PRUWealth Plus (SGD) is a flexible endowment plan designed to grow your savings while providing financial protection. It offers capital guarantees, various premium payment options, and supplementary benefits but may deliver lower returns compared to other plans. Ideal for long-term financial planning.
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Uncover what Prudential PRUWealth Plus (SGD) has to offer and how it could be a key part of your financial future. For full details, click here.
The PRUWealth Plus (SGD) offers moderate growth prospects, with potential returns driven by its participating fund, though it may not be the highest compared to other plans.
The policy provides a range of features, including flexible premium payment options, capital guarantees, and supplementary benefits, offering comprehensive financial protection.
The PRUWealth Plus (SGD) is flexible, allowing changes to the life assured, premium deferment, and various payment terms to adapt to different financial needs.
- Offers a capital guarantee after the 10th year for single premium plans and the 15th, 18th, or 19th year for regular premium plans, depending on the term.
- Allows for single or regular premium payments, with terms ranging from 5 to 20 years and payment via cash or SRS funds.
- Allows appointing a secondary life assured and changing the life assured, enhancing long-term flexibility.
- The policy's returns are not as competitive as other plans.
- No options for early withdrawals or partial surrenders, limiting financial flexibility.
VERDICT:
The PRUWealth Plus (SGD) is a comprehensive endowment plan offering flexibility and security through capital guarantees and a range of supplementary benefits.
Its flexible premium payment options and the ability to change the life assured make it adaptable to different financial situations.
However, the plan’s growth prospects may not be as competitive compared to other endowment plans, and the delayed capital guarantee activation could be a drawback for those seeking immediate financial security.
Overall, it suits individuals looking for a stable, long-term savings plan with added protection, but those prioritizing higher returns and need the ability to withdraw might find better alternatives elsewhere.
What we like about the Prudential PRUWealth Plus (SGD)
Flexible Premium Payment Options
The flexibility of premium payment options with PRUWealth Plus (SGD) is truly appealing.
It allows you to choose how you want to pay, which can be a big relief if your financial situation changes over time.
You can opt for a single premium payment if you have a lump sum of money ready to invest.
This option means you pay once and can then sit back and let your investment grow without any further out-of-pocket costs.
If you prefer spreading out your payments, you can select from regular premium terms over 5, 10, 15, or 20 years.
This choice allows you to manage your finances better by not having to commit a large amount of money at once.
The plan also supports payment via cash or through the Supplementary Retirement Scheme (SRS) funds, offering additional tax advantages.
Payments can be scheduled to suit your needs – monthly, quarterly, half-yearly, or annually – which can help you align your insurance payments with your income schedule.
This level of flexibility is ideal for those who may need to adjust their payment schedules to better match their cash flow.
Capital Guarantee
Having a capital guarantee with this policy offers a significant peace of mind, particularly in unpredictable market conditions.
The PRUWealth Plus (SGD) ensures that your principal investment is protected after a certain period, depending on the premium payment plan you choose.
For single premium policies, this guarantee kicks in after the 10th year.
For those opting for regular premium payments, the guarantee is activated after 15 years for a 5-year premium term and after 18 or 19 years for 10-year or longer terms.
This feature is crucial because it means that the amount you initially invested will not be lost, providing a safety net against the risks of market fluctuations.
It’s especially reassuring for those who are risk-averse or looking to preserve their wealth over a long period.
Knowing that your capital is protected allows you to plan more confidently for the future.
Retrenchment Benefit
The retrenchment benefit is a standout feature, providing a safety net if you face unexpected job loss.
This benefit ensures that if you are retrenched during the premium payment term, you receive a financial cushion to help manage your finances without disrupting your long-term savings plan.
For regular premium policies, if you lose your job and remain unemployed for at least 30 days, the policy provides a one-time payout equivalent to 50% of a full year’s premium.
For single premium policies, if retrenchment occurs within the first five policy years, you receive 10% of the single premium paid.
This benefit is particularly valuable in today’s uncertain economic climate, where job security can be unpredictable.
It offers a financial buffer that helps you maintain your policy without having to worry about premium payments during difficult times, allowing you to focus on getting back on your feet.
Family Waiver Benefit
The Family Waiver Benefit is a compassionate feature of the PRUWealth Plus (SGD) policy that provides financial relief during challenging times.
This benefit waives the premiums for up to one year if an immediate family member of the policyholder, such as a spouse or child, passes away.
This waiver covers both the main policy and any supplementary benefits, ensuring that the policy remains in force without any financial burden on the policyholder during an emotionally difficult period.
This feature is especially valuable because it allows you to focus on grieving and healing without the added stress of financial obligations related to your policy.
