What's Happening?

Facebook Twitter Youtube Linkedin

NEED HELP? QUESTIONS@FIA.ORG.ZA

become A FIA member TODAY
member login

Planning For Life’s What If’s

ARTICLE BY

  • Wimpie Mouton
  • CEO
  • PPS Life Solutions

SHARE THIS POST

Life is full of unexpected “what if” scenarios that can affect an individual’s ability to work. This is especially concerning for graduate professionals, who typically rely on their ability to earn an income as their primary asset. By tailoring solutions for these young clients, insurers can give them the peace of mind to focus on building their careers.

Life is full of surprises. Some bring joy, like career milestones or personal achievements, while others can be more challenging, such as illness, injury or unexpected financial setbacks. The unpredictability of life makes financial stability not just a goal but a necessity for graduate professionals who rely on their ability to work as their primary asset.

Understanding the risks

The statistics are sobering. Globally, 1.3 billion people – 16% of the population – live with significant disabilities, according to the World Health Organization (WHO). The WHO points out in reports that a major cause of disabilities is accidents, many of which occur in the workplace or on the road. According to one of its reports, every year, between 20 and 50 million more people suffer non-fatal injuries in road accidents, with many incurring a disability. Additionally, WHO statistics show that workplace accidents affect approximately 374 million individuals globally each year, further underscoring the significant risks we face.

Accidents, especially road-related, often lead to life-changing injuries and disabilities. Given these risks, it is crucial to consider how prepared one is for life’s uncertainties. If an unexpected setback were to affect an individual’s ability to work, would they be ready to face the financial implications?

While these figures highlight the serious impact of accidents, it is important to remember that one’s ability to earn an income is not only threatened by catastrophic events or disabilities. More common ailments, such as the flu, can also disrupt income generation, especially for those who rely on consistent productivity.

Why financial preparation matters

While tangible items like cars and homes are often insured without hesitation, protecting one’s earning capacity is frequently overlooked – especially by younger people. Yet, this is the very foundation that supports not only day-to-day living but also long-term goals and financial independence.

Insurers can address this need by designing products with younger clients in mind. By protecting their ability to earn, a benefit tailored specifically for graduate professionals, for example, ensures that life can continue uninterrupted, even when faced with unexpected challenges.

Tailored cover

The PPS Sickness and Permanent Incapacity (S&PI) benefit is an example of an offering created specifically for clients who are starting out in their careers. It has some key differences designed to align with this stage of life.

For starters, it does not require proof of loss of income to make a claim. This means policyholders who are still employed can receive support with minimal administrative hassle. Furthermore, the benefit provides:

  • Comprehensive protection: Financial support during temporary illness, for periods of as little as seven days, or permanent incapacity, which could last until retirement.
  • Flexible options: Cover can be extended beyond traditional retirement ages.
  • Global reach: Unrestricted cover worldwide, with payouts starting after seven continuous days off work and paid retrospectively from the first day of illness.
  • No loss of income required: Policyholders receive a payout even if their illness does not cause them to lose their income, e.g., people who have sick leave benefits or a doctor who has a locum look after their practice while they are recovering.
  • Extreme sports: Policyholders enjoy full cover when partaking in any hazardous activity or sport such as scuba diving and motor racing, with no additional premiums.
  • Supplementary income: Assistance that complements ongoing earnings, ensuring lifestyle continuity during recovery.

These benefits are tailored to the demands of professions like law, medicine, engineering and IT, where specialised risks require equally specialised solutions.

Beyond insurance: building financial resilience

Innovative insurers can also find other ways to engage the client outside of traditional benefits. PPS goes further by operating on the ethos of mutuality – sharing its returns with members through the notional PPS Profit-Share Account™*. Members who hold the PPS S&PI benefit automatically gain access to this account, ensuring they share in the company’s success, even when they need to claim.

As Wimpie Mouton, CEO of PPS Life Solutions, explains: “Even when a member claims, their allocations to the PPS Profit-Share Account™ remain unaffected. The profit-share allocations could be significant and often make up a substantial portion of our members’ retirement benefits. This reinforces our commitment to our members’ long-term financial well-being.”

Peace of mind for life’s what ifs

The goal is simple: to ensure graduate professionals feel prepared, protected and supported, ready to navigate life’s uncertainties without compromising their ambitions or their quality of life.

Tailored offerings like the PPS S&PI benefit offer more than just a financial safety net; they provide reassurance that, even in the face of the unexpected, policyholders’ income, lifestyle and independence are secure. By protecting their earning potential, they are not just planning for life’s challenges – they are future-proofing their success.

In today’s unpredictable world, taking steps to protect one’s financial wellbeing is not just prudent, it is essential. Knowing their livelihood is protected, graduate professionals can focus on building their career and enjoying life, reassured that they are prepared for life’s what ifs.

