PPS Mutual launches unique income protection underwriting offering for newly qualified professionals


PPS Mutual has launched a market-first income protection underwriting offering for newly qualified professionals at the beginning of their professional career.

The Professional Choice offer enables newly qualified professionals to increase their monthly income protection benefit by a maximum of 50% in any two-year period, without the need for additional health or medical underwriting, although evidence of their increased income will be required. The monthly benefit can be increased up to a maximum of 75% of their regular income, subject to income limits that apply to each profession.

To be eligible, newly qualified professionals need to have registered or received their qualification within the last three years, be working a minimum of 20 hours per week, and be generating an income. The Professional Choice offer expires either five years after its commencement or when the insured reaches age 45, whichever is earlier.

Gabi Varnier, PPS Mutual’s national underwriting manager describes the offer as “another step forward in our quest for continuous improvement and innovation”.

“For professionals, time is – quite literally – money, and having to undertake several time-consuming medical assessments within a short period of time is not the best use of that time,” Ms Varnier says.

PPS Mutual believes this offering fills a gap in the market left by the requirement on life insurers to cease offering new agreed value income protection policies in 2020. Further, PPS Mutual sees the opportunity to engage and incentivise professionals to take out insurance cover at the beginning of their professional careers, in turn helping to combat underinsurance amongst an age cohort where it remains prevalent.

“This offering is also in line with the PPS Mutual philosophy that insurance cover is a long-term proposition,” Ms Varnier says.

By taking out cover at a younger age, PPS Mutual Members obtain market-leading cover with the short-term benefits of future insurability and the long-term potential to participate in a unique Profit Share arrangement. The Profit Share enables PPS Mutual Members to share in the profits generated from the insurance cover they buy.

This latest development to remove underwriting friction and optimise Member experience is in line with PPS Mutual’s commitment to provide insurance that remains relevant to the needs of their unique professional Member customers and their advisers.

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