| For the list of Prudential plans which are subjected to Aggregation Rule. | Download |
With effect from 17 Sep 2012, Customer Knowledge Assessment (CKA) requirement will be extended to Fundswitch and Premium Redirection on all our PRULink plans.
| Please refer to the attached Information Sheet (English and Chinese version) for more information. | Download |
You may also visit the following website - MoneySENSE, the MAS Guide to Investing in Specific Investment Product. Click here
Please note that Prudential Asset Management (Singapore) Limited, part of Prudential's Asia asset management business, will change its name to Eastspring Investments (Singapore) Limited. This change will take place on or around 14 February 2012.
| Please refer to the attached notification letters for more information. | Download |
Under the PPF scheme, in the event that a member, is unable to operate due to business failure the policy owners will be provided with 100 per cent protection of the guaranteed benefits under their life insurance policies (subject to caps where applicable).
All existing and new life insurance policies, including riders, issued by life insurers registered by the Monetary Authority of Singapore (MAS), are covered by the PPF Scheme. These include individual and Group life insurance policies such as Term, Whole Life, Endowment, Annuities, and Accident & Health (e.g. Hospital Cash; Medical Expense; Personal Accident; Disability Income; Long-Term Care).
The PPF Scheme is administered by Singapore Deposit Insurance Corporation (SDIC). For more information, you can visit the SDIC website at www.sdic.org.sg.
Prudential Assurance Company Singapore (Pte) Ltd is a PPF Scheme member.
| For the list of Prudential policies which are covered under the PPF scheme. | Download |
Understanding bonuses and your insurance policy
Bonuses are the surpluses/profits added by Prudential to your 'with-profits' policies. 'With-profits' policies are insurance policies that are eligible to participate in the profits of the Life Fund.
The main aims of Prudential's bonus policy are:
- To provide each with-profits policyowner with a return on his/her premiums that reflects the earnings of the underlying investments, whilst smoothing out the peaks and the troughs of investment performance; and
- To ensure that with-profits policyowners receive a fair share of the profits distributed from the Life Fund by way of bonus additions to their policies.
The Life Fund, simply put, is the insurance fund comprising all the premiums of the 'with-profits' insurance policies. The premiums are invested in a mix of equities, fixed-interest securities (such as bonds) and properties. The wide mix of investments is designed to provide the best returns over the long term but with a lower level of risk than you would obtain by investing directly.
Prudential's investment strategy is aimed at securing on behalf of its policyowners, the highest combination of income and growth in capital value whilst meeting the regulatory investment guidelines and minimum solvency requirements.
Investment performance is the key contributor to the surpluses/profits of the Life Fund and it enables Prudential to consistently declare bonuses, which add to the guaranteed benefits over the life of the policy.
Bonuses are declared annually and are largely dependent on the investment return on the Life Fund. Every year in April, Prudential Singapore notifies its 'with-profits' policyowners of the bonus amount being added to their policies.
Prudential's 'with-profits' policyowners currently receive 90 per cent of the profits from the Life Fund as bonus additions to their policies. Shareholders of Prudential receive the remaining 10 per cent as dividend payments.
Policyowners can find out their latest policy values by logging in to the Prudential Singapore app / PRUServices (web) .
The types of 'with-profits' policies include endowment and whole life policies.
Endowment policies run for a fixed term of years, chosen at the outset by the policyowner. These policies pay out at the end of the fixed term, on the 'maturity date', or earlier if the Life Assured (the person whose life is insured by the policy) dies or becomes totally and permanently disabled during the term of the policy. Some of Prudential's endowment products include PRUSave and PRUFlexiCash.
Whole of Life policies pay out only on the death of the Life Assured. Prudential's whole of life plan is PRUlife.
Term policies are usually "non-participating", ie they do not participate in the profits of Prudential and hence, no bonuses are declared for such policies. Some of Prudential's term products include PRUTerm Renewable.
To find out if your insurance policy is a 'with-profits' policy, you can check your policy document or contact your insurance adviser. Alternatively you can call one of our Customer Relations Officers through our PRUCustomer hotline at 1800 333 0 333 .
The PRULink policy is an investment-linked product and functions differently from traditional 'with-profits' insurance products, such as endowment and whole of life policies. No bonuses are declared for such policies.
Regular Premium 'with-profits' policies are entitled to Reversionary, Performance and Maturity bonuses.
