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PPS PROFIT-SHARE ACCOUNT
What is the PPS Profit-Share Account?
The PPS Profit-Share Account is a unique benefit only offered by PPS. Members share the profits of PPS if they are PPS Provider policyholders with qualifying products. Profit allocations are made to members' PPS Profit-Share Accounts in the form of operational profits and investment returns. The PPS Group product range contributes to the PPS Profit- Share Account, be it direct profit allocations due to a specific product. These allocations are declared annually at the end of the financial year. Closer to retirement (from age 55 onwards), members can elect to de-risk the investment strategy of the Profit-Share Account by choosing a more conservative investment strategy, through the Profit-Share Account Portfolio Choice..
The Profit-Share Account vests and becomes accessible through the Vested Profit-Share Account from the age of 60 as a unique retirement benefit (T's and C's apply, speak to your Financial Adviser for more information), or it pays out to the nominated beneficiaries at earlier death. The Vested PPS Profit-Share Account is a PPS Insurance product
Once the Profit-Share Account is vested all the accumulated profits will be transferred to the Vested Profit-Share Account administered by PPS Investment. At this stage, the member has the option to keep their profit-share assets invested for longer to generate further returns and supplement their retirement savings. Once a member has opted to transfer their PPS Profit-Share Account to the Vested Profit Share Account (as described above), the member's PPS Profit-Share Account balance will reduce to zero and they may continue to receive profit and investment return allocations if the member has at least one qualifying Provider product in force. This gives our members the freedom to access the Profit-Share Account as well as continue to receive future allocations
When a PPS Provider Policy is issued to for the first time, a PPS Profit-Share Account is automatically created.
No premium is levied; the PPS Profit-Share Account is a member's share in the profits of PPS.
Claims and health status have no impact on profit-sharing and the accumulated balance.
The more qualifying products held, the greater the allocations to the PPS Profit-Share Account.
Protected against creditors whilst unvested.
You have the opportunity to share in profits throughout your working life, as well as into retirement.
to download the 2017 PPS Year in R
The unquestionable financial strength of PPS lies in the fact that its reserves are sufficient to pay every member up to the “last man standing”. The investments of PPS have always been managed in a disciplined and prudent
manner, focusing on the long-term interests of its members.
With over R16 billion in assets, strong governance and member structures, PPS remains the preferred provider of financial solutions to the graduate professional market in South Africa.
Terms and Conditions:
PPS members with qualifying products share in the profits of PPS via annual allocations to the unique PPS Profit-Share Account. The PPS Profit-Share Account vests from age 60 onwards. Past performance is not necessarily indicative of future performance. PPS is an authorised financial services provider.
PPS PROFIT-SHARE ACCOUNT PORTFOLIO CHOICE
Take control of your PPS Profit-Share Account
As a PPS member, you share in the profits of PPS through the PPS Profit-Share Account.
From age 55, you can take control of the investment strategy of your PPS Profit-Share Account and choose how your accumulated profits are invested through the PPS Profit-Share Account Portfolio Choice. This allows you to align the investment strategy of your PPS Profit-Share Account to your other retirement assets. The opportunity to utilise the PPS Profit-Share Account Portfolio Choice will be provided once a year until your retirement.
The Portfolio Choice brochure has more information on the options available to you,
For information on the portfolio options, please refer to the Technical Information Sheet
PPS DREAD DISEASE COVER
If the life insured suffers any of the dread diseases, trauma and physical impairments listed in Appendix A,
PPS Insurance will pay a percentage of the Sum Assured in respect of the PROFESSIONAL HEALTH PROVIDER
BENEFIT according to the Severity Level thereof.
Appendix A - P HP Benefit
If the life insured suffers any of the dread diseases, trauma or physical impairments listed in Appendix D,
PPS Insurance will pay 100% of the Sum Assured in respect of the SEVERE ILLNESS BENEFIT.
Appendix D - Severe Illness Benefit
w does PPS Insurance assess a claim for CatchAll Cover?
Assessment is done based on Whole Person Impairment (WPI), as established by the American Medical
Association's Guide to Permanent Impairment. This method is objective and recognised as standard
assessment criteria by the global medical industry for impairment claims.
What are the severity levels?
There are four severity levels. These levels have been set in accordance with the relative severity of the
dread disease or impairment event. The severity levels are assessed in terms of PPS Insurance claim criteria.
Percentage of benefit paid are: A level - 100%, B level - 75%, C level - 50% or D level - 25%.
Dread disease policies usually make you wait before paying out. How does PPS Professional Health Provider
For a claim to be valid, you must survive for a period of 14 days after the event occurs or the condition is
diagnosed. Different survival periods apply to certain conditions such as heart attack, stroke and paralysis.
Does PPS Insurance cover accidental HIV infection?
Yes. Accidental HIV infection cover is included at no additional premium. This benefit is especially valuable to
How do multiple claims work?
