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Prudential launches indexed universal life insurance plan to meet needs of high net worth population

Douglas Toh
·2-min read

Prudential Singapore has introduced the PRUVantage Legacy Index to meet the needs of Singapore's high net worth population.

Prudential Singapore (Prudential) has introduced PRUVantage Legacy Index (PLVI), an indexed universal life (UL) insurance product, to address the growing protection and legacy planning needs of high net worth individuals in Singapore.

The PVLI is a single-premium indexed UL insurance plan with a high death and terminal illness coverage.

The policy works on a dual account structure of a fixed account and an index account that is benchmarked against the S&P 500 Fast Convergence (FC) Index, which adjusts its allocation several times a day based on volatility observations from the market to stabilise returns during market downturns.

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According to Prudential, the PVLI, which requires a minimum sum assured US$500,000 ($675,532), offers several benefits, including lifelong protection with high coverage for death and terminal illness, as well as potential for maximised growth by linking returns to the S&P 500 FC Index, allowing customers to benefit from market upsides without a cap.

The fixed account offers steady growth with a first year crediting rate of 4.5% per annum (p.a.) and a guaranteed minimum rate of 2.0% p.a. It also provides protection from market downturns with a lifetime floor rate of 0% for the index account and a minimum crediting rate of 2.0% p.a.

Furthermore, customers can customise premium allocation between fixed and index accounts to match their evolving financial needs and risk appetites, with the option to adjust allocations annually after the first policy year.

Additionally, customers can also look forward to a loyalty crediting rate of 0.35% p.a. on the policy's fixed account in their eleventh year.

The PLVI aims to meet the needs of Singapore’s growing high net worth population, which Prudential notes is expected to rise from 7.5% in 2021 to 13.4% by 2030.

Chief customer officer of Prudential, Goh Theng Kiat, says: “High net worth individuals are looking for insurance solutions that go beyond basic protection and require plans that are tailored to securing their wealth and building a lasting legacy that can be passed on to future generations. PRUVantage Legacy Index is an insurance plan designed for this purpose, offering long-term coverage and growth potential for their legacy."

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