Chuck E. Anderson, FLMI Senior Vice President Prudential Select Brokerage The Prudential Insurance Company of America 13001 County Road 10, Suite 4C Plymouth, MN 55442 Introducing our repriced and enhanced PruLife Universal Plus Add a Plus to your Portfolio! Protection + Cash Value Accumulation = UL Plus 2010 Our go-to Cash Accumulation UL now combines strong long-term cash accumulation potential, two limited death benefit guarantee periods, and exceptional living benefits. Your risk-averse customers will especially appreciate the tax-deferred cash accumulation potential UL Plus has to offer, without being exposed to the volatility of the market. Check out our 2010 enhancements! Benefits to consumers: 4Improved 20th & 30th year cash values without the fear of market-volatility 4A great current fixed interest rate of 5.10% (subject to change) 4Tax favored distribution to help meet retirement income needs 4Living benefits that are second-to-none in the industry, such as the new MyNeeds Benefit rider! Benefits to you: 4Top quartile ranking in key cash value accumulation and max-funded scenarios 410-15% average increase in Commission Target Premium (CTP) 4Tiered CTP has been retained for heavily funded cases Here are three scenarios when you always want to sell UL Plus: 4Strong 20th and 30th year cash values, males, ages 35 and up, top three underwriting categories, at face amounts of $250,000 and up 4Highly competitive for maximum income solve scenarios, for males and females, in many key age and underwriting categories 4Large case clients Pru's participation in the SuperPool SM means that we can now offer a maximum capacity of $87 million on UL Plus policies!* Available reinsurance capacity varies with each case scenario. (Please refer to the back page for the influencing information.) To help you get started selling our PruLife Universal Plus, we ve included important tools and information in this kit, including: 4Competitive Comparisons 4Annotated and Consumer versions of the PruLife Universal Plus Product Overview 4A Discussion of the Market for UL Plus 4A Look at the Living Benefits UL Plus Offers 4Sales Ideas 4And More! Log on to Pruxpress.com for a current list of state approvals. Your success matters! Chuck E. Anderson, Senior Vice President FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. Please refer to the back page for important information.
*Actual amounts may be impacted by: Current insurance in-force and applied for Full disclosure of all in-force and applied for coverage is required Other companies accessing the SuperPoolSM and other reinsurers capacity. Access to reinsurers capacity is on a first come/first serve basis Capacity grades down due to increasing age and ratings Lower capacity amounts are available for aviation, avocation, occupations, and foreign risks PruLife Universal Plus SM is issued by Pruco Life Insurance Company (except in New York, where it is issued by Pruco Life Insurance Company of New Jersey) both located in Newark, NJ. All guarantees are subject to the financial strength and claims paying ability of the issuer. This product may not be available in all states. This marketing material is subject to an expiration date and use of this material must be discontinued as of the expiration date. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. 0176509-00001-00 Ed. 04/10 Exp. 10/11
PRULIFE UNIVERSAL PLUS 2010 REPRICED, ENHANCED, AND READY TO SELL! Effective May 1, 2010, our revised UL Plus will offer improvements for both the consumer and you Do you have clients looking for a universal life product that offers cash value accumulation potential, but don t want to be tied to the stock market? Then our newly repriced UL Plus is perfect for them it offers conservative cash value growth with a choice of No-Lapse Guarantee protection periods. Plus, it has been improved to be better than ever! New Improvements for the Consumer: 4UL Plus will offer improved 20th and 30th year cash values 4Plus, the potential for early cash value has been increased 4We have reduced the minimum face amount of the Enhanced Cash Value Rider to $250,000 (from $500,000) 4Plus, a new no-cost rider MyNeeds Benefit 4This automatic rider waives surrender and/or withdrawal charges (if applicable) if an insured is confined to 'nursing home or hospice' care prescribed by a physician and requests a withdrawal from his/her UL Plus 2010 policy. 4Plus, the preferred loan spread will only be 5 basis points! New Improvements for the Producer: 4Improved competitiveness especially for 20th year cash value and overfunded scenarios 4Plus, higher max income solves 4Plus, increased Commission Target Premiums (CTP) & Tiered Commission Target Premiums (TCTP) 4CTP will be increased by 10-15% (depending on face amount) 4Our TCTP offers an additional opportunity for compensation by layering first year comp for highly funded cases Clients looking for a life insurance policy that offers protection plus cash value potential? Tell them about UL Plus! This material is designed to provide general information in regard to the subject matter covered. It should be used with the understanding that we are not rendering legal, accounting or tax advice. Such services should be provided by the client s own advisor. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. PruLife Universal Plus is issued by Pruco Life Insurance Company in all states except New York, where it is issued by Pruco Life Insurance Company of New Jersey, both located in Newark, NJ. This marketing material is subject to an expiration date, and use of this material must be discontinued as of the expiration date. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate. 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0175803-00002-00 Ed. 04/2010 Exp. 10/2011
