Tapering of LSDB:

LSDB traditionally tapers off as you get closer to retirement. Instead of applying a straight reduction, Old Mutual’s new basis aligns the cover with the member’s income and time to retirement.

The disability benefit for those near retirement is calculated as – number of months to retirement x monthly income, subject to the multiple selected. The bottom line is that many members will have more cover as they approach retirement.

Removal of the waiting period on LSDB:

Old Mutual have removed the 6 month waiting period on LSDB. Now benefits are payable as soon as the claim meets the definition of disability.

Should you require more information, please contact your Associate or the office.

Thank you and regards,
The TSA Team

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