LIFESTYLE PROTECTOR LIVING LIFESTYLE

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1 LIVING LIFESTYLE

2 Top five reasons to have Living Lifestyle 1 Living Lifestyle is a market-leading benefit on the Lifestyle Protector product It provides comprehensive coverage and financial security for more than 150 different critical illnesses and trauma-related events. 2 Medical Advancements Protection (MAP) is a revolutionary, market first feature It is automatically included free of charge. It helps to give you peace of mind that your cover remains relevant into the future by allowing claims to be paid on new medical assessment criteria, procedures or surgeries, where these have replaced the ones specified in the original cover you purchased. 3 Great new Living Lifestyle improvements New claims definitions have been added for conditions and illnesses that were not previously listed. Higher payout percentages for certain critical illness conditions. Certain existing definitions have changed to ensure the highest standards of objectivity and transparency and to take account of medical advancements in recent years. 4 Full flexibility to tailor your benefit Provide cover for even more conditions through the Extended Option and/or increase the payout percentages for certain claim conditions to 100% with our Top-Up Option. You can choose cover up to age 65 or for your entire life. Different versions of cover allow you to decide up front whether claims will reduce life cover or not. 5 The most comprehensive Catch-All benefit category available in the market Is automatically included free of charge. Now includes criteria to make a claim for Terminal Illness. Now includes Activities of Daily Living criteria at multiple payout levels in the benefit category.

3 LIVING LIFESTYLE 1 LIVING LIFESTYLE Liberty s Living Lifestyle benefit is the unparalleled benchmark for critical illness cover in South Africa. The multiple cover options give you complete control to suit your needs and your pocket. With innovative features like the Catch-All benefit category and Medical Advancements Protection you can take comfort in knowing that you and your family have the highest levels of financial security available. Liberty s Living Lifestyle benefit is a market-leading, comprehensive and flexible benefit on the Lifestyle Protector product. It provides financial security as it pays out a cash lump sum if you suffer a critical illness or traumatic health event. Being diagnosed with a critical illness is a life-changing event which may require you to make substantial lifestyle adjustments that can have significant financial implications. Living Lifestyle has a number of automatic built-in features such as the Catch-All benefit category and the innovative Medical Advancements Protection (MAP) feature which provides you with the additional comfort that your benefit will stay up to date with medical advancements. In addition, there are options which you can add to your cover to increase your payouts and extend your cover to include less severe illnesses. You can even choose to add some further benefits specific to females and children. Anyone can suffer a critical illness. The chances of such an event are related to factors such as your age, gender, family history and lifestyle (diet and smoking for example). A critical illness such as motor neurone disease or an unfortunate traumatic health event such as a stroke raises the question - would you be able to cope financially if it happened to you? Life is full of responsibilities: let us guide you in making the choices that will give you peace of mind that you have provided for your lifestyle should you experience one of these events.

4 2 LIVING LIFESTYLE WHY DO I NEED IT? Not everything in life can be controlled, but you can plan for the unexpected. How can Living Lifestyle work for me? When you are diagnosed with a serious illness, your quality of life can be reduced significantly, and you are likely to incur considerable additional lifestyle adjustment expenses. Imagine you were diagnosed with multiple sclerosis. This may put severe pressure on your finances as you modify your house to cope with your new condition. What if your chosen specialist did not live in your area, and you needed to pay for airfares and accommodation costs each time you needed to see them? Consider that many critical illnesses may result in you needing to hire a caregiver to look after you temporarily or even permanently. Our Living Lifestyle benefit helps to protect you against these financial risks, and provides you with a cash payout should you suffer one of the specified critical illnesses or trauma events. Liberty gives you the knowledge and products you need to take care of your responsibilities with confidence that you have comprehensively prepared for tomorrow. What are the chances of it happening? You may consider yourself a fairly healthy person and believe that your chances of suffering a critical illness are relatively low. However, the most common critical illnesses suffered are cancer and heart attacks, and the chances of suffering one of these before age 70 is higher than you may think. If you became critically ill what would that do to your finances?

