Pru Life UK offers alternative wealth management tool

Posted at 01/11/2014 7:29 AM | Updated as of 01/11/2014 7:29 AM

MANILA, Philippines - As the Bangko Sentral ng Pilipinas (BSP) regulates access to special deposit accounts (SDA) to trust accounts and unit investment trust funds (UITF) starting January 1, 2014, Filipino retail investors are looking at other venues to park their funds that would afford them the same level of potential gains while providing a safe depository for savings.

British insurer and investment-linked life insurance pioneer Pru Life UK is now offering secure wealth management alternatives with its unit-linked product portfolio.

Unit-linked life insurance is a two-in-one product that provides living and death benefits while premiums are ‘linked’ to investment funds, enabling not only financial protection but also wealth accumulation.

"Filipinos are becoming more sophisticated in their financial planning, opening more opportunities to offer products that make wealth management more successful. Through the Company’s unit-linked portfolio, consumers protect their most valuable asset – themselves – while also gaining access to a superior selection of investment funds that would allow them to potentially grow the premiums they invest. Our funds are managed by one of the best in the region, by our sister company Eastspring Investments (Singapore), Ltd," Pru Life UK President and CEO Antonio Manuel De Rosas said.

Pru Life UK’s elite unit-linked life insurance product, PruMillionaire, is a single-premium unit-linked life insurance product that maximizes the value of investment through a significantly lower upfront charge of 0.5% and Pru Life UK’s selection of investment funds. With a minimum premium of P1,000,000 or $20,000, PruMillionaire provides protection coverage equal to 125% of the single premium or the fund value, whichever is higher.

De Rosas said PruMillionaire is the first single-pay guaranteed issue unit-linked life insurance product in the country that provides life insurance coverage even during the first two years in which the policy is in force.

The Guaranteed Insurability Option (GIO) allows hassle-free sign-up with no health underwriting and health declaration at the time of application. Four free fund switches per year also allow clients flexibility as their investment objectives and risk profile change, he added.

Unit-linked policyholders have the freedom to choose where to invest a portion of their premium payment from Pru Life UK’s fund portfolio:

PruLink Equity Fund (invests in shares of stock in the local stock market);
PruLink Growth Fund (predominantly invests in shares of stocks with a minimum investment in fixed income securities and money market instruments);
PruLink ProActive Fund (highlights dynamic allocation by fund managers through investment in fixed income securities, money market instruments and shares of stocks);
PruLink Managed Fund (invests predominantly in fixed income with minimum investment in shares of stocks);
PruLink Peso Bond Fund (invests in local bonds and money market instruments);
PruLink Dollar Bond Fund (invests in US dollar fixed income securities issued by the Philippine government, Filipino corporates and international entities);
PruLink Money Market Fund (invests in bank deposits and money market instruments);
PruLink Asian Local Bond Fund, (feeder fund that invests offshore in the Eastspring Investments - Asian Local Bond Fund); and the
PruLink Asia Pacific Equity Fund (feeder fund that invests offshore in the Eastspring Investments – Asia Pacific Equity Fund).