Prudential: New Pricing on VUL Protector & Updates to BAR in New York

08-10-2023

New Pricing on VUL Protector

VUL Protector is now even more competitive, with new pricing for no-lapse guarantee solves. Most scenarios will improve, however, some designs will see an increase. Here's what you can expect on average for $1M death benefit and NLG through age 120 (non-NY) and NLG through age 90 in NY:

	All States Except NY	NY Only
Single-Pay Scenarios	5% lower	3% lower
10-Pay Scenarios	4% higher	1% lower
Full-Pay Scenarios	1% lower	1% lower

There are no changes to the actual charges that impact cash values and current assumption solves. Pricing varies by policy and the actual pricing changes may be more or less than the averages listed above.

Raising the BAR in New York

BenefitAccess Rider (BAR) has been enhanced on VUL Protector in New York. It now offers non-permanency, which allows clients to file a chronic illness claim even if they’re expected to recover.

Why Choose VUL Protector?

VUL Protector may be suitable for clients who need permanent death benefit protection and also want:

• A dialable no-lapse guarantee feature that can last a lifetime (or through age 90 in NY).
• The potential to build cash value with a robust offering of underlying funds.
• Optional riders to accelerate the death benefit if they become chronically or terminally ill.
• The Age Last Birthday advantage.

Transition Rules

On Monday, August 21, 2023, 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.

IMPORTANT DATES (subject to state approval)

• August 21, 2023 (Ready to Sell Date): New Rates for the repriced product are in effect. All applications signed and dated1 on or after August 21, 2023, will receive New Rates. 
• August 25, 2023 (Home Office Receipt Date): Last day that an application can be received in the Home Office with Old Rates. 
• October 13, 2023 (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 13, 2023 (1035 Exchange Date): Cases involving 1035 exchange must be initiated/started by October 13, 2023, 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

• Applications will not be eligible for Old Rates unless replaced by a live application signed by August 20, 2023 and received in the Home Office by August 25, 2023.

 

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 VULProtector® 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 only available on the revised (2023) 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

 

¹Definition of “date”:

• Pru Advisors Prepaid eLife - Date on the form of payment and the Authorization, Acknowledgment and Limited Insurance Agreement form

• Pru Advisors COD eLife - Date the Authorization, Acknowledgment, and Limited Insurance Agreement form and Variable Contract Acknowledgment form (if applicable) were signed by the client

• Pru Advisors or Third-Party Full Application case - Date the Part 1 of application (ORD 96200) was signed

• Third Party Prepaid Xpress QuickForm case - Date on the form of payment, the Authorization to Release Information form, and the Limited Insurance Agreement form

• Third Party COD Xpress QuickForm case - Date the Authorization to Release Information form and Variable Contract Acknowledgment form (if applicable) were signed by the client