Hi guys, is the Prudential Prulink Protection Account any good? My mum got this for me previously about 10 years ago and I've taken over this ever since I started working?

Hi anon,

Prulink Protection Account is an ILP. Thus there will be both protection and investment elements. Please don't cancel the ILP yet as you are covered if anything happens. You need to figure out what your coverage requirements are at this point in time and evaluate the options available for you right now.

I can't comment too much without knowing with the details of your current plan, but suffice to say, I don't recommend mixing investments with insurance. Keep those separate. Insure with your traditional term and whole life plans, and invest directly via a multi-asset platform, or through an advisor (e.g. WRAP accounts, managed accounts). ILP investment value will greatly erode in the long run due to exponentially increasing mortality charges.

Depending on what you wish to cover, a more effective way may be via traditional term or whole life plan. Speak with an independent financial advisor to understand your options available before you decide what would suit your needs and objectives best.

Hi there,

PruLink Protection is a protection-based ILP. This means a part of your premiums are invested while giving you some form of protection. You may want to opt for a pure protection plan instead eg. A standalone life/term plan because the mortality charges racked up for a protection based ILP can be quite high up till a certain age and the plan shouldn't be kept up till then. If you're diagnosed with a CI then, it'll be difficult for you to be insured at standard terms under a new plan while the protection based ILP is terminated.

That said, there are investment-based ILPs or roboadvisors you can consider if you're thinking of embarking on your investment journey.

Financial planning is an integral part of life. You can reach me here to find out more.​​​