Prulink Assurance account

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Prulink Assurance account

Postby Stan » 18 Jan 2007, 22:35

Does anyone have any experience with Prulink Assurance? Any thoughts on whether it is good? Any advantages & disadvantages? Thanks for you advice! :)
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Re: Prulink Assurance account

Postby Starry » 18 Jan 2007, 22:39

Stan wrote:Does anyone have any experience with Prulink Assurance? Any thoughts on whether it is good? Any advantages & disadvantages? Thanks for you advice! :)


If I am not wrong, this is a ILP. I have it. My advice : Stay away from it and don't be like me.
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Re: Prulink Assurance account

Postby Stan » 18 Jan 2007, 22:55

Starry wrote:
Stan wrote:Does anyone have any experience with Prulink Assurance? Any thoughts on whether it is good? Any advantages & disadvantages? Thanks for you advice! :)


If I am not wrong, this is a ILP. I have it. My advice : Stay away from it and don't be like me.


Yes, its an ILP. Can you tell me why it's not good? Are there better alternatives for insurance? Thanks!
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Re: Prulink Assurance account

Postby Starry » 18 Jan 2007, 23:05

Stan wrote:
Starry wrote:
Stan wrote:Does anyone have any experience with Prulink Assurance? Any thoughts on whether it is good? Any advantages & disadvantages? Thanks for you advice! :)


If I am not wrong, this is a ILP. I have it. My advice : Stay away from it and don't be like me.


Yes, its an ILP. Can you tell me why it's not good? Are there better alternatives for insurance? Thanks!


Simple. Don't mix insurance with investments. Once you mix them, the investment component normally comes with high cost. For the start, you incur that 5% sales charge every year when you pay your premium. And for the first few years, most of your premium goes into their distribution fees and admin fees and very little into investments.

You will do much better if you separate them.
Last edited by Starry on 18 Jan 2007, 23:54, edited 1 time in total.
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Postby Private Investor » 18 Jan 2007, 23:51

I do have one and am regreting now, after learning so much from here

Basically for the 1st 2 years, none of your premium goes to investment but are paying for agent's commission, admin charges etc etc #-o

Breakeven is only after 15 years

Now I am considering if I should switch to term plan from the company
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Postby Starry » 18 Jan 2007, 23:59

Private Investor wrote:Now I am considering if I should switch to term plan from the company


I did thought of that before, but my agent is a friend of mine, so what I did was I reduce the premium (and hence lesser coverage of course), but I use the savings for H&S benefits which is more relevant to me at my age now.

ILP is only good for people who can't be bothered about investment and that policy will "force" them to save and invest in some ways.
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Postby voly » 19 Jan 2007, 02:21

Starry wrote:ILP is only good for people who can't be bothered about investment and that policy will "force" them to save and invest in some ways.


Eh i think it will even be worse for these people using ILP. The will do better without those charges. ::o
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Re: Prulink Assurance account

Postby wilfredling » 19 Jan 2007, 02:56

Stan wrote:Does anyone have any experience with Prulink Assurance? Any thoughts on whether it is good? Any advantages & disadvantages? Thanks for you advice! :)


A client asked me for a 2nd opinion of a proposed Prulink Assurance. I explained the technicality of the plan and it was obvious that her agent did not explain how it really works.

But later on I found that her benefit illustration had one statement that sum it all quite nicely on how it really works. In one of the fine print it says "After age 65, if your units are insufficient to pay for the elected sum assured, the plan will lapse."

This is a classic case of a useless insurance that could lapse because your units and premium aren't enough.
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Re: Prulink Assurance account

Postby Independent_FA » 19 Jan 2007, 11:04

Stan wrote:Yes, its an ILP. Can you tell me why it's not good? Are there better alternatives for insurance? Thanks!



Hi Stan,

There are many threads on ILPs( and its disavantage) and numerous words of wars had started cos of ILPs. It will be good to search thru the forum & read some of the post 1st. If you need any clarification then u may want to post it here. Most of us will be glad to help.
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Postby ghchua » 19 Jan 2007, 11:36

I guess I have said a lot about ILPs both in here and previously at FSM forums.

But I am more than willing to start another "war" against ILPs. Because it is a lemon product and it deserved my bashing. Please do a search for all the topics here on ILPs and if you are still not convinced about its cons, we can discuss further here.
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Postby choozm » 19 Jan 2007, 12:24

bring it on, ghchua, ILP is one lemon worth squashing and squeezing and bashing. haha..
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Postby patlim » 19 Jan 2007, 12:41

ghchua wrote:I guess I have said a lot about ILPs both in here and previously at FSM forums.

