PRUActive Term is a term life insurance plan offering flexible coverage with options like Incremental Sum Assured and Critical Illness riders. While it provides strong protection, it has higher premiums and limited renewability/convertibility, making it less ideal for long-term flexibility.
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Dig into the specifics of Prudential PRUActive Term and explore its features by clicking here.
PRUActive Term tends to have higher premiums compared to similar policies, especially for its critical illness coverage.
PRUActive Term offers solid coverage for death, terminal illness, and critical illness, with the option to increase the sum assured over time.
It includes flexible riders like Critical Illness, Early Critical Illness, and Incremental Sum Assured, but lacks strong renewability and conversion options.
- Good flexibility with riders and incremental coverage, but higher premiums can reduce its appeal.
- Offers Critical Illness and Early Critical Illness riders, Incremental Sum Assured, and 2X Death Benefit.
- Solid coverage for death and critical illness, with the ability to increase coverage without medical underwriting.
- Higher premium costs make it less attractive for budget-conscious buyers.
- Lacks strong renewability and guaranteed conversion options, limiting long-term flexibility.
- While coverage can increase, it comes with higher costs and limited options for renewability or conversion.
VERDICT:
PRUActive Term offers solid protection with flexible options like Critical Illness and Incremental Sum Assured, making it suitable for those who need a customizable plan.
However, its higher premium costs and limited renewability and conversion options reduce its appeal for long-term coverage seekers.
For those focused on flexibility in the short-term, it’s a decent option, but others may find more value elsewhere.
What we like about the Prudential PRUActive Term
Incremental Sum Assured
The Incremental Sum Assured feature is a standout in this policy, and here’s why it gets a thumbs-up from me.
It’s all about flexibility and future-proofing your coverage.
This benefit lets you increase your coverage over time — without the need for another medical check-up — making sure your policy keeps up with your growing financial responsibilities.
Whether you’re taking on a new mortgage, starting a family, or just looking to up your coverage, this feature has you covered.
- The coverage can grow by 1–10% annually.
- This increase applies to both the death benefit and any critical illness riders you may have.
- No medical exams required when increasing coverage — easy and hassle-free.
- Tailor it based on your financial milestones like buying a home or having children.
This flexibility ensures you’re not stuck with the same coverage you had years ago, allowing the policy to evolve with your needs.
It’s one of those practical features that takes into account the unpredictability of life and gives you peace of mind for the future.
2X Death Benefit
The 2X Death Benefit is another feature I’m particularly fond of.
This allows you to double your death benefit at critical moments in life when your dependents may need more financial support.
What I really like about this is that it doesn’t require additional underwriting or complex paperwork — you simply activate the benefit when you need it most.
- You can double the original death benefit without a fuss.
- This feature works great if you foresee bigger financial obligations, like a new mortgage or increased family responsibilities.
This adds an extra layer of security to your plan, making sure your loved ones are well taken care of in case the unexpected happens.
It’s a comforting safety net, especially during major life transitions when your financial commitments are at their peak.
Critical Illness Riders
The Critical Illness Riders are a major plus for me, and here’s why.
Having the option to add these riders gives the policy more depth and ensures you’re not just covered for death but also serious health conditions.
The riders available with this policy include:
- Crisis Care II: Covers up to 36 critical illness conditions. It’s a robust option that gives you peace of mind knowing that if you’re diagnosed with a severe illness, you’ll have financial support when you need it most.
- Early Stage Crisis Cover: Covers early and intermediate-stage medical conditions, up to $250,000. This is especially handy for catching illnesses early and getting a payout, helping you focus on recovery rather than costs.
- Premium Waiver Riders: You can choose from Crisis Waiver III or Early Stage Crisis Waiver, which ensure your policy remains intact even if you’re unable to continue paying premiums due to a critical illness diagnosis.
These riders are not only affordable compared to standalone critical illness policies but also ensure that you have a safety net in place, should your health take a turn for the worse.
It’s an essential layer of protection for anyone looking to prepare for life’s uncertainties.
Flexible Premium Payment Term
Flexibility is key, and that’s exactly what you get with the Flexible Premium Payment Term.
It’s one of the features I really appreciate because it adapts to different financial situations.
Whether you’re looking to pay off your premiums quickly or spread them out over time, this policy has options that fit various needs.
- Premium payment terms can range from 5 years to as long as 82 years, giving you the freedom to decide what suits your budget and long-term planning.
