# PRUActive Retirement II **Product Summary** [p.1] **Prepared by:** «masLicenseNo» WA_AR7_007 E. & O.E 0 **Underwritten by:** Prudential Assurance Company Singapore (Pte) Limited (Reg. No 199002477Z) --- ## Product Summary: PRUActive Retirement II This Product Summary and Policy Illustration are for illustrative purposes only and shall not constitute a contract. The following is a simplified description of the key product features. The exact terms can be found in the policy document. "Your Guide to Participating Policies", which contains generic but important information on how a participating plan typically works and how bonuses are determined in general, is available on our website, www.prudential.com.sg. Alternatively, you may approach a representative of either Prudential Singapore or a distributor duly appointed by Prudential Singapore for a copy of the guide. ### Details of Plan Provider Prudential Assurance Company Singapore (Pte) Limited ("Prudential Singapore"), 30 Cecil Street, #30-01 Prudential Tower, Singapore 049712. Tel: 1800 - 333 0 333. Prudential Singapore is responsible for the product features and contractual provisions and these will be explained to you by a representative of either Prudential Singapore or a distributor duly appointed by Prudential Singapore. This policy and its Supplementary benefit(s) (if any) is/are protected under the Policy Owners' Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact your insurer or visit the General Insurance Association (GIA) /Life Insurance Association (LIA) or SDIC web-sites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg). The Proposer acknowledges receipt of all the pages of the Product Summary for the Main plan and Supplementary benefits (where applicable). The contents have been explained to his/her satisfaction. ### Aggregation rule The aggregate premiums payable for selected plans* per life assured issued in the past 24 months cannot exceed S$15 million (or equivalent). The calculation is based on the total committed premiums of the product, excluding premiums for supplementary benefits (if any) (e.g. 10 x annual premium for a 10-year premium term product, or full single premium for a single premium product). US dollar denominated policies will be aggregated after applying an exchange rate of US$1 to S$1.40 on the premiums payable. We reserve the right to review/vary this rate. *Please find the full list of selected plans at www.prudential.com.sg ### Nature and Objective of the Plan PRUActive Retirement II is a participating endowment insurance plan. The plan provides a stream of Monthly Income benefit during the Payout Period which starts from the policy anniversary immediately before the life assured attains the selected Payout Age. The plan provides the following choices: - Choice of Premium Payment Term from single premium or over 4 years up to your chosen Payout Age; - Choice of Payout Age from age 50 to age 90; - Choice of Payout Period from 10, 15, 20, 25 or 30 years. The plan allows the policyowner to participate in the performance of the participating fund in the form of non-guaranteed bonuses and Non-Guaranteed Monthly Income. This plan can be taken out on a single life assured up to a maximum of two policyowners. Joint Ownership will be on a joint tenancy basis. In a Joint Ownership policy, when one policyowner dies, the policy will automatically be transferred to the surviving owner. If both policyowners die at the same time, ownership of the policy will vest in the estate of the younger of the two policyowners. PRUActive Retirement II is an 8th series product. The series defines the premium rates and bonus features of the product. --- [p.2] The example set out below is for illustration only. Premium Payment Term, Accumulation Period, Payout Period and Monthly Income payments will vary according to your policy. **Example: Mr Tan who is 45 years old chose a Premium Payment Term of 10 years, the Payout Age of 60 and the Payout Period until he is 75 years.** After the Premium Payment Term, the policy carries on until the selected Payout Age, this period is known as the "Accumulation Period". This is followed by the "Payout Period" commencing immediately after the Accumulation Period during which the Monthly Income Benefit are paid out. Choice of Premium Payment Term, Payout Age and Payout Period must be selected during policy application. ``` Premium Payment Term: 10 years Accumulation Period: 5 years Payout Period: 15 years Age 45 → Age 55 → Age 60 → Maturity date Age 75 Start Receiving Monthly Income Benefit ``` --- [p.3] ## Benefits under the Plan ### What is Face Value? The Face Value is not the sum assured of your policy. The Face Value is a notional value used to determine the Reversionary Bonus, Performance Bonus and Monthly Income Benefit. ### What do we pay for Death Benefit? If the life assured dies before the Payout Period, we will pay the higher of: - 101% of the surrender value at the time of death; or - 105% of the total premiums paid at the time of death (but not premiums paid for supplementary benefits, if any), less any bonus