Prudential Singapore (Prudential) has introduced an indexed universal life (UL) insurance product, PRUVantage Legacy Index (PVLI) to address the growing protection and legacy planning needs of high net worth (HNW) individuals in Singapore.
The indexed UL plan offers customers lifelong coverage against death and terminal illness, and can maximise the growth potential of their wealth for future generations while protecting it from market downturns. That is because unlike other plans in the market, the growth potential is tied to the uncapped performance of the S&P 500 Fast Convergence Index.
At the same time, customers are protected with a floor rate of 0% for the index account, which means that the index account will not lose value due to negative market returns. Customers also enjoy a crediting rate of 4.5% per annum for their fixed account in the first year.
The HNW segment in Singapore has been growing steadily in recent years, and the proportion of millionaires in Singapore is expected to rise from 7.5% in 2021 to 13.4% by 2030. By then, the proportion of millionaires in Singapore will be higher than that of the US, China, and other economies in Asia Pacific.
PVLI is the latest addition to Prudential's suite of insurance plans that meet the needs of the growing HNW population.
Mr Goh Theng Kiat, Chief Customer Officer of Prudential Singapore, said that with increasing lifespans and affluence, there is also a growing need for more protection and legacy planning.
"High net worth individuals are looking for insurance solutions that go beyond basic protection and require plans that are tailored to securing their wealth and building a lasting legacy that can be passed on to future generations. PRUVantage Legacy Index is an insurance plan designed for this purpose, offering long-term coverage and growth potential for their legacy," he said.