From “enough to live” to live with peace of mind: Vietnamese seek to narrow the gap in financial protection

It is forecasted that by 2030, Vietnam's middle class could account for more than 50% of the population, a sharp increase from 10% in 2023. Increased income helps many families improve their quality of life, but the gap in financial protection is also growing.

They not only care about making ends meet, but also want a good quality of life, peace of mind and creating sustainable values for their children. Long-term financial security has become the driving force behind the middle class’s financial decisions. However, unexpected risks can disrupt plans, affect quality of life and accumulated assets. This is the “protection gap” that many families have not paid attention to.

Preparing for their children's future is the desire of many Vietnamese families. Photo: Prudential

On the other hand, most Vietnamese people prefer to choose tangible assets such as gold and real estate. Although the value of assets has increased, they still do not have a strong enough "shield" to protect their accumulated results. Mr. Manish Gurbuxani, Acting Deputy General Director of Marketing & Customer Prudential Vietnam , commented: "Currently, less than 10% of Vietnamese people participate in financial investment products. This opens up a great opportunity for life insurance, especially unit-linked insurance products, to become an integrated solution for protection, investment and sustainable asset transfer."

Sharing about the industry context, Mr. Ngo Trung Dung, Deputy General Secretary of the Vietnam Insurance Association , said, “The market is witnessing a clear change in customer needs. They are not only interested in protection benefits but also focus on the ability to accumulate, invest and transfer value to the next generation.”

By the end of August 2025, the market recorded nearly 1.1 million new exploitation contracts, an increase of 8.3% over the same period last year. Of which, the number of contracts belonging to the unit-linked insurance product line increased by more than 12%, clearly reflecting the increasing demand for insurance solutions combined with investment.

This solution is popular because of its ability to combine financial protection against risks and the opportunity to accumulate assets. Depending on the risk appetite, customers choose to allocate capital to a professional investment fund portfolio, stock funds, bonds or balanced funds, both safe and long-term growth.

Faced with that trend, insurance companies are constantly innovating and launching investment-linked insurance products to meet market demand. Notably, the PRU-Stable Investment unit-linked insurance product launched by Prudential Vietnam in September 2025, attracting thousands of middle-class customers to confidently participate after only 1 month of launch.

The product allows customers to exercise the privilege of transferring the accumulated value of the contract to the next generation (*). Compared to unit-linked insurance products launched on the market in 2025, this is the first product to have this feature.

FA_KV Prudential ILP_horizontal — The product is an optimal financial solution combining investment, protection and inheritance. Photo: Prudential

Regarding investment, depending on their risk appetite, customers can choose a suitable portfolio through 7 PRUlink Unit-linked Funds (information here) managed by Eastspring Investments Fund Management Company - one of the units with the largest total assets under management in the Vietnamese market, with a team of experienced experts and a strict risk control process. According to the company's report, despite market fluctuations in the period of 2020-2024, unit-linked funds still recorded a cumulative growth rate of 28.2% to 66.2%.

Regarding the need to seek opportunities to accumulate assets, the product applies a double bonus mechanism from the 10th contract year. In which, the growth bonus can be up to 300% of the basic annual insurance premium of the first contract year, helping customers increase their investment potential. (**)

Regarding protection needs, customers enjoy insurance benefits of up to 110% of the insurance amount (***), plus the contract account value, and can proactively increase the insurance amount at important milestones in life without health assessment.

The product allows the buyer to transfer the entire accumulated value through the right to participate in a new contract with a new insured person, without having to re-apply the mandatory premium payment period or initial premium. The insurance buyer can exercise the right to transfer the accumulated value from the current insured person reaching 60 years of age or from the 20th contract anniversary, whichever comes later.

(*) The Insured may exercise the right to transfer the accumulated value to a new Insurance Contract with a new Insured Person, from the time the current Insured Person reaches 60 years of age or older or from the 20th Contract Year Anniversary, whichever comes later.

(**) If you are interested in the PRU-Stable Investment unit-linked insurance product as well as the conditions to receive the Growth Bonus and Engagement Bonus, please refer to the detailed Rules and Terms of the product and receive product advice here .

(***) Applicable to Death Benefit or Total Permanent Disability Benefit Not Due to Early Stage Thyroid Cancer is 100% of the Sum Insured. For Total Permanent Disability Benefit Due to Early Stage Thyroid Cancer, Prudential will pay 10% of the Sum Insured, but not exceeding 100 million VND.

Customers need to read the entire Rules and Terms of PRU-Vung Tien Investment Unit-Linked Insurance product to clearly understand the product, fees, exclusions, rights and obligations when participating in insurance.

Entering into a unit-linked insurance contract is a long-term commitment and the Policyholder should not cancel the insurance contract in the initial period because the fees charged to the Policyholder can be very high during this period.

The investment returns from this Insurance Contract are not guaranteed. The Policyholder enjoys all investment results and bears all investment risks from the selected Fund corresponding to the amount of premium invested. Depending on the performance of the selected Fund, the Policyholder may make a profit or suffer a loss from his investment. The past performance of the Fund is for reference only and is not a basis for ensuring future performance.

The illustrated interest rates at unit-linked funds are not guaranteed and may increase or decrease depending on actual investment results.

Source: https://daibieunhandan.vn/tu-du-song-den-song-yen-tam-nguoi-viet-tim-cach-thu-hep-khoang-trong-bao-ve-tai-chinh-10395322.html