Getting out of a PruActive Saver plan
Hoping to get some advice on getting out of an endowment plan that I realised I don’t need:
My mother wanted to set up a plan with her savings due to a terminal illness, and at that point her FA recommended Prudential’s PruActive Saver plan.
The plan was supposed to start under her name, but for some unknown reason after her passing a few weeks after talking to the FA, I was informed that they did not execute the plan under her name successfully, and convinced me to take over the plan.
I was traumatised by the passing at the point and didn’t think hard about it.
It’s been the second year from the start of the plan today, and as I looked deeper into my finances I realised that this plan was going to require a longer payment term (12k per year) for 5 years instead of 2 as I assumed.
Is there a good way for me to get out of this plan, given that the circumstances that I started it was quite shady?
Netizens’ comments
- What do you mean by “did not execute the plan under her name successfully”? Meaning Prudential rejected the proposal? If so, there should be no need for you to take over because there never was a plan to begin with.
- You should call prudential HQ. They will investigate. I thought there will be a payout when you mother passed away for typical policy? If there is no activation of the policy, it can explain why there is no payout. But if that the case, why need you to “take over”? Also what did the past premiums paid go to?
- Actually if I am not wrong, this policy has death benefits computed based on a percentage of premiums paid — e.g. 105% of premiums paid. So if the policyholder (i.e. the mother) passed away, there should be a payout if the policy was in-force at the time of passing. Hence, there would be no need to “take over” the policy.
I think the representative may not have laid out all the options to the TS. This is quite poor conduct. If so, I suggest lodging a complaint to initiate an investigation. Send the complaint to Prudential and MAS so MAS can monitor. - Hi, I suggest you find another FA to advise on this. This may be a lapsed policy that require servicing or a scam.