For example: Mr Smith has R1 million cover. He is diagnosed with stage 1 prostate cancer for which he
receives 25% of the cover benefit. Two years later he has a new diagnosis of stage 1 lung cancer (an unrelated
condition) and receives another 25%, as the cover is preserved for unrelated claims. A year later this lung
cancer progresses to stage 4. He receives the additional 75% benefit (100%-25%) for this condition. His benefit,
however, is not exhausted and should his unrelated prostate cancer progress, he will be paid for this condition
too. This means that even if you have claimed the full benefit, your cover is preserved and you are able to
claim again for an unrelated event or condition.
Does PPS Professional Health Provider cover trauma conditions?
Yes. Gunshot wounds, reconstructive surgery (subject to terms and conditions), accidental injury, coma and
major burns are all covered.
How does Maternity Cover work?
The Maternity Cover is an add-on benefit with its own sum assured, which covers pregnancy complications
until the age of 44. The benefit pays in four severity levels. You can claim until 100% of Maternity Cover (only
available at inception of the PPS Professional Health Provider cover) benefit has been paid, irrespective of
whether you are claiming for a related or unrelated condition. Claims under this benefit do not affect the PPS
Professional Health Provider sum assured.
What is Core 100% Bene fit?
Adding the Core 100% Benefit to your PPS Professional Health Provider policy means that you will receive a
100% payout for the major dread disease benefits, which include heart attack, stroke, cancer and coronary
artery bypass graft. Instead of the tiered benefit, you will be awarded a 100% benefit (even for stage one
cancer) on a successful claim. This valuable tiered benefit remains in place for all the other dread disease and
PPS DISABILTY COVER
If I change my occupation, will I still be covered?
Your life cover will remain intact. Your disability benefits may continue if you changed your occupation based
on the current review processes.
Why do I need PPS Professional Disability Provider, if I already have PPS Sickness and Permanent Incapacity
The two are not the same. PPS Professional Disability Provider pays out a cash lump-sum amount, to settle debt for example, whereas the PPS Sickness and Permanent Incapacity Benefit pays out a regular amount based on your Sickness and Permanent Incapacity Benefit cover amount and the period you are unable to practice your profession, due to sickness or injury.
CAN I JOIN PPS?
PPS membership is open to graduate professionals who hold at least a four-year academic degree or the equivalent thereof at a public University or University of Technology, that is in a profession that is eligible for PPS membership, such as an engineering degree, medical degree, Honours or Masters degree, and who are practicing in the field of their study. Membership is at the discretion of the PPS Board.
I am a financial adviser with a 3 year degree and a CFP qualification. Do I qualify for membership?
Yes, by adding Certified Financial Planner qualification to your 3-yr degree and practicing in the financial field,
you qualify for PPS membership.
I am a student. Do I qualify to join PPS?
Yes. And it just so happens that PPS has the lowest rates in the industry for graduate students. If you are a student in your 4th academic year of study at a University or University of Technology, studying towards one of the PPS eligible professions, you can join PPS.
As a student under the age of 30, you can enjoy Sickness and Permanent Incapacity Benefits at substantially reduced premiums. You may remain a student until age 34. PPS offers the PPS Student Benefit package for eligible students and the My Future Plan short application form for students who have recently qualified. Take a look at our
for a full range of student benefits.
I'm a farmer with a 4-yr degree in agriculture. Do I qualify for membership?
es, you do.
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THE FOLLOWING PROFESSIONS ARE ACCEPTED BY PPS:
Doctors (belonging to the HPCSA)
Engineers (Electrical & Mechanical with four year degree)
Farmer (with four year degree in agriculture)
Human Resources Practitioner
Nurses (with four year B.Cur degree)
Speech and Hearing Therapist
Town and Regional Planner
for the PPS Underwriting guide for applicants
PPS IMMIGRATION BENEFITS?
PPS IMMIGRATION BENEFITS?
If you have a PPS Provider policy, you can keep your full cover if you emigrate or take up temporary work
abroad. Premiums and claims must be paid in South African Rand, subject to the restrictions imposed by the
South African Reserve Bank.
I am planning to move overseas
PPS Benefits are mobile. Members can claim from anywhere in the world. There are neither restrictions on
travel nor even emigration, provided that the member is still utilising his/her professional knowledge and
experience. PPS requires a RSA bank account to draw premiums and make payments to. Payments will be
made in SA Rand. The member may increase Sickness, Permanent Incapacity, Health Provider and Life and
Lump sum disability cover in line with overseas income. The claims process is the same as in SA, declaration by
member, declaration by the overseas attending doctor and an EFT form with banking details
PPS accepts changes to oc
cupation. It is an accepted fact that professionals progress in their careers and new opportunities arise which means that the professional’s occupation will change. PPS will not cancel your membership if you change your occupation. In fact, you will be allowed to keep your PPS Professional Health Provider and Professional Life Provider products in all instances under the PPS Provider Policy even if your occupation does not meet the PPS eligibility criteria. This means that you will still share in our profits even if your occupation changes.
It is however required that you advise PPS if your occupation has changed no later than 30 days after starting your new occupation. Your new occupation will be reviewed to determine if it is an eligible occupation in order to keep all your products. If your new occupation is not eligible for PPS membership, your Sickness and Permanent Incapacity and/or lump sum disability benefits might be cancelled by PPS. For this purpose please complete the
Change of Occupation
and send it to firstname.lastname@example.org to enable PPS to assess your new occupation.