It ensures that your long-term financial planning is not disrupted, and your savings goals remain on track even when faced with unforeseen personal tragedies.
Knowing that this support is available can provide a reassuring layer of security for you and your family.
Premium Defer Benefit
The Premium Defer Benefit offers flexibility and financial relief if you experience temporary financial difficulties.
This feature allows you to postpone premium payments for up to two years, provided your policy has accumulated a surrender value equal to at least 100% of two years’ premiums.
This deferment is available for regular premium policies and is particularly useful if you encounter unexpected financial challenges, such as job loss or a temporary decrease in income.
During the deferment period, Prudential offers an interest-free policy loan to cover your premium payments, ensuring your policy remains in force without any gaps in coverage.
You will need to repay this loan at the end of the deferment period, but having the option to defer premiums without immediate financial impact can be a lifesaver.
This benefit allows you to manage your financial priorities without compromising your insurance coverage, providing a valuable safety net during times of financial uncertainty.
Secondary Life Assured and Change of Life Assured
The option to appoint a Secondary Life Assured is a flexible feature that enhances the long-term value of the PRUWealth Plus (SGD) policy.
This allows the policyholder to include an additional insured person, typically a family member, ensuring that the policy remains active and continues to provide coverage even if the primary life assured passes away.
By appointing a Secondary Life Assured, you ensure continuity in your financial planning and legacy building, making this policy an excellent choice for those looking to secure financial protection for future generations.
The Change of Life Assured feature offers further flexibility by allowing you to transfer the policy to another person.
This is particularly useful if your family circumstances change or if you wish to adapt the policy to better fit your current financial objectives.
Whether it’s transferring the policy to a younger family member or adjusting the coverage focus, this feature ensures that your insurance plan remains relevant and beneficial as your needs evolve.
Supplementary Benefits
The PRUWealth Plus (SGD) policy offers a range of supplementary benefits that enhance its appeal by providing additional layers of protection.
These optional riders can be added to your policy to tailor it to your specific needs:
Early Stage Crisis Waiver: This rider waives premiums for five years upon diagnosis of an early-stage critical illness. If another early-stage condition is diagnosed within the specified period, the waiver applies for an additional five years, offering significant financial relief during challenging health situations.
Crisis Waiver III: Provides a waiver of premiums upon the diagnosis of any one of the 35 critical illnesses approved by Prudential. This ensures that you can focus on recovery without the worry of premium payments during a health crisis.
Payer Security Plus: This feature waives the premiums for your policy if the payer (the person who pays the premiums) experiences death, total and permanent disability, or a critical illness. This safeguard ensures that your policy remains intact, even if the payer is unable to continue the payments due to unforeseen circumstances.
These supplementary benefits offer comprehensive coverage, addressing various risks and uncertainties that might impact your financial stability.
By providing these additional protections, the PRUWealth Plus (SGD) policy ensures that you and your loved ones are well-protected, regardless of life’s unexpected challenges.
What we think the Prudential PRUWealth Plus (SGD) could do better
Higher Returns Elsewhere
One of the main drawbacks of the PRUWealth Plus (SGD) policy is the potential for higher returns available through other endowment plans.
While the policy does offer some growth potential, its returns may not be as competitive when compared to other products in the market.
This means that for those looking to maximize their investment growth over time, PRUWealth Plus might not deliver the highest possible return on investment (ROI).
Performance Limitations: The policy’s past performance indicates that it ranks lower compared to other high-yield endowment plans. For instance, its 15-year annualised returns were noted to be only 2.64%, which may not be appealing for investors focused on maximizing their financial gains.
Opportunity Cost: Investing in this policy might mean missing out on potentially higher returns from other investment opportunities, making it less attractive for those aiming to optimize their investment portfolio.
Capital Guarantee Delays
The capital guarantee offered by the PRUWealth Plus (SGD) policy is a reassuring feature, but the delay in its activation can be a significant downside.
The guarantee only comes into effect after a substantial period, depending on the premium payment plan, which can be a long wait for those looking for quicker capital security.
Extended Waiting Periods: For single premium policies, the capital guarantee activates after the 10th year, while regular premium policies see it come into play after the 15th, 18th, or 19th year, based on the chosen payment term.
Risk Exposure: During this waiting period, policyholders remain exposed to potential market fluctuations without the reassurance of guaranteed capital, which can be a source of concern for those who prefer more immediate financial security.
No Early Withdrawals or Partial Surrenders
The PRUWealth Plus (SGD) policy’s limitations on early withdrawals and partial surrenders can be a significant drawback for those who need access to their funds before the policy matures.
