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Healthcare
Sunday, July 1, 2007
Unmatched for 66 years

The PPS Sickness and Permanent Incapacity Benefit is a unique product that has stood the test of time since its development in 1941 when PPS was founded. Unlike income protection cover currently available in the market, the PPS Sickness and Permanent Incapacity Benefit pays out when a member is unable to work due to illness or injury. The benefit is based on the member’s cover with PPS and is paid upon the presentation of a valid doctor’s certificate and completion of a short claim form. There is no need for proof of loss of income or reference to existing cover with other companies.

The PPS Sickness Benefit meets the needs of graduate professionals by paying from day one for an illness lasting seven consecutive days or longer (including weekends and public holidays). It also pays up to a maximum sickness payment period of 728 days for the same consequential or related illness. After this period, the PPS Incapacity Benefit steps in, based on the severity level of the incapacity. Uniquely, the PPS Sickness and Incapacity Benefit remains in force after a sickness claim, which entitles policyholders to claim for subsequent periods of illness or injury.
With the PPS Sickness and Permanent Incapacity Benefit, members are able to purchase Units of Benefit (UOB) from PPS Insurance in accordance with Gross Professional Income (GPI). UOB allows members to receive benefits for the period that they are unable to carry out their professional duties, due to sickness or injury. The premium on UOB is determined by the member’s age at purchase. Thus, the younger the member is when joining PPS Insurance, the lower their premium.
“An added advantage of the product is its flexibility. Two supplementary benefit options, as well as the Hospital Benefit; Accident UOB and Occupation Specific Rider BenefitTM gives members the ability to tailor their sickness benefit package to best suit their needs. The Accident UOB allows members to receive additional benefits after an accident. Members whose state of health, under normal circumstances, does not entitle them to receive cover under any of the other benefit options, can take out Accident UOB,” explains Chris de Klerk, Corporate Actuary at PPS Insurance.
Because PPS has no external shareholders, all the operating surplus and investment returns earned by PPS Insurance are shared among its policyholders, via the PPS Surplus Rebate Account (SRA). Upon purchasing the PPS Sickness and Permanent Incapacity Benefit policyholders are allocated a SRA.
According to Mr Klerk, “a very attractive feature of the SRA is that, irrespective of any claims the annual allocations continue and policyholders carry on sharing in the operational surplus and investment returns. In the event of death or resignation from PPS Insurance, a tax-free lump sum is paid out, based on the value of the SRA. 
 

Copyright © Insurance Times and Investments® Vol:20.6 1st July, 2007
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