Hi I need help regarding PruFlexiCash Cashback?

I bought PruFlexiCash in the past when I was 18, during my ns, paying about $100 monthly. Now I am 25. I would like to know preferably at which year should I take out my yearly cashback so that it does not screw up my maturity lump sum too badly? Can I use my yearly cashback to pay my premiums? -> if so, will there be a difference between WITHDRAWING the cashback and using it to pay premiums or NOT WITHDRAWING but using it to offset the annual premiums?

Hi anon,

Can I clarift what you mean by "screw up" the maturity amount "too badly"?

Actually, for the best results, I would generally advise you to keep the cash back in the plan to accumulate. Unless your cashflow is very very tight, best to keep the cash coupons in.

You can use your yearly cashback to pay the premiums, but I believe your yearly cashback amount is lesser than your premiums, so it's still a negative cashflow. If you are talking about taking out all your cashback coupons, then you may be able to use it to offset the premiums for a few years, but depending on the premium term, you will likely have to start paying again later on.

If you withdraw the cashback and pay your premiums, you will impact the final projected maturity amount (the maximum projected amount will be reduced). Not actually withdrawing but using it to offset the premiums will probably have the same impact of reducing the final maturity amount (I am also not certain if this option is possible). I don't distribute Prudential plans as I am from an IFA, but you may contact your servicing agent or the customer service to get a detailed breakdown of the numbrs.

Hope you can get an answer soon!

Hi I need help regarding PruFlexiCash Cashback?

Prudential PRUflexicash Endowment Plan