NEWARK, N.J. — Prudential’s Individual Life Insurance business has enhanced its PruLife® Founders Plus (Founders Plus) and PruLife® Index Advantage UL (Advantage UL) products.
New to Founders Plus is the Plus 100 Account that credits interest based on 100% participation in the performance of the S&P 500® subject to a cap and floor, creating a broader range of interest crediting options that offer cash value growth potential in the policy. The Plus 100 Account complements the Plus 50 and Fixed Account options.
“We enhanced Founders Plus in response to feedback asking for affordability and flexibility while allowing for a greater range of account options,” said Mark Hug, Executive Vice President, Product and Marketing, Prudential Individual Life Insurance. “The flexible nature of Founders Plus allows consumers to increase or decrease premium payments based on their financial needs and the product’s performance.”
With Americans underinsured by $15.3 trillion, according to a 2012 LIMRA report, aligning life insurance with varying needs and circumstances helps more people obtain the vital coverage they need. Founders Plus may be a good fit for those who need insurance but have yet to take action because they feel it is beyond their financial reach.
The BenefitAccess Rider, currently available on Founders Plus, is now also available on Advantage UL. This optional rider allows for the acceleration of the death benefit due to a chronic or terminal illness and has been well received in the marketplace, according to Hug. A unique aspect of the BenefitAccess Rider is that the benefit payments can be used for expenses unrelated to care like home modifications, income replacement, household chores or mortgage payments. “What sets this rider apart is the ability to address the financial strain from dealing with a chronic or terminal condition whether those expenses are medical or non-medical,” says Hug.
Additionally, Advantage UL may work as a potential supplemental source of retirement income by offering two interest crediting options (the Basic Interest Account and the Indexed Interest Account) that give the policy the potential to grow its cash value with protection in place against market-based downturns.
“While the trend towards a longer life in retirement is an exciting prospect, it can cause people to think differently about their finances,” said Hug. “Spending more time in retirement may mean more income is needed to maintain one’s lifestyle. At the same time, the reality of dealing with a chronic or terminal illness can quickly drain savings. The changes to these products aim to give people the options they need so they can focus on living rather than worrying about the future.”
The BenefitAccess Rider is not Long-Term Care (LTC) insurance and is not intended to replace LTC. The rider requires an additional premium and underwriting. The rider accelerates the life insurance death benefit and will reduce and may use up the death benefit. Some benefit payments may be subject to a fee. Other terms, conditions apply.
PruLife® Founders Plus and PruLife® Index Advantage UL are both issued by Pruco Life Insurance Company in all states except New York where, if available, they are issued by Pruco Life Insurance Company of New Jersey, subsidiaries of Prudential Financial, Inc, located in Newark, NJ. The PruLife Founders Plus UL policy form number is IULNLG-2014 or ICC14 IULNLG-2014 and the PruLife Index Advantage UL policy form number is IUL-2014 or ICC14 IUL-2014. The BenefitAccess rider form number is ICC13 VL 145 B2-2013 or VL 145 B2-2013 followed by a state code. Products are not available in all states. For more information on PruLife Founders Plus UL and PruLife Index Advantage UL, please visit http://lifeinsurance.prudential.com/view/page/iliconsumer/30388.