UOB Life sold! Prudential takes over..

It’s offical. On 6 January 2010, UOB Life Assurance is sold to Prudential Singapore. UOB Life will be 100% owned by Prudential.

For existing UOB Life policyholders, this sale will not affect the terms, obligations or benefits of their policies. UOB Life (even when renamed after the acquisition) will continue to honour its obligations to policyowners. In terms of the value of UOB Life policies (for those life & endowment policies with cash/maturity values), the existing values will remain unchanged while future values will be determined according to the terms of individual policy contract.

In terms of policy servicing, it is still unclear whether current financial advisers (be they UOB Life planners or Independent FA reps) will eventually be replaced by Prudential’s own forces to take over this role. It is likely however, in the interest of the client, that current financial advisers continue (and be allowed) to fulfill their duty to UOB Life policyholders.

Some policyowners might ponder whether they be allowed to cancel or terminate their existing policies due to the sale. For policies already in force, policyowners always had the right to terminate their policies at any point, though it might not necessarily be in their best interest (to cite reasons such as loss of protection, potential inability to reinstate equivalent coverage, loss on cumulative premiums paid versus surrender cash values, etc). However, for those whose insurance application to UOB Life prior to 6 January 2010 and now in midst of policy underwriting for approval, they might not feel comfortable due to the sale of UOB Life to Prudential. It would be best for them to consult their respective financial advisers or UOB Life directly should they wish to reconsider their earlier purchase decision.