Starting August 15, VUL Protector no-lapse guarantee pricing will be improving (except in NY). VUL Protector provides the same great protection, cash value accumulation potential, meaningful no-lapse guarantees, and diverse underlying investment options. Only now, the new pricing makes VUL Protector a more competitive option for clients looking to balance the security they need with the potential to build cash value.
What’s changing:
As an example, for $1M of Lifetime No-Lapse Guarantee Death Benefit the average decrease is roughly:
Flexibility when it’s needed the most Smart industry leaders change with the times. The greatest of them can adjust while continuing to deliver the same quality of product and service that customers have come
to expect. VUL Protector continues to deliver great value from a brand 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 for their lifetime as long as premiums are paid and other conditions are met.
- Cash value growth potential: Clients can access the cash value from their policy, generally tax-free, should the need arise.
- 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.
- eCapabilities simplifies life and creates a seamless, digital experience from start to finish, with:
- eSubmission, eSignature, eInterview, and eDelivery to eliminate paperwork, medical exams, and delays.
- PruFast Track, our accelerated underwriting process, to approve eligible clients in days.
- LifeInsight eService platform, to help you monitor clients’ policies to avoid surprises.
TRANSITION RULES
On Monday, August 15, 2022, the revised VUL Protector® will be introduced.
The following rules apply to any request for New Business, Term Conversion, or OPAI (Option to Purchase Additional Insurance) Conversion.
- August 15, 2022 (Ready to Sell Date ): New Rates for the repriced product are in effect. All applications signed and dated1 on or after August 15, 2022, will receive New Rates.
- August 19, 2022 (Home Office Receipt Date): Last day that an application can be received in the Home Office with Old Rates.
- October 28, 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).
- October 28, 2022 (1035 Exchange Date): Cases involving 1035 exchange must be initiated/started by October 28, 2022, to retain old rates. If the 1035 initiation/start deadline is met, the policy will not be subject to an additional placement deadline.
REQUESTS FOR OLD RATES DURING THE TRANSITION PERIOD
- Applications with Pending Ownership Arrangements: Updates to applications as part of establishing a trust or finalizing the ownership arrangement can be made after the application deadlines outlined in the transition rules. However, these cases must still meet the application deadlines for the original application and comply with all other deadlines outlined in the transition rules.
- Informal/Inquiry Applications: Informal/Inquiry applications will not be eligible for Old Rates unless replaced by a live application by August 15, 2022.
REQUESTS 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. - An existing PruLife VUL Protector policy that has been delivered, 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 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 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.
BACKDATING
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.
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