Myriad Longevity Protector launch presentation Oct 2010

Navigating uncharted waters

September 2010

Pressure on retirement savings

Market volatility

Increasing life expectancy

Spiraling health care cost

Poor savings rate

Life expectancy is increasing

• Life expectancy at birth more than doubled over last 200 years• Number of centenarians increasing at 7% per year• The first person to live to 150 may already have been born• The risk of outliving your capital

Spiraling health care cost

Need for critical illness benefits

Rising medical aid

contributions

Downscaling to cheaper medical aid

options

Pressure on retirement

capital

Conventional solutions fall short

• Critical illness benefits ideal for short-term expenses• Expensive solution for long term• How much is enough?

Short-term expenses

Long-term expenses

?

Can you save enough?

Age 85 25%

Age 90 30%

Age 90 20%

Age at death Required savings

If you retire at age 65

Assumptions Start saving at age 35; retire on 75% of income Net investment return 8% Salary and RA contribution increases 5%

If you retire at age 70

The solution: work longer

Live longer

Work longer

Financial independence

But what if?

MyriadLongevity Protectors

Longevity protection

Longevity Protector – Critical illness

Longevity Protector – Disability

Longevity Protector – Income disability

Enhanced Retirement Booster




ClaimNo claim

3 x Retirement Booster



3 times bigger Retirement Booster

Typically 30% - 45% of risk premiums back at

retirement

Retirement

Boosts clients’ retirement savings, whether they have claimed or not

Enhanced Retirement Booster





ClaimNo claim




20% at age 80

Longevity Enhancer for the healthy

20% payout simply by living long

Capital injection for clients who live long; and cover remains intact

Longevity Protector - Critical illness

Case study

• Client age 45• Critical illness benefit R1 million• Level premium, 10% voluntary increase

Longevity Enhancer:

R1 600 000

Age 65

Retirement Booster:

R180 000

Age 80

The Myriad solution for the healthy

Healthy

Live longer

Boosts retirement capital





ClaimNo claim




20% at age 80Ongoing 10% every 5 years

Extends critical illness payout to last a life-time

Specified moderate

to severe critical illness event

Extra 10% every 5 years

Provides additional funding for illnesses with a long-term lifestyle impact

Longevity Protector - Critical illness

Case study

Claim Age 40 Age 45 Age 50 Age 55 Age 60

R1 000 000 R128 000 R163 000 R208 000 R265 000 R339 000

Assumptions Client claims at age 35 Benefit increase 5% p.a.

Critical illness benefit of R1 million at age 35

The Myriad solution for the “not-so-healthy”

• Super-charges critical illness benefit to last a life-time

Short-term expenses

Long-term expenses





ClaimNo claim





Up to double the benefit

Boosts disability cover by up to 100%Extra 20%

payment every 5 years after age 75

Up to 5 payments

Disability eventbefore age 60

Cost-effective additional protection

Longevity Protector - Disability

Claim amount

Age 75 Age 80 Age 85 Age 90 Age 95

Payments R3 000 000 R4 200 000 R5 400 000 R6 900 000 R8 800 000 R11 200 000

In real terms as at age 35

R600 000 R600 000 R600 000 R600 000 R600 000

Case study

Assumptions CPI 5% p.a.

Lump sum disability benefit of R3 million, claim at age 35

Boosts claim amount to 200% in real terms





ClaimNo claim






Up to 25 years longer

Client receives full

payment up to retirement age

Up to 5 payments

Up to 60 times final payment every 5 years after age 75

Disability event

Extends cover by up to 25 years

Cost-effective additional protection

Longevity Protector - Income disability

Case study

Final benefit

Age 75 Age 80 Age 85 Age 90 Age 95

Payment R86 000 R8 400 000 R10 800 000 R13 800 000 R17 600 000 R22 400 000

In real terms as at age 65

R5 200 000 R5 200 000 R5 200 000 R5 200 000 R5 200 000

Assumptions Benefit increase of 5% p.a.

Income disability benefit of R20 000 per month, claim from age 35 to age 65

Formula: (2 x years in claim)* x final benefit payment

*Capped at 60

The Myriad solution for the disabled

Poor savings & living longer

Replaces extra working years lost

Financial security

Additional value




ClaimNo claim






Up to 25 years longer

Guaranteed M

omentum

Interactive discount of 7.5%

Value proposition

10%-15%

premium

Value proposition

10%-15%

premium

7.5%

Interactive

discount

Value proposition

10%-15% premium 7.5% Interactive discount

30%–45% back at retirement

Value proposition

10%-15% premium

7.5% Interactive discount

Longevitypayments30 – 45%

back at retirement

Conclusion

• A world first• Most comprehensive protection in the market

– Pays significantly more than conventional critical illness and disability benefits

• Cost-effective boost to retirement capital• Addresses the risk of outliving your capital• Peace of mind

Myriad Longevity Protector launch presentation Oct 2010

Documents

Transcript of Myriad Longevity Protector launch presentation Oct 2010