AIA Guaranteed Protect Plus (II) or PruActive Life? For coverage in monetary terms, the base and multiplier are the same. The age for the booster is also the same.?

Prudential’s premiums are cheaper but if I compare the surrender value for 3.25% returns at the same age, AIA’s guaranteed surrender value is also higher. What else should I compare?

Discussion (3)

What are your thoughts?

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Tan Pau Cen

09 Sep 2020

Financial Consultant at Prudential

I believe the main focus for either GPP or PAL, is for protection.

Therefore, compare the benefits.

Which one gives you more protection benefits? Which one gives you more avenue to claim?

The cash value in a wholelife plan is not meant for accumulation nor investment - its a totally wrong way to compare “how much would I get back in the end” with a wholelife protection plan.

Again, compare the benefit and you will have no doubt which one you should be having 😀 among those two products :)

I hope you can find yourself a good Financial Consultant whom is willing to go extra miles to sincerely explain the diff of benefits between the two products. Most people only compare the premium, which is a totally wrong approach. Do you pay the same price for premium Japanese rice and say, ntuc basmati rice? 😀

Again, compare the benefits. And see which one more suitable to your needs. That’s how I help my clients to make decision.

Hope this helps.

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Duane Cheng

17 Aug 2020

Financial Consultant at Prudential Assurance Company Singapore

Hi there,

PRUActive Life (PAL) was designed to cover for Death, Disability, Terminal Illnesses and Critical illnesses, with a rider to cover for early stage critical illnesses.

These are some of the areas that differentiates the two;

PAL's provides coverage for 56 critical illnesses, vs 43 from the competitor
PAL's policy is inbuilt with CI coverage, while the competitor does not. Rider needs to be attached for either CI or ESCI coverage.
Death benefit is similar for both policies after expiration of boosted coverage.
PAL has lower surrender value, as the policy covers more critical illnesses. Due to to the increase coverage, there is higher assurance costs, which results in a lower surrender value.

Do note that for insurance policies, my guidance to my clients is not to use the surrender value as a gauge for whether to take up a policy. The main goal of an whole life plan, is to provide income replacement during your prime working years.

Hope i was able to shed some insight!

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