REPRICING RULES P R U L I F E U N I V E R S A L P L U S There may be situations in which you have a case pending when the repriced PruLife Universal Plus is introduced. Should an evaluation of these cases reveal that the repriced PruLife Universal Plus is a more appropriate choice for your client, use the following transition rules to handle cases such as this. Transition Rules PruLife Universal Plus Repricing The following Basic Transition Rules will apply to the PruLife Universal Plus 2010: If the application date* is prior to the state introduction date of the repriced UL Plus, old rates will be issued. If the application date* is on or after the state introduction date**, but before 28 days after the state introduction date, new rates will be issued unless old rates are specifically requested. For example, in states that introduce the repriced UL Plus on May 1, 2010, old rates can be requested if the application date is on or before May 28, 2010. If the application date* is 28 days or more after the state introduction date, new rates will be issued in all situations. An existing PruLife Universal Plus 2007 policy that is within its 90 day New Business Change Period (NBCP) can be changed to a PruLife Universal Plus 2010 policy and maintain its original policy date. Existing PruLife Universal Plus 2007 policies that are outside their NBCP or any non-universal policies cannot be changed to PruLife Universal Plus 2010. The PruLife Universal Plus 2010 will have to be requested through New Business and the existing contract cash surrendered. Any pending application or unplaced policy can be changed to the UL Plus with new rates as long as the request for change is made on or after May 1, 2010. Term Conversions: If the convertible period ends prior to the state approval date and the application date is after the state approval date, but within 31 days of the convertible period end date, "old" or "new" rates can be issued. If the term conversion is requested after the state approval date and the application date is outside of 31 days after the convertible period end date, only "new" rates can be issued. Backdating: Normal backdating rules will apply, meaning that the policy can be backdated up to six months prior to the application date (three months in Ohio). A UL Plus policy with new rates can be dated prior to the state introduction date as long as the application meets the requirements in the Basic Transition Rules above. * Application Date: date on Part 1 of application (ORD 96200) or date 84800S (for contractual term conversions) was signed. ** Introduction date may vary by state. PruLife Universal Plus is issued by Pruco Life Insurance Company in all states except New York, where it is issued by Pruco Life Insurance Company of New Jersey. Both are Prudential Financial companies located in Newark, NJ. Each is solely responsible for its own financial condition and contractual obligations. Prudential, Prudential Financial, the Rock logo and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0175449-00001-00 Ed. 03/10 Exp. 09/11
WHAT IS THE MARKET FOR UL PLUS? Client profiles for our revised and enhanced PruLife Universal Plus Our recently repriced UL Plus is a great product choice for clients looking for death benefit protection and cash value accumulation potential, who are traditionally more risk averse than those interested in variable products. UL Plus VUL Protector Custom Premier II VUL Age Range Ages 35-65 Ages 35-55 Ages 25-50 Household Income Range $50,000+ Mass-affluent and mass-middle $75,000+ Mass-affluent and mass-middle $75,000+ Client Preferences Prefers little risk and low volatility Wants to minimize exposure of principal to loss or fluctuation Interested in some guarantees, but less concerned with lifetime Willing to assume a moderate amount of market risk and volatility in pursuit of higher returns Looking for affordable guaranteed lifetime protection Willing to assume a higher level of risk and volatility than UL Plus and VUL Protector in pursuit of higher returns Interested in some guarantees, but less concerned with lifetime Funding Patterns Over-funded beyond Commission Target Premium, Maximum Funding Funding at Lifetime No-Lapse Guarantee or beyond Over-funded beyond Commission Target Premium, Maximum Funding Continued on back This material is designed to provide general information in regard to the subject matter covered. It should be used with the understanding that we are not rendering legal, accounting, or tax advice. Such services should be provided by the client s own advisor. