Changes to Prudential’s Term Portfolio
Effective November 11, 2019, the overall average increase for Term Essential is 1.9%. Term Elite will also experience some increases. This includes terms for 15, 20, and 30 years; there is no increase for 10-year terms. Pru term products remain competitive and aren’t expected to experience changes for the remainder of the year.
Transition rules can be found HERE.
Important: Annuity Product Changes from North American
A series of year-end product moves will help make it easier to position the North American fixed index annuity line-up.
Effective Jan. 1, 2020 the following will be discontinued:
- NAC BenefitSolutions® 14 (10-year still available)
- Performance Choice® 12 and 12 Plus (8 and 8 Plus still available)
REMINDER: As of Sept. 24, Performance Choice 8 and 8 plus minimum premium is $20,000 (qualified and non-qualified) - NAC RetireChoice® 10 (NAC VersaChoice® 10 still available)
- Income Pay® Plus (Income Pay® in Pennsylvania), optional guaranteed lifetime withdrawal benefit (GLWB) rider
More information available HERE.
eCig and Vaping Underwriting Changes at Prudential
From the underwriting department at Prudential:
“Underwriting Communication – E-cigarettes:
The purpose of this note is to give everyone a heads up that we will be changing our position on e-cigarette users.
As you are aware, vaping has been at the center of the news over the past few months and linked to a few deaths and multiple illnesses. There have been warnings from the FDA, federal government and some states banning the use of flavored e-cigarettes.
We took a stand a few years ago when e-cigarettes started gaining popularity to treat them similar to the way we assess the use of cigars, pipes, chewing tobacco, etc………………treat them as non-smokers and offer NSP as our best class. We received some pushback from our reinsurers at the time but stood by our decision and wanted to keep a close eye on it.
I truly believe it is time for us to change and classify vaping as a smoker and reduce the overall risk exposure to the company. Our reinsurers also have been asking us when we will make the change so obviously support this action.
I wanted to get advance notice out to all of you so you are aware and can start communicating the change to your external partners. We are looking to make a quick system change to reflect users of e-cigarettes as smokers on applications dated 10/21/2019 and later. We will honor any application that has already been written prior to that date and will continue to consider those applicants as non-smokers.”
Please call our office for more details.
PruLife Return of Premium Term No Longer Available
Effective October 1st, 2019, PruLife Return of Premium Term (ROP Term) is no longer available for purchase.
PBR/2017 CSO Compliance: Across the industry, insurers have been updating products to be compliant with principle-based reserving and 2017 Commissions Standard Ordinary Mortality Table. After careful consideration, ROP Term will not be updated at this time. Any applications submitted through September 30, 2019, will be processed through the end of 2019. All policies must be placed by December 31, 2019. No exceptions will be granted.
More info available here.
Coming Soon — Lincoln MoneyGuard III
Effective September 16, 2019, The Lincoln National Life Insurance Company (Lincoln) will introduce the latest updates to its MoneyGuard solutions suite with Lincoln MoneyGuard® III. For more details, please click here.
Are You a Hero? Win $1000 for Charity with LGA
With #LifeInsuranceAwarenessMonth right around the corner, we want to celebrate the people who deliver financial protection — by introducing our Hero In The Middle contest.
As a financial professional, you make a real difference in people’s lives by helping clients get the financial protection they need. If you or a colleague is one of these unsung heroes, we’d like to know.
To enter, tell us how you or a colleague has gone above and beyond to help clients. The agent who submits a story that best conveys the value of financial professionals, the value of life insurance protection and a positive customer outcome will win a $1,000 donation for a 501(c)(3) charity of their choice!
All you need to do is tell us your story by September 6, 2019.
Good luck and keep up the amazing work!
North American: Updated Marijuana and Expired Visa Underwriting Guidelines
Click here for updated guidelines.
Changes Coming to Prudential’s Term Portfolio on July 15
Regulatory requirements associated with 2017 CSO mortality tables are impacting how the life insurance industry prices protection products. This includes Prudential’s Term Essential and Term Elite. Effective July 15, 2019, both products will be repriced to reflect new mortality tables.
Term Essential and Term Elite Remain Competitive and Attractive
Some prices have increased, while others have decreased, with many scenarios unchanged. The overall average is a 1.5% increase.
Term Elite will also have the following changes:
- Disability waiver rates have been reduced by an average of 27%. Disability waiver rates have decreased for BOTH Term Essential and Term Elite.
- Minimum face amount has been increased to $1M
- Conversion period has been aligned with Term Essential
- Modal factors have also been reduced
Remember, Prudential’s Term Essential and Term Elite offer:
- Face amounts to cover the varying needs of clients
- Age last birthday pricing; this may mean lower premiums for clients
- Opportunity to convert to ANY of Prudential’s nine permanent products
- Living Needs BenefitSM
- Speed and convenience through emerging e-capabilities
More information available here.
Introducing PL PROMISE CHRONIC ILLNESS RIDER
Beginning May 13, 2019, your clients can include chronic illness rider protection with new issues of PL Promise GUL guaranteed universal life insurance policies. Quotes available on Winflex. More information available here.
Competitive New Term Rates from LGA
Effective May 13th, new rates for Banner and William Penn OPTerm 10, 15, 20, 25 and 30 include a mix of decreases and increases. No changes to their highly-competitive rates for OPTerm 35 and 40. More information available here.