you surrendered. If the life assured dies during the Payout Period, we will pay the higher of: - 101% of the surrender value at the time of death; or - 105% of the total premiums paid at the time of death (but not premiums paid for supplementary benefits, if any), less all guaranteed monthly income instalments that have been paid at the time of death, plus any Monthly Income that you have left with us together with interest. We will deduct from the Death Benefit payable any: - amounts that you owe us; - overpaid monthly income because you were late in letting us know of the death of the life assured; and - overpaid disability monthly income because you were late in letting us know of the death of the life assured. The whole policy automatically ends once a death claim is paid. ### What is not covered under Death Benefit? If the life assured dies from suicide within 12 months from the cover start date of your policy or from the date of reinstatement (if any), we will void your policy, we cancel it and refund the total premiums received from you. We will deduct any policy loans (including interest), automatic premium loans (including interest), surgical and nursing loans and all other amounts you owe us in connection with your policy and expenses (including administrative, sales-related and medical expenses) we have had to pay for your policy. If the life assured dies from a pre-existing Condition within 12 months from the cover start date of your policy or from the date of reinstatement (if any), we will refund the total premiums received from you. We will deduct any policy loans (including interest), automatic premium loans (including interest), surgical and nursing loans and all other amounts you owe us in connection with your policy and expenses (including administrative, sales-related and medical expenses) we have had to pay for your policy. "Pre-existing Condition" is the existence of any signs or symptoms for which the life assured received or asked for treatment, medication, consultation, advice or diagnosis or would have caused an ordinary sensible person to get treatment, diagnosis or cure, before the cover start date or date of reinstatement (if any) of this benefit. ### What do we pay for Monthly Income Benefit? Monthly Income Benefit consists of a guaranteed portion ("Guaranteed Monthly Income"), and a non-guaranteed portion ("Bonus Income", "Step-up Income" and "Non-Guaranteed Monthly Income"). Guaranteed Monthly Income is paid to you regardless of the performance of the participating fund. At the start of the Payout Period, the reversionary bonuses built up until this point will be converted to form the Bonus Income. This Bonus Income becomes guaranteed on conversion and is paid throughout the Payout Period. Non-Guaranteed Monthly Income is declared yearly during the Payout Period and will depend on the performance of the participating fund. Once declared, it is guaranteed. Step-up Income is made up of the Non-Guaranteed Monthly Income that were declared from past years. Once declared, the Step-up Income is guaranteed and is paid in addition to the Bonus Income and Non-guaranteed Monthly Income throughout the Payout Period. The Monthly Income Benefit is paid to you every month throughout the Payout Period starting on the policy anniversary immediately before the life assured reaches the chosen Payout Age and ending on the maturity date. You can choose to receive the Monthly Income or leave the Monthly Income with us to accumulate in value anytime during the policy term. If you choose to leave the Monthly Income with us, an annual non-guaranteed accumulation interest rate will be applied on the accumulated Monthly Income. We reserve the right to vary the interest rate but will not do so before giving you 30 days' written notice. Interest accrues on a daily basis. On each Policy Anniversary, we add the previous year's interest to your accumulated Monthly Income and credit interest on the total amount. You can make withdrawals from this accumulated amount any time before the maturity date of your policy subject to terms and conditions. If there is any outstanding loan amount in the policy at the start of the Payout Period, we will use the surrender value to repay the loan amount before we pay you any Monthly Income. This will reduce your surrender value and the future Monthly Income instalments which will also reduce the total premiums paid. We use the revised total premiums paid to work out the death benefit. ### Option to change the length of the Payout Period You can choose to change the length of your Payout Period. This will result in higher Monthly Income instalments for a shorter Payout Period and likewise, lower Monthly Income instalments for a longer Payout Period. Your premium amount and Premium Payment Term will not change. You can change the length of the Payout Period: - any time until two months before the start of your payout period. Your Payout Age remains unchanged. - only if your Monthly Income payments have not started. Once your Monthly Income payments have started, this option is no longer available. The