Advisors Blog

Important Prudential Life Updates

Prudential continues to help customers with their life insurance needs in this challenging time of interest rate changes and market volatility. To do that, they have reevaluated their product portfolio and have made important adjustments to their offerings. Please see below for the following changes:

• Increasing pricing on UL Protector (GUL) effective 4/27. The new rates will result in an average increase of 8%-12% in all states (except New York) depending on age, underwriting class, and premium funding patterns. The application must be signed with a request for old rates by 5/10.
• Suspending sales of 30-year Term products effective 4/13. There will be a temporary suspension of Term Essential / Elite 30-Year. The goal is to reprice and reintroduce Term-30 sales in June. Formal applications must be signed on or before 4/26 and in the home office by 5/4.
• Reducing caps and credited rates for IUL. New spreads and caps for impacted index accounts will be effective for index segments starting 4/15.
• Restricting single-pays on all UL products. As a result of significant decreases to current interest rates, Prudential will restrict single and short pay sales on all UL products, excluding VUL, effective 4/13.
• Revising the large case review thresholds for UL Protector, SUL Protector and SIUL effective 4/13. They will be the same thresholds already in place for IAUL, Founders Plus, and Essential UL, which is at least $1M of total premium in any policy year. All other products (mainly VUL) would stay the same at $5M in year one and $1M in other years.

Please click below for more information and transition rules.

Faster, More Efficient Way of Submitting Business

As advisors have begun shifting to virtual meetings with their clients, tools such as eApp, Accelerated Underwriting and eDelivery are becoming invaluable. Prudential's FastApp Drop-Ticket process, combined with their PruFast Track Accelerated Underwriting and ePolicy Delivery program makes it faster and easier for eligible clients to get life insurance without seeing anyone face-to-face, and in many cases will allow the client to apply without an exam or blood draw, resulting in an entirely virtual, paperless process with no in-person meetings.

These programs are generally limited in face amount and issue age. The option to skip the exam and blood draw is at the underwriter’s discretion, so in practice, only relatively healthy clients will be approved without an exam, once an underwriter has reviewed the initial submission.

We encourage you to take advantage of submitting business electronically, where possible, and to make use of our GBSLife Agent Portal to access these programs.

For more information, please contact your brokerage manager and watch this quick video on Prudential's ePolicy Delivery.

NOTE: Effective immediately, all term and permanent policies will be produced through eDelivery. No paper policies will be mailed. 

Visit Our Blog for Daily Carrier Updates

Due to the rapid speed of change at our carriers as it relates to both product and underwriting information, it is difficult for GBS to provide you with timely and relevant updates via email. We encourage you to frequently visit our Advisors Blog for daily updates on Carrier's Response to COVID-19.

THANK YOU

We at GBS Insurance thank you again for your business. For more information or insurance quote requests, please contact your brokerage manager or give us a call at (800) 473-5966

For agent use only - not for use with the general public.

Corporate CA License No. 0D87913

21820 Burbank Blvd., Suite 301

Woodland Hills, CA 91367

Phone: (800) 473-5966

www.GBSLife.com

GBS Insurance and Financial Services, Inc. do not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

© 2020 Arthur J. Gallagher & Co.