Prudential
Fixed Interest Rate & Cap Changes for
Essential UL and Founders Plus
Due to the current economic environment that has driven interest rates exceptionally low, we decreased indexed account caps and fixed account crediting rates on PruLife Essential UL and PruLife Founders Plus UL® for new policies applied for on or after June 29, 2020. Here are the rates:

Previous Issue Basis

New Issue Basis

 Founders Plus

May 2019

  • Fixed Rate: 4.60%
  • Cap Rate: 8.00%

June 29, 2020

  • Fixed Rate: 4.00%
  • Cap Rate: 6.50%

 Essential UL

June 2017

  • Fixed Rate: 4.15%

June 29, 2020

  • Fixed Rate: 3.50%

Premium Cap Removal
The illustration limits on premiums in the first three policy years have been removed from both Essential UL and Founders Plus for new issues after June 29, 2020. This gives clients the ability to utilize the Single Payment premium payment option for both products. Please note that this change is for the new product versions only.

Founders Plus and Essential UL Remain Competitive
Both products boast a straightforward design, strong no-lapse guarantees that can last up to the insured’s lifetime, an optional chronic and terminal illness rider through the BenefitAccess Rider, dynamic underwriting, and, of course, are both backed by the strength and stability of Prudential issuing companies, Pruco Life Insurance Company and Pruco Life Insurance Company of NJ.

We’re Available to Help You Close Your Next Case
If you have any questions or would like help closing a sale, please contact your local wholesaler or the National Sales Desk at 1-800-800-2738, option 1.


Founders Plus Transition Rules

Essential UL Transition Rules


 
PruLife Essential UL and PruLife Founders Plus are issued by Pruco Life Insurance Company in all states except New York, where they are issued by Pruco Life Insurance Company of New Jersey; both are Prudential Financial companies located in Newark, NJ.

The potential to build cash value in the Plus Account is based in part on the performance of the S&P 500® Index (using an index growth cap and floor) on an annual point-to-point basis based on a 100% participation rate (subject to change). Money that is placed in the Plus Account is not a direct investment in the S&P 500® Index. Founders Plus is not a variable contract or an investment contract.

The Index Growth Cap is generally stated as a percentage, which is the maximum rate of interest that will be credited at the end of the one-year Plus Account Segment duration, regardless of changes to the designated index. The Index Growth Cap is declared for each Plus Account Segment in advance of each Plus Account Segment start date. The Index Growth Cap may be raised at our discretion before the segment is created, but will not be lower than the guaranteed minimum index growth cap stated in the policy (currently, 3% in all states). Once a Plus Account Segment is created, its Index Growth Cap will not change. Changes to the Index Growth Cap could result in different values than shown here. Changes are not tied to the performance of the underlying index and may be based on interest rates, market volatility, and other factors. Index Growth Caps and Floors may be different in selected states.

The S&P 500® Index is a product of S&P Dow Jones Indices LLC (“SPDJI”); it has been licensed for use by The Prudential Insurance Company of America for itself and affiliates including Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey (collectively “Pruco Life”). Standard & Poor’s®, S&P®, and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Pruco Life. Pruco Life’s products are not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates; and none of such parties make any representation regarding the advisability of purchasing such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index. S&P 500® index values are exclusive of dividends.

The BenefitAccess Rider is an optional rider that accelerates the life insurance death benefit when the insured is terminally ill or is chronically ill as defined in the rider. It is not Long-Term Care (LTC) insurance. Benefits received under the rider will reduce and may deplete the death benefit. Electing the BenefitAccess Rider results in an additional charge and underwriting requirements. Some benefit payments may be subject to a fee. Other terms and conditions apply and can vary by state. Clients should consult their tax and legal advisors.

For New York contracts: Please also note the rider is not subject to the minimum requirements of New York law, does not qualify for the New York State Long-Term Partnership Program, and is not a Medicare supplement policy. In addition, receiving accelerated death benefits may affect clients’ eligibility for public assistance programs and such benefits may be taxable. Benefit payments may only be made if the payments are subject to favorable tax treatment by the federal government. When determining whether the benefit payments will receive favorable tax treatment, the payment of benefits from all insurance policies must be considered. Benefit payments may be reduced or unavailable if they are expected to exceed the maximum amount eligible under Internal Revenue Code Section 101(g)(1) and all other applicable sections of federal law for favorable tax treatment.

This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any clients or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing a client’s retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR CONSUMER USE.
©2020 Prudential Financial, Inc. and its related entities.
1305829-00003-00 Ed. 06/2020 Exp. 05/28/2021