PPS, the financial services provider focused on graduate professionals, has launched an education cover policy which will pay the tuition fees of the policyholder’s child in the event of the policyholder’s death, disability or severe Illness. The new product is called PPS Education Cover and is available to all qualifying, new and existing PPS members.
This is according to Juret Ferreira, Actuarial Analyst: Product Development and Pricing at PPS, who explains that the benefit will pay the actual school and/or tertiary fees directly to the education institution of the policyholder’s child up to the maximum amounts as stipulated by PPS in the policy. “It also provides an allowance for basic tuition essentials such as textbooks, stationery and residential fees at tertiary level.”
PPS decided to launch this product as the company identified the need for members to be able to afford their children the same or higher level of education as theirs, even in the unfortunate event that they are no longer able to provide for their children’s education, says Ferreira. “The product provides peace of mind that the child’s most valuable asset (education) is taken care of should something happen to their parent. As the benefit pays the actual tuition fees, it mitigates against the ever rising costs of education, giving the policyholder security that enough money will be available for the child’s education in the occurrence of unfortunate events.”
Ferreira says the benefit is very comprehensive and is oriented towards meeting the specific need of providing for education costs. “At tertiary level the benefit allows for payment of up to two qualifications, provided that the standard duration of these qualification(s) does not exceed six years. For example, a child-beneficiary will be able to study a three year degree as well as an honours degree or even two 3-year degrees. Claimants will also be able to study longer degrees, e.g. medicine and dentistry. The child-beneficiary will receive an accommodation allowance at tertiary level regardless of where they choose to stay, i.e. university residence or private accommodation.”
A major advantage of the product is that it provides global cover, allowing the policyholder’s child to attend school anywhere in the world and at certain listed international universities, says Ferreira. “In addition, children with physical or mental challenges can also enrol at institutions that cater for special needs.”
She adds that the product offers five unique optional rider benefits that no other insurer in the market offers. “These range from providing cover for nursery/pre-school learning, extra classes, after-care, extra murals, transport, matric dance expenses, school trips, a car allowance on the child’s 18th birthday and much more. These rider benefits complement the basic benefit creating a holistic product offering.”
Members who take up the product will enjoy a direct share in the company’s profits* on an annual basis by way of allocation to their PPS Profit-Share Accounts, allocated as a percentage of their qualifying premium at no extra cost.
PPS members can purchase the cover for as many children as they wish and each child will have their own separate policy, says Ferreira. “The applicant will have to select whether cover for public or private school tuition is required.”
“As the insurer of choice for graduate professionals, PPS understands how important education is and even more so to its members. This product ensures that our offering doesn’t just end with the member but also extends to their children and affords them the many opportunities and possibilities that come with education,” she concludes.