Need advice on existing Pruselect plan?

Few months ago, I bought a Pruselect plan from a friend of mine. As I'm not savvy with financial things, I was ok with it initially. Now, after looking online at some forums, I'm starting to doubt whether this is a worthwhile investment plan or not. Could someone advise me if I should still continue with it or do something about my current situation? And is this an ILP?

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Hariz Arthur Maloy

28 Aug 2019

Independent Financial Advisor at Promiseland Independent

Yes, PruSelect is an ILP. But it is an ILP with almost 0 insurance coverage. You'd only get 101% of your Net Asset Value upon death. We call these 101 plans or Wealth ILPs.

When purchasing a Wealth ILP, you're paying for the advice if your financial advisor to build you a portfolio with the available funds on the platform to generate above-market returns after fees.

Prudential has however partnered up with an investment analysis company called Mercer (who also advises on the funds used on the CPFIS platform) to generate the portfolio for you.

So do note that what you're paying for are their expertise and the active management that comes with your portfolio.

Lastly, such ILPs are long term products, you can't surrender them early without a penalty and usually have to be held till after all premiums are paid at least.

Though they aren't bad products, they are more expensive products. If you cancel your plan now, you will lose everything you've put in so far, so don't make that decision hastily.

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