change you make must be in number of years and not months. The Payout Period must be from 10, 15, 20, 25 or 30 years. --- [p.4] ### What do we pay for Accidental Disability Benefit? If the life assured becomes totally and permanently disabled because of an accident before the cover end date of the Accidental Disability Benefit as shown in your certificate of life assurance, we pay an extra monthly instalment which is equal to the guaranteed monthly income (Disability Monthly Income) up to a maximum amount of $6,250 for each disability monthly income instalment. We pay this Disability Monthly Income from the next month following the date of disability until the maturity of the policy or when the life assured dies, whichever event happens first. We pay on the same date each month as the scheduled monthly income instalment payout date. If the Disability Monthly Income instalments have started and you choose to change your Monthly Income Payout Period, the following will apply: - if you lengthen your Monthly Income Payout Period, we will pay your Disability Monthly Income up to the end date of the Monthly Income Payout Period at the point we pay your first Disability Monthly Income instalment; - if you shorten your Monthly Income Payout Period, we will pay your Disability Monthly Income up to the end date of the new Monthly Income Payout Period, - the Disability Monthly Income instalment amounts will not change. If your policy has a regular Premium Payment Term, and when the disability of the life assured because of an accident is confirmed, we will waive any future premiums due on your policy. Premiums for any supplementary benefits are not included. If the life assured stops being totally and permanently disabled, we stop the waiver of any premiums due and the Disability Monthly Income instalments. For a life assured whose age is from age 18 to 65 years, we pay when the life assured is totally and permanently disabled as a result of which they: - cannot take part in any occupation, business or activity which pays an income; or - suffer total and permanent loss of use of: - both eyes; or - any two limbs, each above the wrist or ankle but not just the hands and feet; or - one eye and any one limb at or above the wrist or ankle but not just the hand or foot. For a life assured whose age is from age 66 to policy anniversary before age 70 next birthday or cover end date, whichever is earlier, we pay when the life assured is totally and permanently disabled as a result of which they: - suffer total and permanent loss of use of: - both eyes; or - any two limbs each above the wrist or ankle but not just the hands and feet; or - one eye and any one limb at or above the wrist or ankle but not just the hand or foot, or - are unable to perform (whether with help or without help) at least three of the following six Activities of Daily Living for at least six months in a row. **Activities of Daily Living:** - **Washing** - the ability to wash in the bath or shower (including getting into and out of the bath or shower) or wash satisfactorily by other means; - **Dressing** - the ability to put on, take off, secure and unfasten all garments and, as appropriate, any braces, artificial limbs or other surgical or medical appliances; - **Feeding** - the ability to feed oneself once food has been prepared and made available - **Toileting** - the ability to use the lavatory or manage bowel and bladder functions through the use of protective undergarments or surgical appliances, if appropriate; - **Mobility** - the ability to move indoors from room to room on level surfaces; - **Transferring** - the ability to move from a bed to an upright chair or wheelchair and vice versa. The above is the definition of Totally and Permanently Disabled. We will pay this benefit six months after the confirmed onset of total and permanent disability (Deferment Period) by a registered medical practitioner. The Deferment Period does not apply if the life assured suffers: - total and permanent blindness in both eyes as confirmed by an ophthalmologist; - physical loss of any two limbs, each above the wrist or ankle but not just the hands and feet; or - total and permanent blindness in one eye as confirmed by an ophthalmologist and the physical loss of any one limb at or above the wrist or ankle but not just the hand or foot. The disability must be confirmed by a registered medical practitioner. We can ask for a medical examination to be carried out by a medical practitioner registered with the Singapore Medical Council if we decide the medical reports you give us are not enough for our purposes. If the life assured becomes totally and permanently disabled from other causes and not by an accident, and has made a successful claim from any disability supplementary benefit attached, this benefit will no longer apply and will end. We will pay the Disability Monthly Income if the life assured became totally and permanently disabled because of an accident within 12 calendar months from the date of the accident. We will not accept any claim for this benefit if the life assured