Prudential Launches Indexed Universal Life Insurance Plan for High Net Worth Individuals

Irone Kim

June 3

Prudential Singapore ("Prudential") has unveiled the PRUVantage Legacy Index ("PVLI"), an innovative indexed universal life (UL) insurance product designed to meet the increasing legacy planning needs of high net worth (HNW) individuals in Singapore.

Addressing Legacy Planning and Wealth Protection

The PVLI plan provides lifelong coverage against death and terminal illness while maximizing the growth potential of wealth for future generations. Unlike other market plans, the PVLI's growth potential is linked to the uncapped performance of the S&P 500 Fast Convergence Index. This unique feature ensures that the policy can benefit from market upsides while being safeguarded against downturns with a floor rate of 0% for the index account, meaning it will not lose value due to negative market returns. Additionally, customers enjoy a first-year crediting rate of 4.5% per annum for their fixed account.

Rising High Net Worth Segment in Singapore

The HNW segment in Singapore has been steadily growing, with the proportion of millionaires expected to rise from 7.5% in 2021 to 13.4% by 2030, surpassing that of the US, China, and other Asia Pacific economies. PVLI is Prudential's latest addition to its suite of insurance plans tailored to the needs of this expanding demographic.

Key Features and Benefits of PRUVantage Legacy Index (PVLI)

Lifelong Protection: High coverage against death and terminal illness.
Maximized Growth Potential: Access to high-growth potential linked to the uncapped returns of the S&P 500 Fast Convergence Index, fully benefiting from market upsides.
Steady Fixed Account Growth: First-year crediting rate of 4.5% per annum and a guaranteed minimum crediting rate of 2.0% per annum.
Market Downturn Protection: Lifetime floor rate of 0% for the index account, ensuring no loss in value due to negative market returns.
Flexible Premium Allocation: Customizable premium allocation between fixed and index accounts, with the option to adjust allocations annually after the first policy year.
Loyalty Crediting Rate: Additional 0.35% per annum on the fixed account from the 11th year onwards.