The company has also extended the citizenship requirements to include New Zealanders working in Australia.

PPS Mutual’s initial strict eligibility requirements meant that several professionals could not become Members, specifically those engineers who were not members of Engineers Australia, and also certain Allied Health Professionals.

This wider eligibility now includes engineering professionals with other bodies plus Town Planners and Surveyors. In the medical space they have added eight new professions such as Medical Radiation Practitioners and Occupational Therapists. Whilst, in the commercial sector they have added Public Accountants and now also accept accountants and lawyers who are no longer practising. 

“We are thrilled to announce our eligibility update and look forward to welcoming more Members to PPS Mutual,” said Matthew Pilcher, director of proposition for PPS Mutual.

“We made the decision to widen the eligibility due to a high amount of interest from professionals who were not originally eligible. Whilst the criteria has been widened it was important for our Members that we maintain the exclusivity and the benefits of being in a pool with others with a similar profile, especially as they share in the profits of the products they buy.” 

PPS Mutual is supported by PPS South Africa, the largest multi-disciplinary group of graduate professionals in the world and the largest mutual company in South Africa.  PPS Mutual is based on the proven PPS business model that has been hugely successful in South Africa since the 1940s – sharing over $2.5 billion in profits with Members in the last 10 years.  

PPS Mutual is owned by its Australian professional members who will share in the profits of the products that they buy.

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The PPS Mutual Super Fund will facilitate Members to fund their insurance premiums via rollover from their standard accumulation super fund. 

The Super Fund approach has been especially requested for younger graduate medical, legal, accounting and engineering professionals and the extra flexibility has become increasingly important for advisers wanting to offer clients the option to pay insurance premiums through super.

“We are thrilled to announce the launch of our highly anticipated Super Fund as it now allows us to offer a complete life insurance solution for eligible professionals,” said Matthew Pilcher, director of proposition for PPS Mutual.

“The launch of the fund is an important step in allowing us to bring the mutual model to a wider selection of adviser clients and offer Australian professionals a radical reappraisal of how life insurance can work.”

PPS Mutual has appointed financial technology and infrastructure company, Sargon, as trustee.

“Sargon is helping PPS Mutual navigate the complex and changing regulatory environment so we’re able to offer the best possible solution to our clients. We’ve chosen to partner with Sargon because of their strong compliance culture. Through the services they provide, we have more time to focus on our advisers and their clients,” said Matthew Pilcher.

 “When you purchase PPS Mutual insurance you’re not just a customer, you’re a member. This means you have a real stake in the business and the profits generated by the products which is a differentiated proposition in the Australian market.”

PPS Mutual is supported by PPS South Africa, the largest multi-disciplinary group of graduate professionals in the world and the largest mutual company in South Africa.  PPS Mutual is based on the proven PPS business model that has been hugely successful in South Africa since the 1940s – sharing over $2.2 billion in profits with Members in the last 10 years.  

PPS Mutual is owned by its Australian professional members who will share in the profits of the products that they buy. 

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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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