Reversionary bonus is an annual bonus that increases the guaranteed benefits of the policy. Once added, a reversionary bonus cannot be reduced or removed unless you surrender the policy before it matures.
Performance bonus is paid upon the death or disability of the life assured or when the policy matures. Maturity bonus is an extra amount that we pay when the policy matures.
Single Premium 'with-profits' policies enjoy Income and Growth bonuses.
Income bonus is a monthly amount that increases the guaranteed benefits of the policy. Growth bonus is an additional amount that we pay on the maturity of the policy or on the death of the life assured.
Once bonuses are declared, they are guaranteed. However, the bonus rates of all life insurers, including Prudential, are not guaranteed.
The amount of bonuses declared annually depends on the amount of surpluses in the Life Fund. This, in turn, depends on economic conditions and equity markets. If Prudential experiences good surpluses year on year, it could pay a high level of bonuses.
If, however, economic conditions are poor and less surpluses are expected, Prudential could reduce the bonus rate to reflect the actual investment returns in the Life Fund. Such a bonus strategy would ensure that we continue to meet our obligations to our policyowners and the guaranteed benefits they are entitled to.
Yes. Bonuses, once declared, will increase the value of your policy.
A revision in bonus rates will not affect the guaranteed portion of your policy benefits. Only the non-guaranteed portion of the benefits will change to reflect the extent of the bonus revision.
Assignment of Policy
Assignment of a life insurance policy means transfer of rights from one person to another. You can transfer the rights on your life insurance policy to another person/entity for various reasons. This process is referred to as Assignment and is governed under Policies of Assurance Act (Chapter 392).
The person who assigns the insurance policy is called the Assignor (policy owner) and the one to whom the policy has been assigned, i.e. the person to whom the policy rights have been transferred is called the Assignee.
Once the rights have been transferred from the Assignor to the Assignee, the rights of the policy owner terminates and the assignee becomes the owner of the insurance policy. Under Singapore law, only the Assignee can give a valid discharge of all payment obligations to the insurer.
A notice of assignment must be given to the insurer at its principle place of business, and the date on which such notice was received shall regulate the priority of all claims under any assignment.
Once Prudential Assurance Company Singapore (Pte) Ltd (“Prudential”) has acknowledged receipt of your assignment deed, all future correspondence on your policy will be sent directly to the assignee. Any future dealings with the policy (e.g. surrender of policy) will require only the assignee's consent and any payment on the policy will be paid to the assignee whose receipt will be a valid discharge to Prudential.
If the premiums of the policy are not paid, whether by the assignor or the assignee, the policy may lapse. In the event that the policy is lapsed, the assignee will not be entitled to any benefits under the policy.
Only the policy owner of the life insurance policy can assign the policy.
If the assignor (i.e policy owner) is a natural person, he/she must have attained at least 18 years of age to assign a policy. The assignee, as a natural person, must also have attained at least 18 years of age at the assignment.
You must use relevant assignment form.
While Prudential has assisted in preparing the assignment form, Prudential does not accept legal responsibility for the appropriateness of the assignment or its wordings or the effectiveness of the assignment or any other legal or tax consequences of this document in relation to any particular policy. If you have any doubts, you should consult a lawyer.
Both assignor and assignee must read all instructions and notes stated in the assignment form before completing it with utmost due care. Only original copy of the duly completed Deed of Absolute Assignment can be registered.
The policy to be assigned must be in force and must not be subject to any Trust Nomination or under Housing Protection Scheme purposes at the time of the assignment.
With effect from 1 Jan 2017, Assignee must complete FATCA AND CRS SELF-CERTIFICATION FORM* for onboarding purpose.The form can be downloaded via Customer Form.
*FATCA AND CRS SELF-CERTIFICATION FORM FOR INDIVIDUAL ACCOUNT HOLDER / ENTITY ACCOUNT HOLDER
Prudential Assurance Company Singapore (Pte) Limited (“Prudential”) is required to collect certain information about each person’s tax residency and tax classifications under applicable tax regulations, including the Singapore Income Tax Act (Chapter 134), the Foreign Account Tax Compliance Act (“FATCA”) and the OECD Common Reporting Standard for Common Exchange of Financial Account Information (“CRS”). We may be obliged to share information about the policy(ies) for which you are an Account Holder with the relevant tax authorities under certain circumstances. The assignee is required to complete relevant FATCA AND CRS SELF-CERTIFICATION FORM.