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. PruLife Universal Plus, PruLife Custom Premier II VUL, and VUL Protector 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. All variable products are offered through Pruco Securities, LLC. All are Prudential Financial companies located in Newark, NJ. All products, benefits and features may not be available in all states. All guarantees are based on the claims-paying ability of the issuing company and do not apply to the performance of the investment options in the variable life policy. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate. Your client should consider the investment objectives, risks, and charges and expenses carefully before investing in the contract, and/or underlying portfolios. The prospectus of the contract, and/or the underlying portfolios contains information relating to investment objectives, risks, and charges and expenses, as well as other important information. A copy of the prosepectus(es) maybe obtained from prudential.com. Your clients should read the prospectuse(s) carefully before investing. This marketing material is subject to an expiration date, and use of this material must be discontinued as of the expiration date. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0176364-00001-00 Ed. 04/10 Exp. 10/11
How can you spot a prospective UL Plus customer? UL Plus has been designed to meet a wide array of personal and business protection needs. Here are just a few likely scenarios where UL Plus may be a good fit: Conservative investors Scenario Clients with liquid assets available Why UL Plus? UL Plus offers clients who want to earn cash value the chance to do so risk free. Instead of worrying about stock market fluctuations, UL Plus offers a competitive annual effective interest rate that is guaranteed to be at least 2%. UL Plus is a very attractive option for clients who have liquid assets that allow for overfunding the policy, which could lead to higher cash value accumulation.* Clients looking to bridge the retirement gap Many clients approaching retirement age have experienced a drop in their financial assets due to the recent market turmoil. A UL Plus Policy can help in two ways: 4First, the policy death benefit can be used to provide income to the client's beneficiaries should the insured experience an untimely death. 4Second, the accumulated cash value in the policy can provide an additional source of income for the client to draw upon during retirement.* Small business owners A UL Plus policy can be an attractive insurance option for clients who own a small or medium-sized business and have business protection needs. Whether they want key person insurance, are looking to fund a buy-sell agreement, or desire a source of income during retirement, UL Plus can help. *Life insurance policy cash values are accessed through withdrawals and policy loans. Loans are at interest. In general, loans are not taxable, but withdrawals are taxable to the extent they exceed basis in the policy. Loans outstanding at policy lapse or surrender prior to the death of the insured will cause immediate taxation to the extent of gain in the policy. Unpaid loans and withdrawals reduce cash values and policy benefits and negate any guarantee against lapse. Federal tax law limits the amount of premium contributions that can be made to a policy in order for it to retain certain tax advantages. When premium contributions exceed this limit, the policy is classified as a modified endowment contract (MEC). Distributions from MECs (such as loans, withdrawals and assignments) are taxed less favorably than distributions from policies that are not MECs. For distributions from a MEC prior to age 59½, a federal income tax penalty may apply. However, death benefits are still generally received income tax free pursuant to IRC 101(a). Your clients should consult their tax advisors for advice regarding their particular tax situation. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. 0176364-00001-00 Ed. 04/10 Exp. 10/11
THREE SCENARIOS WHEN YOU ALWAYS WANT TO SELL PRU'S UL PLUS PruLife Universal Plus You told us to make your lives easier. You asked us to tell you when we are competitive. You asked us to tell you when to sell us. You talked we listened. When should I always sell UL Plus? Strong 20th and 30th year cash values, males, ages 35 and up, top three underwriting categories, at face amounts of $250,000 and up Highly competitive for maximum income solve scenarios, for males and females, in many key age and underwriting categories Large case clients - Pru's participation in the SuperPool SM means that we can now offer a maximum capacity of $87 million on UL Plus policies!