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Pru Lifetime Income and Pru Life Multiplier Flex

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Old 22-01-2018, 07:40 PM   #16
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Premium term of 20 for male non-smoker anb 28 is $2425.50 minimum per year.

Total premium payable is $48,510 over 20 years.
For the prulife time plan, I was quoted a premium of around $96,000 over 4 years. Does anyone know how they calculated this?
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Old 22-01-2018, 07:59 PM   #17
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just found this thread and I'm interested but not sure about details about prulifetime iincome.


https://www.prudential.com.sg/en/our...fetime-income/

how does it work? When they say minimum annual premium, what happens if you pay more than that?



So the payout is annual? Going by this, do you make a loss (as in you pay $48510 in total but eventually get $2640 in all for all of year 2-9, then $7260 in all for year 10-19, then after the 20th anniversary $1782 a year?) - that means round 41 years to break even?

Since this is supposed to be a perpertual income plan, it gives regular payouts. But what happens to the captital invested in it? Is the only way to get all of it back upon death or disablement? Any info on the surrender terms?

also can someone give some general figures for this plan with these parameters?

42M non smoker,
4-year term
premium of $2000 monthly

what kind of regular benefits are we looking at? The borchure says yearly cash benefit of around $1000-$5400 yearly cash benefit, but what about the monthly payout?

finance noob here, please entertain, thank you
I did not do any calculation. This plan is basically an insurance cum savings plan with cashback. The cashback is the pull factor for most people.

Returns are not guaranteed.

Basically, you are just putting money in a savings plan which probably gives you a 1-3% pa returns at its best.

You can achieve the same returns if you put your money elsewhere.

If your objective is for insurance, opt for some term insurance instead.
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Old 22-01-2018, 08:09 PM   #18
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I can tell u for a fact that u will likely regret buying this.

I have people wanting to sell me their policies after holding for 2 to 3 years and it's the one that people seems to want to sell.
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Old 22-01-2018, 08:09 PM   #19
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thank you, what other options would you recommend?

Do you know how they calculate the total premium required for this?
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Old 22-01-2018, 08:11 PM   #20
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I can tell u for a fact that u will likely regret buying this.

I have people wanting to sell me their policies after holding for 2 to 3 years and it's the one that people seems to want to sell.
what were their reasons?
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Old 22-01-2018, 08:18 PM   #21
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thank you, what other options would you recommend?

Do you know how they calculate the total premium required for this?
Total premiums will probably rise with age.

Actual numbers must get from agents.

To ask why must check with the actuarist.

Whatever it is, just remember the expected payouts of ALL policyholders <<< premiums paid by ALL policyholders.

You are quite a senior in this forum. You should have read a lot of posts to become more financially savvy.
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Old 22-01-2018, 08:34 PM   #22
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Thank you,

I was quoted a full premium of $96000 payable over 4 years (ie. $24k/year). Not sure how they calculated this, but I've seen a lot of variations, like in their brochure they cited for a 40-year-old example $7200/year payable over 20 years - which makes a total of $144k premium. Then there are people paying $50k total, and so on. Is it really so variable? That makes it like health insurance when the only health question they ask is whether you smoke.
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Old 22-01-2018, 08:40 PM   #23
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Thank you,

I was quoted a full premium of $96000 payable over 4 years (ie. $24k/year). Not sure how they calculated this, but I've seen a lot of variations, like in their brochure they cited for a 40-year-old example $7200/year payable over 20 years - which makes a total of $144k premium. Then there are people paying $50k total, and so on. Is it really so variable? That makes it like health insurance when the only health question they ask is whether you smoke.
There is a time value factor at play. Assume same age.

Payable over 4 years versus payable over 20 years. If you sum up the premiums, the former will be less than the latter plan.

Why? Because the insurance company can invest your premiums earlier if you pay more upfront.
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Old 22-01-2018, 10:03 PM   #24
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thank you, i think i'm starting to get it.

reason why I'm suddenly so interested in this is because to my untrained eye i may be able to get a better price, so I need the more experienced to see if it's really worth it.

