In a bid to further broaden its portfolio, Philippines-based insurer Pru Life UK has launched two traditional life insurance products with guaranteed cash payouts and maturity benefits, meant for both high-net-worth ( HNW ) and mass market clients.

Earlier this week, the insurer launched the PruSteady Income plan and the PruWealth 10 plan. The insurer, which is a subsidiary of Hong Kong-headquartered Prudential, says the two products will complement and expand its dominant variable unit-linked ( VUL ) business.

“There’s guaranteed payout, guaranteed maturity benefit and guaranteed protection,” says Garen Dee, chief product officer of Pru Life UK. “We have the right solutions depending on the needs of the customer for whatever stage of life they are in.

While the launch of the two products, Dee says, does not mean Pru Life UK is moving away from offering VULs, which make up about 80% of its current product suite, it does move towards balancing the insurer’s offerings.

The PruSteady Income product, meant for mass market customers, provides policyholders, the company notes, with a five- or 10-year payment term, with a 10% net annual cash payout guaranteed starting in the 11th year and continuing until maturity at the 20th year. Policyholders also receive 100% of the sum insured at maturity.

Meanwhile, with PruWealth 10, Pru Life UK hopes to lure HNW clients into the fold. For a minimum initial investment of 500,000 Philippine pesos ( US$8,780 ), the company points out, customers will be guaranteed a 5% net annual cash payout for 10 years.

PruWealth 10, Dee adds, will only be available for a limited time, that is, until the 1-billion-peso tranche is fully subscribed.

However, Princess Balingit, Pru Life UK’s chief investment officer, shares that a second tranche of PruWealth 10 could be made available depending on client uptake and broader market conditions.

“Two factors – one, if there is a demand; two, if the market will allow us,” she notes. “We saw rate cuts coming in. So, if these two factors are met, [we could offer it again,],” adding that while the company has no official timeline, they expect the 1-billion-peso allocation for the first tranche to be completed within a month.

The Philippines’ low rate environment, coupled with tax considerations, Balingit points out, makes the two products stand out at a “very competitive level”.