Prudential: Coming Soon to the VUL Protector- Premium Deposit Account (PDA)


As of August 16, 2021 clients will have the option to pay premiums for VUL Protector via the PDA. An attractive option for clients with a death benefit need and who want to deposit a lump sum of money one time to pay premiums. PDA offers:

  • Tax-efficiency: Clients can make a single deposit without the policy being declared a Modified Endowment Contract (MEC). A MEC policy experiences negative tax consequences when distributions are taken.
  • Convenience: Annual premiums are paid automatically from the PDA for the duration of the agreement. (Commissions are paid as premiums are applied to the
  • Predictability: Fixed interest is credited annually and taxed as income.
  • Choice: Clients can choose the duration, which ranges from 2 to 10 years, and can deposit between $10,000 and $10,000,000. It is not FDIC insured.

Plus, you and clients can enjoy these benefits of working with Pru:

  • Age last birthday pricing, often meaning better rates
  • Consistent and strong underwriting
  • Living benefits through two optional riders focused on benefits for times of chronic or terminal illness
  • Speed and convenience through emerging e-capabilities
  • The history and reliability of an established brand

Note that PDA on VUL will initially be offered in all states except IL, IN, KS, MI, PA, TN, TX, and WA.