Yet another innovative benefit has been launched by Liberty. The Medical Premium Protector, available from this month, ensures that a policyholder and their stipulated beneficiaries have access to the same level of private healthcare they’re accustomed to for up to ten years even after the death, permanent disability or permanent impairment of the main member.
Medical scheme contributions are a substantial portion of a household’s income and are a prime concern to a family. Also, the annual medical inflation rate is approximately 5% higher than the normal cost of living at a rate of 4.7%. Medical inflation increased by an average of 8.9% in the past 4 years and CPI increased at a lower rate of 5.5% over the same period.
Liberty’s Head of Risk Products, Henk Meintjes said, “We realised that current life insurance offerings catered well for specific needs like education and funeral costs but left the beneficiaries responsible for using a lump sum pay-out towards multiple other needs. We saw an opportunity to enable our clients, including their extended family, to ensure continued access to quality health care throughout their life journey by developing a benefit specifically aimed at paying their medical scheme contributions, for up to 10 years, when they can’t.
“This benefit, which is available on Liberty’s flagship Lifestyle Protector, ensures that nominated dependants won’t struggle to pay for quality private healthcare following the death or permanent disability or permanent impairment of the main provider,” said Meintjes.
Covers up to 16 dependants
Clients can choose how many of their dependants they want to include, up to a maximum of 16 (17 including the main member).
“Liberty covers the medical scheme contributions of up to eight adults and eight child dependants. You and your loved ones also don’t have to be on the same medical scheme and can even change providers once during the claim period, as long as it is a medical scheme that is registered with the Council of Medical Schemes,” adds Meintjes.
The benefit also protects against medical scheme contribution increases by keeping up with medical scheme contribution inflation as determined by Liberty, and is flexible to allow medical scheme changes prior to claim stage and once during claim stage. By paying the benefit directly to the scheme it reduces the administrative burden and leads to tax efficiencies.
“Clients generally use this time of year to review their medical aid scheme ahead of the new-year. Now is the time to have a discussion with your financial adviser about this benefit. An unexpected life changing event can happen to anyone,” concludes Meintjes.