PruLink Assurance

[HWZ1973]

Hello All,

Currently I have a PruLink Assurance policy (ILP) which i bought since 2001.
Coverage (double payment policy):
Life/TPD $75k plus
Critical Illness $75k

Paid up premium is $27,000 and current cash value is $24,500.

I checked with my advisor and he told me this policy will never break even.

He told me I have the option to withdraw $20,000 now and use it to service the policy which is about $125/mth.

But he also said if in the event that cash balance in the policy is insuffient to service the policy I may have to TOP-up. I asked him where in the policy is it stated, he could not provide the details.
I also told him that I would still be continuing to pay the monthly premiums so why would the account be insufficient, no answer also.

I would like to continue with this policy since it’s a double payment policy.

I would like to ask the community here if anyone would have the experience or advice on this.

Thank you in advance!

Edited for clarification.

 

[boredboiboi]

Hello All,

Currently I have a PruLink Assurance policy (ILP) which i bought since 2001.
Coverage (double payment policy):
Life/TPD $75k plus
Critical Illness $75k

Paid up premium is $27,000 and current cash value is $24,500.

I checked with my advisor and he told me this policy will never break even.

He told me I have the option to withdraw $20,000 now and use it to service the policy which is about $125/mth.

But he also said if in the event that cash balance in the policy is insuffient to service the policy I may have to TOP-up. I asked him where is the policy is it stated, he could provide the details.
I also told him that I would still be continuing to pay the monthly premiums so why would the account be insufficient, no answer also.

I would like to continue with this policy since it’s a double payment policy.

I would like to ask the community here if anyone would have the experience or advice on this.

Thank you in advance!

Stop paying premium as no more penalty. If u looking to invest, use the same premium and buy sti etf etc. as the ilp u have is old plan and have 5% bid offer spread and also its sub fund so no point continuing.

 

[giraffey]

Hello All,

Currently I have a PruLink Assurance policy (ILP) which i bought since 2001.
Coverage (double payment policy):
Life/TPD $75k plus
Critical Illness $75k

Paid up premium is $27,000 and current cash value is $24,500.

I checked with my advisor and he told me this policy will never break even.

He told me I have the option to withdraw $20,000 now and use it to service the policy which is about $125/mth.

But he also said if in the event that cash balance in the policy is insuffient to service the policy I may have to TOP-up. I asked him where is the policy is it stated, he could provide the details.
I also told him that I would still be continuing to pay the monthly premiums so why would the account be insufficient, no answer also.

I would like to continue with this policy since it’s a double payment policy.

I would like to ask the community here if anyone would have the experience or advice on this.

Thank you in advance!

i would terminate the policy.
Just get a term insurance and invest the rest. You would get more returns. =)

 

[HWZ1973]

Generally I think it's a not too bad policy that's why I intend to keep it but would like to withdraw 20k cash then use it to continue to service the policy.

 

[boredboiboi]

Generally I think it's a not too bad policy that's why I intend to keep it but would like to withdraw 20k cash then use it to continue to service the policy.

U dont need to continue paying the plan will auto deduct unit for the maintenance. If u continue to pay u will having the 5% bid offer spread.

 

[tangent314]

The $125/month to service $75k life + CI is pretty ridiculous. For PruLink, this charge will also go up as you get older, unlike normal term plans. Assuming you are 45 years old now, you can purchase a $100k term life + CI plan for $600+/year, less if you go with TM, check at http://comparefirst.sg

PruLink has always been a crappy plan, between the high sales charges for the funds, high insurance deductions and regular platform fee charges. Not to mention the high fund management fees for the few available funds run by prudential fund managers that do not have the experience of the big fund houses.

So yeah, surrender your plan, reevaluate whether you really need insurance coverage and purchase a direct term plan if you do. Then head over to the Shiny Things thread if you want to learn to invest on your own at low costs.

 

[boredboiboi]

The $125/month to service $75k life + CI is pretty ridiculous. For PruLink, this charge will also go up as you get older, unlike normal term plans. Assuming you are 45 years old now, you can purchase a $100k term plan for $600+/year, less if you go with TM, check at http://comparefirst.sg

PruLink has always been a crappy plan, between the high sales charges for the funds, high insurance deductions and regular platform fee charges. Not to mention the high fund management fees for the few available funds run by prudential fund managers that do not have the experience of the big fund houses.

So yeah, surrender your plan, reevaluate whether you really need insurance coverage and purchase a direct term plan if you do. Then head over to the Shiny Things thread if you want to learn to invest on your own at low costs.

Totally agree but must also see if he can get a new coverage first before terminating incase got pre existing or something.

