PPS assigns 2021 profit share to members
Life insurance provider PPS Mutual announced its fifth annual round of profit share rates to eligible members for the 2021 financial year, recording over $4 million in profit share since the inaugural assignments were made in 2017.
Members of the company will receive a profit share of 6% of premiums for the 2021 financial year. They will also receive a further 2.75% of opening balances, net of tax, providing strong portfolio growth in this low interest rate environment.
This assignment comes after the 7% of premiums and 4.5% of opening balances received by members for the 2020 financial year.
PPS Mutual launched its Professionals Choice product in 2016, with the profit-share pool increasing over the past four years from $500,000 in 2018 to $4,200,000 in 2021.
“We will continue making Profit-Share assignments each year to reflect the operational performance of the Benefit Fund including investment returns,” said Michael Pillemer, Chief Executive at PPS Mutual.
“PPS Mutual is the only life insurance provider in Australia who currently offer life insurance products with a Profit-Share.
Every professional insured is a Member which entitles them to share in the profits of the insurance that they buy. And the amount assigned to them has grown year-on-year since we opened for business,” he said.
Policies are available through financial advisers who have been recognised by PPS Mutual.
“We are proud to share that one adviser group’s Members have Profit-Share Account balances totalling over $595,000 as of 30th June 2021, and one adviser’s Members, have Profit-Share Account balances of over $270,000,” Pillemer said.
“Along with our Profit-Share accounts, PPS Mutual Membership has continued to grow significantly, from 797 in 2017 to 5336 in 2021.”
PPS Mutual requires members to retain their policies for 10 years to gain access to the profit share funds. Full access is granted after 20 years, upon reaching the age of 65 years, or on death, terminal illness and other certain events.