Prudential: Custom Premier II VUL is now Better Than Ever
01-12-2024
You’ve helped make Prudential the #1 VUL carrier in the industry!1 Prudential is excited to announce as of 01/16/2024, they're making their leading VUL accumulation product, Custom Premier II, even better with these enhancements:
- Expanded variable fund line-up to ensure that we continue to offer the robust number of fund choices that they have had historically2
- Improved target premiums with an average increase of 14% for policies with Death Benefit Option B
- Adjusted surrender charges (only effects cash surrender values in years 1 through 10)
- The availability of the Premium Deposit Account
- BAR Concierge Care Services will now be available in more states through the addition of the Other Goods and Services Rider
- Enhanced illustration functionality that allows selected percentages above the minimum non-MEC solves, supporting higher Death Benefit with potentially low impact to cash accumulation
Get on the Fast Track
Custom Premier II is an ideal product for clients looking for tax-advantaged income to supplement their retirement.
Often, these clients are ideal candidates for accelerated underwriting with PruFast Track. Clients who seek up to $3M in coverage and are aged 60 and younger, may be able to skip medical exams and blood tests, getting approved in days, not weeks.
TRANSITION RULES
On Tuesday, January 16, 2024, the revised PruLife® Custom Premier II (Issue Basis 304) will be introduced. The following rules apply to any request for New Business, Term Conversion, or OPAI (Option to Purchase Additional Insurance) Conversion.
IMPORTANT DATES (subject to state approval)
- January 16, 2024 (Ready to Sell Date ) : New Rates for the revised product are in effect. All applications signed and dated1 on or after January 16, 2024 will receive the New Rates.
- January 19, 2024 (Home Office Receipt Date ): Last day that an application can be received in the Home Office with Old Rates (Issue Basis 301).
- March 15, 2024 (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).
- March 15, 2024 (1035 Exchange Date ): Cases involving 1035 exchange must be initiated/ started by March 15, 2024, to retain old rates. If the 1035 initiation/start deadline is met, the policy will not be subject to an additional placement deadline.
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 the old product unless replaced by a live application signed by January 15, 2024 and received in the Home Office by January 19, 2024.
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 Ready to Sell Date can be changed to New Rates, as long as the request for change is made on or after the Ready to Sell Date. If you are planning to backdate to save age, please refer to the Backdating section below for additional restrictions for cases requesting new rates.
- An existing PruLife® Custom Premier II 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, as long as the policy is in compliance with the Backdating section below. The written request must be submitted on or after the Ready to Sell Date with a matching illustration with the new rates. Existing policies that are outside the 90-day New Business Change Period cannot be changed to the New Rates.
- BenefitAccess Rider with Non-permanency in NY is available ONLY in revised (2024) version of the product.
- 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
- A policy cannot be backdated more than 6 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 IMPORTANT DATES above.
- The policy effective date cannot be beyond 6 months prior to the Ready to Sell Date. This applies to all policies, including all applications and policies with in the 90-day new business change period requesting new rates.
TERM CONVERSIONS
- Term Conversions are subject to the same dates in the Important Dates section above. They must also be conversion eligible at the time of application.
Please give our life sales team a call at 800.792.6795 if you have any questions.