has already died at the time of the claim. We will pay the death benefit instead. ### What is not covered under Accidental Disability Benefit? We do not pay if the disability existed at the cover start date or date of reinstatement (if any) of this benefit and if the accidental disability of the life assured arises directly or indirectly out of one of the following: - From war, riot, revolution or any similar event. - From terrorism involving nuclear, biological or chemical agents. - From illnesses or diseases of any kind, including fits, hernia, venereal disease, acquired immunodeficiency syndrome (AIDS) or food poisoning. - From illnesses or diseases as a result of bites from, or contact with, an animal or insect, if they are infected by, or is a carrier of, illnesses or diseases. - From a physical or mental condition which existed at the cover start date or date of reinstatement (if any) of this benefit; - Accidents arising and due to pregnancy or confinement and related complications. - Deliberate acts such as taking intoxicating liquor or drugs, committing suicide or attempted suicide or deliberate self-injury while sane or insane. - Unlawful acts or deliberate and reckless exposure to unnecessary danger except in trying to save a human life. - Any injury suffered while the life assured is committing or is attempting to commit an offence or is resisting arrest. - injuries as a result of committing, attempting or provoking an assault. - From a state of unsound mind. - Taking part in a dangerous activity or sports unless carried out legally under the supervision of a licensed organisation. - Taking part in professional or competitive sports if the life assured would or could earn income or pay from doing so. - Being in an aircraft of any type, or boarding or getting off any aircraft, except as a fare-paying passenger in an aircraft that is on a regular scheduled route operated by a commercial airline. --- [p.5] - Radiation or contamination from radioactivity. - Racing of all kinds, other than on foot or bicycle. - Taking part in commando or bomb-disposal duties or training, active military duties such as maintaining civil order, taking part in hostilities, whether war is declared or not, and travel by military aircraft or waterborne vessel. (This exclusion overrides all other terms and conditions relating to military services.) - An activity under the special exclusions and special terms and conditions shown in your certificate of life assurance. ### What is Surviving Spouse Benefit? The Surviving Spouse Benefit is an optional benefit that is available on a policy that has a husband and wife as joint owners of the policy. This would mean one of the policyowners is the Main Life Assured, and the other policyowner will be the Successor Life Assured. Should the Main Life Assured die during the premium payment term, the Surviving Spouse Benefit will not take effect and we will pay out the Death Benefit. Should the Main Life Assured die after the premium payment term, we will not pay out the Death Benefit as the policy will now continue on the life of the Successor Life Assured. You are allowed to appoint or change the spouse as the Successor Life Assured up to 3 times throughout the policy term. All supplementary benefits will terminate when the Surviving Spouse Benefit takes effect. No supplementary benefits are allowed on the policy once the Successor Life Assured becomes the new life assured. The Disability Monthly Income will terminate when the Surviving Spouse Benefit is activated. To apply for the Surviving Spouse Benefit, you must use our appropriate application form and meet the conditions on it. We will let you know if we accept your application. You cannot appoint a Successor Life Assured if your policy already has a nomination of beneficiary or a trust has been created under your policy. ### What do we pay for Maturity Benefit? On the maturity date of your policy, we pay the Maturity Benefit which consists of: - the last instalment of the Monthly Income; and - a maturity bonus, less any amounts you owe us. We will also pay you any Monthly Income that you have left with us together with interest. ### What is surrender value? The guaranteed surrender value plus non-guaranteed surrender value will be payable upon surrender of your policy. The surrender value is available after 36 months from your first premium due date and you have paid premiums for 36 months. For PRUActive Retirement II policy of a single premium payment, we give you an immediate surrender value. ### What is the impact of early surrender? As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. Please refer to the Table of Deductions in the Policy Illustration for more information and to understand the loss or low returns on surrendering the plan early. ### What are the other features available under PRUActive Retirement II? - Automatic Premium Loan, Policy Loan, Surgical & Nursing Loan are available. Please note that taking these loans will reduce the long term value of the policy. For automatic premium loan and policy loan, a non-guaranteed loan interest