Investment Linked Plan

PruLink SuperGrowth Account: Supercharge Your Savings with Investment-Linked Insurance

Are you looking for a way to grow your savings while enjoying life insurance coverage ? You're not alone. Many Singaporeans are searching for financial products that offer both protection and potential returns. That's where the PruLink SuperGrowth Account comes in. Let's dive into what this product offers and how it might fit into your financial plan.

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What is PruLink SuperGrowth Account?

PruLink SuperGrowth Account is a single premium investment-linked insurance plan offered by Prudential Singapore. It's designed to help you optimize returns on your savings while providing life insurance coverage. This plan allows you to invest your money from various sources:

  1. Cash
  1. Central Provident Fund (CPF)
  1. Supplementary Retirement Scheme (SRS)

The key feature of this plan is its flexibility . You can choose from a wide range of investment funds, allowing you to tailor your investment strategy to your risk tolerance and financial goals.

Key Benefits

Investment Opportunity

Access to a variety of PruLink Funds for potential growth

Life Insurance Coverage

Protection for your loved ones

Flexibility

Option to top up, switch funds, or make withdrawals

High Entry Age

You can start this plan as late as age 80

Long-term Coverage

Protection lasts until age 100

Why compare PruLink SuperGrowth Account with other Investment Linked Plan options through Whatins?

Traditional Approach

  • Limited to one company's fund options
  • Only hear about advisor's preferred funds
  • Single perspective on investment strategy

Whatins Advantage

  • Compare fund options across multiple insurers
  • Get different views on investment strategies
  • See how different advisors approach fund selection
  • Understand varied fee structures

In summary: If you want more control and multiple suggestions, then Whatins is the way to go.

How Does It Work?

When you purchase a PruLink SuperGrowth Account, your premium is used to buy units in the PruLink Funds of your choice. The value of your policy will fluctuate based on the performance of these funds. Here's a breakdown of the key components:

Premium Allocation

  • Minimum single premium: S$5,000

  • Allocation rates vary based on premium amount and funding source (Cash/SRS or CPF)

  • For example, premiums of S$50,000 and above enjoy an allocation rate of 102.50% for Cash/SRS, or 105.27% for CPF

Death Benefit

You'll receive the higher of:

  • 110% of total premiums paid and top-ups (less withdrawals), or

  • The value of units in your policy account

Investment Options

  • Wide range of PruLink Funds available (see Appendix A in the product summary)

  • Funds cater to various risk appetites and investment objectives

Flexibility

  • Fund Switching: Change your investment allocation as needed

  • Top-ups: Add more money to your investment (minimum S$2,000)

  • Withdrawals: Access your money when you need it (minimum S$1,000)

Charges to Be Aware Of

Net Sales Charge

  • 3% for policies bought with Cash or SRS

  • 0% for policies bought with CPF

Assurance Charge

  • Applies to Cash/SRS policies only

  • Ranges from 1% to 2% of premium, depending on age and gender

Investment Charges

Vary by fund, typically ranging from 0.30% to 1.60% per annum

Who Is This Plan Suitable For?

PruLink SuperGrowth Account might be a good fit if you:

  • Have a lump sum to invest (at least S$5,000)

  • Want the potential for higher returns than traditional savings accounts

  • Are comfortable with some investment risk

  • Desire life insurance coverage along with your investment

  • Want flexibility to adjust your investment strategy over time

  • Are looking for a plan you can start later in life (up to age 80)

Real-Life Scenario

Imagine you're 55 years old with S$100,000 in savings that you want to grow for retirement. You invest this in PruLink SuperGrowth Account:

  • Your allocation rate would be 102.50% (assuming Cash/SRS), giving you S$102,500 worth of units
  • You'd have life insurance coverage of at least S$110,000
  • You could choose funds that match your risk tolerance, perhaps a mix of bonds and equities
  • Over time, you could switch funds, make top-ups, or withdrawals as your needs change
  • If the markets perform well, your investment could grow significantly by the time you're 65

Pros and Cons

Pros

  • Potential for higher returns than traditional savings

  • Life insurance coverage included

  • Flexibility to adjust your investment

  • High entry age and coverage until 100

  • Wide range of funds to choose from

Cons

  • Investment returns are not guaranteed

  • Charges can eat into your returns

  • Complexity compared to simpler savings products

  • Risk of losing money if markets perform poorly

Frequently Asked Questions

Can I lose money with this plan?

Yes, as with any investment, there's a risk of losing money if the funds perform poorly.

What happens if I need to withdraw all my money?

You can make a full withdrawal, but there may be charges, and your insurance coverage will end.

Can I change my fund choices later?

Yes, you can switch funds at any time, subject to certain conditions.

Is there a guaranteed return?

No, returns are not guaranteed and depend on fund performance.

What happens if Prudential becomes insolvent?

Your policy is protected under the Policy Owners' Protection Scheme, administered by the Singapore Deposit Insurance Corporation.

Conclusion

PruLink SuperGrowth Account offers a unique combination of investment opportunity and life insurance protection . It's designed for those who want the potential for higher returns and are comfortable with some investment risk. However, it's important to carefully consider your financial goals, risk tolerance, and the complex nature of this product before making a decision.

Remember, while the potential for growth is appealing, there's also the risk of losing money. It's crucial to thoroughly understand the product and consult with a financial advisor to determine if it's the right fit for your individual circumstances.

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