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.