5 LIVING LIFESTYLE 3 What are the chances of a 30 and 45 year old suffering a heart attack or cancer? Smoker: Chances of suffering a heart attack or cancer before 70* 1 in 5 men 2 in 5 men 1 in 6 men 1 in 3 men CANCER 30 Year Old HEART ATTACK 30 Year Old CANCER 45 Year Old HEART ATTACK 45 Year Old 1 in 6 women 1 in 9 women 1 in 7 women 1 in 9 women Non-smoker: Chances of suffering a heart attack or cancer before 70* 1 in 7 men 1 in 5 men 1 in 7 men 1 in 6 men CANCER 30 Year Old HEART ATTACK 30 Year Old CANCER 45 Year Old HEART ATTACK 45 Year Old 1 in 7 women 1 in 20 women 1 in 8 women 1 in 20 women *Approximate figures

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7 LIVING LIFESTYLE 5 HOW IT WORKS At Liberty we know that there are numerous critical illnesses that may afflict you. Confidently protect your lifestyle in the event of a critical illness or sudden traumatic event with our market leading Living Lifestyle benefit. How does the Living Lifestyle benefit fit into Lifestyle Protector? Our protection is grouped into four pillars, each covering a different set of risks that you may face. One of these pillars is Lifestyle Protection, which includes benefits that help you protect yourself against the risk of being burdened with the cost of surviving and recuperating from some form of critical illness or unexpected traumatic event. The Living Lifestyle benefit is included in this pillar. How does the Living Lifestyle benefit work? Over 150 conditions are covered by the Living Lifestyle benefit. The conditions covered are grouped into 31 different categories (known as benefit categories) and include cover relating to cancers, heart diseases, strokes and paralysis, to name a few. We even include a Catch-All benefit category to ensure that, if you suffer a serious illness which cannot be assessed under the other benefit categories, you may still qualify for a claim (see the section on the Catch-All benefit category for more information).

8 6 LIVING LIFESTYLE Over 150 conditions are grouped into 31 benefit categories. Stroke (cerebrovascular incident) Multiple sclerosis Motor neurone disease Parkinson s disease Myasthenia gravis Alzheimer s disease and progressive dementia Coma Other central nervous system disorders Respiratory disorders Cardiac and cardiovascular* Catch-All benefit category Eye disorders Ear, nose and throat disorders* Speech disorders* Major burns Traumatic injuries including - Head and neck injuries - Spinal injuries - Coma Paralysis Endocrine conditions Gastrointestinal disease* Pancreatic disorders Renal disorders Chronic liver disorders Urogenital disorders Accidental HIV AIDS Cancer* Loss of and loss of use of limbs* Muscular dystrophy Rheumatoid arthritis Aplastic anaemia and other blood disorders Other autoimmune disorders *Recently improved payouts New and adjusted claim definitions included

9 LIVING LIFESTYLE 7 Top-Up and Extended Options High 100% Living Lifestyle Benefit: Comprehensive coverage against critical illnesses and trauma events. Percentage Payout Top-Up Option: Additional security through higher payouts for certain conditions. Extended Option: Additional security through coverage of less severe conditions. Low 0% High Severity Low How much will I be paid? How can I enhance my cover? The cash payout you receive after suffering a condition will be a percentage of the cover amount and will depend on how severe your condition is. A more serious condition typically results in higher lifestyle adjustment costs while a less severe condition may have less of a financial impact. Payouts linked to the severity of the condition allow for a much wider range of conditions to be covered than a product which would always pay the full cover amount. Living Lifestyle payouts relative to the minimum industry standards are shown in the Appendix. How can I top up and extend my cover? You can enhance your cover with the Top-Up and Extended Options. The Top-Up Option increases the claim payout to 100% for certain conditions where a smaller percentage of the cover amount would otherwise have been paid. With the Extended Option, you will be eligible for additional smaller payouts for less severe conditions. With Living Lifestyle and Living Lifestyle Plus, Liberty s flagship critical illness benefits, we also offer critical illness benefits designed especially for women in their child bearing years and for children. --Female Living Lifestyle. Even if a woman is in peak physical health at the time she falls pregnant, she still runs the risk of suffering complications relating to the pregnancy or the birth of her child. Liberty s specially designed Female Living Lifestyle benefit helps to protect against the financial impact associated with serious birth-related and pregnancy complications, and also covers major congenital birth defects. This benefit is taken in combination with either our Living Lifestyle or Living Lifestyle Plus benefit available on the Lifestyle Protector product. --Child Living Lifestyle. Liberty s Child Living Lifestyle benefit has been designed specifically for children and provides you with some financial relief in the unfortunate circumstance that your child is diagnosed with one of 12 child critical illness. This benefit is taken in combination with either our Living Lifestyle or a Living Lifestyle Plus benefit to provide a comprehensive lifestyle protection solution for you and your dependants.

