In response to the low interest rate environment, effective July 20, 2020, our rates for both Term Essential and Term Elite will increase for most term durations. Note that, for non-NY policies, there is a rate decrease for 10-year term and no change for 15-year term. And, effective July 20, 2020, 30-year term is back!
TERM ESSENTIAL RATE CHANGES:
Term Essential 10 – 4% decrease
Term Essential 15 – No change
Term Essential 20 – 3% increase
Term Essential 30 – 15% increase
Term Essential 10 – 8% increase
Term Essential 15 – 10% increase
Term Essential 20 – 10% increase
Term Essential 30 – 21% increase
TERM ELITE RATE CHANGES:
Term Elite 10 – 4% decrease
Term Elite 15 – No change
Term Elite 20 – 3% increase Term
Term Elite 30 – 15% increase
Term Elite 10 – 8% increase
Term Elite 15 – 10% increase
Term Elite 20 – 10% increase
Term Elite 30 – 21% increase
The percentage increases and decreases listed above are an average for each pay period and may vary, based on issue age, gender, underwriting class, and face amount.
Prudential’s Term Essential and Term Elite deliver some of the greatest value from a company that clients know and trust:
- Face amounts to cover the varying needs of clients
- Opportunity to convert to ANY of Prudential’s permanent products to help meet changing protection needs
- Age last birthday pricing; this may mean lower premiums for clients
- Consistent and strong underwriting
- Speed and convenience through emerging capabilities
- Living Needs Benefit, one of the most robust accelerated death benefit riders offered in the industry. It pays a portion of the death benefit while the insured is still alive but terminally ill, is permanently confined to a nursing home, or has undergone life-saving organ transplant procedures
- Confidence born of a leader’s strength and stability. For 145 years, Prudential has been known for delivering on our promises to our customers.
July 20, 2020 (Ready to Sell Date): New Rates for the repriced product are in effect. All applications signed and dated1 on or after July 20, 2020 will receive New Rates (unless Old Rates are requested and permitted)
August 30, 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 42-day Transition Period, a request must be submitted on or after the state introduction date
- Applications dated August 31st and later will receive the New Rates only
States that approve the New Rates after July 20, 2020 will have their “Ready to Sell Date” and “Transition Period End 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
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 New Rates.
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 42-day transition period based on state approval.
APPLICATIONS WITHOUT OWNERSHIP ARRANGEMENTS
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 42-day transition period based on state approval to be eligible for the Old Rates.
*Please note there will be no transition period for Term Essential 30 or Term Elite 30 since these products are being reintroduced with the July 2020 repricing.