Generate Monthly Income Via Market Returns(Without Worrying About Market Downturns)

With the cost of living continuing to rise in Singapore, coping with expenses is getting harder and harder. Inflation is making everything – from housing and healthcare to everyday essentials – more costly, but for the majority of us salary growth just isn’t keeping up. 

And while starting up a side hustle to increase your income is an obvious solution, not everyone has the time or skills to do so. Yet, the difference of having a reliable supplemental income stream cannot be denied. With extra cash coming in every month, meeting everyday expenses becomes easier, and you’ll also finally be able to start making progress on your long-term financial goals. 

Fortunately, innovative plans like PRUIndex Income Boost and PRUIndex Lifetime Income offer fuss-free ways to generate passive income while protecting your savings from market downsides. In this post, we’ll take a deep-dive into how these two plans work and what they can do for you.

PRUIndex Income Boost and PRUIndex Lifetime Income are two new-to-market, participating plans that lets you capture market returns while keeping your money safe from market downturns

They provide you with regular monthly income based partially on the returns generated by your selected market index, helping you to steadily build wealth. These plans also offer basic life insurance cover for death and accidental death.

PRUIndex Income Boost

PRUIndex Income Boost is a regular-premium participating endowment plan that provides guaranteed monthly cash benefits during the first 12 months, giving you certainty from the start. From the 13th month onwards, your monthly payouts have the potential to increase, as they are linked to the performance of a chosen market index. 

This means you can tap into growth opportunities without being exposed to market downturns; the plan comes with a 0.0% floor rate that ensures your savings are protected even when markets fall. 

This plan has a policy term of 15 years, upon which your capital is guaranteed, provided no withdrawals or alterations were made. Flexibility is also built in: you can choose a 5- or 10-year premium term, switch your chosen index from the 4th policy year, or accumulate your monthly benefits to earn non-guaranteed interest. 

To give you additional peace of mind, optional riders like Crisis Waiver III and Payer Security Plus are available, ensuring that premiums continue to be covered if unexpected health or financial setbacks occur.

PRUIndex Lifetime Income

Meanwhile, PRUIndex Lifetime Income, is a first-of-its-kind whole-life participating plan that provides a lifetime stream of passive income while offering potential index-linked upside and protection from market downturns. 

With this plan, you start receiving guaranteed monthly cash benefits from the very first month, at a rate equivalent to 0.50% per year. From the 13th month, you can enjoy potentially higher payouts – in line with the performance of your chosen market index. However, there’s no need to fret about market downturns, as your savings are protected by a 0.0% floor rate, ensuring no losses due to volatility. 

PRUIndex Lifetime Income plan offers monthly income throughout your lifetime, but you can also tap on built-in legacy features to continue supporting your family across generations – up to 380 years in fact! Furthermore, the plan includes protection benefits such as death and accidental death coverage, with optional riders to further strengthen protection for your family.

This plan offers flexible premium terms, ranging from 5 to 15 years, and like Income Boost, you can accumulate monthly payouts to earn interest.

Both PRUIndex Income Boost and PRUIndex Lifetime Income are designed with one central purpose: to supplement your income. In an environment where day-to-day expenses continue to rise and salary growth may not keep up, these plans can serve as an additional income stream that helps bridge the gap. 

Unlike conventional endowment plans that only reward you at maturity, PRUIndex Income Boost and PRUIndex Lifetime Income give you a steady monthly payout that starts from the very first month of your plan. By linking your returns to market performance while safeguarding against downturns with a 0.0% floor rate, these plans provide potential upside without fear of market volatility. 

Whether you are still in your peak earning years and want to create a buffer against unexpected costs, or you are approaching retirement and looking for a dependable stream of passive income, PRUIndex Income Boost or PRUIndex Lifetime Income can play an important role in your portfolio, generating dependable passive income.

Ultimately, choosing between PRUIndex Income Boost and PRUIndex Lifetime Income comes down to your financial goals and stage of life. 

Those that seek a medium-term plan that guarantees capital after 15 years while offering flexible premium terms and potential for higher payouts will likely find PRUIndex Income Boost to be the better fit. It’s particularly suitable for those who want to supplement their income for a fixed period, while still having the assurance of getting back what they’ve put in at maturity. 

On the other hand, PRUIndex Lifetime Income is designed for individuals who prefer the stability of lifelong payouts, combined with legacy features that can benefit future generations. Its whole-life structure makes it attractive if you are planning for retirement income or wish to leave a financial gift for your loved ones. 

In either case, both plans can strengthen your financial resilience by providing a reliable income stream that complements your savings and investments – helping you stay ahead of rising costs with greater confidence.