will be charged. - If the policy has a surrender value, the policyowner can apply to surrender part or all of the Reversionary Bonus that we have added to the policy for a cash value. Please note that this will reduce the long term value of the policy. Note: Automatic Premium Loan is not applicable to single premium policy. Please refer to the policy document for the exact terms and conditions of these additional features. --- [p.6] ### What is Surviving Spouse Benefit? The Surviving Spouse Benefit is an optional benefit that is available on a policy that has a husband and wife as joint owners of the policy. This would mean one of the policyowners is the Main Life Assured, and the other policyowner will be the Successor Life Assured. Should the Main Life Assured die during the premium payment term, the Surviving Spouse Benefit will not take effect and we will pay out the Death Benefit. Should the Main Life Assured die after the premium payment term, we will not pay out the Death Benefit as the policy will now continue on the life of the Successor Life Assured. You are allowed to appoint or change the spouse as the Successor Life Assured up to 3 times throughout the policy term. All supplementary benefits will terminate when the Surviving Spouse Benefit takes effect. No supplementary benefits are allowed on the policy once the Successor Life Assured becomes the new life assured. The Disability Monthly Income will terminate when the Surviving Spouse Benefit is activated. To apply for the Surviving Spouse Benefit, you must use our appropriate application form and meet the conditions on it. We will let you know if we accept your application. You cannot appoint a Successor Life Assured if your policy already has a nomination of beneficiary or a trust has been created under your policy. ### What do we pay for Maturity Benefit? On the maturity date of your policy, we pay the Maturity Benefit which consists of: - the last instalment of the Monthly Income; and - a maturity bonus, less any amounts you owe us. We will also pay you any Monthly Income that you have left with us together with interest. ### What is surrender value? The guaranteed surrender value plus non-guaranteed surrender value will be payable upon surrender of your policy. The surrender value is available after 36 months from your first premium due date and you have paid premiums for 36 months. For PRUActive Retirement II policy of a single premium payment, we give you an immediate surrender value. ### What is the impact of early surrender? As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. Please refer to the Table of Deductions in the Policy Illustration for more information and to understand the loss or low returns on surrendering the plan early. ### What are the other features available under PRUActive Retirement II? - Automatic Premium Loan, Policy Loan, Surgical & Nursing Loan are available. Please note that taking these loans will reduce the long term value of the policy. For automatic premium loan and policy loan, a non-guaranteed loan interest will be charged. - If the policy has a surrender value, the policyowner can apply to surrender part or all of the Reversionary Bonus that we have added to the policy for a cash value. Please note that this will reduce the long term value of the policy. Note: Automatic Premium Loan is not applicable to single premium policy. Please refer to the policy document for the exact terms and conditions of these additional features. --- [p.7] ## Non-guaranteed benefits The benefits under this plan are made up of guaranteed and non-guaranteed benefits. The guaranteed benefits, including bonuses which have already been allocated to the participating policyowners will be paid regardless of the performance of the participating fund. Non-guaranteed benefits are in the form of Reversionary Bonus, Performance Bonus, Non-Guaranteed Monthly Income and Maturity Bonus which are NOT guaranteed and will vary according to the future experience of the participating fund. The non-guaranteed benefits in this section are based on the illustrated Investment Rate of Returns of the Participating Fund at 4.00% per annum. Please note that the actual non-guaranteed benefits that may be declared in the future may turn out to be higher or lower than illustrated in this section. In comparison, at an illustrated Investment Rate of Return of 2.75% per annum, the non-guaranteed benefits are expected to be adjusted downwards depending on the future outlook of the Participating Fund. Please refer to the policy illustration for the non-guaranteed benefits amount at the illustrated Investment Rate of Return of 2.75% per annum and 4.00% per annum respectively. The two rates are used purely for illustrative purposes and do not represent upper and lower limits of the investment performance of the Participating Fund. ### Reversionary Bonus This is a yearly bonus that we add to the policy benefits from the start of the calendar year after the policy's second anniversary until the start of the calendar year before the Payout Period starts. Once declared, it will form