 

[HWZ1973]

The $125/month to service $75k life + CI is pretty ridiculous. For PruLink, this charge will also go up as you get older, unlike normal term plans. Assuming you are 45 years old now, you can purchase a $100k term life + CI plan for $600+/year, less if you go with TM, check at http://comparefirst.sg

PruLink has always been a crappy plan, between the high sales charges for the funds, high insurance deductions and regular platform fee charges. Not to mention the high fund management fees for the few available funds run by prudential fund managers that do not have the experience of the big fund houses.

So yeah, surrender your plan, reevaluate whether you really need insurance coverage and purchase a direct term plan if you do. Then head over to the Shiny Things thread if you want to learn to invest on your own at low costs.

Now that you mentioned it, I realised it’s really a crappy plan. I don’t realised it now cos I have yet passed 50, so the assurance premiums are not that high yet.
Really in a dilemma now, cos if I withdraw 20k now I may not have enough to service in future thus need to TOP up per my advisor said. I may just have to leave it and let it run till CC or death loh....

Thanks to you guys for your valuable inputs!

 

[HWZ1973]

Totally agree but must also see if he can get a new coverage first before terminating incase got pre existing or something.

I have other coverages and no dependents, so I think still ok to terminate if I want.
Thank you for your inputs.

 

[boredboiboi]

Now that you mentioned it, I realised it’s really a crappy plan. I don’t realised it now cos I have yet passed 50, so the assurance premiums are not that high yet.
Really in a dilemma now, cos if I withdraw 20k now I may not have enough to service in future thus need to TOP up per my advisor said. I may just have to leave it and let it run till CC or death loh....

Thanks to you guys for your valuable inputs!

Another option as per sharing, get a term plan now if u r pink of health. And use the rest of the money and invest or put ssb.

 

[oceanicmanta]

This is a ILP whose cash value is directly derived from the unit prices.

Which Pru Fund is it invested in ?

It is not true that this policy will "never" breakeven.

I terminated mine (invested in SG Asian Managed Fund, over 20yrs) last year after I switched cover to Aviva GTL for Term & CI while I am still eligible.

The main concern for me was the mortality charges for this ILP is not sustainable. IIRC, it increases a lot after 50yo.

There r other admin fees & charges, 5% spread etc which are also a drag.

I dont regret terminating. Now my Protection & Savings are separated & easier to manage & understand.

 

[HWZ1973]

This is a ILP whose cash value is directly derived from the unit prices.

Which Pru Fund is it invested in ?

It is not true that this policy will "never" breakeven.

I terminated mine (invested in SG Asian Managed Fund, over 20yrs) last year after I switched cover to Aviva GTL for Term & CI while I am still eligible.

The main concern for me was the mortality charges for this ILP is not sustainable. IIRC, it increases a lot after 50yo.

There r other admin fees & charges, 5% spread etc which are also a drag.

I dont regret terminating. Now my Protection & Savings are separated & easier to manage & understand.

Good to know you still able to break even for this plan.
My funds as follows:
Global managed fund, Singapore dynamic bonds, Singapore Asian managed fund and Greater China fund.

 

[akwl88]

Hello All,

Currently I have a PruLink Assurance policy (ILP) which i bought since 2001.
Coverage (double payment policy):
Life/TPD $75k plus
Critical Illness $75k

Paid up premium is $27,000 and current cash value is $24,500.

I checked with my advisor and he told me this policy will never break even.

He told me I have the option to withdraw $20,000 now and use it to service the policy which is about $125/mth.

But he also said if in the event that cash balance in the policy is insuffient to service the policy I may have to TOP-up. I asked him where in the policy is it stated, he could not provide the details.
I also told him that I would still be continuing to pay the monthly premiums so why would the account be insufficient, no answer also.

I would like to continue with this policy since it’s a double payment policy.

I would like to ask the community here if anyone would have the experience or advice on this.

Thank you in advance!

Edited for clarification.

1) insurance coverage sucks
2) investment returns sucks

 

[akwl88]

IRR -1% after 18 years?

 

[czycius]

Hi

I have similar plan bought around the same period, I recalled that once past 5 yrs or thereabout, there will be extra 5% units allocation so this may offset the bid spread pricing of the fund.

Further how is this series compared to the subsequent series?

Will appreciate comments and opinion please.

Thks.

 

[boredboiboi]

Hi

I have similar plan bought around the same period, I recalled that once past 5 yrs or thereabout, there will be extra 5% units allocation so this may offset the bid spread pricing of the fund.

Further how is this series compared to the subsequent series?

Will appreciate comments and opinion please.

Thks.

More or less will offset. But its a sub fund. U r paying extra for the fund management fee which is double fund charge. And there is also about $5/ month charge.

 

[tangent314]

There is really no pain in terminating / surrendering an ILP since the cash value depends directly on the performance of the funds, unlike the PAR fund endowment or whole life plans that backload the terminal or maturity bonus.

 

[SBC]

Change Prudential policy premium frequency be changed on the portal?