What's Happening?

Facebook Twitter Youtube Linkedin

NEED HELP? QUESTIONS@FIA.ORG.ZA

become A FIA member TODAY
member login

Liberty announces two-in-one income protection

ARTICLE BY

  • Liberty

SHARE THIS POST

More South Africans are working two jobs in order to earn multiple incomes. In July 2019, Henley Business School of South Africa (HBSA) released a study titled, “What is the future of work in South Africa? Examining the Side Hustle Economy.” More than 27% of respondents indicated that they are either involved in a Side Hustle or Side Job.  Similarly, a study by Geopoll (2017) focusing on millennials showed that 30% of South Africans have a side hustle.

South Africa is not unique in this growing trend for side hustles. International surveys have shown that 35-45% of employed individuals hold multiple jobs, and there is potential for this to grow to 50% of the work force. This is an indication that South Africa is likely to see continued growth of hustling prevalence.

The Geopoll study informs us that the most prominent reason for holding a side hustle is the additional income. Over 71% of individuals with side businesses and 65% of multiple job holders indicated that the hustle was to supplement their income. To put it into context, the survey indicates that hustlers made 19.8% to 24.2% of their total income from their side hustle, while the remainder came from formal employment, or main business if self-employed.

Considering that 20% of the formal workforce is side-hustling, with the trend likely to grow, long term cover needs to adapt to the changing needs and evolved lifestyle of many individuals in the country. The dependence on the side hustle is quite significant if one considers that it can make up almost a quarter of one’s overall income.

Liberty responds positively to this new world of work

Off the back of these emerging trends, Liberty is refreshing and updating its income protection offering – with a pioneering new change in keeping with the times. Kresantha Pillay, Lead Specialist: Lifestyle Protector at Liberty Group explains, “For the first time ever, the long-term insurance space will offer clients income protection for not just one occupation, but two – under the same policy.”

“Understanding our client’s evolving needs is core to our client centric approach, and as Liberty we are proud to be the first to offer this innovative solution to enhance our Lifestyle Protector product suite.”

Years ago, you had one job where you worked in an office cubicle from eight until five, usually the one you were trained to do after school or by family. All that has changed. Due to the freelancing revolution, more flexible jobs and tough economic circumstances, people are working multiple jobs and earning money pursuing their hobbies and passions. It’s as whole new world of work that needs to be insured in a different way.

Protection for your secondary income

Previously, policyholders with two streams of income would have to have them insured separately. Liberty recognised this created extra admin. The second income should be SARS compliant and make up 20% or more of your annual income.

“Call it a side hustle, a gig or a slash – if it gives you a secondary income, you can insure your primary and secondary income under one policy at the same time.”

How it works

Should one become disabled and unable to work, it replaces up to 100% of your primary after-tax income for up to two years after the event that caused the temporary or permanent disability – which can be extended up to retirement or beyond.

The benefit pay-outs are as follows:

  • On temporary disability – 75% of the income is paid
  • On permanent disability – 100% of the income is paid
  • After retirement – the percentage paid depends on the severity of the impairment

“South Africans are under-insured in general, but the gap is even wider when it comes to disability cover. For most South Africans, the reality is that a disability could affect your ability to earn an income and impact your quality of lifestyle. Even if your ability to do your job is only partially affected, it’s worth protecting yourself and your family, Pillay says.

Annual Bonus cover

There is even an added Bonus Cover — when policyholders receive a boost to their primary stream of income, so does the insurance coverage.   “The working world has spoken, and we have listened. Liberty’s Income Protector is the first to insure your earning capacity in this new way. Now you can follow your passions and prosperity freely,” concludes Pillay.

Notes to the editor:

The two-in-one income protection benefit will be available from Liberty as of 1 November this year. Aspiring policyholders will meet with a Financial Adviser and provide all necessary medical, financial and lifestyle information for the adviser to do Financial Needs Analysis to determine the appropriate risk cover needed. 

Subscriber Terms and Conditions

  1. APPLICATION OF TERMS
    • These terms and conditions (“Subscriber Terms”) apply to the subscription by any qualifying member of the South African Underwriting Managers Association NPC (“SAUMA”) to the services and benefits offered by FIA Services (Pty) Ltd (“FIA Services”) under the SAUMA affiliation arrangement (“Subscription”).

  2. NATURE OF SUBSCRIPTION
    • A Subscription under this arrangement:
      • does not constitute membership of FIA NPC;
      • does not confer any voting rights or governance participation in FIA NPC; and
      • is governed solely by the contractual relationship between the Subscriber and FIA Services.