part of the guaranteed benefits of the plan. At the start of the Payout Period, we will convert the accumulated Reversionary Bonuses to form part of the Monthly Income Benefit. The Reversionary Bonus rate is illustrated to be $8.50 per $1,000 Face Value and $19 per $1,000 on accumulated Reversionary Bonuses. ### Performance Bonus This is a one-off bonus which is a percentage of the accumulated Reversionary Bonuses. It may be paid when you surrender your policy or when we pay a claim for any of the basic benefits of your policy before the Payout Period. The amount will vary depending on the end date of your policy. ### Bonus Income, Step-up Income and Non-Guaranteed Monthly Income At the start of Payout Period, the reversionary bonuses accumulated up to the start of the Payout Period are converted to form the Bonus Income. The Bonus Income becomes guaranteed upon conversion and is paid throughout the Payout Period. Non-Guaranteed Monthly Income is declared yearly during the Payout Period. Once declared, it is guaranteed and is added to the Step-up Income. The Bonus Income, Step-up Income and Non-Guaranteed Monthly Income make up part of the Monthly Income Benefit and are paid together with the Guaranteed Monthly Income during the Payout Period. ### Maturity Bonus This is a one-off bonus paid at maturity of the policy. The Maturity Bonus rates is projected to be percentage of the total Guaranteed Monthly Income. Future bonuses and Non-Guaranteed Monthly Income which have yet to be allocated to the policy are not guaranteed and we will decide the level of bonus and Non-Guaranteed Monthly Income to be declared each year as approved by the Board of Directors, taking into account the written recommendation by the Appointed Actuary. --- [p.8] ### How are the assets invested and managed? Prudential Singapore's participating fund consists of both single and regular premium policies segregated into a few sub-funds. Each sub fund's investments are managed separately to match its liability characteristics. This product is written in the Par Retirement SGD Sub-fund ("PRSF"). In the document below, the term "fund" will be referring to PRSF unless stated otherwise. #### Investment Objective The investment objective is to maximise the long-term returns of the fund through investments consistent with policyowners' reasonable expectations, while meeting internal and regulatory solvency requirements. To achieve this, we set a Strategic Asset Allocation ("SAA") for the fund. #### Investment Mix | Asset Type | Strategic Asset Allocation | Asset Allocation as at 31 Dec 2024 | |---|---|---| | Bonds | 60.0% | 61.2% | | Equities | 40.0% | 37.2% | | Property | 0.0% | 0.0% | | Other Assets¹ | 0.0% | 1.6% | | **Total Assets** | **100.0%** | **100.0%** | ¹ Other Assets include alternative assets, cash and policy loans The Asset Allocation percentages shown in the table have been rounded to the nearest 0.1%, and hence may not sum to exactly 100%. SAA is the fund's long-term weighted asset allocation over Premium Payment Term, Accumulation Period and Payout Period to meet the investment objective of the fund as set out above. Fund managers are allowed to deviate from the SAA, but within a mandated limit to take views on the current market conditions. #### Investment Rate of Return The past investment rates of return (after deducting investment expenses only) are shown in the table below. | | 2022 | 2023 | 2024 | Average of last 3 years | Average of last 5 years | Average of last 10 years | |---|---|---|---|---|---|---| | **Investment Returns** | -14.32% | 9.68% | 9.59% | 0.99% | 2.32% | N.A. | Please note that past performance may not be indicative of future performance. #### Total Expense Ratio The Total Expense Ratio is the proportion of total expenses incurred by the Participating Fund to the assets of the Participating Fund. These expenses include costs such as investment, management, distribution, taxation and other expenses. An expected level of expenses to be incurred by the Participating Fund has been allowed for in the premiums payable for your policy and is not an additional cost to you. If the actual level of expenses varies significantly from the expected level of expenses, it may affect the non-guaranteed benefits you may receive. For our Participating Fund, the past Total Expense Ratios are shown in the table below. | | 2022 | 2023 | 2024 | Average of last 3 years | Average of last 5 years | Average of last 10 years | |---|---|---|---|---|---|---| | **Total Expense Ratio** | 2.65% | 2.03% | 1.64% | 2.08% | 2.27% | 2.53% | Please note that past expense ratios may not be indicative of actual expenses that may be incurred in the future. --- [p.9] #### Fund Manager All investment related to this fund is carried out through Eastspring Investments (Singapore) Limited ("Eastspring Singapore"). Eastspring Singapore may also engage other Prudential plc related companies as sub-fund managers. Eastspring Singapore address: Eastspring Investments (Singapore) Limited, 10 Marina Boulevard #32-01 Marina Bay Financial Centre Tower 2 Singapore 018983. ### What