* Plus As part of our 2010 UL Plus enhancement, Commission Target Premium (CTP) has been increased by an average of 10-15%, while Tiered Commission Target Premium (TCTP) has been retained Contact [Your Regional Brokerage Director] Today For More Information on How PruLife Universal Plus May Be the Answer! *Available reinsurance capacity varies with each case scenario. Actual amounts may be impacted by: Current insurance in-force and applied for Full disclosure of all in-force and applied for coverage is required Other companies accessing the SuperPool SM and other reinsurers capacity. Access to reinsurers capacity is on a first come/first serve basis Capacity grades down due to increasing age and ratings Lower capacity amounts are available for aviation, avocation, occupations, and foreign risks When comparing products, price is not always the sole determining factor. Features and benefits are equally important. This information was compiled by Pruco Life Insurance Company and The Prudential Insurance Company of America. We have selected certain scenarios that highlight our competitive position. These scenarios are not indicative of our competitive position in every scenario. Pruco Life companies can only confirm the accuracy of the values shown for their products and make no representations regarding the accuracy or comparability of the other values shown. The information in this piece is intended only to provide a general view of relative illustrated values. Different assumptions regarding issue ages, rating classes, states of issue, interest rates, charges, face amounts, or premium payments will produce different relative results. Pricing structures and administration of charges and fees may also differ and would affect relative results. Use of this material with the public is prohibited. It is intended for Producer/Broker use only. PruLife Universal Plus is issued by Pruco Life Insurance Company in all states except New York, where it is issued by Pruco Life Insurance Company of New Jersey. Both are Prudential Financial companies located in Newark, NJ. All products and benefits may not be available in all states. All guarantees are based on the claims-paying ability of the issuing company. Unpaid loans and withdrawals may negate any guarantee against lapse as well as have other consequences. This material is designed to provide general information in regard to the subject matter covered. It should be used with the understanding that we are not rendering legal, accounting, or tax advice. Such services should be provided by the client s own advisor. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate. 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0176242-00001-00 Ed. 04/2010 Exp. 10/2010
PROTECTION + COMPETITIVE CASH VALUE ACCUMULATION = UL PLUS Pru s Enhanced PruLife Universal Plus Offers Competitive 20th Year Cash Values Pru s revised and enhanced UL Plus offers your male clients looking for policies with higher face amounts ($1 million and above) competitive 20th year cash values. Let s take a look at some key age and underwriting scenarios to see how UL Plus compares to other carriers accumulation products for males at $1 million face amounts, with our Age Last Birthday pricing advantage. Males, UL Plus, $1 million face amount, 20th Year Cash Value Age Preferred Preferred Non-Smoker Preferred Best Non-Tobacco Plus Non-Smoker Smoker Smoker 35 45 55 65 1 Ranking is between 1 and 4 or within 5% from number 1 Ranking is between 5 and 16 This information was compiled by Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey. We have selected certain scenarios that highlight our competitive position. These scenarios are not indicative of our competitive position in every scenario. Companies used in these comparisons were identified as our top competitors based on their total premium sales reported to LIMRA and the overall competitiveness of their products. We can only confirm the accuracy of the values shown for our products and make no representations regarding the accuracy or comparability of the other values shown. All exhibits in this presentation are intended to provide only a general view of relative illustrated values. Different assumptions regarding issue ages, rating classes, states of issue, non-guaranteed rates of return, charges, face amounts or premium payments will produce different relative results. Pricing structures and administration of charges and fees may also differ and would affect relative results. Use of this material with the public is prohibited. If is intended for Producer/Broker use only. Data shown as of March 4, 2010. When comparing products, price is not always the determining factor. Features and benefits are equally important. This material is designed to provide general information in regard to the subject matter covered. It should be used with the understanding that we are not rendering legal, accounting or tax advice. Such services should be provided by the client s own advisor. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. PruLife Universal Plus is issued by Pruco Life Insurance Company in all states except New York, where it is issued by Pruco Life Insurance Company of New Jersey, both located in Newark, NJ. This marketing material is subject to an expiration date, and use of this material must be discontinued as of the expiration date. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank of Bank Affiliate. 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0176563-00001-00 Ed. 04/10 Exp. 10/10