10 8 LIVING LIFESTYLE Comprehensive critical illness cover scenario. Simon, an engineer, was initially reluctant to purchase any critical illness cover. However, after his financial adviser highlighted the financial implications to his family and lifestyle of not purchasing cover, he decided to buy the Living Lifestyle benefit. Family man Simon considers possible life scenarios. What if... Simon was involved in a fire and suffered third degree burns involving one third of his body surface? Simon would be paid 100% of his Living Lifestyle cover amount as specified in his policy document. Or what if... Simon s burns were less severe and only involved 15% of his body surface? Simon s Living Lifestyle benefit would pay 50% of his cover amount. If Simon selected the Top-Up Option as part of his cover, his claim payment would be topped up to 100% of his cover amount instead of the standard 50% payment. Or what if... Simon s burns only involved one of his hands? If Simon selected the Extended Option, these less severe burns would be covered and he would receive 10% of his cover amount. Cover options to suit your pocket. For affordability, you can choose to allow any claim payments to reduce your life cover with the Living Lifestyle benefits. Or, you can choose a more comprehensive version called Living Lifestyle Plus. In this case any claim payments will not affect your life cover and it offers greater opportunities to claim more than once on the benefit. You can also select whether your cover will end at age 65 or if you want your cover to continue for the rest of your life. Will I be able to claim more than once? You may be able to claim more than once on your Living Lifestyle benefit. The way in which your subsequent claim amounts are determined depends on two critical factors: Your choice of cover option, Living Lifestyle or Living Lifestyle Plus and Whether the next critical illness you are claiming for is medically or otherwise related to the original condition you previously claimed for.

11 LIVING LIFESTYLE 9 Living Lifestyle: Multiple claim example. R R R R 0 Initial cover amount 100% Claim 1 50% severity level Claim 2 100% severity level (100% minus 50% already paid for previous related claim) 0% cover for claims (100% paid out already) Living Lifestyle Plus: Multiple claim example. R R R R 0 R Initial cover amount 100% Claim 1 50% severity level Claim 2 100% severity level (100% minus 50% already paid for previous related claim) 0% cover for claims related to previous claims (100% paid out already) 100% cover amount reinstated at claim for future totally unrelated claims Other important special rules when claiming. 1. For the Living Lifestyle Plus benefits you must survive for at least 14 days from the date of the diagnosis of the condition to qualify for a claim payment. This is called the survival period and does not apply to the Living Lifestyle benefit. 2. In order to claim, your condition will need to fully comply with the claim definition specified for the condition. There are general policy exclusions and specific exclusions which apply within each of the benefit categories. Please speak to your Liberty financial adviser or broker if you need more information about the requirements needed to claim as well as any claim exclusions.