- You can also choose between shorter-term payments or go for a level term, depending on how you want to manage your cash flow.
This flexibility ensures that you aren’t locked into a rigid payment structure, giving you control over how and when you pay for your coverage.
It’s especially helpful if you foresee changes in your financial situation, such as retirement or other life events.
This feature makes the policy adaptable and easy to work with over the long term.
What we think the Prudential PRUActive Term could do better
Higher Premium Costs
One downside that stands out for me with this policy is its higher premium costs.
While the policy does offer valuable features, the price you pay for them can feel steep, especially compared to similar options in the market.
For someone looking to balance solid coverage with affordability, this can be a dealbreaker.
- During the early years of the policy, the premiums can be on the higher side, which might strain your budget if you’re juggling other financial commitments.
- Even though you’re paying for a comprehensive set of features, the overall premium can feel hefty when compared to other policies offering similar coverage, particularly when combined with the Critical Illness Riders or additional coverage benefits.
- For a 30-year-old male non-smoker, the estimated premium for $500,000 in sum assured could go up to $685 per year, which adds up over time.
These costs can make the policy feel less accessible for those who are more price-sensitive or who prefer a leaner, more cost-effective plan.
While the coverage is extensive, it comes at a higher price point than I’d prefer.
Limited Renewability and Convertibility
Another feature I’m not keen on is the limited renewability and convertibility of this policy.
This limitation restricts the flexibility that I would expect from a long-term insurance plan.
Lack of Renewability: Once the policy reaches its term, there’s no option to renew it without going through a new medical check-up. For someone who may develop health issues later in life, this could lead to difficulties in securing further coverage at an affordable rate.
No Guaranteed Conversion: While some policies allow you to convert your term life insurance into a whole life or savings plan without a medical exam, this policy falls short here. This can be problematic if you decide later on that you’d prefer lifelong coverage or want to invest in a policy with a savings component.
These restrictions reduce the flexibility of the policy and may not accommodate long-term changes in financial goals or health conditions.
I’d prefer a policy that adapts better to evolving needs without requiring me to jump through hoops later on.
Indexation Option
While the Indexation Option might sound like a good idea at first glance, it’s not without its drawbacks.
The idea is to help your policy keep pace with inflation by allowing for an annual increase in your sum assured.
However, this feature isn’t always as beneficial as it seems.
- The annual increase in coverage can lead to progressively higher premiums, which may not be manageable over the long term. While you’re increasing your coverage, you’re also steadily inflating your costs.
- This automatic increase might not always match your actual financial needs, potentially leading to over-insurance. You may end up paying for more coverage than necessary, which isn’t cost-effective if your financial commitments haven’t grown at the same pace.
Though it addresses inflation, the added cost and lack of control over the increases make this feature less appealing for someone who wants a stable, predictable premium structure.
No Coverage for Some Specific Riders
A major drawback of this policy is that it doesn’t offer coverage for some specific riders that I would find useful, especially when compared to other term plans.
- For example, while it provides critical illness riders, the coverage is capped at certain limits, and it lacks comprehensive options for higher early-stage critical illness coverage, which other policies offer.
- Riders for things like total permanent disability (TPD) are also more limited compared to other policies, which offer more generous and flexible options.
These gaps mean that if you’re looking for full protection against a broad spectrum of risks, you’ll need to look elsewhere — or add separate policies — just to get that coverage, making this plan less convenient overall.
No Guaranteed Conversion Option
The lack of a guaranteed conversion option is another aspect of this policy that doesn’t sit well with me.
This limits your ability to shift your term policy into a different type of plan without jumping through hoops.
Without a guaranteed conversion, if you later decide you want to switch to a whole life policy or an endowment plan, you’ll need to go through another round of medical underwriting. This can be a problem if your health has declined since you took out the policy.
Additionally, for people whose financial goals may change — say, you want to move from protection to savings or investment — this policy doesn’t offer an easy path to transition.
This lack of flexibility can be frustrating, particularly for those who may need their insurance to evolve with their life circumstances.
It leaves you feeling locked into the policy with no easy way to adapt it.
Better alternatives to the Prudential PRUActive Term
Singlife Elite Term
The Singlife Elite Term stands out for its incredible flexibility and comprehensive coverage options.
One of the key reasons it’s a better option is its convertibility without additional medical underwriting.
This means you can easily switch your term life policy into a whole life or savings plan, giving you the flexibility to adapt your coverage as your financial goals evolve.
