On October 18, the pricing and No-Lapse Guarantee will be adjusted on both VUL Protector® and SVUL Protector® in New York. Both products continue to offer great protection, cash value accumulation potential, meaningful no-lapse guarantees, and diverse underlying investment options.
To continue to offer you and clients in NY effective solutions, we are making these changes to VUL and SVUL Protector:
VALUE FROM A LEADER
All of Prudential’s VUL products deliver great value from a brand that clients know and trust. In addition to death benefit protection, clients get:
- No-Lapse Guarantee: Clients can have the security of knowing the policy will remain in place through age 90, as long as premiums are paid and other conditions are met.
- Cash value growth potential1 : Clients can access the cash value from their policy, generally tax-free, should the need arise, or leave a larger death benefit to loved ones.
- Age last birthday pricing: This may mean lower premiums for clients.
- Diverse investment options: Clients can choose underlying investment options to suit their risk tolerance.
- BenefitAccess Rider (BAR)2 : For an additional fee, clients can apply to add BAR to their VUL Protector policy, giving them access to the death benefit should they become terminally or chronically ill and meet the terms of the rider.
On Monday, October 18, 2021, the revised VUL Protector and SVUL Protector will be introduced in New York.
The following rules apply to any request for New Business, Term Conversion, or OPAI (Option To Purchase Additional Insurance) Conversion.
- October 17, 2021 (Last Day for Old Rates): Last day that an application can be signed and dated1 with New Rates
- October 18, 2021 (Ready to Sell Date): First day that an application can be signed and dated1 with New Rates.
- October 22, 2021 (Home Office Receipt Date): Last day that an application can be received in the HomeOffice with Old Rates.
- January 14, 2022 (Placement Date): Last day that a pending case can be placed with Old Rates. All delivery requirements must be received in good order by end of business day (4 PM EST).
- January 14, 2022 (1035 Exchanges): Cases involving 1035 exchange must be initiated/started by January 14, 2022, to retain Old Rates. If the 1035 initiation/start deadline is met, the policy will not be subject to an additional placement deadline.
*All dates are considered end of day Eastern Standard Time
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 OLD RATES DURING THE TRANSITION PERIOD:
Informal/Inquiry applications will not be eligible for Old Rates unless replaced by a live application by the Ready to Sell Date based on state approval.
Normal backdating rules apply, meaning that the new policy date can be backdated up to six months prior to the application date. 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.
APPLICATIONS WITH PENDING OWNERSHIP ARRANGEMENTS
Any case where an updated application is expected, as part of establishing a trust or finalizing the ownership arrangement, must be received in good order by the home office by the 1035 Exchange Date (if applicable)
or Placement Date under Transition Rules above.
- Old or New Rates can be issued if the convertible period ends prior to the state approval date and the application date is after the state approval date but within 31 days of the convertible period end date.
(Application is dated within the transition period and within the 31 days to the end of the convertible period).
- Only New Rates can be issued if the term conversion is requested after the state approval date and the application date is outside of 31 days after the convertible period end date.
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. A matching Illustration and a confirmation of billed premium must also be included.
- An existing PruLife VUL Protector policy that has been delivered and is inforce with a policy date of 01/01/2021 or later 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, revised product Disclosure form, confirmation of billed premium with the new rates. Existing policies that are outside the 90-day New Business Change Period or have a policy date prior to 01/01/2021 cannot be changed to the New Rates.
- During the 90-day New Business Change Period Face Amount increases with old rates will not be allowed.
- The 90-day New Business Change Period is defined as the 90 day period beginning on the later of the policy date or issue date. For a contractual Term Conversion that is issued after the end of the original conversion period, the change period is defined as the 90 day period beginning on the policy date.
1 Unpaid loans and withdrawals reduce cash values and death benefits; may reduce the duration of the guarantee against lapse, which may lapse the policy; and may have tax consequences.
2 The BenefitAccess Rider is an optional rider that can accelerate the life insurance death benefit when the insured is chronically or terminally ill as defined in the rider. The BenefitAccess Rider is not Long-Term Care (LTC) insurance. Benefits received under this rider will reduce and may deplete the death benefit. Electing the BenefitAccess Rider results in an additional charge and underwriting requirements. Some benefit payments may be subject to a fee. Other terms and conditions apply and can vary by state. Clients should always consult their tax and legal advisors when considering the purchase of a life insurance policy and/or accelerated death benefit rider.