Effective June 13, 2016, a new version of Prudential’s UL Protector is being introduced, subject to state approvals.
The NEW version of Prudential’s UL Protector features:
- Improved first-year flexibility for the limited no-lapse guarantee premiums.
- Limited no-lapse guarantee premium duration extended to 10 years.
- No-lapse guarantee can be reinstated along with a base policy reinstatement.
- Disability Rider qualification period extended to age 65.
- All loans become preferred loans on or after the 10th anniversary.
- Shadow no-lapse guarantee will not protect the policy from excess debt.
The following rules apply to any request for New Business, Term Conversion, or OPAI (Option to Purchase Additional Insurance) Conversion.
- June 13, 2016 (Ready to Sell Date): New Rates for the revised product are in effect. All applications signed and dated on or after June 13, 2016 will receive New Rates (unless Old Rates are requested and permitted).
- July 10, 2016 (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 presentation version, must be submitted on or after the state introduction date.
- Applications dated July 11th and later will receive the New Rates only.
States that approve the New Rates after Jun 13, 2016 will have their “Ready to Sell Date”, “Transition Period End Date”, and “Home Office Receipt Deadline” adjusted.
Request 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 and includes a confirmation of billed premium.
- 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 presentation and confirmation of billed premium with the new rates. 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. 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.
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.
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 28 day transition period based on state approval.
Applications Without Ownership Arrangements
Formal applications without ownership arrangements (preliminary applications, trial applications, and where a Trust is TBD) must be replaced by a live application by the end of the 28 day transition period based on state approval to be eligible for the Old Rates.
Old or New Rates can be issued if the convertible period ends prior to the state approval date and that application date is after the state approval date but within 31 days of the convertible period end date.
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.