Endowment

PRUActive Cash: Balancing Today's Needs with Tomorrow's Dreams

In today's fast-paced world, finding the right balance between meeting immediate financial needs and saving for the future can be challenging. If you're looking for a flexible insurance savings plan that allows you to do both, PRUActive Cash might be the solution you've been searching for. Let's dive deep into what this plan offers and how it can help you achieve your financial goals.

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What is PRUActive Cash?

PRUActive Cash is an innovative insurance savings plan offered by Prudential Singapore. It's designed to provide you with the flexibility to meet your current financial needs while simultaneously building a nest egg for your future. The plan's unique feature is its Yearly Cash Benefit , which starts from the second policy anniversary onwards, allowing you to address immediate financial commitments or reinvest for potentially higher returns.

Key Features of PRUActive Cash

Customizable Premium and Policy Terms

Choose to pay annual premiums for 5, 10, 15, 20, or 25 years. Select a policy duration ranging from 15 to 25 years. This flexibility allows you to commit to a payment schedule that aligns with your current financial capacity and future goals.

Yearly Cash Benefits

From the second policy anniversary onwards, receive a guaranteed Yearly Cash Benefit of 3% of the policy's Face Value. Choose to receive it as a payout or let it accumulate for potentially higher returns.

Maturity Benefit

At the end of your chosen policy term, receive a Maturity Benefit consisting of the last Yearly Cash Benefit, a guaranteed maturity value, and non-guaranteed maturity bonuses (if any).

Death Protection

Provides financial protection for your loved ones in the event of your passing, ensuring your family is provided for.

Easy Application Process

No medical underwriting required, allowing for quick and easy coverage without medical examinations or extensive health questionnaires.

Real premiums suggested for PRUActive Cash

25, Female making $4,301 a month

Coverage:
maturity amount
$32,273
total cash benefit
$46,029
yearly cash benefit
$724
Premium:
$2,000
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How PRUActive Cash Works: A Real-Life Scenario

Let's look at an example to better understand how PRUActive Cash can work for you:

Meet Jon, a 30-year-old newlywed who wants to balance his current financial needs with future goals. He chooses PRUActive Cash with the following parameters:

  • Annual Premium: $10,000
  • Premium Term: 5 years
  • Policy Term: 20 years

Here's how Jon's journey with PRUActive Cash might unfold:

Year 1

Jon gets married and purchases PRUActive Cash. He pays his first annual premium of $10,000.

Year 2

Jon moves into his first home and welcomes a newborn daughter. He pays his second annual premium and receives his first Yearly Cash Benefit of $1,277, which he uses for his daughter's room.

Year 3

Jon enrolls in coding courses. He pays his third annual premium and uses the Yearly Cash Benefit to partially fund his courses.

Years 4-5

Jon continues to pay his annual premiums and receive Yearly Cash Benefits.

Year 6 onwards

Jon stops paying premiums but continues to receive Yearly Cash Benefits of $1,277, using them for various purposes.

Year 20

Jon's policy matures. He receives a Maturity Benefit of $52,919 (based on an illustrated investment return of 4.25% p.a.), which he uses for his daughter's university education.

Potential Returns

It's important to note that while the Yearly Cash Benefit is guaranteed, the Maturity Benefit includes both guaranteed and non-guaranteed components. The non-guaranteed portion depends on the performance of Prudential's participating fund.

In Jon's case:

  • At an illustrated investment return of 4.25% p.a., his Maturity Benefit would be $52,919
  • At a lower illustrated return of 3% p.a., the Maturity Benefit would be $40,587

These figures highlight the importance of understanding that actual returns may vary based on market performance .

Who is PRUActive Cash Suitable For?

  • Young professionals starting to build their financial portfolio

  • New parents looking to balance current expenses with future savings

  • Individuals seeking a low-risk savings vehicle with some insurance protection

  • Those who value financial flexibility and regular cash payouts

Why Compare PRUActive Cash with other Endowment Options through Whatins?

Traditional Approach

  • Only see one company's projected returns
  • May push higher projections without context
  • Limited comparison of guaranteed amounts

Whatins Advantage

  • Compare guaranteed returns across insurers
  • See how different companies project returns
  • Get multiple views on bonus rate histories
  • Understand different payout structures

Pros and Cons of PRUActive Cash

Pros

  • Flexible premium and policy terms

  • Guaranteed Yearly Cash Benefits

  • Potential for long-term savings growth

  • Death protection for loved ones

  • Easy application with no medical underwriting

Cons

  • Returns may be lower compared to some higher-risk investment products

  • Early termination may result in losses

  • Non-guaranteed components of the Maturity Benefit are subject to market performance

Frequently Asked Questions

Can I change my premium or policy term after purchasing?

It's best to check with Prudential about flexibility in changing terms after purchase.

What happens if I can't pay my premium one year?

Prudential may have grace periods or options for missed payments. Consult your policy documents or speak with a financial consultant for details.

Is the Yearly Cash Benefit taxable?

Tax implications can vary. It's advisable to consult a tax professional for personalized advice.

Can I use this plan for my child?

Yes, you can purchase PRUActive Cash for your child, potentially helping to save for their future education or other needs.

What happens if I need to surrender the policy early?

Early termination usually involves high costs, and the surrender value may be less than the total premiums paid. It's best to view this as a long-term commitment.

Conclusion

PRUActive Cash offers a unique blend of flexibility, regular cash benefits, and long-term savings potential . It's designed for those who want to balance their current financial needs with future goals, providing a structured way to save while still having access to funds along the way.

However, as with any financial product, it's crucial to carefully consider your personal circumstances, risk tolerance, and long-term objectives before making a decision. While PRUActive Cash offers many attractive features, it's important to compare it with other savings and investment options to ensure it's the best fit for your financial strategy.

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Why people were suggested PRUActive Cash

Lynn
Lynn, 25
GenderFemale
Monthly Income$4,301
Insurance Types Suggested
  • Hospital
  • Critical Illness
  • Whole Life
  • Endowment
Why PruActive Cash was suggested:
The PruActive Cash endowment plan is recommended as a flexible savings plan. It provides the option to receive a yearly cash benefit from the second year onwards or leave it to accumulate. At maturity, there is a lump sum maturity benefit, providing a total cash benefit of $46,029 over the 20-year term. This plan can help build savings for future financial goals or aspirations.
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