Introducing the PRULifetime Income Premier Series, a single premium participating annuity plan designed to provide regular income payments over a specific period to supplement your retirement or your children’s needs. In this blog post, we will explore the features and benefits of the PRULifetime Income Premier III (SGD) policy, helping you decide if it’s the right whole-life insurance plan for you.

First, let’s look at the general features of the PRULifetime Income Premier Series. This plan is a single premium policy, which means you only have to make a one-time premium payment at the start of your policy. However, there is a limit to the aggregate premiums you can pay in the past 24 months, which is S$10 million (or equivalent). Now that we have the basic information, let’s move on to the key features and benefits of the policy.

Protection is an important aspect of any insurance plan, and the PRULifetime Income Premier Series offers both a death benefit and an accidental disability benefit. In the unfortunate event of your passing, the plan provides a lump sum death benefit to your loved ones. The benefit amount is determined by either 105% of your single premium paid or 101% of the surrender value at death, whichever is higher. Additionally, any outstanding cash benefits will also be included in the payout amount.

The accidental disability benefit is paid out if you become totally and permanently disabled as a result of an accident before the policy’s end date. The payout amount is the greater of 105% of the initial premium paid or 101% of the surrender value if certified as totally and permanently disabled. Again, any outstanding cash benefits will be included in the payout. However, it’s important to note that the accidental disability benefit ceases before your 70th birthday.

One of the standout features of the PRULifetime Income Premier Series is the cash benefit. Starting from the 5th policy year onwards, you will receive a guaranteed and non-guaranteed monthly income for life. The non-guaranteed income may vary depending on the participating fund’s investment performance. Your monthly income is calculated as a percentage of the single premium paid. The higher the premium, the higher the monthly income you can expect to receive.

In addition to the cash benefit, the policy offers a performance bonus, which may be paid out when you surrender your policy. However, this bonus is not guaranteed and depends on the performance of the participating fund. It’s important to consider this bonus as a potential but not guaranteed benefit.

You also have the flexibility to make partial withdrawals from your accumulated cash benefits. If you have accumulated cash benefits, you can request a minimum withdrawal of $1,000 at any time. However, if your cash benefit balance is less than $1,000, you must withdraw the entire amount. These withdrawals may be subject to surrender charges and other fees.

In terms of fund performance, the PRULifetime Income Premier Series has maintained consistent returns over the years. The fund’s asset allocation and performance are designed to provide stable returns despite fluctuations in investment performance. It’s worth noting that the Total Expense Ratio (TER) for this participating fund is above the industry average. While the premiums already account for expected expenses, the relatively high TER could impact long-term returns on your investment. Comparing this ratio with other participating funds can help assess if the policy aligns with your cost management preferences.

In summary, the PRULifetime Income Premier Series offers comprehensive financial benefits, including a lump sum death benefit, accidental disability benefit, cash benefit, and performance bonus. However, it’s important to carefully consider the policy’s features, fund performance, and fees before making a decision. We recommend researching other policies and comparing them to the PRULifetime Income Premier Series to find the best fit for your financial goals, risk tolerance, and budget.

Hot Take: The PRULifetime Income Premier Series provides a range of benefits and flexibility for those looking for a single premium participating annuity plan. The cash benefit and potential performance bonus can provide a steady income stream during retirement, while the death benefit and accidental disability benefit offer financial protection for loved ones. However, the higher Total Expense Ratio and non-guaranteed nature of some benefits should be carefully considered. It’s always a good idea to explore different options, seek a second opinion, and review all available policies before making a decision.

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Benjamin Low
Benjamin Low

Benjamin is known as The Passive Income Guy. He has helped hundreds of people to build passive income. He is also a member of the Million Dollar Round Table, and Certified Financial Planner™ (CFP®) and Certified Private Banker (CPB).

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