Key changes, applying to all existing and new policies, include moving from a 12-month to a 24-month terminal illness definition within its life cover, and enhancing a range of trauma definitions including prostate cancer, stroke and coronary artery bypass surgery.

Additionally, PPS Mutual will now extend Business Expenses benefit payments within its Professionals Choice range, meaning members will be able to access additional Business Expenses payments beyond the first 12 months of their initial claim if they have not yet reached their full benefit entitlement. Business Expenses have also been widened to cover both interest and capital on loans.

“PPS Mutual’s products are designed to be top-quality and tailored for the needs of professionals. The suite of enhancements have been passed back to all our Members so that everyone is on the same product series,” PPS Mutual director of proposition Matthew Pilcher said.

“Additionally as a mutual insurer, our Members benefit directly from sharing in the profit of the insurance that they buy.”

Following industry speculation around the deductability of insurance premiums, a product ruling (the Ruling) was also issued by the Australian Taxation Office (ATO) in 2016 in respect ofPPS Mutual’s Professionals Choice product range (PR 2016/6:Income tax: PPS Mutual Professionals Choice[1]).

Pursuant to the Ruling, premiums incurred by a member in relation to PPS Mutual’s Professionals Choice Income Protection Insurance that do not contain an Extras Package Benefit (relating to specific injuries benefit or the trauma benefit) are 100% income tax deductible in the hands of the member. Where a member has selected an Extras Package Benefit, the total premiums incurred are 95% income tax deductible in the hands of the member.[2]

PPS Mutual recommends that members obtain their own independent taxation advice as to how the Ruling may apply to them.[3]

PPS Mutual products are offered exclusively through accredited financial advisers.

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[1] Please refer to http://law.ato.gov.au/pdf/pbr/pr2016-006.pdf for a copy of the Ruling
[2] For completeness, the Ruling is only a ruling by the ATO on the application of taxation law and is only binding on the ATO where the scheme (as defined in the Ruling) is implemented by PPS Mutual in the specific manner outlined in the Ruling
[3] Refer to paragraphs 5 to 7 of the Ruling that confirms which members can or cannot rely on the Ruling

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