Urgent Qn with regards to whole life policy from Prudential. Any advice?

One of the worse reason we keep hearing when we buy over policies that people do not want... To support a friend.

As with Duane Cheng, it is likely a universal life policy (only those can give high coverage but premiums lower than the coverage), and there is a insurance charge on these policies. Most of the plans drop off at age 85/90 because of insufficient value left in the policy due to the increased insurance charge. These universal life policies are typically used to cover death only whilte providing a crediting rate to the policy. (legacy purpose more), and invested in bonds as compared to par funds (Whole life policies).

However, without full details, nobody can confirm what type of policy it is.

Hi Shu ting,

Based on my understanding, if your dad is 53 years old this year, he was offered a universal life policy. The policy is actually a legacy policy, where you and your family is guaranteed a payout of 500k on death, disability or terminal illness.

Its hard to say whether its necessary, because I do not know the context of the conversation your dad and his friend had. If it is a matter that concerns you, do speak with your father to at least align his and your thoughts together first.

There will be a point where your father's term policies will expire, and he will not have any form of coverage for himself. It would be good if you just took a step back, and spoke to your father before drawing any conclusion.

I do hope i was able to answer you queries!​​​