Prudential: Improved No-Lapse Guarantee Pricing for SVUL Protector - Effective 10/17
Starting October 17, Prudential's SVUL Protector® no-lapse guarantee pricing will be improving (except in NY). Couples looking for death benefit protection, cash value accumulation potential, meaningful no-lapse guarantees, and diverse investment options should consider the SVUL Protector. With a balance of death benefit protection and the potential to build cash value, this new pricing makes SVUL Protector an attractive option.
As an example, for $1M of Lifetime No-Lapse Guarantee Death Benefit, the average decrease is roughly:
|Single Pay Scenarios||5% lower|
|10 Pay Scenarios||5% lower|
|All Pay Scenarios||5% lower|
(based on ages 45, 55, and 65 and the top 4 underwriting classes)
Flexibility when it's needed the most
SVUL Protector continues to deliver great value from a brand clients know and trust. In addition to death benefit protection, clients get:
- No-Lapse Guarantee: Clients can have the security of knowing the policy will remain in place for their lifetime as long as premiums are paid and other conditions are met.
- Cash value growth potential:1 Clients can access the cash value from their policy, generally tax-free, should the need arise.
- Age last birthday pricing: This may mean lower premiums for clients.
- Diverse investment options: Clients can choose underlying investment options to suit their risk tolerance.
- Survivorship BenefitAccess Rider (SBAR):2 For an additional fee, clients can apply to add SBAR to their SVUL Protector policy, giving them access to the death benefit should they become terminally or chronically ill and meet the terms of the rider.
On Monday, October 17, 2022, the revised Prulife® SVUL Protector will be introduced. The following rules apply to any request for New Business, Term Conversion, or OPAI (Option to Purchase Additional Insurance) Conversion.
IMPORTANT DATES (subject to state approval)
- October 17, 2022 (Ready to Sell Date1 ): New Rates for the repriced product are in effect. All applications signed and dated1 on or after October 17, 2022, will receive New Rates.
- October 21, 2022 (Home Office Receipt Date1 ): Last day that an application can be received in the Home Office with Old Rates.
- January 14, 2023 (Placement Date1 ): Last day that a pending case can be placed with old rates. All delivery requirements must be received in good order by end of business day (4 PM EST).
- January 14, 2023 (1035 Exchange Date1 ): Cases involving 1035 exchange must be initiated/started by January 14, 2023, to retain old rates. If the 1035 initiation/start deadline is met, the policy will not be subject to an additional placement deadline.
REQUESTS FOR OLD RATES DURING THE TRANSITION PERIOD
- Applications with Pending Ownership Arrangements: Updates to applications as part of establishing a trust or finalizing the ownership arrangement can be made after the application deadlines outlined in the transition rules. However, these cases must still meet the application deadlines for the original application and comply with all other deadlines outlined in the transition rules.
- Informal/Inquiry Applications: Informal/Inquiry applications will not be eligible for Old Rates unless replaced by a live application by October 17, 2022.
REQUESTS FOR NEW RATES
Requests for changes to the New Rates will be permitted consistent with the following current practice for these situations:
- Any pending case or issued policy that is not yet delivered with an application date prior to the Ready to Sell Date can be changed to New Rates, as long as the request for change is made on or after the Ready to Sell Date. If you are planning to backdate to save age, please refer to the Backdating section below for additional restrictions for cases requesting new rates.
- An existing SVUL Protector policy that has been delivered, is inforce, and is still within its 90-day New Business Change Period can be changed to New Rates and keep the original policy number and policy date. The written request must be submitted on or after the Ready to Sell Date with a matching illustration with the new rates. Existing policies that are outside the 90-day New Business Change Period cannot be changed to the New Rates.
- During the 90-day New Business Change Period, Face Amount increases with old rates will not be allowed. The 90-day New Business Change Period is defined as the 90-day period beginning on the later of the policy date or issue date. For a contractual Term Conversion that is issued after the end of the original conversion period, the change period is defined as the 90-day period beginning on the policy date.
- Normal backdating rules apply, meaning that the new policy date can be backdated up to 6 months prior to the application date. A policy with New Rates can be dated prior to the state introduction date as long as the application meets the requirements in the IMPORTANT DATES above.
- The policy effective date cannot be beyond 6 months prior to the Ready to Sell Date. This applies to all policies, including new and already submitted applications.
- Term Conversions are subject to the same dates in the Important Dates section above. They must also be conversion eligible at the time of application.
Please give us a call at 1-800-792-6795 if you have any questions
1Definition of “date”:
Pru Advisors Prepaid eLife - Date on the form of payment and the Authorization, Acknowledgement and Limited Insurance Agreement form
Pru Advisors COD eLife - Date the Authorization, Acknowledgement, and Limited Insurance Agreement form and Variable Contract Acknowledgement form (if applicable) were signed by theclient
Pru Advisors or Third-Party Full Application case - Date the Part 1 of application (ORD 96200) was signed
Third Party Prepaid Xpress QuickForm case - Date on the form of payment, the Authorization to Release Information form, and the Limited Insurance Agreement form
Third Party COD Xpress QuickForm case - Date the Authorization to Release Information form and Variable Contract Acknowledgement form (if applicable) were signed by the client.