PRULifetime Income Product Primer PDF

This product primer summarizes the key benefits and limits of PRULifetime Income. It is a quick guide on the product created primarily for the use of Pru Life UK employees and distributors. While reasonable care was made in the preparation of this material, an y omissions, deletions and/or statement...

This product primer summarizes the key benefits and limits of PRULifetime Income. It is a quick guide on the product created primarily for the use of Pru Life UK employees and distributors. While reasonable care was made in the preparation of this material, an y omissions, deletions and/or statements inconsistent with the Policy Contract must be construed or rectified in favor of the Policy Contract. Should you wish to share this material with individuals who are not Pru Life UK employees or distributors, please seek prior written approval from the Product Management team. I. Product Description PRULifetime Income is a limited-pay whole life participating plan that offers lifetime protection, non-guaranteed cash dividends, and guaranteed payouts starting at the end of the sixth (6th) policy year until the maturity of the policy, if the insured is alive at every payout date. PRULifetime Income is payable for 5 or 10 years. It can be enhanced by attaching any of the available supplementary benefits or riders. II. Product Position PRULifetime Income is suitable for people who: ▪ want guaranteed protection regardless of market outlook. ▪ look for more financial protection and additional income stream for their children’s education, major purchases or retirement. need guaranteed payouts in case of life emergencies or unexpected business-related expenses. III. Product Features Feature Description Product type Limited-pay whole life participating traditional product Benefit term Up to age 100 Life Insured Issue age 0 year (7 days) to 60 years old Note: Policyowner age must be at least 18 years old Currency Philippine Peso Underwriting Regular underwriting Modes of Payment Annual/semi-annual/quarterly/monthly Payment Terms 5 or 10 years IV. Benefits-related Information Core Benefit Death benefit 200% of the Sum Assured plus any accumulated non-guaranteed dividends and any accumulated guaranteed payouts less any outstanding policy loans and interest will be payable in the event of death of the Life Insured before the maturity of the policy. A child's lien, in accordance with the following schedule, is applicable to the Sum Assured, if the Life Insured is below five (5) years old at the time of death.  Age at time of % of Sum Assured Applied death 0 10% 1 20% 2 40% 3 60% 4 80% Living Benefits Guaranteed Cash The Company shall provide a lump sum benefit equal to the Guaranteed Payouts Payout amount indicated in your Policy Data Page starting at the end of the sixth (6th) policy year and every policy anniversary thereafter, provided the Life Insured is alive at each policy anniversary that a payout is due. This benefit may be paid in cash or left to accumulate with interest at a rate set by the Company. Payouts paid in cash will also be decreased by any outstanding policy loan and interest. Dividends Annual non-guaranteed dividends are payable every policy anniversary starting at the end of the 3rd policy year. The dividends payable in this policy may be: Paid to you in cash; or Applied to any premium due; or Left to accumulate with interest at a rate set by the Company The current Dividend Accumulation Rate set by the company is 4.00%. Note that annual cash dividends and the dividend accumulation rate are not guaranteed. Cash Values and Policy The policy accumulates cash values starting on the 2nd policy year. At any Loans time a cash value is available, the policyholder may apply for a loan up to a maximum of 80% of the cash value. The loan will be charged interest at a rate set by the Company. The amount of loan, together with the interest, is payable on or before the next policy anniversary. If the loan remains unpaid by then, both loan and interest become a new loan on which interest will be charged at the rate in effect on that date. Surrender Benefit Upon surrender of the policy, the available cash value plus any accumulated non-guaranteed dividends and any accumulated payouts less any outstanding policy loans and interest at the time of surrender will be payable to the Policyowner. Maturity benefit 200% of the Sum Assured plus any accumulated non-guaranteed dividends and any accumulated payouts less any outstanding policy loans and interest will be payable if the Life Insured survives the policy maturity at age 100. Optional benefits or riders For full details of the following riders, please refer to Section VI: Rider Information of this primer Accident and disability ▪ Total and Permanent Disability Plus ▪ Accidental Death and Disablement Benefit ▪ Personal Accident Rider Waiver of premium Waiver of Premium on TPD Payor Waiver of Premium Benefit V. Premium and Sum Assured-related Information Premium Type Level Premium The premium rate of the basic coverage remains the same throughout the entire premium-paying period of the life insurance policy. Allowable sum assured (SA) Minimum SA Maximum SA No limit(but subject to underwriting and PhP 250,000.00 reinsurer review and approval) Policy fee PhP 400 per year (modal factor applies) Premium is inclusive of policy fee.  