Prudential: VUL Protector Price Change –– Effective October 19

10-16-2020

Prudential remains committed to maintaining their competitive position, even in a persistently low interest rate environment. On October 19, 2020, VUL Protector rates will unfortunately increase. Rates applied to individual policies will vary by age, underwriting class, gender, and premium funding pattern. Despite these rate increases, VUL Protector remains one of the most competitive variable life insurance products available.  

VUL Protector is one of the most competitive variable life insurance products available because it offers the advantages of:

  • Premium Flexibility: Clients choose how much and how often premium payments are made.
  • Choice of Death Benefit: Choice of fixed or variable.
  • Choice of Over 60 Underlying Investment Options: Potential cash value accumulation based on a client’s goals and risk tolerance.
  • A Highly Competitive No-Lapse Guarantee: Up to a lifetime, based on a
    client’s planned premium payments.
  • Customization: Additional protection benefits will provide coverage for
    young children, pay an additional benefit if clients die as a result of an accident, and more! (Additional costs apply.)
  • Optional Benefits for Chronic or Terminal Illness While Living: Clients can accelerate the death benefit through a policy rider if they become chronically or terminally ill, even if they’re expected to recover. There are no receipts required and no limits on how to use the money.²

TRANSITION RULES

  • October 19, 2020 (Ready to Sell Date): New Rates for the repriced product are in effect. All applications signed and dated1 on or after October 19, 2020 will receive New Rates (unless Old Rates are requested and permitted).
    • November 1, 2020 (Transition Period End Date): Last day that an application can be signed with a request for Old Rates
    • If Old Rates are 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 November 2nd and later will receive the New Rates only.
  • States that approve the revised product after October 19, 2020 will have their “Ready to Sell Date” adjusted.
1Definition of “application 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 the client
  •  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

REQUESTS FOR NEW RATES

Requests for changes to the New Rates will be permitted for these situations:

  • Any pending case or issued policy that is not yet delivered with an application date prior to the state introduction date can be changed to New Rates, as long as the request for change is made on or after the state introduction date and includes a revised product ORD 115308 Disclosure form, a matching Illustration, and a confirmation of billed premium.
  • An existing VUL Protector policy that has been delivered and 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 state introduction date with a matching illustration, revised product Disclosure form, confirmation of billed premium with the new rates. Existing policies that are outside the 90-day New Business Change Period cannot be changed to the New Rates.
    • 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.

BACKDATING

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 with New Rates can be dated prior to the state introduction date as long as the application meets the requirements in the TRANSITION RULES above.

Please note: If the date of birth is more than 6 months prior to the state introduction date, you cannot backdate the policy to save age with a request for the New product version.

REQUESTS FOR OLD RATES DURING THE TRANSITION PERIOD:

  • Informal/Inquiry applications will not be eligible for Old Rates unless replaced by a live application by the end of the 14-day transition period based on state approval. 
  • Formal applications without ownership arrangements (Preliminary applications, trial application and where a Trust is TBD) must be replaced by a final formal application by the end of the 14-day transition period based on state approval to be eligible for the Old Rates.
  • TERM CONVERSIONS: Old or New Rates can be issued if the convertible period ends prior to the state approval date and the application date is after the state approval date but within 31 days of the convertible period end date. (Application is dated within the transition period and within the 31 days to the end of the convertible period).
    • Only New Rates can be issued if the term conversion is requested after the state approval date and the application date is outside of 31 days after the convertible period end date.