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13 LIVING LIFESTYLE 11 MEDICAL ADVANCEMENTS PROTECTION (MAP) We are committed to providing critical illness cover that evolves with medical advancements, so that your cover remains relevant into the future. The Living Lifestyle benefit covers specific medical conditions which are associated with explicit claim definitions. These definitions help to determine the level of severity of the health conditions, and whether a payout should be made and how much will be paid out. At Liberty we endeavour to ensure that life goes on as you have always intended. To ensure that the definitions are objective and transparent they are often based on a specified medical classification system, medical diagnostic test, or medical surgery or procedure. While these claim definitions might be appropriate at the time the policy is bought, there is a risk over time that medical advancements might lead to the criteria becoming outdated. This is why we have developed the market s first and innovative MAP feature. This helps to give you peace of mind that your cover remains relevant into the future by allowing claims to be paid on new medical assessment criteria, procedures or surgeries where these have replaced the ones specified in the original benefit you purchased.

14 12 LIVING LIFESTYLE What are the requirements to claim through MAP? New medical procedures will automatically qualify for claims payments with Liberty's unique MAP. For a claim to be considered through MAP, some requirements need to be met 1 : General requirements The specific claim definition is eligible for MAP coverage2. The old classification system, diagnostic test and investigation, surgery or procedure has been replaced by the new classification system, diagnostic test and investigation, surgery or procedure3. The diagnosis, severity level and medical symptoms are the same as would have been required to receive a payout under the original claim definition in your policy. and Additional requirements in the case of outdated surgeries and procedures The new surgery or procedure is not experimental, is medically necessary, and medically the same as or superior to the original surgery or procedure, and At least one of the following must be true: 1. The level of invasiveness of the new surgery or procedure is the same as the original surgery or procedure, or 2. The average person would be booked off work for at least three weeks to undergo and recover from the surgery or procedure, or 3. The residual impact on your physical or mental abilities is similar to the residual impact that the original surgery or procedure would have caused. Additional requirement in the case of outdated diagnostic tests and investigations The new diagnostic or investigative test parameters must reach a level that implies a severity that is at least equivalent to or worse than implied by the original diagnostic or investigative test. 1 - Requirement must be met in the opinion of Liberty s Chief Medical Adviser. 2 - For each condition, the policy document lists whether the specific claims criteria is covered by MAP. 3 - Must be supported by the appropriate published medical literature.

15 LIVING LIFESTYLE 13 Which claims will not be covered under MAP? In addition to the claims which do not meet the stated requirements, MAP will not cover claims relating to medical or surgical procedures which are considered preventative or which are already covered at a lower payout level. Claims relating to conditions which have been identified as a result of screening tests (e.g. genetic tests), but where there are no medical symptoms of the illness or condition, will also not be covered under MAP. MAP scenario: Naomi buys the Living Lifestyle Plus benefit as the MAP feature is automatically included in her cover. How MAP protects Naomi. Naomi buys the Living Lifestyle Plus benefit. 15 years later Naomi is diagnosed with an arrhythmia (irregular heart beat). The original claim definition requires that she has a defibrillator insertion to qualify for the highest severity level payment. If Naomi had suffered the condition immediately after the purchase of the benefit she would have undergone the defibrillator insertion. But suppose that, 15 years later, a new procedure, which does not involve defibrillators, has been developed, and has become the accepted medical standard for dealing with her condition at the required severity level. The new procedure is still medically necessary and is medically superior to the defibrillator. It also usually requires at least three weeks to be taken off work to undergo and recover from. As Naomi s claim meets the requirements for MAP, she still receives a claim payment for her condition despite the fact that the medical procedure she has undergone was unknown at the time she purchased her Living Lifestyle Plus benefit.