You won’t have to worry about health checks, which is a significant plus if your health status changes over time.
Moreover, Singlife Elite Term offers critical illness riders that are top-tier.
The policy covers up to 60 advanced-stage critical illnesses, the highest in the market, ensuring you’re well-protected.
Additionally, its Early Critical Illness (ECI) Rider provides coverage for 40 early-stage conditions without reducing your death or TPD benefits, which makes it more efficient in filling any coverage gaps.
A standout feature is its 30% perpetual discount on policies with a sum assured above $500,000.
This discount makes it one of the most cost-effective plans for high coverage amounts, even when compared to other term plans.
Its coverage can also extend up to age 99, making it a long-term solution for those looking for extensive protection well into their later years.
Tokio Marine TM Term Assure (II)
The Tokio Marine TM Term Assure (II) is another strong contender, especially when it comes to value for money.
The policy not only provides essential protection against death, Total and Permanent Disability (TPD), and Terminal Illness (TI) but also offers features that add extra value.
One of the most appealing aspects is the guaranteed renewal and conversion privileges.
This allows you to renew the policy for either 5 or 10 years without medical underwriting, and you can also convert it into a whole life or endowment plan before the age of 60.
This is particularly useful if your needs evolve, giving you the option to extend your coverage or move into a different type of insurance without any medical hassles.
What sets Tokio Marine apart is the KidAssure GIO Rider, which covers child-related diseases, death, and hospitalization benefits for your children, something that most term plans, including Singlife, don’t offer.
Additionally, 80% of the premiums paid for this rider are reimbursed at the rider’s maturity, making it a rare yet highly beneficial feature.
For a policy that balances reasonable premium rates with comprehensive coverage, Tokio Marine’s TM Term Assure (II) is a great pick.
NTUC Income Term Life Solitaire
The NTUC Income Term Life Solitaire excels in providing high Early Critical Illness (ECI) coverage.
It covers up to $350,000 for ECI, much higher than most term plans that cap ECI at $250,000.
This makes it an excellent option for individuals seeking more robust protection against critical illnesses.
On top of that, the policy covers an impressive 105 critical illness conditions across early, intermediate, and advanced stages, which is far more comprehensive than many of its competitors.
Another advantage is that NTUC Income Term Life Solitaire is highly cost-effective, offering some of the most affordable premiums in the market.
While other policies might skimp on coverage or charge more for comprehensive benefits, this plan provides a perfect balance of extensive coverage and affordability.
However, it’s worth noting that the minimum death coverage starts at $500,000, which might be a bit higher than some other policies, but it ensures you get significant coverage from the outset.
These policies outshine PRUActive Term by offering better convertibility, more comprehensive riders, and greater flexibility, all while keeping premiums manageable or offering standout benefits that make them more attractive in the long run.
Let Us Compare Policies For You
When it comes to term life insurance plans, price is usually the most important factor, especially if you’re looking for basic death coverage.
You don’t want to overspend on something that’s meant to provide essential protection for your loved ones.
However, if you’re also using the plan for early critical illness (ECI) or critical illness (CI) coverage, then the number of conditions covered, the definitions, and how much you would receive from a claim become crucial.
It’s not just about having a policy — it’s about knowing exactly what it covers.
Understanding the riders available is also important.
Some riders, like premium waivers or child benefits, can be game-changers and potentially save you money in the long run by providing extra coverage for a minimal increase in premium.
The ability to renew the policy without additional medical exams is essential if you’re only using the policy for temporary coverage, like while you’re paying off a mortgage or other loans.
If your liabilities are decreasing over time, being able to renew ensures that you’re still covered without having to go through the underwriting process again.
The ability to convert your policy into something like a whole life plan or an investment-linked plan is also worth considering.
Conversion allows you to turn temporary protection into longer-term security, add a savings component, or lock in lifetime coverage.
That said, while it’s a good-to-have feature, it’s usually not the most important factor for most people looking at term plans.
Remember, a policy that works well for one person might not be the right fit for someone else.
It all comes down to your personal goals and financial situation.
That’s why understanding what you’re purchasing on a deeper level is so important.
Our partners are trained professionals with years of experience in the industry, and they can help you navigate the complexities of these policies.
We offer a free, non-obligatory comparison session where we’ll compare policies for you — making sure they align with your current situation and future goals.
We’ll even help you get quotes to compare, so you can feel confident that you’re making the right choice.
Let us help you take the guesswork out of choosing the best term life insurance for your needs.