Prudential Singapore Launches New Protection Plan to Help Families Manage ‘Health Gap Years’

Prudential Singapore has introduced PRUActive Life V, a new whole-of-life protection plan designed to help families in Singapore better prepare for the financial impact of serious health conditions.

The comprehensive and customisable plan aims to support individuals during “health gap years”, the period when someone diagnosed with a critical illness may need to step away from work to focus on recovery, often resulting in reduced household income and additional caregiving costs.

Addressing Singapore’s Critical Illness Protection Gap

The launch comes amid rising health concerns in Singapore. For instance, the number of stroke patients increased by nearly 58% between 2011 and 2021, highlighting the growing risk of major health episodes.

Despite these risks, many households remain financially unprepared. According to the 2022 Protection Gap Study by the Life Insurance Association Singapore, there is a 74% protection gap against major critical illnesses such as cancer, stroke, and heart disease.

This gap can be particularly challenging for young families raising children or the “sandwich generation” who are responsible for both their children and ageing parents.

Coverage for 182 Medical Conditions

PRUActive Life V provides lifelong coverage for death, terminal illness, total and permanent disability, and critical illnesses. The plan includes protection for 182 medical conditions, one of the broadest ranges available, including physical conditions such as cancer and spinal injuries as well as certain mental health conditions and juvenile illnesses.

The plan also allows policyholders to enhance protection with critical illness add-ons and scale coverage as their responsibilities grow.

Flexible Protection for Families

One of the key features of the plan is the Multiplier Benefit, which allows families to increase their coverage up to five times until age 80, helping match protection levels with rising income and family commitments.

Another feature, Kinship Booster, provides a 10% increase in basic coverage at no extra cost when an immediate family member also signs up for PRUActive Life V.

The plan is not only designed for families with children but also for single individuals who support elderly parents or siblings, ensuring financial support remains available if illness disrupts their ability to work.

Understanding the Financial Impact of Health Gap Years

Recovering from a critical illness can place a heavy financial burden on families. In Singapore, a household with young children has an average monthly income of about S$21,435 and expenses of S$8,577.

For example, if a 35-year-old father contributing S$15,000 to the family’s monthly income suffers a stroke, the resulting pause in work could significantly affect the household’s finances.

PRUActive Life V aims to provide a financial safety net to help families manage such uncertainties during recovery periods.

Additional Plan Features

The policy also includes several flexible benefits designed to support policyholders through different life stages:

• Income Payout Option: From age 60, customers can convert part of the plan’s cash value into annual payouts for 10 years.
• Family Waiver Benefit: Premiums are waived for up to 12 months if a spouse or child passes away.
• Premium Defer Benefit: Policyholders can postpone premium payments for up to two years without interest and without affecting coverage.
• Life Milestone Coverage Increase: Customers can increase coverage without additional health checks during major life events such as marriage, becoming a parent, or a child entering school.
• Flexible Premium Terms: Payment periods range from 5 to 35 years, allowing families to manage insurance alongside other financial commitments.
• Cash Value Growth: The policy accumulates cash value over time with the potential for bonuses.