Prudential - Fixed Interest Rate & Cap Changes for Essential UL and Founders Plus


Due to the current economic environment that has driven interest rates exceptionally low, Prudential decreased indexed account caps and fixed account crediting rates on PruLife Essential UL and PruLife Founders Plus UL® for new policies applied for on or after June 29, 2020. Here are the rates:

Essential UL
  • Fixed rate to decrease from 4.15% to 3.50%

Founders Plus
  • Fixed Rate to decrease from 4.60% to 3.95%
  • Cap Rate to decrease from 8.25% to 6.50%

Premium Cap Removal
The illustration limits on premiums in the first three policy years have been removed from both Essential UL and Founders Plus for new issues after June 29, 2020. This gives clients the ability to utilize the Single Payment premium payment option for both products. Please note that this change is for the new product versions only.

The following rules apply to any request for New Business, Term Conversion, or OPAI (Option To Purchase Additional Insurance) Conversion.


  • June 29, 2020 (Ready to Sell Date): The updated product is in effect. All applications signed and dated on or after June 29, 2020 will receive the updated product (unless the prior product version is requested and permitted). 
  • July 12, 2020 (Transition Period End Date): Last day that an application can be signed with a request for the prior product version o If the prior product version is desired for an application dated during the 14-day Transition Period, a written request, along with the appropriate presentation version, must be submitted on or after the state introduction date.
    • Applications dated July 13th and later will receive the updated product only.
  • No state filings are required for this release; therefore, the transition rules apply to all states as indicated above.


Normal backdating rules apply, meaning that the new policy date can be backdated up to six months prior to the application date (three months in Ohio). A policy for the updated product can be dated prior to the state introduction date as long as the application meets the requirements in the TRANSITION RULES above.


Please give us a call at 1-800-792-6795 should you have any questions.