Claim Statistics January to December 2008 R2.03 billion Total Risk Claims January to December 2008 Every day people take up policies with Liberty Life, putting their trust in us to be there for them should an unplanned event negatively affect their lives. Therefore, Liberty Life proudly presents you with our claim statistics tangible evidence that we are worthy of your trust. When Liberty Life first published its claim statistics, we did it with the conviction that our customers have the right to know the figures, whether good or bad. Seeing the value in such openness and honesty, our insurance counterparts soon followed suit. We thank them for following our example and proving that we do pay claims and care for our clients. Because at the end of the day, a tragic event in your life can either be the beginning of the end or the beginning of a new life. A life insurance settlement becomes the means to help you or your loved ones come to terms with a new reality, to continue the story of your life in spite of tragedy. And that s why the numbers matter, because the people whose lives they touch are priceless. 1
R1.57 billion was paid out to the beneficiaries of policyholders who have lost their lives during 2008, while Liberty Life settled R456 million on dread disease and disability claims. These are staggering amounts, but at Liberty Life we take comfort in these numbers because we know that we have made a difference in people s lives, whether it be helping a loved one carry on with their life or helping those affected by disease or disability continue with their lives the way they had intended or dreamt of. 2
Claim Statistics January to December 2008 During 2008, Liberty Life paid out R2.03 billion in risk cover claims From January to December 2008, Liberty Life paid out R2.03 billion in risk cover claims, of which: Lifestyle Protector Claims R1.14 billion for death claims R199 million for dread disease claims R175 million for lump sum disability claims R30 million for income disability claims* Capital Alliance Claims R200 million for death claims R31 million for lump sum disability claims R6 million for income disability claims* Liberty Active Claims R230 million for death claims R15 million for lump sum disability claims * Income disability claims include premiums waived and overhead expense benefit. 3
Claim Statistics January to December 2008 Amy s story R30 million Lifestyle Protector claim Cancer was probably the furthest thing from Amy Smith s 1 mind when she took up Life Cover of R20 million, an Impairment Plus benefit worth R8 million as well as a Living Lifestyle Plus benefit of R2 million. Less than a year later, in May 2008, Liberty Life settled a total claim of R30 million under her combined Lifestyle Protector policy. The claim consisted of the following benefits: A Terminal Illness benefit 2 of R20 million The Impairment Plus benefit paid R8 million for cancer The full Living Lifestyle portion of the claim amounted to R2 million Within ten months, the lives of Amy and her loved ones were irreversibly changed. It is our hope that the R30 million claim settlement allowed them the financial freedom to come to terms with this tragedy in their own time. 1 Names have been changed to protect the identities of the involved parties. 2 A Terminal Illness benefit is included with Life Cover. This means you can choose to have 100% of your Life Cover paid out on diagnosis of a terminal illness if life expectancy is less than 12 months. After the 100% payout the Life Cover benefit ceases. 5
R257 million Total Disability Claims* 2008 * Amount includes lump sum disability and income disability claims for Lifestyle Protector, Capital Alliance and Liberty Active claims. Breakdown of Lifestyle Protector disability claims by cause Trauma 18% 18% 14% Cancer Skeletal 25% 4% 7% 7% 7% Cardiac Stroke Mental Arthritis Others* *Others: Respiratory, Surgery, Parkinson s Disease, AIDS, Diabetes, Ear Disorders, Deafness, Fibromyalgia, Narcolepsy, Epileptic, Paraplegia, Renal, Multiple Sclerosis, Vision, Alzheimer's Disease, Huntington s Disease, Muscular Dystrophy, TB and miscellaneous causes. 6