PROTECTION + COMPETITIVE CASH VALUE ACCUMULATION = UL PLUS Pru s Enhanced PruLife Universal Plus Offers Competitive 30th Year Cash Values Pru s revised and enhanced UL Plus offers your male clients looking for policies with higher face amounts ($1 million and above) competitive 30th year cash values. Let s take a look at some key age and underwriting scenarios to see how UL Plus compares to other carriers accumulation products for males at $1 million face amounts, with our Age Last Birthday pricing advantage. Males, UL Plus, $1 million face amount, 30th Year Cash Value Age Preferred Preferred Non-Smoker Preferred Best Non-Tobacco Plus Non-Smoker Smoker Smoker 35 45 55 65 11 1 1 Ranking is between 1 and 4 or within 5% from number 1 Ranking is between 5 and 16 This information was compiled by Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey. We have selected certain scenarios that highlight our competitive position. These scenarios are not indicative of our competitive position in every scenario. Companies used in these comparisons were identified as our top competitors based on their total premium sales reported to LIMRA and the overall competitiveness of their products. We can only confirm the accuracy of the values shown for our products and make no representations regarding the accuracy or comparability of the other values shown. All exhibits in this presentation are intended to provide only a general view of relative illustrated values. Different assumptions regarding issue ages, rating classes, states of issue, non-guaranteed rates of return, charges, face amounts or premium payments will produce different relative results. Pricing structures and administration of charges and fees may also differ and would affect relative results. Use of this material with the public is prohibited. If is intended for Producer/Broker use only. Data shown as of March 4, 2010. When comparing products, price is not always the determining factor. Features and benefits are equally important. This material is designed to provide general information in regard to the subject matter covered. It should be used with the understanding that we are not rendering legal, accounting or tax advice. Such services should be provided by the client s own advisor. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. PruLife Universal Plus is issued by Pruco Life Insurance Company in all states except New York, where it is issued by Pruco Life Insurance Company of New Jersey, both located in Newark, NJ. This marketing material is subject to an expiration date, and use of this material must be discontinued as of the expiration date. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank of Bank Affiliate. 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0176562-00001-00 Ed. 04/10 Exp. 10/10
THINK UL PLUS FOR HIGHLY FUNDED CASES Pru s Enhanced PruLife Universal Plus Offers Your Clients Protection Plus Cash Value Accumulation Pru s revised and enhanced UL Plus offers your clients significant improvements when it comes to 20th year cash values. UL Plus will be an attractive insurance option for your clients who have enough liquid capital to highly fund their policy and desire conservative cash value growth potential. Let s take a look at some key ages and underwriting scenarios to see how UL Plus compares to other carriers accumulation products for both males and females, with and without our Age Last Birthday pricing advantage. UL Plus, 20th Year Cash Value (30th Year Cash Value for Age 35), paying $50,000 in annual premium to age 65 (paid 20 years for age 55) while solving for the minimum non-mec death benefit: All Companies Same Age Preferred Preferred Non-Smoker Preferred Age Best Non-Tobacco Plus Non-Smoker Smoker Smoker 35 45 55 1 1 1 1 Males Females Age Last Birthday Companies One Year Younger Preferred Preferred Non-Smoker Preferred Age Best Non-Tobacco Plus Non-Smoker Smoker Smoker 35 45 55 1 1 1 1 All Companies Same Age Preferred Preferred Non-Smoker Preferred Age Best Non-Tobacco Plus Non-Smoker Smoker Smoker 35 45 55 1 1 1 35 45 55 Age Last Birthday Companies One Year Younger Preferred Preferred Non-Smoker Preferred Age Best Non-Tobacco Plus Non-Smoker Smoker Smoker 1 1 1 1 Ranking is between 1 and 4 or within 5% from number 1 Ranking is between 5 and 12 This information was compiled by Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey. We have selected certain scenarios that highlight our competitive position. These scenarios are not indicative of our competitive position in every scenario. Companies used in these comparisons were identified as our top competitors based on their total premium sales reported to LIMRA and the overall competitiveness of their products. We can only confirm the accuracy of the values shown for our products and make no representations regarding the accuracy or comparability