PROFITS FOR
MEMBERS.

Now that’s what you call putting Members first.

Most life insurers allocate their profits to their shareholders.

But we’re different. As a mutual we don’t have shareholders. Which means we’re free to share our profits with the people who genuinely contribute to our success, our Members.

HOW OUR PROFIT- SHARE WORKS

Every Member contributes. Every Member benefits.

When you take out a PPS Mutual policy you become a Member and pay premiums alongside every other Member.

In the first instance these premiums are used to pay claims, cover the operational costs of the business and provide capital reserves for the future. Any surplus money is deemed as profit and every PPS Mutual Member is entitled to a share.

Profit is retained, invested and assigned.

This profit is retained in a Profit-Share pool which is invested by the PPS Mutual Benefit Fund.

Then each year an assignment is made to your individual Profit-Share Account together with your share of any investment returns. The amount of money in your Profit-Share Account continues to accumulate providing you keep your plan in force.

The balances of the Profit-Share Account are not guaranteed and can be affected by, amongst other things, positive and negative investment performance and claims experience.

You can start to reap the rewards in 10 years

After 10 years you can take up to 5% of your balance each year. After 20 years, or on reaching the age of 65, you can access the full amount in the Profit- Share Account.

The full amount is also payable on the earliest of death or terminal illness or payment of a full Total and Permanent Disability (TPD) or Trauma Insurance benefit if such an event occurred and no other plans are held which would continue.

The Profit-Share Plan is also designed to be an ‘eligible policy, such that, broadly, payments from the Profit-Share Account after 10 or more years of continuous coverage, should not be assessable for income tax purposes.

No penalties for claiming

Your share of the profits are not affected if you claim.

It’s important to note that any claim you make on your PPS Mutual Insurance plan has no direct effect on the amount of Profit-Share available to you.

However it’s worth remembering that any claim does of course diminish the overall pool of money from which profits are drawn.

If you cancel your policy, you miss out.

As a Mutual organisation we rely on Member loyalty to support our business model.

So, if you cancel all your PPS Mutual plans within 10 years of joining, the Profit-Share Account terminates, and the total amount is returned to the overall Profit-Share pool to be reallocated amongst the remaining Members.

FREQUENTLY ASKED PROFIT-SHARE QUESTIONS:

What is the Profit-Share Account?

When you and our other PPS Mutual Members pay your premiums, the money is used to pay claims, to cover our insurer’s expenses and to provide capital reserves for the future. Any surplus generates profits which are shared by PPS Mutual Members.

This profit is retained in a Profit-Share pool within the PPS Mutual Benefit Fund and allocated to your individual Profit-Share Account each year. This Profit-Share pool is invested by the fund and your share of investment returns are added to your Profit-Share Account.

The balances of the Profit-Share Account are not guaranteed and can be effected by, amongst other things, positive and negative investment performance and claims experience.

For most life insurance companies not operating under a mutual model, these profits would simply go to the shareholders of the life insurance company.

The amount of Profit-Share that is allocated to your Profit-Share Account is based on:

  • The amount of premiums paid across your insurances under your Plan and
  • The current balance of your total Profit-Share Account

The balance of all Profit-Share Accounts will be held in the insurer’s PPS Mutual Benefit Fund and will be invested by the Insurer in accordance with the investment strategy.

Profit-Share Plan holders can access the full amount of their Profit-Share Account from the earliest of:

  • The Life Insured reaching age 65
  • 20 years after their Profit-Share Plan commenced
  • Death or Terminal Illness
  • Full TPD or Trauma payment (if no other insurance Plans relating to the Life Insured would otherwise continue)
  • Natural expiry of the term of cover of all Plans relating to the Life Insured (if we have restricted the term of these insurances)

Members can start to take withdrawals 10 years after the Profit-Share Plan commenced. They can take up to 5% of the balance of the Profit-Share Account each year. Any percentage amounts not taken carry forward to the following year.