Claim Statistics January to December 2008 Disability claims A serious illness, injury or disability often affects one s ability to earn an income. During these difficult times, you need financial assistance to help ease the burden. The Loss of Income Protection options from Liberty Life help you provide for your family when you ve lost your ability to earn an income through some sort of disability or impairment, enabling you to still provide for the life that you worked for your family to have. Our comprehensive range of Disability benefits gives you the option of choosing the cover that best suits your needs in life. Breakdown of Lifestyle Protector disability claims by age Claims settled 23% 36% 32% 6% 3% 21-30 31-40 41-50 Age 51-60 60+ Male/female breakdown Males 73% Females 27% 7
Jo s story Multiple claims Jo da Silva 1 and his motorbike came as a packaged deal inseparable. Which made it all the sadder when he sustained severe head injuries in a motorbike accident. Fortunately, Jo had Income Disability, Living Lifestyle Plus and Absolute Protector Plus benefits from Liberty Life. Thus far, Jo has received the following payouts: R377 817 under his Living Lifestyle Plus benefit for the time he had spent in a coma R3 258.58 per month under the Income Disability benefit The Absolute Protector benefit will be assessed as soon as Jo has completed rehabilitation in order to determine whether the condition is permanent or not. 1 Names have been changed to protect the identities of the involved parties. 8
Janette s story R3 544 049 Impairment claims Cancer rewrites the life stories of many families. As was the case with Janette MacKenzie 1, who was diagnosed with sarcoma 2 and lung metastases 3 in June 2008. Her Liberty Life Terminal Illness 4, Impairment Plus and Living Lifestyle benefit claims amounted to a R3 544 049.40 settlement. Janette initially received a 25% payout under her Impairment Plus benefit; this benefit was later reviewed and her claims were adjusted to a 100% settlement. 1 Names have been changed to protect the identities of the involved parties. 2 Sarcoma is a malignant tumour. 3 Lung metastases means that the cancer has spread to the lungs. 4 A Terminal Illness benefit is included with Life Cover. This means you can choose to have 100% of your Life Cover paid out on diagnosis of a terminal illness if life expectancy is less than 12 months. After the 100% payout the Life Cover benefit ceases.
R199 million Total Dread Disease Claims 2008 Breakdown of Lifestyle Protector dread disease claims by cause 16% 8% 46% 30% Cancer (of which breast cancer accounted for 16% of all dread disease claims) Cardiac Stroke Others* *Others: Coma, Respiratory, Multiple Sclerosis, Renal, Liver Disorders, Benign Brain Tumour, Aneurism, Blindness, Parkinson's Disease, Burns, Diabetes, AIDS, Trauma. 10
Claim Statistics January to December 2008 Dread disease claims How will you rebuild your life when you are diagnosed with a dread disease? In 2008, the Liberty Life policyholders who were diagnosed with cancer, the number one reason for dread disease claims, relied on their Lifestyle Protection insurance payouts to help see them through turbulent times. The Living Lifestyle benefit from Liberty Life helps you provide for the high costs associated with surviving and recuperating from a dread disease or unexpected traumatic event. It gives you and your family the peace of mind you need to be able to concentrate on recovering from your illness. Breakdown of Lifestyle Protector dread disease claims by age Claims settled 3% 18% 35% 37% 7% 21-30 31-40 41-50 Age 51-60 60+ Male/female breakdown Males 70% Females 30% 11
Lesego s story R428 490 Absolute Protector claim Lesego Elias 1 devoted her life to the care of others. But then she suffered an injury on duty that left her incapable of performing her duties as a nurse. Her Absolute Protector benefit claim amounted to R428 490, giving her the financial breathing space to decide what she wants to do with the rest of her life. 1 Names have been changed to protect the identities of the involved parties. 12
Susan s story R6 122 056 Terminal Illness Benefit claim Like the rest of us, Susan Williams 1 took up risk cover under her two Lifestyle Protector policies in the hope that she would never need it. However, motor neuron disease took its toll on Susan, and Liberty Life is currently settling her Terminal Illness benefit 2 claim for R6 122 056. 1 Names have been changed to protect the identities of the involved parties. 2 A Terminal Illness benefit is included with Life Cover. This means you can choose to have 100% of your Life Cover paid out on diagnosis of a terminal illness if life expectancy is less than 12 months. After the 100% payout the Life Cover benefit ceases.
