Product Changes

As a reminder, here’s a link to the transition rules for Prudential’s updated term products.

From Transamerica: “Effective Nov. 15, 2019, Trendsetter® Super term life insurance in New York and the Virgin Islands will no longer be available for sale in those markets. We will reenter the term insurance markets in the state of New York when financial and regulatory conditions allow us to do so.”

More HERE.

From AIG: “Starting December 7, 2019, the premiums on Secure Lifetime GUL 3 (GUL 3) will be increasing an average of 4% on level pay, and 9% on single or 10 pay scenarios. While we strive to hold the prices of all of our products steady, the long-standing low interest rate environment continues to put pressure on our industry. To ensure we stay laser focused on our commitment to deliver higher value to both you and your clients, a rate change is necessary.”

More available HERE.

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.

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.

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.

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.