  1. ELIGIBILITY
    • To qualify for the Subscription, the applicant must, at the time of application, be a current paid-up member of SAUMA.
    • FIA Services will verify the applicant’s SAUMA membership status with SAUMA prior to activation, and may re-verify such status periodically.
    • If a Subscriber ceases to be a paid-up member of SAUMA, the Subscription will correspondingly be terminated.
    • Applicants are required to authorise FIA Services to confirm their SAUMA membership status with SAUMA as part of the application process.

  1. SERVICES
    • The Subscription entitles the Subscriber to the following benefits:
      • Complimentary access to the FIA CPD Platform;
      • Complimentary access to the FIA Insight Magazine (digital edition);
      • Advertising opportunities on FIA platforms at a discounted rate of 15% (fifteen percent) off the prevailing published rates; and
      • Invitations to attend FIA Technical Webinars annually.
    • FIA Services reserves the right to update, vary or substitute the Services from time to time, provided that the overall value and nature of the benefits remain materially the same.

  1. FEES AND PAYMENT
    • The monthly subscription fee is R260.00 (two hundred and sixty rand) for up to seven registered individuals (Key Individuals and Representatives), and R36.00 (thirty-six rand) per additional registered individual thereafter, excluding VAT.
    • The Subscriber shall provide FIA Services with the required details of each individual to be registered under the Subscription for the purposes of activation and billing.
    • All fees are exclusive of VAT, which shall be charged at the prevailing statutory rate.
    • Subscription fees are reviewed annually in March and may be adjusted with effect from 1 April.
    • Any changes to the Subscription, including but not limited to the number of Representatives and Key Individuals registered under the Subscription, may only be effected once annually during the annual review period in March of each year, with such changes taking effect from 1 April.
    • Subscription fees shall be billed monthly in arrears, unless the Subscriber elects an annual billing cycle at the time of application.
    • The Subscriber shall ensure that all billing information (including contact details, authorised signatories and bank account details) is kept accurate and up to date.
    • Non-payment of subscription fees may result in suspension of access to the Services until such fees are brought up to date.
    • The Subscriber acknowledges and agrees that all subscription fees payable under these Subscriber Terms may be collected by way of debit order, which shall be processed by the holding company, FIA NPC (The Financial Intermediary Association of South Africa), on behalf of FIA Services. Payment to FIA NPC shall be deemed to constitute valid and sufficient discharge of the Subscriber’s payment obligations to FIA Services under these Subscriber Terms.

  1. ONBOARDING
    • Onboarding will be conducted as a Subscription with FIA Services under the SAUMA affiliation arrangement.
    • Onboarding will not confer FIA NPC membership status or any associated rights.
    • Onboarding is conditional on confirmation of the Subscriber’s current SAUMA membership at the time of application

  1. DATA PROTECTION
    • FIA Services will process all personal information in accordance with the Protection of Personal Information Act 4 of 2013 (POPIA) as set out in our POPIA policies.
    • By subscribing, the Subscriber authorises FIA Services to confirm their SAUMA membership status with SAUMA and to process personal information for the purposes of fulfilling the Subscription.

  1. TERMINATION
    • The Subscriber may terminate the Subscription by giving FIA Services one calendar month’s written notice.
    • FIA Services may terminate the Subscription on one calendar month’s written notice, or immediately if the Subscriber breaches these Subscriber Terms and fails to remedy such breach within 14 (fourteen) days of receiving written notice.
    • Termination of the SAUMA–FIA Services affiliation agreement shall not automatically terminate these Subscriber Terms.
    • Termination by the Subscriber shall not relieve the Subscriber of liability for any subscription fees accrued up to the effective date of termination.
    • FIA Services may suspend or terminate the Subscription with immediate effect in the event of non-payment of fees by the Subscriber.

  1. GENERAL
    • These Subscriber Terms are governed by the laws of the Republic of South Africa.
    • Any disputes arising under these Subscriber Terms shall be dealt with in accordance with the dispute resolution provisions contained in the FIA NPC membership terms and conditions, as modified to reflect that the contractual relationship is with FIA Services.
    • Any notices required under these Subscriber Terms may be validly delivered by email to the addresses provided in the Subscriber’s application form, and such notices shall be deemed received on the day of transmission if sent during business hours.
    • The Subscriber may not assign, cede or transfer any of its rights or obligations under these Subscriber Terms without the prior written consent of FIA Services.
    • No variation of these Subscriber Terms shall be of any force or effect unless reduced to writing and signed by both FIA Services and the Subscriber.