of the other values shown. All exhibits in this presentation are intended to provide only a general view of relative illustrated values. Different assumptions regarding issue ages, rating classes, states of issue, non-guaranteed rates of return, charges, face amounts or premium payments will produce different relative results. Pricing structures and administration of charges and fees may also differ and would affect relative results. Use of this material with the public is prohibited. If is intended for Producer/Broker use only. Data shown as of March 4, 2010. When comparing products, price is not always the determining factor. Features and benefits are equally important. This material is designed to provide general information in regard to the subject matter covered. It should be used with the understanding that we are not rendering legal, accounting or tax advice. Such services should be provided by the client s own advisor. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. PruLife Universal Plus is issued by Pruco Life Insurance Company in all states except New York, where it is issued by Pruco Life Insurance Company of New Jersey, both located in Newark, NJ. This marketing material is subject to an expiration date, and use of this material must be discontinued as of the expiration date. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank of Bank Affiliate. 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0176561-00001-00 Ed. 04/10 Exp. 10/10
A permanent alternative to term life insurance, offering death benefit guarantees, the potential for cash value accumulation, and living benefits. P R U L I F E UNIVERSAL PLUS O V E R V I E W Issued by Pruco Life Insurance Company or by Pruco Life Insurance Company of New Jersey (in New York) 0176302
LIFETIME PROTECTION Life insurance can help do many things for the people you care about most. Its death benefit can help replace your income, send your children to college, and allow your family to maintain the lifestyle they're accustomed to. When you want life insurance that can do all this and more, PruLife Universal Plus, issued by Pruco Life Insurance Company, 1 may be right for you. PruLife Universal Plus can also give you guaranteed, conservative cash value growth and the freedom to select payment options to address the demands of your budget. It can give you tax-deferred cash value growth and a generally income tax-free death benefit that will be there when your loved ones need it. Flexible Premiums and No-Lapse Guarantees You choose when you want to make premium payments and the amount you d like to pay, subject to certain limitations. Generally, the more premiums you pay into the policy, the greater your potential to build taxdeferred cash value. Paying too much into your policy can result in tax consequences, so please refer to footnote 2 for more information. 2 If guarantees are important to you, you can select one of two guarantees to protect the policy from lapsing: 4Paying the Short-Term Premium each year will maintain this guarantee for 10 years. 4Paying the Limited Premium each year will maintain a guarantee to the earlier of 25 years or age 75 (but never less than the short-term guarantee period). If you pay only the Short-Term or Limited No-Lapse Guarantee Premium, you will need to make additional premium payments to keep the policy in force if, at the end of the No-Lapse Guarantee Period, the policy s cash value is zero or less. Also, by paying only the premium required for the No-Lapse Guarantee, you may be foregoing the advantage of building tax-deferred cash value. All guarantees are based on the claims-paying ability of the issuing company. Cash Value Accumulation and Access 3 DEATH BENEFIT OPTIONS Your beneficiaries will receive the death benefit generally income-tax free (according to IRC 101(a)) to help cover your last expenses or help maintain their lifestyle. You can choose one of three types of death benefits: fixed, variable, or return of premium. Enjoy the potential to accumulate cash value on an income tax-deferred basis. 4Your policy s Contract Fund is credited with a competitive rate. The interest-crediting rate may change, up or down, but will never be less than 2%. Your licensed financial professional can provide you with our current crediting rate. 4Also, after the policy s 10th anniversary, your policy may earn even more interest. Access your cash value potentially income tax-free. 4The primary purpose of life insurance is to provide a death benefit. However, once your policy has accumulated cash value, you may be able to access that value, potentially income tax-free, through withdrawals or loans. You can use the cash value in your policy to pay for unanticipated expenses or for planned needs, like supplementing your retirement income. It s money to use as you wish. 3 Loans and withdrawals may trigger a taxable event. Please refer to footnote 3 for more information. You can learn more about your policy, its fees, charges, and conditions by reviewing the sales illustration your licensed financial professional can provide.
