
received if they had not become disabled. The Income Protection Plan Plus Benefit starts after 24 monthly
• The retirement fund contributions are payable as long as the main benefit is being paid and there is a
disability income payments have been made, and is calculated as one-ninth of each disability income
retirement funding vehicle which the disabled employee is an eligible member.
payment.
• The risk premiums are paid as long as the main benefit is being paid and the employer is still eligible to
contribute to the original scheme in respect of the disabled employee.
4. Income Protection Plan Payback Option
The employer contribution and premium waiver may not exceed (whichever is less) The Income Protection Plan Payback Option can be selected as part of any Income Protection Plan. It pays a
lump sum to the employer once we have received and processed a valid employee disability claim.
• The specified waiver percentage in the employer participation certificate
• 35% of the plan salary
The benefit is calculated as the employees total monthly disability benefits payable, multiplied by the
• R50 000 per month (this maximum may be reviewed annually)(Level Income Protection Plan)
number of months as part of the selected waiting period for the applicable Income Protection Plan. This
• R2 900 per month (Reducing Income Protection Plan) benefit is calculated based on the main Income Protection Plan and any applicable waiver benefits.
2. Health Premium Waiver The benefit is paid to the employer along with the first monthly income and waiver benefit payment, after
The Health Premium Waiver supplements a disabled employee’s medical aid contribution, provided that the the applicable waiting period has expired and once a member’s disability claim has been accepted as valid.
employee is the main member on the employer’s sponsored or subsidised medical aid scheme. The benefit is
paid for a maximum of 24 months in the event of disability.
The cost of this option depends on the waiting period selected (one, three, six or 12 months).
• This is paid as long as:
• The main benefit is being paid
• The number of payments has not exceeded 24 months
• The employee is still eligible to contribute to the original medical aid scheme
LIBERTY CORPORATE INCOME PROTECTION PLAN / 8
“Try not to become a man
of success. Rather become
a man of value.”
- Albert Einstein
9 / LIBERTY CORPORATE INCOME PROTECTION PLAN
Benefit Exclusions
The following exclusions apply to our Income
Protection Plan. Please refer to the relevant
Policies of Insurance for full details on the
below-mentioned exclusions.
Exclusions: Income Protection Plan
No insurance cover shall be granted or disability benefits paid in respect of a claim arising as a result of a Pre-Existing Condition for which the employee
sought or should have sought treatment during the period specified in employer participation certificate.
Injury that is self-inflicted or in any way deliberately caused by the member or spouse. X
X
Alcohol consumption or the taking or application of poisons or drugs (except in accordance with a bona fide Progressive: Consumption of prohibited
prescription issued by a qualified medical practitioner). substances stipulated by the Olympic
Movement and Anti-Doping Code
Any medical treatment recommended by the member’s or spouse’s medical practitioner, or any medical doctor
recommended by us, which would be reasonable to expect the member or spouse to undergo, which is refused by X
the member or spouse.
X
Participation in any form of aviation other than as a passenger travelling between two airfields in an aircraft flown
by a duly licensed pilot. Progressive: Other than as a duly licensed
commercial pilot
Involvement in any riot, civil commotion (assuming the proportions of or amounting to an uprising or not),
X
infringement of martial law, or any act incidental to, or arising from, such an occurrence.
Exposure to atomic energy, nuclear fission or reaction, radiation, biological or chemical hazards (whether accidental
X
or not).
The member, being a pilot or aircrew by normal occupation, having his or her licence to fly withdrawn or endorsed
X
in any way, unless the member is also considered unable to follow any other suitable occupation.
Impairment due to mental health or musculoskeletal conditions during the first two years of eligibility. X
No occupational benefit in respect of mental health conditions and back impairments will be payable for a period
X
exceeding three years, unless we are satisfied that the condition resulting in the claim is still present.
These exclusions above apply as at the date of the printed brochure. Please refer to the Benefit Parameters brochure for the most recent exclusions.
LIBERTY CORPORATE INCOME PROTECTION PLAN / 10
11 / LIBERTY CORPORATE INCOME PROTECTION PLAN
Income Protection Plan
Tax Implications
As from 1 March 2015 there are changes to the Income Tax Act which affects this type of product as
follows:
• If these premiums are paid by the employer on behalf on the employee, the premiums will continue
to be taxed as fringe benefits in the hands of the employee
• These premiums will no longer be deductible from the employee’s income. The employee will
effectively be taxed on the value of the fringe benefit
• All benefit payments from these policies will be tax free
• The employer’s ability to claim a corporate tax deduction for premiums paid on behalf of the
employee remains unaffected
Terms and conditions
Please refer to the Benefit Parameters brochure for terms and conditions relating to the Income
Protection Plan. A quotation for cover contains all details relating to waiting periods, escalation rates
and their associated charges (please see the Summary of Benefits section). This benefit will only be
granted if Liberty Corporate accepts the claim as valid.
LIBERTY CORPORATE INCOME PROTECTION PLAN / 12
“Life is like one big blueprint,
if you don’t make plans then
your future will not be built”
- Rea Hayman
13 / LIBERTY CORPORATE INCOME PROTECTION PLAN
Contact details and complaints
resolution procedure
Contact us
For more information please contact your accredited Liberty financial
adviser, broker or the Liberty Corporate support centre below.
Liberty Corporate General Contact Centre
t: 011 408 2999
f: 011 408 2264
e: [Link]@[Link]
[Link]
Complaints
Complaints or comments should be directed in writing to:
The Complaints Resolution Manager Alternatively, complaints may be directed in
Liberty Corporate writing to:
P O Box 2094, Johannesburg, 2000 The Liberty Group Internal Adjudicator
t: 011 408 2771 P O Box 10499, Johannesburg, 2000
f: 011 408 4440 f: 011 408 4195
e: contactlcb@[Link] e: internaladjudicator@[Link]
If your complaint is not resolved to your satisfaction by Liberty, you may contact one of the legislative
bodies that have been tasked to look after your interests
For fund complaints: For complaints regarding a financial adviser:
The Pension Funds Adjudicator FAIS Ombud
P O Box 580, Menlyn, 0063 P O Box 74571, Lynnwood Ridge, 0040
t: 012 346 1738 t: 012 470 9080
f: 086 693 7472 f: 012 348 3447
e: enquiries-jhb@[Link] e: info@[Link]
Ombudsman for Long–term Insurance
The Honourable Mr Justice RP McLaren
Private Bag X45, Claremont, 7735
t: 021 657 5000
Sharecall: 0860 10 3236; 021 674 0951
e: info@[Link]
LIBERTY CORPORATE INCOME PROTECTION PLAN / 14
Disclaimer
The information contained in this document does not constitute financial, tax, legal or accounting advice by Liberty. Any
legal, technical or product information contained in this document is subject to change from time to time.
This document is a summary of features of the product. Whilst every attempt has been made to ensure the accuracy of
the information contained herein, Liberty cannot be held responsible for any errors that may occur.
If there are any discrepancies between this document and the contractual terms or, where applicable, any fund rules, the
latter will prevail. Any recommendations made must take into consideration your special needs and unique circumstances.
Liberty Group Ltd is an Authorised Financial Services Provider in terms of the FAIS Act (no. 2409). © Liberty Group Ltd. All
rights reserved.
Should you require any additional information, please contact Liberty Corporate directly on +27 (011) 408 2999 or visit our
head office at the Libridge, 25 Ameshoff Street, Braamfontein, Johannesburg.