Assignment Forms
| 1 | Notice of Assignment for assignment between individual and/or bank/society/charitable organization/ business entity | Download |
| 2 | Notice of Assignment between Joint Assignors (both natural persons), and Business Entity | Download |
| 3 | Deed of Absolute Assignment (Single assignor to Single assignee, both natural persons) | Download |
| 4 | Deed of Absolute Assignment (Single Assignor to Joint Assignees, all natural persons) | Download |
| 5 | Deed of Absolute Assignment (Joint Assignors to Single Assignee, all natural persons) | Download |
| 6 | Deed of Absolute Assignment (Joint Assignors to Joint Assignees, all natural persons) | Download |
You must submit the completed assignment form and mandatory requirements/documents to Prudential Assurance Company Singapore (Pte) Limited at its principle place of business via one of the following ways:
By Post to: Prudential Assurance Company Singapore (Pte) Limited Privy Box No. 920427, Singapore 929292
By Hand to: Prudential Tower, 30 Cecil Street, #01-01, Singapore 049712
If you have any enquiry, please call your financial consultant or our PRUCustomer Line at 1800 333 0 333 or email us at customer.service@prudential.com.sg
Foreign Account Tax Compliance Act (FATCA) - Frequently Asked Questions
The Foreign Account Tax Compliance Act (FATCA) is a United States (US) law enacted to combat offshore tax evasion by US taxpayers through the use of foreign financial accounts. Under FATCA, financial institutions outside the US are required to identify and report information on accounts held by US persons.
Singapore has entered into an Intergovernmental Agreement (IGA) with the United States to facilitate FATCA compliance. Under this framework, Singapore financial institutions are required to perform due diligence on their customers and report the required information in accordance with applicable regulatory requirements.
To meet these obligations, Prudential may request customers to provide documentation or information to determine their FATCA status.
For more information on FATCA, please refer to the FAQs below. You may also visit the IRAS website additional information or consult a professional tax advisor.
- How does FATCA affect me?
FATCA may affect you if you are a US citizen, US tax resident, or otherwise considered a US person for FATCA purposes.
To comply with regulatory requirements, Prudential Singapore Assurance Company (Prudential) may request documentation or additional information to determine your FATCA status.
If you are not a US person, no further action may be required unless Prudential needs additional information to clarify your status based on information held in our records.
- Why has Prudential asked me to complete FATCA documentation?
Prudential is required to establish and maintain the FATCA status of its customers. We may request additional information or documentation where information in our records indicates a possible connection to the United States or where further information is required to validate your FATCA status.
Examples:
- US Country of Birth
- US Address,
- US Contact Details
- Any other information associated with the United States.
- Is FATCA applicable to both Individual and Entity customers?
Yes.
FATCA is applicable to both individual and entity customers who hold accounts or policies with Prudential.
For entity customers, additional information may be required to determine the entity's FATCA classification and, where applicable, identify controlling persons.
- Who is considered a US person for FATCA purposes?
A US person generally includes US citizens and certain individuals or entities with US tax obligations. If you are unsure of your FATCA status, please consult a professional tax advisor.
- What information may be reported under FATCA?
For accounts determined to be reportable under FATCA, information that may be reported includes:
- Name
- Address
- US Taxpayer Identification Number (TIN), where applicable
- Policy Number
- Policy Value
- Certain payments or proceeds, where required under FATCA regulations
Information is reported in accordance with applicable FATCA and local regulatory requirements.
- What happens if I do not provide the requested information?
If Prudential is unable to obtain the information or documentation necessary to determine your FATCA status, we may be required to apply the treatment prescribed under applicable FATCA requirements.
This may include reporting the account as required by applicable regulations and limiting access to certain products or services.
- Do I need to inform Prudential if my FATCA status changes?
Yes.
You should notify Prudential if there is a change in circumstances that affects your FATCA status or the information previously provided to us. Examples may include:
- Becoming a US citizen;
- Acquiring or relinquishing US tax residency status; or
- Changes to information previously provided in your FATCA documentation.
Prudential may request updated documentation to support the change. Relevant FATCA forms are available on our website.
Common Reporting Standard (CRS) - Frequently Asked Questions
The Common Reporting Standard (CRS) is an internationally agreed standard developed by the Organisation for Economic Co-operation and Development (OECD) for the Automatic Exchange of Financial Account Information (AEOI) between participating jurisdictions for tax purposes.
