As of February 26, 2018 pending state approvals, you’ll be able to offer your clients the enhanced PruLife Index Advantage UL. Lower costs, a new bonus potential, and additional features your clients want and need make the product even more attractive.

Enhancements include:

  • Lower charges – Asset based charge reduced by 50 basis points
  • Reduced duration of charge – from 15 down to 7 years
  • NEW Premium Deposit Fund – very useful for Premium Finance business
  • Guaranteed 20% bonus on index interest which is premium based unlike non-guaranteed persistency credits or multipliers
  • NEW version of Benefit Access Rider which means the condition does NOT need to be permanent to qualify for claim
  • Maximum age for Option C death benefit increased to 75

In addition, IAUL still has an uncapped strategy with only a 4% spread where most competitors work off of a 6% spread.


Transition rules:

  • February 26, 2018 (Ready to Sell Date): New Rates for the revised product are in effect. All applications signed and dated on or after February 26, 2018 will receive New Rates (unless Old Rates are requested and permitted)
  • March 25, 2018 (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 March 26th and later will receive the New Rates only
  • States that approve the New Rates after February 26, 2018 will have their “Ready to Sell Date” and “Transition Period End Date” adjusted.


Request 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 and includes a revised product ORD 115308 Disclosure form, a matching illustration, and a confirmation of billed premium.
  • An existing PruLife Index Advantage UL 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 date. The written request must be submitted on or after the state introduction date with matching illustration, revised product Disclosure form, confirmation of billed premium with new rates, and a signed PruLife Index Advantage Universal Life Insurance Supplement for requesting payment allocation to the Fixed Account. Existing policies that are outside the 90-day New Business Change Period cannot 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 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.
    • Please Note: Certain restrictions apply for New Business Change Period requests to New Rates for Indexed products:
      1. The policy will be reissued with New Rates with payment allocation instructions for the Fixed Account, and without any Designated Transfer instructions.
      2. When the indexed policy is reissued as of the original policy date with the New Rates, any index segments that have been created on that policy will be cancelled and the Fixed Account will be utilized for all payment(s).
      3. The full premium(s) (net of charges) for the reissued policy will be reapplied to the policy with the New Rates as of the original payment effective date(s).
      4. Once the reissued policy is delivered, the client may request a change of allocation instructions on a forward going basis to make use of the indexed account features. The premium allocation instructions will remain as the Fixed Account unless a post-issue Change of Account Selection is requested using form ORD 115267 Ed. 12/2017 (Request for Transfer or Change of Allocation PruLife Index Advantage UL). A Change of Account Selection request will be processed as of the Home Office Receipt Date and not as the original Policy 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.


Request for Old Rates during the Transition Period:

Informal/Inquiry Applications

Informal/Inquiry applications will not be eligible for Old Rate unless replaced by a live application by the end of the 28-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 28-day transition period based on state approval to be eligible for the Old Rates.


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 the 31 days after the convertible period end date.

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