United Overseas Bank (Malaysia) Bhd (UOB) has launched PRUwealth gain, a new endowment insurance plan to help Malaysians boost their retirement savings for greater financial security.

PRUwealth gain combines savings elements with life insurance protection and offers an annual cash payout through its guaranteed survival benefit. Customers can opt to receive the payout or reinvest it for long-term appreciation. Customers can also use the payouts to buy a house or fund their children’s education.

In addition, customers have the flexibility to choose policy durations of 15 years to 40 years, based on their needs. They can also choose from three premium payment terms of three , five or 10 years.

Annie Tan, managing director and country head of personal financial services at UOB, said in a statement, “Ultimately, we want to help our customers achieve a regular income stream which they can use to supplement their savings when they stop working.”

“PRUwealth gain is structured for this purpose because it offers customers an annual payout which they can reinvest to generate even more savings for retirement. In addition, customers can use the payouts to meet their financial goals at the different stages of their lives.”

PRUwealth gain comes with basic life insurance benefits in the event of an untimely demise or permanent disability. In addition, customers can enjoy a guaranteed survival benefit, where the payout is based on a percentage of the basic sum assured. For example, a PRUwealth gain policy of 40 years provides 6% for the first six years and 38% for the last two years.

Philip Seah, CEO of Prudential Assurance Malaysia Bhd, UOB’s insurance partner, said, “When it comes to retirement planning, there are typically four areas to look at – wealth protection, wealth creation, wealth accumulation and wealth distribution.

“As consumers save for their golden years, it is just as important for them to insure themselves for any unexpected events. Consumers can benefit from the insurance coverage offered by PRUwealth gain and have the opportunity to grow their wealth.”

Tan said it is important for Malaysians to plan ahead in pursuit of a comfortable life after retirement. “We believe retirement planning can be better managed by supplementing a person’s current mandatory pension fund with additional savings plans.

“With PRUwealth gain, customers can save regularly over a long period of time. This is a prudent and disciplined way of building a retirement fund.”

PRUwealth gain is offered at all UOB branches, and is available to customers between one and 60 years old.

According to the Employees Provident Fund, about 80% of Malaysian employees who turn 55 this year will not have enough savings in their accounts when they retire.