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17 LIVING LIFESTYLE 15 C atch -All Benefit category The Liberty Catch-All feature was the first of its kind in the industry, providing comprehensive financial protection against those unknown and rare critical illnesses. There are numerous critical illnesses that may afflict you. Some of these might not have even been discovered as yet. This makes it impossible to list each and every critical illness against which the Living Lifestyle benefit is intended to provide financial protection. To help protect you against the risk that you suffer a rare or unknown critical illness that is not explicitly covered by your Living Lifestyle benefit, we automatically include the Catch-All benefit category at no additional charge. If a claim arises which cannot be assessed under the other 30 specified benefit categories, we will assess the claim under this Catch-All benefit category. Qualify in one of three ways. 1 You are permanently unable to perform certain specified activities of daily living in categories such as communication, movement, self-care and cognition. You could qualify for either a 50% or 100% payment depending on which activities you are unable to perform. 2 You are diagnosed with a terminal illness with a life expectancy of less than 12 months. 3 You are functionally impaired. Impairment is a permanent loss of function in any part of the body whether it is physical, functional or mental. Your claim will be assessed on the medical severity of the impairment you suffer. This will be based on the Whole Person Impairment (WPI) criteria to qualify for a claim you need to have a WPI of at least 35% or more and meet the class 4 impairment criteria as specified in the American Medical Association guidelines. Simplified examples of Whole Person Impairment: 0% 40% 60% 90% 100% WPI = normal and healthy WPI = loss of function of lower extremity WPI = loss of function of upper extremity WPI = dependent on others for care WPI = approaching death

18 16 LIVING LIFESTYLE FREQUENTLY ASKED QUESTIONs Do the Living Lifestyle benefits provide the same cover as income protection or disability cover? No. Income protection insurance will help you to protect yourself against losing your income due to an injury, illness or accident which prevents you from working. These payments will help to replace part or all of your income but it won t help in meeting the additional lifestyle adjustment costs that suffering a critical illness might give rise to. The requirements to claim on income protection cover and critical illness cover are also normally very different and so there are many situations in which you might suffer a critical illness, but would not qualify to make a claim on your income protection cover. This means that the cover provided by Living Lifestyle and that provided by income protection insurance do not meet the same financial need. To ensure that you have full financial protection to meet your needs, you would need to consider both income protection and critical illness protection cover. Do the Living Lifestyle benefits provide the same cover as medical aid? No. Medical aids will help you to pay for medical expenses connected with any illness. However medical aids will not pay for the non-medical, yet necessary, lifestyle adjustment costs which might arise as a result of you suffering a critical illness. Therefore the cover provided by the Living Lifestyle benefit is completely different from the cover provided by a medical aid. Liberty is committed to providing you and your family with flexible, comprehensive choices so life can be lived as it is meant to be. Speak to your Liberty financial adviser or broker, call us on , or visit

19 LIVING LIFESTYLE 17 APPENDIX SCIDEP payout grids for Living Lifestyle. The Living Lifestyle and Living Lifestyle Plus benefits comply with the Standard Critical Illness Definitions Project (SCIDEP) of the Association for Savings and Investment SA (ASISA). This ensures that the Living Lifestyle benefit criteria are objective and consistent with the minimum industry standards adopted. Living Lifestyle - SCIDEP severity levels percentage of sum assured payable Event A B C D Most severe* Moderate impairment* Mild impairment* Almost full recovery* Heart attack 100% 75% 50% 25% Coronary Artery By-pass Graft (CABG) 100% 75% 50% 50% Stroke 100% 75% 50% 25% Cancer 100% 100% 50% 25% Living Lifestyle with Top-Up Option - SCIDEP severity levels percentage of sum assured payable Event A B C D Most severe* Moderate impairment* Mild impairment* Almost full recovery* Heart attack 100% 100% 100% 100% Coronary Artery By-pass Graft (CABG) 100% 100% 100% 100% Stroke 100% 100% 100% 100% Cancer 100% 100% 100% 100% *As specified by ASISA definitions

20 For more information please contact your Liberty financial adviser or broker, contact our call centre on or visit Liberty Liberty Group Limited Registration number 57/02788/08 1 Ameshoff Street, Braamfontein PO Box 10499, Johannesburg 2000 Disclaimer The information contained in this document does not constitute 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 the features of the product as at the time of publication. If there are any discrepancies between this document and the contractual terms and conditions or, where applicable, any fund rules, the latter will prevail. Any recommendations made must take into consideration your specific 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.