Claim Statistics January to December 2008 Frank s story R6 741 694 multiple claims The fragility of life is especially evident when faced with extreme illness. Besides suffering from tuberculosis of the spine, Frank Goldman 1 also had a stroke and various other health complications. He also had Living Lifestyle Plus and Absolute Protector Plus benefits from Liberty Life. Frank initially received 25% of his Living Lifestyle Plus benefit. In November 2008, his claim was reassessed and when it was determined that Frank would not recover, the remaining 75% Living Lifestyle Plus benefit was paid in full, to the total value of R3 180 733. Frank s total benefit payout amounted to R6 741 694 under his Living Lifestyle Plus benefit and the Occupational Disability category of his Absolute Protector Plus benefit money that will help make his life as comfortable as possible, as well as take care of his family. 1 Names have been changed to protect the identities of the involved parties. 15
Claim Statistics January to December 2008 Repudiated & declined claims When taking up life insurance it is imperative that you provide all the required personal details as honestly as possible; failure to do so, may result in the rejection of a claim. A claim might also be rejected if a specific event such as suicide is excluded under the policy. However, you have the assurance that Liberty Life follows a thorough assessment process for every claim to make sure that we have done everything possible to settle a claim, rather than decline or repudiate it. To help avoid the decline or repudiation of a claim, familiarise yourself with the full set of criteria for claiming that applies to your specific policy. Reasons why Liberty Life repudiated or declined claims during 2008 64.3% Percentage 25% 7.1% 3.6% Non-disclosure Suicide cases Reason Cases not issued Pre-existing condition Of the repudiated and/or rejected claims referred to the Ombudsman over the past six years, an average of 96% of cases has been resolved in Liberty Life s favour. 17
Claim Statistics January to December 2008 Mike s story Ongoing EduCator claim Nothing was more important to Mike Dube 1 than his children s education. That s why Mike took up an EduCator risk benefit with his Life Cover under his Lifestyle Protector Policy. In November 2007, an ordinary day turned to tragedy when Mike fell into the family pool and subsequently drowned. Thanks to Mike s provision, his family received the following claim settlement from Liberty Life: The Life Cover claim amounted to a R5 475 000 settlement. The EduCator risk benefit continues to fund the school fees for Mike s children, having already paid R7 000 and R8 050 per annum respectively per child for their 2008 and 2009 government school fees. The EduCator risk benefit will continue to fund the children s education until they have finished their first university degrees. 1 Names have been changed to protect the identities of the involved parties. 19
Simon s story R900 000 early claim Only one month after Simon Khumalo 1 took up Life Cover with an Immediate Expenses benefit 2, an Impairment benefit, as well as a Living Lifestyle with Top-up benefit, he lost his life at the scene of his motorbike accident. Within a month of his death, his beneficiaries received a R900 000 claims settlement from Liberty Life. 1 Names have been changed to protect the identities of the involved parties. 2 The Immediate Expenses benefit pays out within 48 hours of receipt of a claim in the event of the death of the life assured. If selected, this benefit covers a maximum of R50 000 or 10% of the total of the Life Cover and Renewable Life Cover sums assured. 20
Alice and Kevin s story R6 000 000 joint Life policy claim Towards the end of 2008, a helicopter accident claimed a terrible toll: Alice and Kevin Harris 1 and their family died in the crash. Alice and Kevin s Death benefit on their joint Life policy have since amounted to settlements of R3 000 000 on each of their lives, which were paid out to their family members. 1 Names have been changed to protect the identities of the involved parties.
Let Liberty Life help you continue your story Lifestyle Protector from Liberty Life offers you and your loved ones a comprehensive choice of benefits that will help you rebuild your lives if, or when, tragedy strikes. The Lifestyle Protector range consists of: Life Protection covers you and your family upon your death and against the financial impact that this will have on your surviving family, for example having to deal with an expensive terminal illness or the inevitable costs of family funerals. Loss of Income Protection protects you against losing your income through disability or impairment that prevents you from earning a living. Lifestyle Protection helps you provide for the costs associated with surviving and recuperating from a dread disease or unexpected traumatic event. Options exist to extend this cover with specific female- and child-related dread disease benefits. Policy Protection helps you prevent losing or being denied access to appropriate levels of cover in the future, either because of a temporary inability to make contribution payments, or because your health circumstances may have changed. With Liberty Life s wide-ranging protection options, you are free to live your life with the certainty that in times of need, we will provide you with the financial means to gather and reconnect the strands of your life s story. If you would like to find out more about life insurance products from Liberty Life and how they can help you live the story of your life, speak to your Liberty Life financial adviser or contact our call centre on 0860 456 789. 22
Lesoba Difference 10532 Any legal, technical or product information contained in this document is subject to change from time to time and is not to be construed as advice by Liberty Life. This document is a summary of features of the product. 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 specific needs and unique circumstances. Liberty Group Ltd is an Authorised Financial Services Provider in terms of the FAIS Act (Licence no 2409). IR/2008/00001