PRULIFEUK.COM.PH

PRU LIFE Insurance Corp. of UK Philippines (Pru Life UK) has rolled out two traditional life insurance policies with guaranteed cash payouts and maturity benefits, as part of its strategy to expand the share of traditional products in its portfolio.

At a launch event on Tuesday, Pru Life UK Chief Product Officer Garen U. Dee said the company aims to meet customer needs across different life stages by offering guaranteed returns alongside protection.

“There’s guaranteed payout, guaranteed maturity benefit, and guaranteed protection,” she said. “We have the right solutions depending on the needs of the customer for whatever stage of life they are in.”

The two products — PruSteady Income and PruWealth 10 — target distinct customer segments.

PruSteady Income was designed for freelancers, parents and overseas Filipino workers. It provides a 10% net annual cash payout from the end of year 11 until the policy matures at year 20.

At maturity, policyholders get 100% of the sum insured. The plan also includes access to loanable funds based on the policy’s cash value, while protection worth 200% of the sum insured applies from day one, payable to beneficiaries in case of death.

PruSteady Income requires a minimum investment of P50,000, with payment terms ranging from five to 10 years.

Meanwhile, PruWealth 10 caters to affluent clients seeking wealth diversification. It offers guaranteed 5% net annual cash payouts for 10 years, a full 100% premium return upon maturity, and life coverage equal to 110% of the sum insured. The product, which requires a minimum investment of P500,000, will be offered only while supplies last.

Company officials noted that the guaranteed returns are competitive compared with time deposit (TD) rates, which have fallen amid the Bangko Sentral ng Pilipinas’ easing cycle. “This one guarantees 5% for 10 years, whereas we can see TDs ranging way below that,” she said, adding given the recent rate cut and tax considerations, this stands at a very competitive level.

Pru Life UK said it plans to launch more guaranteed products to balance its portfolio, which is dominated by variable-unit linked (VUL) insurance.

“The difference between VUL and traditional products is really the promise of guarantee,” Ms. Dee said. “There are segments of the market who would want to have that kind of feature.”

She added that the company is not shifting away from VUL policies but rather broadening its offering. “We do not stop carrying VULs because we believe it’s an integral part of the portfolio, but we are also starting to offer guarantees.” — AMCS