Effective May 10th, VUL Protector will have new pricing. VUL Protector will still offer clients valuable no lapse guarantees and will continue to be a market leader for 10-pay and longer scenarios, including level-pay.
Pricing updates will vary by the number of years the client chooses to pay premiums, with the largest impact to single-pay scenarios. VUL Protector premiums will increase an average of:*
- Single Pays: AVG 30%
- 10 Pays: AVG 15%
- Full Pays: AVG 3%
*Based on a $1,000,000 Face Lifetime NLG design solve.
Please note: The percentage increases listed above are an average for each pay period and may vary, based on issue age, gender, underwriting class, and face amount.
Given the nature of these changes, there will be a shorter transition period where applications on the old rates are due by May 7th.
Updated Benefits to this Product Version:
- This version of the product will have increased premium limits from $500,000 to $1M.
- This new version of VUL Protector will offer Concierge Care Services to BenefitAccess Rider (BAR) customers in an additional 13 states including Alaska, Colorado, Delaware, Idaho, Missouri, Nebraska, New Mexico, North Carolina, Louisiana, Rhode Island, Vermont, Wisconsin, and Wyoming.
Value from a leader
Prudential’s VUL Protector delivers great value from a brand that clients know and trust. In addition to death benefit protection, clients get:
- No lapse guarantee: Provides clients the security of knowing the policy will remain in place, despite market performance, as long as premiums are paid and terms and conditions of the rider are met.
- Cash value growth potential: Clients can access the cash value form 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: Underlying investment options to suit clients with a higher or lower tolerance for risk.
- BenefitAccess Rider (BAR): For an additional fee, clients can add BAR to their policy, giving them access to the death benefit should they become terminally or chronically ill and meet the terms of the rider. Now includes BAR Concierge Services. For more information on BAR Concierge Care Services, please view our Concierge Care Services Flyer.
TRANSITION RULES:
The following rules apply to any request for New Business, Term Conversion, or OPAI (Option To Purchase Additional Insurance) Conversion
- May 7, 2021 (Last Day for Old Rates): Last day that an application can be signed and dated1 with Old Rates.
- May 10, 2021 (Ready to Sell Date): First day that an application can be signed and dated1 with New Rates.
- May 14, 2021 (Home Office Receipt Date): Last day that an application can be received in the home Office with Old Rates.
- June 18, 2021 (1035 Exchange Date): Cases involving 1035 exchange must be initiated/started by June 18, 2021, to retain Old Rates. If the 1035 initiation/start deadline is met, the policy will not be subject to an additional placement deadline.
- July 23, 2021 (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)
*All dates are considered end of day in your applicable time zone unless otherwise stated. States that approve the revised product after May 10, 2021, will have their “Ready to Sell Date” and“Home Office Receipt Date” adjusted. “1035 Exchange Date” and “Placement Date” may be adjusted as well.
1Definition of “application date”:
- Pru Advisors Prepaid eLife – Date on the form of payment and the Authorization, Acknowledgement andLimited 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
- 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.
BACKDATING
- The new policy date can be backdated up to six months prior to the application date (three months in Ohio), but no earlier than 1/1/2021. This is due to our compliance with the updated 7702 regulation that went into effect on 1/1/2021. 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 can not 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.
TERM CONVERSIONS
- 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 01/01/2021cannot 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 ofthe original conversion period, the change period is defined as the 90 day period beginning on the policy date.