Under CRS, financial institutions are required to identify and maintain information on certain account holders and controlling persons who are tax resident in jurisdictions outside the jurisdiction where the financial institution operates. This information may be reported to the local tax authority for exchange with the relevant participating jurisdictions in accordance with applicable laws and regulations.
The objective of CRS is to promote tax transparency and help combat offshore tax evasion through the exchange of financial account information between participating jurisdictions.
As part of Singapore's implementation of CRS, Prudential is required to conduct due diligence and collect information relating to customers' tax residency status. Prudential may therefore request customers to provide self-certification forms or supporting documentation to determine and maintain their CRS status.
For more information about CRS, please refer to the FAQs below. You may also visit the IRAS website for additional information or consult a professional tax advisor.
- How does CRS affect me?
Under CRS, financial institutions such as Prudential are required to collect and maintain information relating to the tax residency of their customers.
Depending on a customer's tax residency status, certain information may be reported to the Inland Revenue Authority of Singapore (IRAS), which may subsequently exchange the information with the relevant overseas tax authorities.You may be asked to complete a CRS Self-Certification when purchasing a policy, updating your personal details, making certain policy changes, or when additional information is required to determine your tax residency status.
- I live in Singapore and only pay tax in Singapore. Why do I need to provide a CRS Self-Certification?
Prudential is required to establish and maintain records of the tax residency status of all customers, regardless of whether they are tax residents of Singapore or another jurisdiction.
If you are solely a tax resident of Singapore, your policy will generally not be reportable under CRS. However, we are still required to obtain sufficient information to support and document your tax residency status.
- What information may be reported under CRS?
Where a policy is reportable under CRS, the information reported may include:
- Name
- Address
- Tax Identification Number(s) (TIN), where applicable
- Date of birth (For Individuals)
- Jurisdiction(s) of Tax Residency
- Place of Incorporation/Registration (For Entity)
- Policy information, including policy number and certain reportable financial information such as account value and reportable payments
The information reported is determined by applicable CRS regulations and reporting requirements.
For the protection of customer information, data collected under CRS will only be disclosed where required by law.
- What happens if I do not provide the information required under CRS?
Financial institutions are required by law to obtain and maintain valid tax residency information for their customers.
If the requested information or documentation is not provided, Prudential may be unable to open new account or offer products. For existing customers, Prudential may be required to determine and report your status based on information available in our records and applicable regulatory requirements if the required documents are not received.
- Can Prudential advise me on my tax residency status?
No. Prudential is unable to provide tax or legal advice regarding your tax residency status.
As tax residency rules vary between jurisdictions and depend on individual circumstances, you may consult a qualified tax advisor or refer to the OECD website for more information if you are unsure of your tax residency status.
- Do I need to inform Prudential if my tax residency changes?
Yes. If there is a change in your tax residency status or the information previously provided to Prudential is no longer accurate, you should notify us as soon as reasonably practicable and submit an updated CRS Self-Certification Form.
You may download the CRS Self-Certification Form from our corporate website or contact us at 1800 333 0333 for assistance.
- Why have I received a CRS request from Prudential?
You may receive a CRS request if we require additional information to establish or validate your tax residency status, if there has been a change in your policy details, or if our records need to be updated to comply with regulatory requirements.
- My country does not issue TINs. What should I do?
Certain jurisdictions do not issue TINs or may issue TINs only under specific circumstances. If a TIN is not available, please indicate the reason on the CRS Self-Certification Form and provide any supporting information requested.
- I am a tax resident of more than one country. Do I need to declare all of them?
Yes. If you are a tax resident of more than one jurisdiction, you should declare all jurisdictions in which you are a tax resident and provide the corresponding Tax Identification Number(s) (TINs), where available. Prudential is required to collect and maintain information relating to all declared tax residencies in accordance with applicable CRS requirements.
- I have a residential address in one country but declared tax residency in another. Why am I being asked for additional information?
Your residential address, mailing address, contact details, and other information maintained in our records may sometimes differ from the tax residency information you have declared. Where such information appears inconsistent, we may request additional information or supporting documentation to validate your tax residency status in accordance with regulatory requirements.
Providing additional information does not necessarily mean that your declared tax residency is incorrect.
- Why have I been asked whether I have tax residency outside Singapore even though I am a Singapore citizen?
Citizenship and tax residency are different concepts. A person may be a citizen of one country but a tax resident of another country, or a tax resident of multiple countries, depending on their personal circumstances and the laws of the relevant jurisdictions.
