Life Assurance Policy

Apeman85

So my girlfriend signed up to a life assurance policy on advice of her friend who works as a life assurance agent.

We've been going over my girlfriends finances recently to try and get a good, sensible budget in place. However, I am struggling to understand what the policy she holds actually means. Whether it's a payout only upon her death or is an investment which in effect works as a form of savings in general not dependent on her death.

I have to admit that the world of life assurance to me is a little puzzling and the terms and conditions make things more confusing. A layman's explanation would be great if anyone could provide it.

The name of her policy is Prulink Assurance Account Plus which has a link with Prulink Proactive Fund.

I would very much appreciate it if anyone could take the time to explain exactly what this Policy/Fund offer.

Thanks!

csgohan4

did she get the product from her friend? is it the most cost effective for what she wants?


If she got it from her friend, they may not be acting her interests but rather their own commission

dunstonh

Whether it's a payout only upon her death or is an investment which in effect works as a form of savings in general not dependent on her death.

What does the policy document say?
What does the friend say when they are asked?

The name of her policy is Prulink Assurance Account Plus which has a link with Prulink Proactive Fund.

Are you sure it is life assurance? The last endowment sold in the mainstream was back in 2004. So, that would suggest this could be an old product. Pru themselves pulled their home service reps before then. Around 2001 I think. So, we are going back longer.

I havent come across that product name before but a very quick look and it appears to be an investment fund range but not one sold for the UK. That was just a very quick look and I may be wrong but each occurrence of it that I found suggested the Asian market. Especially the Philippines.

Apeman85

did she get the product from her friend? is it the most cost effective for what she wants?


If she got it from her friend, they may not be acting her interests but rather their own commission

This is my primary concern to be honest. I'm struggling to understand the basic facts enough to know how cost effective it is.

Apeman85

Are you sure it is life assurance? The last endowment sold in the mainstream was back in 2004. So, that would suggest this could be an old product. Pru themselves pulled their home service reps before then. Around 2001 I think. So, we are going back longer.

I havent come across that product name before but a very quick look and it appears to be an investment fund range but not one sold for the UK. That was just a very quick look and I may be wrong but each occurrence of it that I found suggested the Asian market. Especially the Philippines.

You are correct. I probably should have stated as much but was unsure as to whether it's a common policy/fund worldwide. She's originally from the Philippines and when visiting family at the end of last year, was encouraged by a friend to set all this up. She's paying the equivalent of £175 per month into it.. All the documentation is in English but still full of technical jargon that I don't comprehend. It appears to be a combination of a life assurance policy and an investment combined. Are such things a common occurrence? I've never personally had any dealing with any life assurance.

GDB2222

http://prulifeukfund.weebly.com/prulink-assurance-account-plus.html

It's an investment account with £175/mth going in and out of which premiums for life cover and similar benefits are taken.

If it was set up in the Philippines, it's unlikely to be a qualifying policy in the UK. So, any benefits paid out would probably be taxable to the extent they exceed the premiums. There may be other tax complications that I don't know about.

I won't recommend either stopping premiums or keeping it going, but she needs to consider whether this policy is suitable for her and then decide.

I'm sure this policy is great for her friend in the Philippines, though!

dunstonh

You are correct. I probably should have stated as much but was unsure as to whether it's a common policy/fund worldwide.

Every country has it's own tax wrappers. The UK is one of the more advanced countries when it comes to financial services. Both in low cost and quality of offering. Asia on the other hand is a bit like the UK was in the 1970s and 80s. Old expensive products that are profitable for the company but not so much for the consumer. Indeed, Pru has very little to offer in the UK. It has even talked about selling its book and moving out to focus on Asia which it considers far more profitable.

Are such things a common occurrence?

About 25 year obsolete by UK standards but very common in areas of low regulation and poor competition. The ex pat market in particular is targeted with these.