prudential is the latest insurer to offer a universal life product, pruuniversal vantage, just after great eastern life launched their own universal life product, prestige legacy some weeks ago.
what is pruuniversal vantage?
PruUniversal Vantage is a non-participating, single premium life plan denominated in US Dollar that provides financial protection against death and terminal illness.
minimum sum assured is us$1,000,000.00 and up to the maximum of us$35,000,000.00 in multiples of us$100,000.00.
Benefits under the Plan:
What do we pay for Death Benefit?
If a life assured dies, we pay the higher of:
(i) the sum assured for Death shown on your Certificate of Life Assurance; or
(ii) the Accumulated Value, less any Terminal Illness claim amount already paid out (if any),
(the "Death Benefit Amount")
The Death Benefit Amount shall be payable to you after deducting all outstanding amounts owing to us in connection with your policy.
The Accumulated Value will be determined on the date we receive the notification of death.
What do we pay for Accelerated Terminal Illness Benefit?
If the life assured is diagnosed as having a Terminal Illness, we will pay you as follows:
(A) if the sum assured for the Death Benefit is the same as the Accelerated Terminal Illness Benefit, we pay the higher of:
(i) the sum assured for Accelerated Terminal Illness Benefit as shown on your Certificate of Life Assurance; or
(ii) the Accumulated Value, less any outstanding amounts owing to us in connection with your policy;
(B) if the sum assured for the Accelerated Terminal Illness Benefit is lower than the sum assured of the Death Benefit, we pay the sum assured for the Accelerated Terminal Illness Benefit as shown on your Certificate of Life Assurance, less any outstanding amounts owing to us in connection with your policy.
In the case of (A) above, the policy terminates upon payment.
In the case of (B) above, your Accelerated Terminal Illness Benefit terminates and the sum assured for the Death Benefit shall be reduced to an amount equal to the difference between the sum assured for the Death Benefit and the sum assured under the Accelerated Terminal Illness Benefrit.
Should you subsequently surrender your policy, we will deduct the Terminal Illness claim amount before paying you the Surrender Value.
The "Surrender Value" is the Accumulated Value less the surrender charge that is applicable if you surrender within the first 15 years of your policy. Beyond 15 years of your policy, the Surrender Value will be equal to the Accumulated Value.
The Accumulated Value will be determined on the date we receive the notification of the Terminal Illness.
"Terminal Illness" is defined as a condition which, in the opinion of an appropriate medical consultant who is registered with the Singapore Medical Council and subject to the acceptance of our appointed doctor, is highly likely to lead to death within 12 months.
What can you do on your policy under Change of Life Assured?
During the term of your policy, on any Policy Anniversary and only in the event that the Accumulated Value is equal to or greater than a value determined by us at our sole discretion, you can choose to change the current life assured to another life assured (the "New Life Assured").
Such a change is subject to:
(i) satisfactory evidence of sufficient insurable interest in the New Life Assured in accordance with any prevailing applicable laws and regulations;
(ii) new underwriting requirements with respect to the New Life Assured; and
(iii) agreement on the revised Policy Expense Charge and Insurance Risk Charge.
You may change the life assured only once throughout the entire policy term.
Upon the change in life assured:
(i) you will receive a revised Certificate of Life Assurance with the New Life Assured's particulars;
(ii) the cover on the original life assured (the "Former Life Assured") terminates and the cover on the New Life Assured will commence on the new cover start date as stated in the revised Certificate of Life Assurance (the 'Change Date") and all
rights you enjoy with respect to the Former Life Assured terminates with immediate effect;
(iii) the Insurance Risk Charge and Policy Expense Charge will be based on the life of the New Life Assured;
(iv) the Accumulated Value is determined on the Change Date and all outstanding amounts owing to us in connection with your policy as the Change Date (including outstanding fees, charges and loans) shall be deducted from the Accumulted Value on the Change Date;
(v) all applicable charges based on the New Life Assured will be billed to your account; and
(vi) where a No-Lapse Guarantee Benefit was added at the Cover Start Date, such Benefit will automatically lapse.
You can attach a new No-Lapse Guarantee Benefit to the policy under the new life assured. However, you may only do so if the No-Lapse Guarantee Benefit was previously attached as at the Cover Start Date.
No Policy Premium Charge will be payable upon the change of life assured.
A one-time charge will be payable if the revised Policy Expense Charge based on the New Life Assured is higher than that based on the Former Life Assured.
"Policy Anniversary" is the anniversary of the Cover Start Date of your policy. Your Cover Start Date is shown on your Certificate of Life Assurance.
Crediting Rates
A "Crediting Rate" is the interest rate that is periodically declared and applied to your Accumulated Value.
There are 3 types of Crediting Rate:
- New Money Crediting Rate;
- General Crediting Rate; and
- Minimum Guaranteed Crediting Rate.
The "New Money Crediting Rate" is an interest rate for new monies (equal to the Total Single Premium) deposited into your account and applied in its first Policy Year only. The interest rate will be disclosed in your Certificate of Life Assurance and currently it is at 5%.
For subsequent periods, we will apply another interest rate which is called the "General Crediting Rate". This interest rate is subject to review from time to time after the first Policy Year. In the event that the General Crediting Rate is adjusted following such review, the new applicable rate shall apply until the next adjustment. The General Crediting Rate will be reflected in the quarterly statements that we send to you, or in any other communication (s) that we send to you, as we in
our sole discretion deem appropriate. The General Crediting Rate is currently illustrated at 5%.
The New Money Crediting Rate and General Crediting Rate will never be lower than the Minimum Guaranteed Crediting Rate. The "Minimum Guaranteed Crediting Rate" will be disclosed in your Certificate of Life Assurance and it is guaranteed at 3%.
A "Policy Year" means a year from the Cover Start Date of your policy or a year from an anniversary of the Cover Start Date.
important notes:
this blog is for general information only and does not have any regard to your specific investment objectives, financial situation and any of your particular needs. It is not a contract of insurance. The precise terms and conditions of this insurance plan are specified in the policy contract. Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value payable may be less than the total premiums paid. You may wish to seek advice from an adviser before making a commitment to purchase the product. In the event that you choose not to seek advice from an adviser, you should consider whether the product in question is suitable for you. |