Is PPS BEE compliant?
Yes. PPS is, in fact, far ahead of the rest of the industry. We have achieved 25% "economic interest" for black
policyholders, which is unsurpassed in the South African insurance industry. In increasing our black "economic
interest" - from 18% to 25% - PPS consulted with the Department of Trade and Industry on the specifics to
ensure the transaction addressed the spirit of the legislation.
How was the BEE transaction funded?
The transaction was funded internally from PPS's own cash resources, based on future profits. This was done
to ensure that our policyholders derive the full benefit of the transaction. The most cost-effective route was
to "self-fund". In addition, PPS will obtain empowerment funding credits (in terms of the Financial Services
Charter), for funding the transaction.
for more information.
PPS COMPETITIVE RATES
PPS undoubtedly has the most competitive rates in the industry. As a PPS member it is vitally important that
you have all the facts and figures to enable you to make an informed decision. Your broker is compelled by the
FAIS Act and the LOA code of replacement to provide you with full calculations and explanations why PPS is
deemed to be more expensive. Please ensure that you get the full breakdown of the benefits you have been
sold, how they compare to what you are being offered, the claims process, would you share in the profits of
the new company like you do at PPS, how much you will forfeit from your PPS Profit-Share Account, the
future cover and premium growth after any guaranteed periods compared to the PPS premium patterns. If you
are not being placed in a position where you can make an informed decision, PPS can put you in contact with a
PPS product-accredited financial adviser that will give you an objective view.
What if I have the same or similar cover with my employer (group life cover)?
Was a Financial Needs Analysis done? Please ensure that your group scheme has conversion options to whole
life policies when you leave your employer due to resignation, retrenchment or retirement. Does your group
scheme cover you overseas in the event of travel or even emigration? Can you group scheme be ceded to the
What if the product is not flexible (e.g. cancelling Units of Benefit but maintaining life cover option)?
PPS product has been tailor made to satisfy the financial needs and lifestyles of PPS members applying their
professional knowledge and experience. These benefits are available internationally and can be upgraded
in the event of working overseas on contract or even emigrating. Increase your cover to the Dollar or Pound
equivalent that you will be earning and reduce it when you return and earn SA Rand without any penalties.
PPS will cater for you as an articled clerk, employee of a corporate / parastatsal / small firm, owner, partner,
employer, locally or abroad irrespective of country where your calling takes you. If you move between jobs and
move from a company with employee benefits to your own company without any benefits, the product is fully
adaptable. There are no loadings and exclusions for hazardous pursuits and this in itself is unique for this type
Is PPS still growing its membership base?
Since inception of PPS in 1941, membership has increased each and every year, which is important for the
continued strength of the company. Today, membership stands at over 200,000 members.
SICKNESS AND PERMANENT INCAPACITY BENEFIT
Is PPS Sickness and Permanent Incapacity Benefit similar to an income protection cover?
No. If you had an income protection policy, you would have to prove loss of income when you claim. With PPS
Sickness and Permanent Incapacity Benefit you do not need to prove loss of income. All you require is a valid
medical certificate (subject to PPS claims requirements) from your doctor and your completed claim form.
How do I ensure a balanced portfolio of cover?
Ordinary Units of Benefit (UOB) should be subscribed to, before you subscribe to any other benefit option. This
will ensure that you hold a balanced portfolio of cover, since Ordinary UOB will provide you with both sickness
and permanent incapacity benefits.
How do I claim?
You will need to complete a claim form and provide a valid medical certificate (sub ject to PPS claims
requirements). The claim should be submitted to PPS Insurance within 6 months of the onset of the illness or
Does my sickness or incapacity claim affect my share of the profits in PPS?
No. You continue to share in the profits of PPS and your Profit-Share Account remains invested. Your PPS Profit-Share Account (previously known as the SRA) benefit is not reduced should you claim.
PPS & SANLAM
What is the relationship between Sanlam and PPS?
As the only South African financial services company of its kind that still embraces an ethos of mutuality,
PPS exists solely for the benefit of its members. Neither Sanlam nor any other life company has ever been a
shareholder in PPS. Since PPS became a fully fledged life company registered under the Long-Term Insurance
Act in 2001, we have developed our own comprehensive range of products, services and capabilities. While we
continue to have a strong relationship with many Sanlam brokers, the reality is that PPS is now a competitor
to Sanlam in our market niche. It is also important to consider that not all Sanlam brokers are accredited to
provide advice on all our products. We firmly believe that while some companies are attempting to compete
with PPS in the graduate professional market, the knowledge and insight gained from our close to seventy six
years of experience in providing financial services to these customers means we will continue to maintain our
PPS ACCIDENTAL DEATH PRODUCT
Does PPS Accidental Death Product cover death arising from hazardous pursuits (eg. paragliding)?
Yes. All long-term insurance products from PPS Insurance provide cover for hazardous pursuits, at no
additional premium. This cover is available globally to PPS policyholders.
What are the most common causes of accidental deaths?
The most common causes of accidental deaths amongst PPS policyholders are motor vehicle accidents and