Prudential launches flexible legacy planning solution for affluent clients

Prudential Singapore has launched an indexed universal life (IUL) plan for affluent and high-net-worth clients, reflecting growing demand for more flexible wealth transfer and legacy planning solutions.

PRUApex Legacy Index II allows policyholders to allocate premiums across multiple market indices, including US, European and emerging market benchmarks, as well as volatility-controlled indices.

Customers can customise how their legacy grows and is passed on, with multiple index allocations, death benefit payout structures, and premium terms. They are also supported by an additional crediting rate of 0.25% p.a. for indices with uncapped returns (i.e. volatility-controlled indices), and a one-time bonus crediting rate of up to 6.50%  on total account value after the end of premium term for a fully paid policy on multipay premium payment term.

Toni Fung, chief customer and marketing officer, Prudential Singapore, said: “Affluent and high-net-worth individuals are increasingly looking for legacy planning solutions that will evolve with their changing life priorities, giving them greater certainty, control and confidence over how their legacy is passed on to the next generation. Today, when they want to make any changes, it means having to purchase new policies or restructure existing portfolios. PRUApex Legacy Index II addresses this need for flexibility, allowing customers to build a resilient legacy through diversified growth potential across multiple indices. It also helps to future-proof their plans with flexible death benefit payout structures.”

Diversified growth potential across markets and asset classes PRUApex Legacy Index II allows customers to diversify and allocate premiums across a mix of indices, offering broader market exposure across the United States (US), Europe, and emerging markets (e.g. China, South Korea and Brazil), as well as a gold-equity index. They have access to indices with both capped and uncapped returns (i.e. volatility-controlled indices that have no cap on potential gains1) that meet their legacy planning needs, and the flexibility to balance stability and growth potential based on their risk appetite.

Fung added: “We were the first insurer in Singapore to introduce a volatility-controlled index (i.e. index with uncapped returns1) in an indexed universal life plan two years ago. With PRUApex Legacy Index II, we are expanding the range of index options available to customers, giving them more ways to grow and protect their legacy through familiar indices with capped returns, such as the S&P 500, and indices that provide higher stability through their volatility-controlled design while offering uncapped return1 potential.”

Customers who prefer a standard market index can choose from indices such as the S&P 500, MSCI Emerging Markets and EURO STOXX 50. Those seeking uncapped returns with a stable, pre-determined level of risk can opt for volatility-controlled indices, including the S&P 500 FC, UBS MASTR, Barclays Shiller Allocator and MSCI World Golden Compass.

Future-proofing legacy planning with flexible design

PRUApex Legacy Index II gives policyholders more flexibility over how death benefits are paid out. Instead of receiving the full amount as a single lump sum, beneficiaries can receive payouts in one lump sum, or in yearly instalments of 2 to 10 years to provide continued support for their loved ones.

Customers can choose from single-premium and multipay options for up to 20 years. This gives them more choices based on their liquidity needs, legacy planning priorities, and preferred pace of premium commitment.

For the fixed account, there is a first-year crediting rate of 4.20% p.a. and guaranteed minimum crediting rate of 2.00% p.a. Affluent and high-net-worth customers can kickstart their legacy planning with PRUApex Legacy Index II with the sum assured as low as $500,000.

Redisseminated by Wealth and Society