Mode of payment Annual/Semi-Annual/Quarterly/Monthly Modal factors Annual Semi-Annual Quarterly Monthly 1 0.525 0.285 0.0975 Method of payment Credit/Debit Card Mobile wallet/GCash Checks Bank Transfer/Fund** Bills Payment/Bayad Centers* *Applicable for renewal/recurring payments only **Payments should be made directly to Pru Life UK’s bank account only. VI. Rider Information The succeeding rider or optional benefits are on top of the core benefits of the plan found in section IV. Total and Permanent Disability Plus Benefit The TPD Plus benefit pays the benefit amount on top of the basic sum assured, if the life insured becomes totally and permanently disabled due to bodily injury or disease for a continuous period of 6 months before the policy anniversary immediately following the 70th birthday of the life insured. Issue age 5 to 65 Premium Payment a. Premium payment term chosen for the base plan; or Term b. Expiry age (70) – life insured’s age; whichever is shorter Benefit term Up to Age 70 of the life insured Minimum SA 100K Maximum SA 100% of Basic Sum Assured Cash Values This rider has cash values but are not loanable. Accidental Death and Disablement Benefit The ADD benefit pays the benefit amount on top of the basic sum assured if the life insured dies due to accident within one hundred and eighty (180) days of the accident before the policy anniversary immediately following the 73 rd birthday of the life insured. If the life insured sustains Injury which results in any of the losses listed below within one hundred eighty (180) days of the Accident, and the Accident occurs before the policy anniversary immediately following the 73rd birthday of the Life Insured and before the Expiry Date of this Benefit, the Company pays a specified percentage of the Accidental Death and Disablement Benefit according to the Schedule of Coverage. Issue age 5 to 65 Premium Payment a. Premium payment term chosen for the base plan; or Term b. Expiry age (73) – life insured’s age; whichever is shorter Benefit term Up to age 73 of the life insured Minimum SA PhP 100,000 Maximum SA Minimum (10 x basic sum assured, PhP 10M) Cash Values This rider has cash values but are not loanable. Personal Accident Rider Benefit A rider designed to indemnify the insured for injury or death due to accident before the policy anniversary immediately following the 73rd birthday of the life insured. Issue age Standard: 18 to 65 Executive: 18 to 65 Power: 18 to 24 Junior: 5 to 17 Premium Payment a. Premium payment term chosen for the base plan; or Term b. Expiry age (73) – life insured’s age; whichever is shorter Benefit term PA-ADD: Up to age 73  PA-TPD: Up to age 73 PA-M&A: Up to age 73 PA-FTC: Up to age 23 PA-DSC: Up to age 26 PA-DI: Up to age 73 PA-AMR: Up to age 73 Sum Assured a. Standard, or Power PA: Package 1 (100,000) (default) Package 2 (300,000) Package 3 (500,000) Package 4 (1,000,000) Package 5 (2,000,000) b. Executive PA: Package 1 (1,000,000) (default) Package 2 (2,000,000) c. PA Junior: Package 1 (100,000) Benefit amount per component PA-ADD: 100% of PA Sum Assured PA-TPD: 100% of PA-ADD Sum Assured PA-M&A: 50% of PA-ADD Sum Assured PA-FTC: 100% of PA-ADD Sum Assured PA-DSC: 25% of PA-ADD Sum Assured PA-DI: 100% of PA_ADD Sum Assured PA-AMR: 10% of PA-ADD Sum Assured Cash Values This rider has cash values but are not loanable. Waiver of Premium on TPD Benefit If the life insured becomes totally and permanently disabled due to bodily injury or disease, and it occurs before the policy anniversary immediately following the 60th birthday of life insured and before Expiry Date of this Benefit, future premiums will be waived falling due after the commencement of disability, during the continuance of Total and Permanent Disability and until the end of the premium payment term. The premiums of the following benefits will be waived: a. Basic Plan b. Accidental Death and Disablement Rider c. Personal Accident Benefit Rider Issue age 18 to 59 Premium Payment a. Premium payment term chosen for the base plan; or Term b. Expiry age (60) – life insured’s age; whichever is shorter Benefit term Up to age 60 of the life insured Cash Values This rider has no cash values. Payor Waiver of Premium Benefit Benefit Waives all future regular premiums due to death or total and permanent disability of the payor before the policy anniversary following the 25th birthday of life insured or the policy anniversary immediately following the 65th birthday of the payor. This benefit waives the premiums of the following: Base Plan Accidental Death and Disablement (ADD) Total and Permanent Disability Plus (TPD Plus) Personal Accident (PA) Issue age Life insured: 0 to 17  Payor: 18 to 59 Premium Payment a. Premium payment term chosen for the base plan; or Term b. Expiry age for Life Insured (25) – life insured’s age; or c. Expiry age for Payor (65) – life insured’s age; Benefit term Up to age 25 of the life insured; or Up to age 65 of the Payor Whichever comes first. Cash Values This rider has no cash values. VI. Other Features Non-forfeiture Option If the policy has available cash value, the policyholder may elect at any time any of the Non-Forfeiture Options below: Option 1: Net Surrender Value - The policy may be surrendered for its Net