are the risks that affect the bonus and Non-Guaranteed Monthly Income that you will be getting? The level of bonuses and Non-Guaranteed Monthly Income depends on the actual experience of key factors affecting the performance of the fund. In determining the level of bonuses and Non-Guaranteed Monthly Income, we also consider the future outlook of these key factors. These key factors are: - Investment performance and future investment outlook of the fund; - Claims experience, with respect to death ("mortality") and disability ("morbidity") experience of the fund; - Discontinuance ("surrender") experience of the fund; - Level of expenses incurred by or allocated to the fund There may be other factors that could affect the level of bonuses and Non-Guaranteed Monthly Income, for example, changes in taxation and legislation. ### How are the risks shared? Your policy is exposed to investment, mortality, lapse and expense risks, which are shared within the PRSF. In determining the level of bonuses and Non-Guaranteed Monthly Income that can be supported, the assets available to back the plan will be derived by accumulating the premiums paid at the actual rate of investment return less the cost of insurance, expenses incurred, commissions paid, taxes and other costs that may be incurred in managing the fund. ### How are bonus and Non-Guaranteed Monthly Income smoothed over time? As investment performance fluctuates over time, bonuses and Non-Guaranteed Monthly Income are smoothed to ensure stable medium to long-term returns on your policy. As a result, some of the investment returns in good years may not be distributed immediately so as to boost returns in years where the investment return is low. However, the effect of smoothing is intended to be neutral over time. #### Reversionary Bonus Prudential Singapore's bonus distribution policy is to keep the Reversionary Bonus at a level that is expected to be sustainable over the long term. Thus, while the Reversionary Bonus is usually reviewed annually, it is not expected to fluctuate from year to year. Nevertheless, it may be adjusted up or down under exceptional circumstances. For the financial year 2023 to 2024, the Reversionary Bonus declared was $8.50 per $1,000 Face Value and at $19 per $1,000 on accumulated Reversionary Bonus respectively. Past performance is not necessarily indicative of future performance. #### Performance Bonus and Maturity Bonus The Performance and Maturity Bonuses are reviewed at least annually. In exceptional circumstances, the review may be more frequent. The Performance and Maturity Bonuses are more likely to change from year to year but Prudential Singapore's bonus distribution policy is to limit the yearly variation so that, under normal circumstances, the payout will not be subject to large fluctuations over the short term. Performance Bonus rates declared for the past years are as a percentage of accumulated Reversionary Bonuses. (Please refer to product summary generated by Prudential representative for the exact declared bonus rate) There is no Maturity Bonuses declared yet as this 8th Series plan was launched in 2021. Past performance is not necessarily indicative of future performance. #### Non-Guaranteed Monthly Income Prudential Singapore's bonus distribution policy is to keep the Non-Guaranteed Monthly Income at a range that is expected to be sustainable over the long term. The Non-Guaranteed Monthly Income is usually reviewed annually and it may change from year to year, taking actual fund performance and future investment outlook into consideration. There is no Non-Guaranteed Monthly Income declared yet as this 8th Series plan was launched in 2021. Past performance is not necessarily indicative of future performance. --- [p.10] ## What are the fees and charges imposed on this plan? This plan shares in the experience of the fund. This means that any expenses incurred by the fund can be charged to the policy according to the risk-sharing rules described earlier. Examples of such expenses include: - Investment fees paid to fund managers for providing management services - Mortality (death), Morbidity (disability), lapse and surrender claims - Marketing and other distribution-related costs - Administration fees incurred in underwriting of new business - Management and Overhead Expenses - Commission fees paid to Prudential Financial Consultants or intermediaries All expenses, including commissions, are shared and charged to the fund (assets backing the policy) according to the risk-sharing rules described earlier. Please refer to the Total Distribution Cost Table in the Policy Illustration for more information. Please note that the charges described in this section will not be in the form of explicit fees or charges to you; it has already been allowed for in calculating your premium. ### How will I be updated on the performance of my plan? An Annual Bonus Update will be sent to you annually. This document aims to keep you informed of the performance of the fund and its future outlook. Before the Payout Period, this document will also provide an update of