Endowment

PRUsave 7th Series: Secure Your Future with Savings and Protection

Are you looking for a way to save for your future goals while also protecting yourself and your loved ones against life's uncertainties? If so, PRUsave 7th Series might be the solution you've been searching for. This comprehensive guide will walk you through everything you need to know about this unique endowment plan offered by Prudential.

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What is PRUsave 7th Series?

PRUsave 7th Series is a regular premium endowment plan that combines the benefits of disciplined savings with life protection . It's designed to help you achieve your financial goals, whether that's funding your child's education, buying a new home, or enjoying a comfortable retirement. With PRUsave, you can save for the future while ensuring that you and your family are protected against unforeseen circumstances.

Key Features of PRUsave 7th Series

Flexible Policy Terms

PRUsave offers policy terms ranging from 10 to 45 years, allowing you to choose a duration that best fits your financial obligations and saving needs.

Lump Sum Maturity Payout

When your policy matures, you'll receive your maturity benefit as a single lump sum payment, giving you a significant financial boost when you need it most.

Comprehensive Coverage

Even as you save, PRUsave protects you against Death, Terminal Illness, and Total and Permanent Disability (up to age 65).

Continued Coverage for Your Child

If you purchase PRUsave for your child, they can buy a new policy at maturity (if under 25) without needing a medical examination.

Adaptability to Life Changes

You can purchase additional coverage without medical examination when you experience significant life events like marriage or becoming a parent.

How PRUsave 7th Series Works

Let's look at two examples to understand how PRUsave can help you achieve your financial goals:

Example 1: Saving for Your Child's Education

Mr. Lim, age 35, wants to save for his 1-year-old son Kevin's university education. He can set aside S$4,108 annually for 20 years. At the end of the policy term: br>- Guaranteed payout:b>S$70,000 - Non-guaranteed payout: S$47,103br>- Total projected payout:b>S$117,103 br>br>This substantial sum can significantly contribute to Kevin's university expenses when he turns 21.

Example 2: Planning for Retirement

Mr. Goh, age 45, aims to retire by 65. He can invest S$6,026 yearly for 20 years. At the end of the policy term: br>- Guaranteed payout:b>S$100,000 - Non-guaranteed payout: S$67,290br>- Total projected payout:b>S$167,290 br>br>This lump sum can provide a solid foundation for Mr. Goh's retirement savings.

Enhancing Your PRUsave Plan

To provide even more comprehensive coverage, you can add these supplementary benefits to your PRUsave plan:

Early Stage Crisis Waiver

If you're diagnosed with an early or intermediate stage medical condition, this benefit waives your premium payments for a fixed period. This allows you to focus on your treatment without worrying about maintaining your policy.

Crisis Waiver III

This benefit waives all remaining premium payments if you're diagnosed with any of 35 listed Critical Illnesses, ensuring your financial plan stays intact even in challenging times.

Early Payer Security

Similar to the Early Stage Crisis Waiver, but designed for parents. It waives premium payments for a fixed period if the payer is diagnosed with an early or intermediate stage medical condition.

Payer Security III / Payer Security Plus

These benefits safeguard your loved one's policy if you (as the payer) experience Death, Critical Illness, or Total and Permanent Disability. Payer Security III waives premiums until your child turns 25 or the end of the premium payment term, whichever is earlier. Payer Security Plus offers an extended benefit, waiving premiums until you reach 85 or the end of the premium payment term, whichever is earlier.

Unique Benefits of PRUsave 7th Series

Flexibility to Adapt to Life Changes

PRUsave allows you to purchase additional coverage without medical examination when you experience significant life events. This feature ensures your insurance coverage can grow with your changing needs.

Child-Friendly Features

If you purchase PRUsave for your child, they have the option to buy a new policy at maturity (if under 25) without needing a medical examination. This ensures continued protection for your child as they enter adulthood.

Balanced Approach

PRUsave offers a balance between savings and protection. While you're building up your savings for future goals, you're also protected against life's uncertainties.

Guaranteed and Non-Guaranteed Benefits

The plan offers both guaranteed and non-guaranteed benefits. While the guaranteed portion provides certainty, the non-guaranteed portion offers the potential for higher returns based on the performance of Prudential's participating fund.

Why Compare Prusave 7th Series 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

Things to Consider

While PRUsave 7th Series offers many benefits, it's important to consider a few points:

  • Long-Term Commitment: Endowment plans like PRUsave are long-term commitments. Early termination usually involves high costs, and the surrender value may be less than the total premiums paid.

  • Non-Guaranteed Elements: A portion of the maturity benefit is non-guaranteed and depends on the performance of Prudential's participating fund. The actual payout may be higher or lower than the projected amount.

  • Premium Payment Period: In the examples provided, the premium payment period is 20 years. Ensure you can commit to this payment schedule before purchasing the policy.

  • Age Limitations: Some benefits, like coverage for Total and Permanent Disability, are only applicable up to a certain age (65 in this case).

  • Supplementary Benefits: While the additional riders can provide more comprehensive coverage, they will increase the overall premium. Consider your budget and protection needs carefully.

Frequently Asked Questions

Can I change my policy term after purchasing PRUsave?

It's best to choose the right policy term at the outset, as changes may not be possible after purchase. Consult with a Prudential Financial Consultant to determine the most suitable term for your needs.

What happens if I can't pay my premiums?

Missing premium payments could result in your policy lapsing. It's crucial to ensure you can commit to the premium payments for the entire term before purchasing.

Are the non-guaranteed benefits likely to be paid out?

Non-guaranteed benefits depend on the performance of Prudential's participating fund. While past performance doesn't guarantee future results, Prudential has a track record of managing these funds responsibly.

Can I take a loan against my PRUsave policy?

This information isn't specified in the brochure. You'd need to check with a Prudential Financial Consultant for details on policy loans.

Is PRUsave suitable for all age groups?

PRUsave can be tailored to different age groups and financial goals. However, the earlier you start, the more you can potentially benefit from the power of compound interest.

Conclusion

PRUsave 7th Series offers a compelling combination of savings and protection , making it a versatile financial tool for various life stages and goals. Whether you're saving for your child's education, planning for retirement, or simply want to build a financial safety net, PRUsave provides a structured way to achieve your objectives while ensuring you're protected against life's uncertainties.

However, as with any financial product, it's crucial to carefully consider your personal circumstances, financial goals, and risk tolerance before making a decision. While PRUsave offers many attractive features, it's a long-term commitment that requires careful consideration.

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By consulting with multiple experts, you'll gain a comprehensive understanding of your options and ensure you're choosing the best plan for your financial future. Don't leave your financial planning to chance – get the expert advice you deserve today.