On Monday May 6, 2019, the revised PruLife® Custom Premier II will be introduced, subject to state approvals.

If rising costs, serious illness, or taxes could upset the retirement clients have planned for, take a look at the revised PruLife® Custom Premier II.

It offers death benefit protection, tax advantages, and potential supplemental retirement income-all from one product. The addition of an Indexed Account Rider and a more generous BenefitAccess Rider will supplement Custom Premier II’s already strong cash value accumulation potential.

Key Points

  • One solution for many needs
  • Experienced investment professionals and a robust investment platform
  • Technology-enabled servicing tools

 

One solution for many needs

A unique combination of tax advantages and living benefits gives your clients one strong solution for many needs.

  • Tax-efficiency. In addition to the generally income-tax-free death benefit, any cash value accumulation in the policy is tax-deferred and any distributions are tax-free up to basis.
  • Cash value growth potential. A new Indexed Account Rider can help to offset more potentially volatile options. Both aggressive and more balanced investment options give clients the potential to accumulate significant cash value.
  • Options for the unexpected. The BenefitAccess Rider can give clients financial options if they become chronically or terminally ill, even if the condition is not permanent.³ (Not available in CA and NY.)

Experienced Investment Professionals and a Robust Investment Platform

Clients can choose from a broad array of underlying investment options that include:

  • Ready-made asset allocation options and customized portfolios.
  • Experienced management that’s focused on meeting high standards.
  • Impressive historical returns.

The following rules apply to any request for New Business, Term Conversion, or OPAI (Option To Purchase Additional Insurance) Conversion.

TRANSITION RULES

  • May 6, 2019 (Ready to Sell Date): New Rates for the revised product are in effect. All applications signed and dated on or after May 6, 2019 will receive New Rates (unless Old Rates are requested and permitted).
  • June 2, 2019 (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 28 day Transition Period, a written request, along with the appropriate illustration version, must be submitted on or after the state introduction date
    • Applications dated June 3rd and later will receive the New Rates only

 

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 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.
    • When requesting the New Rates, confirmation of election of the S&P 500 Indexed Account Rider if requested, and confirmation of investment allocations for the new plan must be provided to the Home Office. If the BenefitAccess Rider has been applied for, then the new BenefitAccess Rider Disclosure form ORD 114462 that corresponds to the revised version of PruLife Custom Premier II plan must be submitted
    • Note: Any prepayment received prior to the state introduction date for a pending or issued application with a request for New Rates will be applied as of the later of the contract date, the payment receipt date, or the 5/6/2019 product offering date. In no case will the money be applied to a policy with New Rates with a date preceding the product offering date of 5/6/2019
  • An existing 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 and confirmation of billed premium with the new rates. A new Variable Supplement ORD 96200-2019 must be submitted with confirmation of election of the S&P 500 Indexed Account Rider if requested, and with confirmation of investment allocations according to the revised plan investment options. Existing policies that are outside the 90-day New Business Change Period cannot be changed to the New Rates. Inforce policies that are 1035 exchanges with funds received prior to 5/6/2019 require additional review and processing steps to 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 the original issue date. For policies issued as a Term Conversion, it is defined as the 90 day period beginning on the policy date. The ability to request certain types of changes during the 90 day New Business Change Period is an administrative practice supported for permanent product policies and is not specific to this repricing.
    •  Note: When an inforce policy within the 90 day New Business Change Period is changed to New Rates, if premium payments were applied prior to 5/6/2019, then when the case is re-issued the premium payment(s) previously applied will be reapplied as of the 5/6/2019
      product offering date.

      • If the existing policy is still within its free look period as of the home office receipt date of the request for New Rates, the amount carried forward to the newly issued
        policy will be the greater of the premium received or premium plus any gain from the original premium receipt date through 5/6/2019
      • If outside the free look period as of the home office receipt date of the request for New Rates, we’ll credit the value of the contract fund plus previously deducted loads and charges. Any gain or loss in contract fund value from the original premium receipt dates through 5/6/2019 will be carried forward to the newly issued policy.
    • For a request for a change to New Rates only, please submit a completed COMB 84800S form along with a signed revised Illustration and confirmation of billed premium. A new Variable Supplement ORD 96200-2019 must be submitted. If the BenefitAccess Rider is inforce, a new signed BenefitAccess Rider Disclosure ORD 114462 must also be submitted. The signed paperwork must be received within the 90 day change period
    • For a request for a change to New Rates along with a change in coverage (for example an increase in face amount or addition of riders/benefits), please contact us for assistance with the required paperwork. The signed paperwork must be received within the 90 day change period
  • A change to New Rates for an inforce policy that is within the 90-day New Business Change Period will trigger a recalculation of commissions. If different, the original amount will be recaptured and a new amount paid.

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:

  • 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 28 day transition period based on state approval to be eligible for the Old Rates.
  • INFORMAL/INQUIRY APPLICATIONS Informal/Inquiry applications will not be eligible for Old Rates unless replaced by a live application by the end of the 28 day transition period based on state approval.
Corporate Headquarters:
604 Harper Avenue, Jenkintown, PA 19046 | P: 800.543.5555 / 215.517.4080 | F: 800.343.0804 / 215.517.4087

Miami Office:
3470 NW 82nd Avenue, Suite #670, Doral, FL 33122 | P: 800.683.3077 / 305.908.6700 | F: 800.343.0804

Securities offered through The Leaders Group, Inc. Member FINRA/SIPC 26 W. Dry Creek Circle, Suite 800, Littleton, CO 80120, 303-797-9080.

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