Pacific Life: New Rates for PL Promise Term Life Insurance

09-10-2020

On September 7, 2020, Pacific Life is adjusting rates for PL Promise Term, a product specifically designed to serve the death benefit protection needs of the broad market consumer (household incomes of $50K to $250K). For this reprice, new rates may be higher or lower than the old rates. Rates have been refreshed to increase consistency for solid competitiveness across all combinations of terms, risk classes, male/female, and issue ages. You will find more aggressive price reductions for standard and better risk classes and more.

Targeted “Sweet Spots”

  • Face amounts up to $100K – all term durations, male/female, preferred risk classes, all ages
  • Competitive positioning for monthly modes, longer terms, and preferred risk classes, with emphasis on select no-nicotine
  • PL Smooth Sailing fluidless underwriting program for ages 50-69! 

Competitive Strengths

  • Substandard pricing (+20% per table versus the traditional +25%)
  • Monthly Premium mode (monthly premiums) 
  • eCapabilities and digital solutions resulting in shorter cycle times and higher placement rates

Ongoing Adjustments

  • Refreshed rates to increase consistency for solid competitiveness across all combinations of terms, risk classes, male/female, and issue ages

Transition Period

The new PL Promise Term rates go into effect beginning September 7, 2020 for all states except NY. A 60-day transition period from September 7, 2019 through November 5, 2020 is provided. (See the rules below.)

During the transition period, a request to use the lower rates is not required. The difference between any premiums received that are higher than the lowest premium available will be automatically adjusted for the client during this window.

Transition Rules

States: All states except NY

For inforce business, reissues will not be made.

From September 7, 2020 through November 5, 2020 the lower of the prior and new PL Promise Term rates will apply for policies issued during the transition period arising from:

  • Applications received on or after September 7, 2020.
  • Pending policies due to be issued on or after September 7, 2020.
  • The difference between premiums received that are higher than the lowest premium available will be adjusted for the client during this window

Starting November 6, 2020, all new and pending applications will receive the new PL Promise Term rates. No exception requests will be granted on or after November 6, 2020