Business Brief

When we used to do presentations to student members at the universities, I usually opened with a question to the class in front of me: What do you consider to be your most valuable financial asset as you are sitting here today?

Students being students came out with very creative answers: My phone, my Volla (VW), my health and then one clever one… my dad!

We would then obviously guide them towards the answer that their soon-to-be-used skills and knowledge as a professional will be their most valuable asset for life. Their ability to earn an income will grow as their career and practice progress. The more they specialise, the greater this asset will grow.

I want to share a real-life example of one of our members, Dr Smit* who was unfortunately confronted with the reality that this ability can be taken away from anyone at any moment.

Dr Smit specialised in the medical field and became a surgeon. As one of many heroes, he worked on the frontline during the height of the COVID-19 pandemic.

It was around June 2020 when Dr Smit himself contracted COVID-19 and fell extremely ill. He had to be rushed by helicopter to a specialised unit while his colleagues frantically tried to save his life.

Dr Smit was admitted to an ICU ward and during an extracorporeal membrane oxygenation procedure, the deltoid muscle in his arm was unfortunately damaged. The deltoid muscle is the muscle forming the rounded contour of the human shoulder and is the muscle allowing one to raise one’s arm out to the side of one’s body and lower it again.

Dr Smit miraculously survived COVID-19, but – due to the injury to his arm – his ability to perform his usual professional duties as a surgeon was abruptly taken away from him.

Fortunately, this is where the good advice of his independent financial adviser kicked in. (We rightfully refer to you, our independent financial advisers, as our dream protectors).

Dr Smit has an insured Sickness Benefit of R369 322 per month with PPS which includes Actual Business Expenses. This enabled him to claim R4 432 989 per year since the devasting event that took away his ability to perform the duties of his chosen profession. Payment is still ongoing as he will receive this benefit for 728 days before being assessed for Permanent Incapacity.

His adviser also protected him with Critical Illness Cover to the amount of R1 861 007 which paid out under his ICU benefit, due to him being admitted to ICU for an extended period.

While claiming these benefits, Dr. Smit’s Profit-Share Account still grew by R170 710 in the 2021 financial year.

He will soon be a PPS Profit-Share millionaire.

I thought to share this with you as motivation and proof that what we (you) do every day, really matters!

I realise you get a lot of “No’s” and “Why do I have to pay so much for insurance?” etc, etc., but when the unthinkable happens, the benefits of good planning and comprehensive cover will ensure that at least a part of our members’ dreams of success will be protected.

*This is a real-life case, but the name has been changed to protect the identity of the member.

By Barry Pretorius, Regional General Manager LBS

PPS is a licensed insurer conducting life insurance business, a licensed controlling company and an authorised FSP.