Michael Pillemer
PPS Mutual has announced its fourth round of profit share rates to eligible Members for the 2020 financial year. This is the fourth consecutive year of profit share allocations made since the launch of PPS Mutual’s Professionals Choice product in 2016.
The rates determine how PPS Mutual Members share in the profits of the insurance they buy.
For the 2020 financial year, the Members of the mutual company will receive a Profit-Share assignment of 7 per cent of premiums.
Additionally, Members have been assigned a further Profit-Share of 4.5 per cent of opening balances (net of tax), providing strong portfolio growth in this low interest rate environment.
This assignment follows the 7 per cent of premiums plus 4 per cent of opening balances for the 2019 financial year.
“We will continue making Profit-Share assignments each year to reflect the operational performance of the Benefit Fund including investment returns,” PPS Mutual Chief Executive, Michael Pillemer said.
“PPS Mutual is the only life insurance provider in Australia who currently offer life insurance products with a Profit-Share. As a mutual, we do not have shareholders, we are owned by the lives insured, and this means that we’re free to share profits back to the Members who buy our insurance policies.”
Policies are only available through financial advisers who have been accredited by PPS Mutual.
“We are proud to share that one adviser group has clients who have received Profit-Share assignments of over $200,000 in 2020 and has clients with balances totalling over $380,000.”
David Davidson, Managing Partner of Melbourne-based risk advisory firm Priority Life said: “PPS Mutual’s Profit-Share is a unique feature of its policies that brings something different to the conversation with existing and prospective professional clients. Now with Profit-Share Accounts reaching over $380,000, our clients are gaining additional value from their insurance. The discussion with prospective clients around the benefits of professional insurance contracts that also provides a profit share has become a much more engaging conversation.”
“Consumer or Member alignment is a vital attribute that goes to the heart of PPS Mutual and our core as a mutual company in Australia. I feel that it is the fundamental mutuality principle of sharing profits with policyholders/ Members and looking after their interests and needs first that has stood the greatest test of time,” Pillemer added.
PPS Mutual Members are required to retain their policies for 10 years to gain partial access to the Profit-Share funds. Full access is granted after 20 years or upon reaching age 65, and also on death, terminal illness, and certain other events.