Subscriber Terms and Conditions

  1. APPLICATION OF TERMS
    • These terms and conditions (“Subscriber Terms”) apply to the subscription by any qualifying member of the South African Underwriting Managers Association NPC (“SAUMA”) to the services and benefits offered by FIA Services (Pty) Ltd (“FIA Services”) under the SAUMA affiliation arrangement (“Subscription”).

  2. NATURE OF SUBSCRIPTION
    • A Subscription under this arrangement:
      • does not constitute membership of FIA NPC;
      • does not confer any voting rights or governance participation in FIA NPC; and
      • is governed solely by the contractual relationship between the Subscriber and FIA Services.

  1. ELIGIBILITY
    • To qualify for the Subscription, the applicant must, at the time of application, be a current paid-up member of SAUMA.
    • FIA Services will verify the applicant’s SAUMA membership status with SAUMA prior to activation, and may re-verify such status periodically.
    • If a Subscriber ceases to be a paid-up member of SAUMA, the Subscription will correspondingly be terminated.
    • Applicants are required to authorise FIA Services to confirm their SAUMA membership status with SAUMA as part of the application process.

  1. SERVICES
    • The Subscription entitles the Subscriber to the following benefits:
      • Complimentary access to the FIA CPD Platform;
      • Complimentary access to the FIA Insight Magazine (digital edition);
      • Advertising opportunities on FIA platforms at a discounted rate of 15% (fifteen percent) off the prevailing published rates; and
      • Invitations to attend FIA Technical Webinars annually.
    • FIA Services reserves the right to update, vary or substitute the Services from time to time, provided that the overall value and nature of the benefits remain materially the same.

  1. FEES AND PAYMENT
    • The monthly subscription fee is R260.00 (two hundred and sixty rand) for up to seven registered individuals (Key Individuals and Representatives), and R36.00 (thirty-six rand) per additional registered individual thereafter, excluding VAT.
    • The Subscriber shall provide FIA Services with the required details of each individual to be registered under the Subscription for the purposes of activation and billing.
    • All fees are exclusive of VAT, which shall be charged at the prevailing statutory rate.
    • Subscription fees are reviewed annually in March and may be adjusted with effect from 1 April.
    • Any changes to the Subscription, including but not limited to the number of Representatives and Key Individuals registered under the Subscription, may only be effected once annually during the annual review period in March of each year, with such changes taking effect from 1 April.
    • Subscription fees shall be billed monthly in arrears, unless the Subscriber elects an annual billing cycle at the time of application.
    • The Subscriber shall ensure that all billing information (including contact details, authorised signatories and bank account details) is kept accurate and up to date.
    • Non-payment of subscription fees may result in suspension of access to the Services until such fees are brought up to date.
    • The Subscriber acknowledges and agrees that all subscription fees payable under these Subscriber Terms may be collected by way of debit order, which shall be processed by the holding company, FIA NPC (The Financial Intermediary Association of South Africa), on behalf of FIA Services. Payment to FIA NPC shall be deemed to constitute valid and sufficient discharge of the Subscriber’s payment obligations to FIA Services under these Subscriber Terms.

  1. ONBOARDING
    • Onboarding will be conducted as a Subscription with FIA Services under the SAUMA affiliation arrangement.
    • Onboarding will not confer FIA NPC membership status or any associated rights.
    • Onboarding is conditional on confirmation of the Subscriber’s current SAUMA membership at the time of application

  1. DATA PROTECTION
    • FIA Services will process all personal information in accordance with the Protection of Personal Information Act 4 of 2013 (POPIA) as set out in our POPIA policies.
    • By subscribing, the Subscriber authorises FIA Services to confirm their SAUMA membership status with SAUMA and to process personal information for the purposes of fulfilling the Subscription.

  1. TERMINATION
    • The Subscriber may terminate the Subscription by giving FIA Services one calendar month’s written notice.
    • FIA Services may terminate the Subscription on one calendar month’s written notice, or immediately if the Subscriber breaches these Subscriber Terms and fails to remedy such breach within 14 (fourteen) days of receiving written notice.
    • Termination of the SAUMA–FIA Services affiliation agreement shall not automatically terminate these Subscriber Terms.
    • Termination by the Subscriber shall not relieve the Subscriber of liability for any subscription fees accrued up to the effective date of termination.
    • FIA Services may suspend or terminate the Subscription with immediate effect in the event of non-payment of fees by the Subscriber.

  1. GENERAL
    • These Subscriber Terms are governed by the laws of the Republic of South Africa.
    • Any disputes arising under these Subscriber Terms shall be dealt with in accordance with the dispute resolution provisions contained in the FIA NPC membership terms and conditions, as modified to reflect that the contractual relationship is with FIA Services.
    • Any notices required under these Subscriber Terms may be validly delivered by email to the addresses provided in the Subscriber’s application form, and such notices shall be deemed received on the day of transmission if sent during business hours.
    • The Subscriber may not assign, cede or transfer any of its rights or obligations under these Subscriber Terms without the prior written consent of FIA Services.
    • No variation of these Subscriber Terms shall be of any force or effect unless reduced to writing and signed by both FIA Services and the Subscriber.