But I am more than willing to start another "war" against ILPs. Because it is a lemon product and it deserved my bashing. Please do a search for all the topics here on ILPs and if you are still not convinced about its cons, we can discuss further here.


hi, all,

ditto.
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Postby chantc » 19 Jan 2007, 23:21

Another ILP bashing thread. ::D

Anyway Stan, this is nothing personal. Just do a search on ILP here. You can see we've discussed at length in many threads.
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Postby Stan » 20 Jan 2007, 13:36

thanks for your replies everyone. I know there are threads on ILPs, just couldn't find any on the Prudential version, so I was asking specifically for those who have experience with this product. The general comments may not apply to this. Looks like it's also not that great huh? :)
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Postby Alanto72 » 20 Jan 2007, 14:54

ILP is something like history, there was a time when buying UT is difficult n most sales charge r similar to insruance company...so buying then was ok. Now, sales charge online is much lower & more choice online, easier to buy, sell, switch, so no point buy ILP. Get a pure insurance, much cheaper, then the leftover money do RSP @ online distributor. It will also look like ILP, but probably can buy more units.
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Postby voly » 20 Jan 2007, 15:21

Alanto72 wrote:ILP is something like history, there was a time when buying UT is difficult n most sales charge r similar to insruance company...so buying then was ok. Now, sales charge online is much lower & more choice online, easier to buy, sell, switch, so no point buy ILP. Get a pure insurance, much cheaper, then the leftover money do RSP @ online distributor. It will also look like ILP, but probably can buy more units.


Actually not really the same even back then. You do have to consider the charges impose by the insurer as well which most people neglected. However I do agree with these investment platform, UT transaction indeed are easier than in the past.
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Postby choozm » 20 Jan 2007, 15:56

Stan wrote:thanks for your replies everyone. I know there are threads on ILPs, just couldn't find any on the Prudential version, so I was asking specifically for those who have experience with this product. The general comments may not apply to this. Looks like it's also not that great huh? :)

Whichever insurance company, just stay away from ILP because mixing insurance with investments is just plain bad.
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Postby Private Investor » 20 Jan 2007, 23:26

For Prudential Assurance, there is this feature called Premium Holiday. In case that you are in financial difficulty, you can activate this option & stop paying the monthly premium. The insurance charge will be deducted from the units.

Thought this feature is quite good if you have no money for a period of time say out of job. For term insurance, die die you still have to pay the monthly premium even when one has financial difficulty
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Postby voly » 20 Jan 2007, 23:36

Private Investor wrote:For Prudential Assurance, there is this feature called Premium Holiday. In case that you are in financial difficulty, you can activate this option & stop paying the monthly premium. The insurance charge will be deducted from the units.

Thought this feature is quite good if you have no money for a period of time say out of job. For term insurance, die die you still have to pay the monthly premium even when one has financial difficulty


Welll noone is stopping you from liquidating a small part of your investment to do the same... I dont see whats so great about that feature...
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Postby chantc » 20 Jan 2007, 23:42

Unless its free. ::D
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Postby Independent_FA » 21 Jan 2007, 00:17

Private Investor wrote:For Prudential Assurance, there is this feature called Premium Holiday. In case that you are in financial difficulty, you can activate this option & stop paying the monthly premium. The insurance charge will be deducted from the units.

Thought this feature is quite good if you have no money for a period of time say out of job. For term insurance, die die you still have to pay the monthly premium even when one has financial difficulty


Most ILPs have this feature not juz Prudential Assurance.
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Postby patlim » 23 Jan 2007, 01:30

Private Investor wrote:For Prudential Assurance, there is this feature called Premium Holiday. In case that you are in financial difficulty, you can activate this option & stop paying the monthly premium. The insurance charge will be deducted from the units.

Thought this feature is quite good if you have no money for a period of time say out of job. For term insurance, die die you still have to pay the monthly premium even when one has financial difficulty


dear private investor,

yes, but if the policyholder invokes this option, kindly take note that it comes with terms and conditions;

a. depending on variables, this option to fund the charges may not
keep the policy going for long
b. once the regular premium is not paid, the sum assured guarantee
ceases automatically. on application, prudential MAY reinstate
the sum assured guarantee subject to certain terms and
conditions.

my 2 cents worth.
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Postby Private Investor » 23 Jan 2007, 23:23

Hi Patlim

Thanks for the advice. All these are not mentioned by my agent. He just told me that after activating premium holiday, the assurance charges (using the mortality rate) will be deducted from my investment units and during these period, there will not be new money for investment

Anyway, I am planning to terminate it (have been in force for 3 years) soon and purchase term insurance as it is more straight forward and transparent. Currently I am paying $300 for the ILP, I believe I can get more coverage with this amount from term insurance
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Postby voly » 23 Jan 2007, 23:37

Private Investor wrote:Hi Patlim

Thanks for the advice. All these are not mentioned by my agent. He just told me that after activating premium holiday, the assurance charges (using the mortality rate) will be deducted from my investment units and during these period, there will not be new money for investment

Anyway, I am planning to terminate it (have been in force for 3 years) soon and purchase term insurance as it is more straight forward and transparent. Currently I am paying $300 for the ILP, I believe I can get more coverage with this amount from term insurance


never mentioned by your agent? thats strange.. thats a material information that is required to disclose
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Postby patlim » 24 Jan 2007, 10:22

Stan wrote:thanks for your replies everyone. I know there are threads on ILPs, just couldn't find any on the Prudential version, so I was asking specifically for those who have experience with this product. The general comments may not apply to this. Looks like it's also not that great huh? :)


dear stan,

on your query, yes, i have encountered many clients who has taken up pru's paa and for obvious or even for not so obvious reasons, i shall not post their experiences here chiefly because of liability issues and lay myself (and this site) vulnerable to possible legal suits.

thanks and best regards.

ps: but here's another option, because you may wish to pm or email me.
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