In response to the continued low-interest rate environment, effective February 22, 2021, our rates for Term Essential and Term Elite will increase for all term durations.

  • Term 10 – 3% increase
  • Term 15 – 3% increase
  • Term 20 – 6% increase
  • Term 30 – 7% increase

TERM ESSENTIAL

Transition Period Rate Basis Automation1

The February 2021 Term Essential repricing will employ our “Rate Basis Automation” functionality. With this functionality there is no need for a financial professional to request the lower-priced premium
during the transition period. Term Essential applications dated during the transition period will be priced with a premium based on the lesser of the two automatically.

When the premium rate basis is systematically changed, an informational task will be sent to the producer indicating that the lower premium rates have been applied to the policy.

Applications dated after the 7-day transition period, March 1 and later, will receive the New Rates only.2

Transition Dates

  • Ready to Sell Date: February 22, 2021
  • Transition Period End Date: February 28, 2021
  • States that approve the New Rates after February 22, 2021 will have their “Ready to Sell Date” and “Transition Period End Date” adjusted.
  • May 5, 2021 is the last day that a pending case can be placed with old rates. Policies with old rates that are not placed by May 5th will be updated with new pricing and issued with revised rate

 

TERM ELITE

Transition Rules

  • Ready to Sell Date: February 22, 2021
    • New Rates for the repriced product are in effect.
    • All applications signed and dated2 on or after February 22, 2021 will receive New Rates (unless Old Rates are requested and permitted)
  • Transition Period End Date: February 28, 2021- 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 request must be submitted on or after the state introduction date
    • Applications dated February 28 and later will receive the New Rates only
  • States that approve the New Rates after February 22, 2021 will have their “Ready to Sell Date” and “Transition Period End Date” adjusted.

 

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, if the request for change is made on or after the state introduction 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 if 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

Informal/Inquiry applications will not be eligible for Old Rates unless replaced by a live application by the end of the 7-day transition period based on state approval.

 

APPLICATIONS WITHOUT OWNERSHIP ARRANGEMENTS
Formal applications without ownership arrangements (Preliminary applications, trial application and where a Trust are TBD) must be replaced by a final formal application by the end of the 7-day transition period based on state approval to be eligible for the Old Rates.

 

 

1 Not all future repricings will be eligible for Rate Basis Automation. This functionality is used for Term products only and will be activated when there is a rate change only with no feature changes to the product.

2Definition of “application date”:

  • Pru Advisors Prepaid elite – Date on the form of payment and the Authorization, Acknowledgement and Limited Insurance Agreement form
  • Pru Advisors COD elite – Date the Authorization, Acknowledgement, and Limited Insurance Agreement form
  • 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 was signed by the client
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