the revised (if applicable) illustration of the Non-Guaranteed Monthly Income rates and bonus. During the Payout Period, it will inform you of the Non-Guaranteed Monthly Income allocated to your policy for that year. You will be informed whenever there is a change in the declared Non-Guaranteed Monthly Income rates, you will also receive an update on the changes in the future Non-Guaranteed Monthly Income from Prudential Singapore. You may expect to receive the update on the Non-Guaranteed Monthly Income and bonus rates after April of each year. Please contact your representative of either Prudential Singapore or a distributor duly appointed by Prudential Singapore at any time if you wish to receive an updated full policy illustration showing the illustrations of future bonuses and Non-Guaranteed Monthly Income based on Prudential Singapore's best estimate of the future performance of the participating fund. ### Conflict of Interest Potential conflicts of interest arise in the allocation of expenses between the participating and other insurance funds. Over-allocation of expenses to the participating fund is detrimental to policyowners of participating policies. As such, Prudential Singapore strives to achieve a fair allocation substantiated by regular expense investigations. ### Related Party Transactions The fund manager, Eastspring Singapore, managing the entire assets of the fund is a related party to Prudential Singapore. The size of PRSF under management by Eastspring Singapore is S$789 million as at 31 Dec 2024. The Investment Committee ("IC") of Prudential Singapore has oversight responsibility for the activities of the fund managers to ensure that the transactions are carried out at arms' length. It is responsible for setting the mandates for day-to-day fund operation. The Asset and Liability Management Committee ("ALCO") of Prudential Singapore is responsible for setting the SAA and monitoring asset and liability matching. The IC will also periodically review the investment fees charged by the fund managers, and advise Prudential Singapore accordingly. The Board of Directors ("Board") appoints the membership of the IC and ALCO. The Board will be responsible for reviewing and approving the IC and ALCO Constitution or Terms of Reference. --- [p.11] ## Premiums The premium rate for the basic plan is guaranteed. Premiums are payable for the period of premium payment term (does not apply to single premium policies) and can be paid monthly, quarterly, half-yearly or yearly. PRUActive Retirement II is not a Medisave-approved policy and you may not use Medisave to pay the premium for this policy. ## Select additional benefits according to your need(s) With additional premiums, you may add supplementary benefits to this insurance plan for extra protection. Adding of supplementary benefits is not applicable to single premium policy. All supplementary benefits are subject to product terms and conditions. Please consult a representative of either Prudential Singapore or a distributor duly appointed by Prudential Singapore for more information. ## Exclusions There are certain conditions (such as death from suicide or Pre-existing Conditions within 12 months from Cover Start Date, or date of reinstatement (if any) under which no benefits will be payable. These are stated as exclusions in the policy document. You are advised to read your policy document for the full details of these exclusions. ## Supplementary Retirement Scheme (SRS) If you bought your Policy using your SRS funds, your Policy is subject to the terms and conditions of the Supplementary Retirement Scheme which shall overrule these terms and conditions in the event of any conflict or inconsistency. All payments made will be according to the terms and conditions of the Supplementary Retirement Scheme. ## Note Life Insurance is a contract of utmost good faith and a proposer is required to disclose in proposal form fully and faithfully all the facts, which he knows or ought to know, as otherwise the policy issued may be void. The terms and conditions of your policy are contained in your policy document. ## Free Look Period After purchasing a life insurance policy, you have a 14-day free-look period - starting from the day you receive your policy documents to review the documents carefully. During this time, if you choose to cancel your policy, we will refund you the premiums you have paid (without interest), less any medical fees and other expenses, such as payments for medical check-ups and medical reports, incurred by us. If we make your policy document and all other documents from us available electronically via PRUaccess, we consider they have been delivered and received when you receive the relevant SMS or email telling you that the documents are accessible on PRUaccess. Otherwise, we consider your policy and all other documents from us as delivered and received seven days from the date of posting to the last-known address you gave us. If you decide this policy is not suitable for your needs, simply write to us within the 14-day free-look period. --- **Version 07/2025**