Is Pruwealth 2 and Readybuilder comparable? What are the pros and cons of each?

Hi anon,

Both plans are whole of life endowments. Both can be used for legacy planning due to the ability to appoint a secondary insured to continue the policy.

Regardless of whether it is PW or RB, surrendering a policy will mean that you will have to accept whatever terminal bonus is given at the point of surrender.

To compare both plans, make sure you are using same premium terms and premium amount. Then look at the guaranteed surrender value, 3.25% and 4.75% projection values at different points in the policy, say, in the 15th, 20th 25th year, etc. That will give you an idea of which plan is stronger in either their guarantee or projected numbers. But I would also suggest that you look at other insurers as they also have similar plans, e.g. Aviva's MyLifeSavingsPlan and NTUC's Gro Gen Saver. An independent financial advisor can provide you with the numbers you need to analyze the plans.

But ultimately, you need to ask if you really need such a plan right now. Insurance is a long term commitment and any inability to service the premium will result in financial loss. If however, this plan fulfills a need you have and you are comfortable with the way it works as well as your ability to service the premium, you can seriously consider getting it.

Hi Anonymous,

It may be better if you engage a financial advisor representing Prudential and another one representing Manulife to generate a product summary and a policy illustration for both plans, which should describe the benefits of each, including terminal bonus.

Disclaimer: PolicyWoke is a resale savings plans broker