PruLife Universal Protector premium changes will be effective February 22, 2016.
We continuously review our product portfolio to offer a competitive suite of products that align to the needs of consumers and reinforce our commitment to the no-lapse guarantee marketplace. Based on our recent review, we will increase premiums approximately 3%.
This change impacts the following:
- The premium for PruLife Universal Protector will increase by approximately 3%.
- Total premiums for policies sold with BenefitAccess Rider will similarly increase by approximately 3%.
- The current premium loads for GUL will increase, resulting in moderately lower cash values.
Only rates are impacted. There are no changes to benefits.
This modest premium change solidifies our ability to offer your customers the permanent and guaranteed coverage they want at a very attractive premium, while sustaining our position as an industry leader.
The following rules apply to any request for New Business, Term Conversion, or OPAI (Option To Purchase Additional Insurance) Conversion.
- February 22, 2016 (Ready to Sell Date): New Rates for the revised product are in effect. All applications signed and dated on or after February 22, 2016 will receive New Rates (unless Old Rates are requested and permitted)
- March 20, 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 illustration version, must be submitted on or after the state introduction date
- Applications dated March 21st and later will receive the New Rates only
- April 1, 2016 (Home Office Receipt Deadline): Applications based on Old Rates must be received in the Home Office by April 1, 2016
- States that approve the New Rates after February 22, 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 the 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 illustration 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 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.
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.
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.