This lack of liquidity can make it challenging for policyholders to adapt to changing financial circumstances.
Limited Financial Flexibility: The inability to access funds early means that policyholders may not be able to respond effectively to unexpected financial needs or opportunities. This limitation can be frustrating for those who value having financial resources readily available.
Commitment Concerns: The policy’s structure requires a long-term commitment without the flexibility of withdrawing funds as needed, which can be a concern for individuals who prioritize liquidity in their investment decisions.
Better alternatives to the Prudential PRUWealth Plus (SGD)
Singlife Choice Saver
The Singlife Choice Saver stands out for its ability to offer the highest guaranteed returns among endowment plans, making it an attractive option for those seeking a secure and predictable investment outcome.
In a financial landscape often characterized by volatility, the assurance of guaranteed returns provides peace of mind and a stable financial future.
The plan also includes capital protection upon maturity, ensuring that your initial investment is safeguarded, which is particularly appealing to risk-averse investors who prioritize capital preservation.
This plan is noted for its flexibility, with policy terms ranging from 10 to 25 years, or even up to 99 years, allowing it to cater to a wide array of financial goals and timelines.
Whether you are saving for a significant milestone or planning for long-term financial security, the Singlife Choice Saver can be tailored to meet your specific needs.
Additionally, the plan offers liquidity options, such as partial withdrawals under certain conditions, which provide access to your funds when needed, enhancing its appeal to those who value financial flexibility.
Manulife ReadyBuilder (II)
Manulife ReadyBuilder (II) is recognized for delivering some of the highest total returns available in the market, thanks to its impressive fund performance and reasonable expense ratios.
The plan’s track record of robust geometric returns makes it an excellent choice for investors seeking to maximize their investment growth over time.
Its design caters to a long-term investment horizon, leveraging the power of compounding to potentially yield substantial returns.
One of the key advantages of the ReadyBuilder (II) is its unparalleled flexibility.
It offers a wide range of policy term options, extending up to 120 years, and provides flexible premium payment terms, including single and regular premium options.
This adaptability ensures that the plan aligns with both current financial circumstances and future aspirations, making it a seamless addition to any financial strategy.
Furthermore, the plan’s ability to allow partial withdrawals adds a level of liquidity that is rare in traditional endowment plans, providing access to funds if unexpected needs arise.
NTUC Income Gro Saver Flex Pro
The NTUC Income Gro Saver Flex Pro is highlighted for its versatility and comprehensive approach to financial planning.
This plan is designed to accommodate a wide range of financial goals and life stages, making it an attractive option for individuals seeking a reliable and flexible savings solution.
Its strong geometric returns, particularly over the long term, indicate its consistent ability to deliver robust growth, making it an excellent choice for maximizing retirement savings through the Supplementary Retirement Scheme (SRS).
One of the standout features of this plan is its array of policy term options, allowing you to choose from terms of 10, 15, 20, 25, or 30 years, or even opt for coverage until age 120.
This flexibility allows you to align the plan with your specific financial objectives, whether it’s saving for retirement, accumulating wealth for future endeavors, or planning for a child’s education.
Additionally, the plan’s capital guarantee upon maturity provides a layer of security, ensuring that the principal amount invested is protected, which is invaluable in an unpredictable economic climate.
Let Us Compare Policies For You
When considering endowment plans, it’s crucial to evaluate several key aspects to ensure the policy aligns with your financial goals.
Here’s what you should keep in mind:
Overall Flexibility: Endowment plans are long-term commitments, so the flexibility offered by the plan is essential. Look for features that allow you to adjust premium payments, make withdrawals, or change the life assured as your needs evolve.
Accumulation Period and Payout Options: Consider the length of the accumulation period and how the payouts are structured. Whether you want a lump sum at maturity or periodic payouts, ensure the plan aligns with your cash flow needs.
Capital Guarantee: Check if the policy guarantees your capital at maturity. This provides peace of mind, knowing your initial investment is protected against market fluctuations.
Growth Potential of Participating Funds: Assess both the guaranteed and non-guaranteed returns of the participating funds. The growth potential of these funds can significantly impact your overall returns, so understanding how they work is vital.
Remember, a good policy for one goal might not be suitable for another.
It’s important to understand what you’re purchasing on a deep level, considering your current situation and future aspirations.
Our partners are trained and experienced in the insurance industry and can help you navigate these choices.
We offer a free, non-obligatory comparison session to help you compare policies, ensuring that you get the best fit based on your unique needs.
During this session, we’ll obtain quotes for you to compare, making the process as straightforward and transparent as possible.
Let us help you make an informed decision that supports your financial journey.