Frequently Asked Questions

The dividend accumulation rate is the interest rate used to grow the dividends left with the company.

The new rate, effective July 1, 2023, is 4% (from 3.6%) per annum for peso participating policies. 2.75% will be retained for all participating dollar policies.

The increase of the dividend accumulation rate will potentially increase the growth of your accumulated dividends (dividends left with the company) in the future. Past accumulations are not affected by the dividend rate change.

The dividend accumulation rate is based on the market interest rates which determines the yield rate of the company’s dividend accumulation fund. This fund is where the accumulated dividends (dividends left with the company) are placed. As indicated in your sales illustration, both policy dividend and dividend accumulation rate are not guaranteed.

Since the total living benefit is dependent on accumulated non-guaranteed dividends and guaranteed cash values, if available, the projected total living benefit will be higher compared to the figures shown in your policy’s sales illustration.

For request regarding computation of policy benefits or other inquiries related to dividend accumulation, you may reach out to our contact center team at contact.us@prulifeuk.com.ph.

The following participating peso policies are affected by the dividend accumulation rate change:

1. PruLife

2. PruLife 5

3. PruSmart 5

4. PruLife Plus

5. PruLady

6. PruLife Low

7. PruSave

8. PruAdvance

9. PruCash

10. PruGold

11. All State Pro Life

12. ING Participating Whole Life

13. ING Participating Endowment

Policy dividends, which are credited every policy anniversary, constitute surplus that are available for return to participating policyholders. The surplus is any excess provisions that may arise during a given period, on account of favorable experience relative to:

• mortality and claims (or mortality savings), which result when the amount a company pays out in actual death claims is less than what was expected when premiums were determined.

• investment earnings, which occur when a company’s actual investment returns exceed the guaranteed interest rate required to meet its contractual obligations to policyholders.

• expenses (or expense savings), which occur when a company’s actual expenses are less than those assumed in determining the premium.

Policy dividends should not be mistaken for dividends payable to corporate stockholders, which constitute earnings and are subject to income tax.

No. Being dependent on actual experience, policy dividends are not guaranteed. Factors related to market, socio-political, and economic conditions – which all affect investment earnings and the cost of doing business (i.e., expenses, mortality and claims mentioned on the previous question) vary from time to time.