Prudential Singapore has introduced PRUApex Legacy Index II, a new indexed universal life (IUL) insurance plan designed to give affluent and high-net-worth individuals greater flexibility in growing, protecting and transferring wealth across generations.

The product offers policyholders a choice of investment index allocations, premium payment terms and death benefit payout structures, allowing customers to tailor their legacy planning strategies to changing financial objectives.

Multiple index options for diversified growth

PRUApex Legacy Index II enables customers to allocate premiums across a range of market indices covering the United States, Europe and emerging markets, as well as a gold-equity index.

The plan includes both traditional capped-return indices and volatility-controlled indices with uncapped return potential, subject to prevailing participation rates.

Customers can choose from standard indices including the S&P 500, MSCI Emerging Markets and EURO STOXX 50, alongside volatility-controlled options such as the S&P 500 FC, UBS Multi Asset Strategy Tactical Rotation (MASTR), Barclays Shiller Allocator and MSCI World Golden Compass indices.

Prudential said the expanded selection is intended to help customers balance growth opportunities with their preferred level of investment risk.

Flexible legacy planning features

The product also introduces greater flexibility in how death benefits are distributed to beneficiaries.

Rather than receiving the full benefit as a lump sum, beneficiaries may receive payments either as a single payout or in annual instalments over a period of between two and ten years.

Customers can select either a single-premium option or multi-pay premium terms of up to 20 years, providing flexibility based on liquidity requirements and long-term estate planning objectives.

For the Fixed Account, the plan offers a first-year crediting rate of 4.20% per annum and a guaranteed minimum crediting rate of 2.00% per annum.

The minimum sum assured for the policy is US$500,000.

Additional policy benefits

Prudential said customers investing in volatility-controlled indices will receive an additional 0.25% annual crediting rate for eligible indices with uncapped returns, subject to prevailing participation rates.

The insurer also offers a one-time bonus crediting rate of up to 6.50% on the total account value after the premium payment term ends for fully paid policies under eligible multi-pay premium options.

Executive comment

Toni Fung, Chief Customer and Marketing Officer at Prudential Singapore, said customers are increasingly seeking legacy planning solutions that can adapt to changing financial priorities.

“Affluent and high-net-worth individuals are increasingly looking for legacy planning solutions that will evolve with their changing life priorities, giving them greater certainty, control and confidence over how their legacy is passed on to the next generation. Today, when they want to make any changes, it means having to purchase new policies or restructure existing portfolios. PRUApex Legacy Index II addresses this need for flexibility, allowing customers to build a resilient legacy through diversified growth potential across multiple indices. It also helps to future-proof their plans with flexible death benefit payout structures.”

She added:

“We were the first insurer in Singapore to introduce a volatility-controlled index (i.e. index with uncapped returns) in an indexed universal life plan two years ago. With PRUApex Legacy Index II, we are expanding the range of index options available to customers, giving them more ways to grow and protect their legacy through familiar indices with capped returns, such as the S&P 500, and indices that provide higher stability through their volatility-controlled design while offering uncapped return potential.”