Surrender Value which is the cash value plus any accumulated non- guaranteed dividends and any accumulated payouts, less any indebtedness. The policy will terminate upon surrender. Cash values of TPD Plus, ADD, and PA riders are also paid to the policyholder. The policy will terminate upon surrender. Option 2: Reduced Paid-Up Insurance - Policy may be continued without further premiums as a non-participating Reduced Paid-Up Insurance with a reduced Sum Assured that is equal to the Sum Assured amount that the cash value less any outstanding policy loan and interest would have purchased at the attained age of the Life Insured at the time of application of this option, but not to exceed the original Sum Assured. If the RPU Sum Assured is greater than the original Sum Assured, any excess cash values and remaining dividend and payout benefit accumulation will be refunded to you upon conversion to RPU. The death benefit payable under the RPU Insurance will be 200% of the RPU Sum Assured. The future payouts will be the same percentages but based on the RPU Sum Assured, and will be payable at the original schedule and frequency. Option 3: Extended Term Insurance - Policy may be continued without further premiums as a non-participating Extended Term Insurance with a level ETI Sum Assured equal to 200% of the original Sum Assured less any outstanding policy loan and interest under this Policy. The duration of the ETI corresponds to the period of insurance coverage that would have been purchased by the cash value less any outstanding policy loan and interest at the attained age of the Life Insured at the time of the application of this option. If the cash value less any outstanding policy loan and interest is more than enough to continue the ETI until the Policy Maturity Date, any excess cash values and remaining dividend and payout benefit accumulation will be refunded to you upon conversion to ETI. The guaranteed payouts will cease upon conversion to ETI. Option 4: Automatic Premium Loan - Any premium due remaining unpaid at the end of the grace period is automatically paid as withdrawal from the remaining cash value which earns interest and is compounded every policy anniversary. If there is no specific option elected, the automatic Non-Forfeiture Option will be the Extended Term Insurance Reinstatement If the Policy terminates due to non-payment of premiums or due to overloan after the premium-paying period, the Policyowner (PO) may apply to reinstate it within three (3) years from the due date of the premium in default or from the date the policy lapsed due to overloan if: ✓ The Policy has not been surrendered for cash or converted to an Extended Term Insurance which has expired; and  ✓ The Policyowner gives us satisfactory evidence of the health of Life Insured at the PO’s own expense. If termination is due to non-payment of premiums, the Policyowner has to pay all the required premiums in arrears. If termination is due to overloan, you will be required to pay your loan balance. Company reserves the right to charge interest on overdue premiums or Loans. The Expiry Date of the Premium Payment Term as shown in the Policy Data Page will not be changed. VII. Important Provisions Grace Period If you fail to pay the premium, you are given 31 days from your due date to make such payment. If no payment was received after the grace period, your selected NFO and Dividend option (if the selected option is Used to pay a portion of premium) shall apply. If there are no selected NFO and Dividend option, the following default options shall apply; Non-forfeiture Option: Extended Term Insurance (ETI) Dividend Option: Left to accumulate and earn interest. Otherwise, the policy will lapse if there is no available cash value or dividends to pay for the premium due. Conditions when death If within the contestability period i.e., within the first 2 years from benefit may not be payable policy and/or benefit effectivity date or date of last reinstatement, any of the following occurred: a) Suicide (not due to insanity); b) Concealment or misrepresentation at the time of application; or c) Fraud was committed at the time of application. Conditions when the policy The policy terminates upon the occurrence of any of the following: terminates On the Policy Maturity Date; or In the event of the death of the life insured; or Upon failure to pay premiums due within the Grace Period and while the Policy has no cash value; or Upon approval by the Company of the availment of Net Surrender Option under Section 3.5, or When the Policy Lapses, is surrendered, or otherwise terminated Whichever occurs first. For other policy owner options, please refer to the PRULifetime Income policy booklet. Pru Life Insurance Corporation of U.K. (Pru Life UK) may be obliged to comply with the requirements of the laws in various jurisdictions, including but not limited to the Foreign Account Tax Compliance Act (FATCA) of the United States (US). Under such requirements, Pru Life UK may be required to provide authorities, including but not limited to the US Internal Revenue Service (IRS), information about certain customers. By availing of this product, your customer agrees to complete all mandatory questions on the application form and provide Pru Life UK with any additional information, as requested.