Should I keep my 20-year PruWealth plan I bought last year? Is it an endowment or ILP?

Bought a PruWealth 20 year plan in 2018 from my insurance agent. Will be paying $3679.22 a year ($300/mth, $52.66/year for Crisis Waiver III and $26.66/year for Early Stage Crisis Waiver) for the next 20 years.

On hindsight, I think that money could have been put to better use - like pumping it to robo-advisor or ETFs. Should I keep it and treat it as a forced savings for the next 19 years, or surrender it now and I think I'll lose the $3679 I've put in? I'm 26yo and will be 47 when it matures.

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JC

28 Jan 2022

What are the similar products currently available and how do they compare?

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Tan Li Xing

08 Dec 2019

Financial Consultant at Prudential Assurance Company (Singapore)

Hi Anon,

I think as mentioned by everyone, since you are already in it, it would be good to keep it. I believe you have been advised on the unique product features of pruwealth, and though the returns are not as immediate as investments; I personally believe that the saving grace is that once you have paid the premiums, you will start seeing significant increase due to the compunding interest.

Also the uniqueness about Pruwealth is that after the 20th year, meaning the 21st year onwards, you can start drawing out the amount from the policy and that can act like a cash reserve for you in the event you need relatively large sums for emergencies or even subsidise education costs for your kid/ kids in future. Also as the policy actually only matures when you are 100 years of age, it means as long as the cash value of the policy hasn't been drawn out completely, whatever available amount will be subjected to the compounding interest of abt 3% annually

I do apologise for your case where the premium term is 20 years, did your agent actually explain to you that you could have done a 10 year premium term instead?

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