anyone on prulifetime income plan?

[Sausage]

Was wondering if anyone is on this plan, and any comments?

Interested in knowing the surrender value over time, and also how they calculate the lifetime benefits in this brocuhure.

https://www.prudential.com.sg/en/our-solutions/products/prulifetime-income/

In general, is this plan alright to go with in terms of investment, not so much life insurance?

 

[JuniorLion]

What is your main objective of this?

 

[Sausage]

Growing savings

 

[JuniorLion]

Ok. Hmm I have taken a look at it. There are similar products out there with other insurers, eg Great Eastern has Family3. Perhaps you can do a quick comparison.

 

[Sausage]

I am not sure if my calculations are correct, trying to figure out how they derived the figures. Can anyone comment?

 

[Shion]

Pay $7,200 for 20 years = $144,000

At age 40, your kids most likely still young.

https://www.prudential.com.sg/expor...ures/prulifetime_income_eBrochure_english.pdf

Scenario 2 - pay $12,580 annually for 10 years.
Per month $1,048.33
At 35, your kids are still young.

 

[Shion]

Also there is no guarantee you can get $1000 cash benefit or whatever the amount is because it is a non-guaranteed amount.

 

[Sausage]

thank you, i understand the $1000, 2200 and 5400 payouts are not guaranteed, but at what point does it shift from 1000-2200, and then to 5400? Every 10th anniversary? And how did they derive these numbers? They projected a 4.75% growth rate, but the jump across the annual benefit is much more than 4.75%, that's the part I don't understand.

 

[Shion]

thank you, i understand the $1000, 2200 and 5400 payouts are not guaranteed, but at what point does it shift from 1000-2200, and then to 5400? Every 10th anniversary? And how did they derive these numbers? They projected a 4.75% growth rate, but the jump across the annual benefit is much more than 4.75%, that's the part I don't understand.

4.75% is not the growth rate. It is pegged to their par fund performance. Anyway their illustration is also not realistic.

 

[Shion]

I am not sure if my calculations are correct, trying to figure out how they derived the figures. Can anyone comment?

Age 42 to 49 - $8,000
Age 50 to 59 - $22,000
Age 60 to 69 - $54,000
Age 70 to 85 - $86,400

Additional $1,000 on every 10th policy anniversary at age 70:
Age 70, Age 80 - $2,000

Total - $172,400

 

[Sausage]

thank you very much

so does this mean everyone in the same period gets paid the same amount regardless of the total premium they pay overall?

i.e. just for illustration,

a 35-year-old in his 4th anniversary since buying this plan will get $1000 annually, and

a 47-year-old in their 4th anniversary since buying this plan will also get $1000 annually?

That means the younger you buy, and the shorter your plan (i.e. the less you pay for overall premium) the more you stand to gain?

 

[Shion]

From their website:
You can choose 4, 10 or 20 year premium payment term.
There is also a minimum face value and minimal annual premium.

 

[Shion]

thank you very much

so does this mean everyone in the same period gets paid the same amount regardless of the total premium they pay overall?

i.e. just for illustration,

a 35-year-old in his 4th anniversary since buying this plan will get $1000 annually, and

a 47-year-old in their 4th anniversary since buying this plan will also get $1000 annually?

That means the younger you buy, and the shorter your plan (i.e. the less you pay for overall premium) the more you stand to gain?

http://comparefirst.sg/wap/prodSummaryPdf/199002477Z/PRUlifetime income product summary.pdf

 

[Sausage]

I don't understand the minimum annual premium bit.

https://www.prudential.com.sg/en/our-solutions/products/prulifetime-income/

Suppose the premium price is $96k for a 4 year term. The minimum annual premium they state on their website is $12k.

Is this minimum annual premium only for their example cited of which the face value
is $47k?

Also, why is the premium for a younger person much less than an older person, when theoretically, they stand to gain the most (they are likely to have more years of life left and in turn will receive more annual payouts).