Pru Lifetime Income is a regular premium endowment plan offered by Prudential agents and relationship managers (UOB and Standard Charted Bank). It belongs to a category of endowment plans that allow you to save and grow your money up to 99 years old while contributing for only a limited number of years. There are 3 options for limited premium terms at 4, 10 and 20 years.
Pru Lifetime Income allows you to enjoy a lifetime of benefits while saving for a limited period only. The plan provides yearly cash benefits starting from as early as the end of the 2nd year all the way till age 99 (inclusive of additional cash benefits at selected anniversaries). The cash benefits comprise both guaranteed and non-guaranteed portions. You can choose to receive the cash benefits or to reinvest in the plan at the prevailing rate and withdraw only when needed.
Image is taken from prudential.com.sg
This plan can also be used as an inter-generational legacy planning tool to provide a stream of income and to transfer wealth to the next generation(s).
Pros of Pru Lifetime Income
- Flexibility to access cash through cash benefits from as early as end of 2nd year
- Interest rate on cashback usually higher than bank deposit rates
- No medical underwriting needed and able to accumulate money until age 99
Cons of Pru Lifetime Income
- Guaranteed cash benefits are comparatively lower and start later from the 10th policy anniversary onwards
- Reinvestment rate is not guaranteed and is lower than some of the other plans in the market
- One of the lowest IRR based on 4.75% projections
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Before you commit to a Pru Lifetime Income plan, be sure to read one of our most read article on “8 Things to consider when you buy an endowment (savings) plan”