Income Protector provides insurance coverage for self-employed individuals' income by protecting against life's uncertainties. It allows self-employed people to prove their income either at the application stage or claims stage to ensure their full income is covered. Self-employed individuals can insure their real income, including some personal expenses treated as business expenses. An auditor or accountant can complete an income and expenditure form to prove income amounts.

1. Income Protector
Income Protector provides market leading cover for self-employed customers.
Liberty’s Income Protector provides you with ultimate security through protecting
your income holistically against life’s uncertainties. As a self-employed person, we know
that you face different uncertainties every day and we have designed a market-leading
solution to create greater security for you.
Market leading solutions for
self-employed customers
Greater security by providing proof of income at application
When you buy an Income Protector benefit, you have the choice of providing proof of income at application or at claims stage, unless your cover
amount exceeds a certain limit. Providing proof of income at application ensures that, should you ever need to claim, you will not need to prove
your income again. This gives you the security that your claim won’t be reduced because your cover amount is greater than your income that can be
insured, something which can easily happen when you are earning an irregular income as a self-employed person.
Self-employed individuals can insure their real income
Most insurance companies insure self-employed individuals for an income that is loosely defined as revenue less overhead expenses. The reality is
that there are some personal expenses (for example, rates on a home office) that are legitimately covered within the business and would continue to
be incurred if the business is closed as a result of being unable to work.
How can I prove my income?
An income and expenditure form can be completed by an external auditor or accounting firm to confirm your
income. It should include the practice number (SAICA OR SAIPA approved) of the auditor or accountant or their
firm. No letters from tax practitioners or bookkeepers will be accepted. This income and expenditure form can be
obtained from your Liberty financial adviser or broker.
www.liberty.co.za
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. All Risk products are underwritten by Liberty Group Ltd.
Liberty Group Ltd is an Authorised Financial Services Provider in terms of the FAIS Act (no 2409). ©Liberty Group Ltd 2015. All rights reserved.
This tends to lead to one of two challenges:
1. If the self-employed individual insures themselves in line with this
definition of income, they may be under-insured because if they
become disabled they may be responsible for paying for these
personal expenses that were previously considered
business expenses.
2. The self-employed individual over-insures themselves according
to the income definition and this often leads to cover restrictions at
claims stage.
To address these challenges:
If you provide proof of your income at application stage, you can
increase your cover amount by adding business expenses that will
become personal expenses should you be unable to work. This
addition is limited to 20% of your business expenses. Expenses
that are insured under another insurance benefit that aims to cover
business expenses cannot be included. Personal expenses that are
not related to your business cannot be included either.