Eligibility and the PSB

At PPS Mutual, we do things differently. Our unique Profit Share Benefit means members will share in the long-term financial success of our business.

To become a member, your client must meet the eligibility criteria applied by PPS Mutual at the time they choose to join . This requires that your client is also a life insured under a PPS Mutual Professionals’ Choice policy.

When your client meets the eligibility criteria set by PPS Mutual, they become a member of PPS Mutual   and a life insured under the Multiple Life Policy. The eligibility criteria defines the professionals that we insure and may be updated from time to time for new members. This helps us stay focused on delivering a tailored product, underwriting, and claims service experience.

Our current eligibility criteria, tailored to the New Zealand market, can be found in the resource linked below.

Associates

We  understand that when you are considering PPS Mutual for your clients, you may also look to protect family members or business associates who may not meet our membership eligibility criteria. PPS Mutual makes this possible through the associate pathway.

Associates are eligible for insurance with PPS Mutual through their relationship with a member, but will not receive a Profit Share Benefit. Instead, profits generated in respect of associates may be included in the funds allocated to members through the Profit Share Benefit.

Importantly, once an associate is insured by PPS Mutual, they continue to remain covered – even if their relationship with a member ceases.

What is the Profit Share Benefit?

The Profit Share Benefit is delivered to members through the Multiple Life Policy. Members will be entitled to receive a Profit Share Benefit payment should one of the payment events specified in the Multiple Life Policy occur.

Those specified events are death, diagnosis of a terminal illness, or reaching age 65.

Your client will cease to be a life insured under the Multiple Life Policy and will no longer be eligible to receive a Profit Share Benefit if they cease to be a life insured under a Professionals’ Choice Policy – except in some specific circumstances which are set out in our Profit Share Benefit Information Sheet.

How does the Profit Share Benefit work?

Each year, the Board of PPS Mutual may exercise its discretion to make a Profit Share Benefit allocation to members and these allocations will determine each member’s Profit Share Benefit value and the payment they will receive if one of the specified events occurs during that year.

Allocations will depend on factors assessed by the Board of PPS Mutual based on its view of the financial performance and capital needs of PPS Mutual’s business.  Further information is set out in the Profit Share Benefit Information Sheet.

Allocations are discretionary and expected to change over time. They may be positive, nil or negative which means that members’ Profit Share Benefit value is subject to change after each allocation is made.

In the interests of fairness among current and future generations of members, PPS Mutual intends to start making Profit Share Benefit allocations from March 2027 based on the long-term outlook of future profits. In other words, Profit Share Benefit allocations are expected to commence before PPS Mutual starts making a profit.

While premiums must be paid for the member’s Professionals’ Choice policy, no separate payment is required to receive the Profit Share Benefit.

For detailed information, please refer to the Profit Share Benefit Information Sheet and the Multiple Life Policy Wording below.

How do we communicate this with your clients?

We are required to ensure that each eligible member is informed about specific details of the Profit Share Benefit prior to becoming a member under the Multiple Life Policy.

PPS Mutual will send an email to your clients with the Profit Share Benefit Information Sheet and the Multiple Life Policy wording at these key moments:

• Once the client has completed their initial underwriting questions.
• Following policy issuance as part of the Membership Welcome pack.

We will also send each member a statement following each Profit Share Benefit allocation date, which will include the following information:

• The member’s current Profit Share Benefit value;
• The amount of allocation made for the member during the member’s most recent membership year (or part-year as relevant); and
• A statement confirming that allocations are not guaranteed and may be positive or negative, and accordingly the value of the Profit Share Benefit may change from time to time.

AML screening

Directly after a Professionals' Choice Policy is issued, the eligible member must complete a simple AML/CFT check before they become a life insured under the Multiple Life Policy and eligible to receive the Profit Share Benefit.

AML verification is performed using the AMLHUB service and can be conducted using a mobile device, a computer, or in-person. Eligible members will receive an email to complete the checks, where they will be directed to photograph or upload a copy of their New Zealand Passport or Driver License.

If an eligible member does not complete the AML/CFT checks within 3 months, they will not become a life insured under the Multiple Life Policy and therefore they will not be eligible to receive the Profit Share Benefit. However, their insurance cover under the Professional's Choice Policy will not be impacted.

Tax considerations

PPS Mutual has received a product ruling from the IRD confirming that PSB allocations in respect of a Member and the receipt of PSB benefit payments by a Member or a Member’s estate will not be taxable income for the Member or the Member’s estate.  

This product ruling is publicly available (titled BR Prd 25/04) should your clients or your clients’ tax advisers wish to review it. As is common for IRD product rulings, this product ruling applies for 3 years - from 30 June 2025. PPS Mutual plans to apply for renewal before its expiry.