I was quoted a $96k premium over 4 years. Now the thing is, there is an option to pay by credit card, and the credit card offers a 1.8% cashback if you spend around $2000. On top of that, if you spend it on insurance products, you get an additional 0.7%. Bet you can guess which card it is. So the thing is, if you have $100k to base this cashback on, and you pay $2000 a month for this via your credit card, you can get around $215 back a month, which can reduce the premium to around $1794 monthly => resulting in a total premium of around $86k, around $10k off the quoted amount initially.

I am not sure if I am missing anything or if this is sound as I'm new to this.


But I'm puzzled by the very early post in this thread:

Premium term of 20 for male non-smoker anb 28 is $2425.50 minimum per year.

Total premium payable is $48,510 over 20 years.
Why is the total premium here almost half of what I was quoted for a 4-year payment term, when this is for a 20-year-term? There's only a 10-year age difference, is it supposed to be so drastic?

And then I also saw this on CPF life:

Under the current CPF Standard Plan - the default option - a CPF member with about $80,500 on his accounts can expect to receive $720 a month for the rest of his life.
This seems much much better, with just $80,500, you get $720 a month for the rest of your life, as opposed to around $1000 a year for the prudential one. Am I missing something here?
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Old 22-01-2018, 10:07 PM   #25
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thank you, i think i'm starting to get it.

reason why I'm suddenly so interested in this is because to my untrained eye i may be able to get a better price, so I need the more experienced to see if it's really worth it.

I was quoted a $96k premium over 4 years. Now the thing is, there is an option to pay by credit card, and the credit card offers a 1.8% cashback if you spend around $2000. On top of that, if you spend it on insurance products, you get an additional 0.7%. Bet you can guess which card it is. So the thing is, if you have $100k to base this cashback on, you can get around $215 back a month, which can reduce the premium to around $1794 monthly => resulting in a total premium of around $86k, around $10k off the quoted amount initially.
There must be a cap to the cashback you can receive.
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Old 22-01-2018, 10:07 PM   #26
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There is a time value factor at play. Assume same age.

Payable over 4 years versus payable over 20 years. If you sum up the premiums, the former will be less than the latter plan.

Why? Because the insurance company can invest your premiums earlier if you pay more upfront.
While the amount is less over the 4 years premium, you forgot to mention that value wise, it is actually more expensive!
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Old 22-01-2018, 10:09 PM   #27
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There must be a cap to the cashback you can receive.
yes, the cashback is only for the first $100k in your deposit account.
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Old 22-01-2018, 10:10 PM   #28
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While the amount is less over the 4 years premium, you forgot to mention that value wise, it is actually more expensive!
don't quite understand this, can explain?
you mean that the amount paid for is more, but the amount you get back is less?
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Old 22-01-2018, 10:15 PM   #29
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what were their reasons?
Normally it's the usual reasons that they need cash or suddenly realise it's a bad deal..I didn't ask them much as I didn't want to waste their time.

Anyway, I read your post on the cc cashback but I don't think it should be a factor in your decision . Basically their premiums for the first 2 years are their commissions and if I remember I look at the BI, the total guaranteed at the end is much lower than the total premiums so it really hoping that Prudential does a good job with their investments . There is no penalty if they do badly, no matter what they earn . Why not save the commission's to buy an etf with the commission saved as a margin of saftey

Plus no lock in for a damn damn long time
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Old 22-01-2018, 10:22 PM   #30
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the total guaranteed at the end is much lower than the total premiums so it really hoping that Prudential does a good job with their investments .
this has me interested, where can I find this info on the total guaranteed at the end? Is this a projection based on a worst case scenario for the par funds?

Of course they'll paint a very rosy picture of smoothing to show a lower but guaranteed bonus but I want to see some exact figures, and all they showed me was business times articles on how prudential is often in the top percentile of performers.
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