CONSUMERS who want to simplify their financial dealings are being offered a new product linking insurance and investment - but investment advisers say separate policies are a better bet.
Prudential Assurance recently launched PruLink, a life insurance policy which allows part of the premium to be invested in equity and money market funds.
Insurance benefits are guaranteed regardless of the performance of the investment fund as long as the basic premium is paid.
Investment benefits are not realised until the term of the policy expires when the customer reaches 75.
Dividends are not paid. Instead any investment gains increase the cash value of the policy and the sum assured.
General manager of Prudential Assurance, Eddie Fong, said the aim of the policy was to offer customers more flexibility and convenience by combining two functions in what was essentially an insurance product.