VALUE FOR LIFE P o l i c y E n h a n c e m e n t s f o r A d d e d Va l u e There are some additional benefits in this policy that can help make a difference in your life we call these our Living Benefits. 4If you become terminally ill, are confined to a nursing home, or need a vital organ transplant and meet certain criteria, the Living Needs Benefit SM4 rider can help. The rider, at no additional cost to you, enables you to receive a portion of the death benefit while you are alive to help relieve you of some of the financial burden of a prolonged illness. There are limitations, and this rider is not available in all states. Please refer to footnote 4 for more details. 4If your physician puts you into hospice or nursing home care, the MyNeeds Benefit can help. Should you need a withdrawal from your policy to help ease your life financially, this no-cost rider will waive all surrender and withdrawal charges and fees. It can be a relief to know that, at a time when you need it most, your life insurance policy can answer that call. 4If you suffer a disability (as defined in the rider) and can t pay your premiums, we have an optional benefit that will ensure that your policy will not lapse during that disability. It is called the Enhanced Disability Benefit and can be a comforting addition to your policy. This benefit is available for an additional charge. A number of other valuable riders and benefits are available on this policy. For a complete listing, please refer to the Product Highlights on the back cover of this brochure. P a r t o f a R o c k - S o l i d Tr a d i t i o n Because PruLife Universal Plus is issued by members of the Prudential Financial family of companies, you can rely on us to deliver on our promises. Today, Prudential Financial companies serve millions of customers worldwide.
P R O D U C T H I G H L I G H T S Face Amount $25,000 $65 million (Subject to underwriting guidelines) $250,000 minimum for death benefit type C Issue Ages 0 90 (Limits may apply) 0 75 (Death Benefit Option C) Policy 4Flexible premium payments Features 4Two No-Lapse Guarantees 4Guaranteed minimum 2% interest-crediting rate 4Three Death Benefit types Riders 4Living Needs Benefit SM 5 (Form # ORD 87241) 4MyNeeds Benefit Rider (Form # PLI 526-2010; in NY, Form # PLY 127-2010) 4Enhanced Disability Benefit (Form # VL 100 B-2007) 4Children Level Term Rider (Form # VL 182 B-2000 and VL 184 B-2000) 4Accidental Death Benefit (Form # VL 110 B-2000) (except MA) 4Enhanced Cash Value (Form # PLI 496-2006 or PLI 492E- 2007 for option C only) (except NY) 4Overloan Protection Rider (Form # PLI 518-2008; in NY, PLY 123-2008) Rider form numbers can vary by state. Not all riders are available in all states and some are available for an additional charge. Underwriting We underwrite based on age at last birthday and offer good health credits to individuals with a wide range of medical considerations. Please note that all ages and rating classes may not be available. 1 Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey, 213 Washington Street, Newark, NJ 07102, are Prudential Financial companies. Each is solely responsible for its own financial condition and contractual obligations. The policy form number is UL-2010 and can vary by state. 2 Excessively funding your policy can cause it to become a modified endowment contract (MEC). Distributions from a MEC (including loans and withdrawals within two years prior to your policy becoming a MEC) are taxed less favorably than those from a policy that is not a MEC. If you take a distribution before you are 59 1 2, a 10% federal income tax penalty may also apply. A MEC is generally created by paying too much into the policy, but it can also occur if you make certain changes to the policy. Please see your tax advisor for details. 3 Loans are at interest and will void any guarantee against lapse; withdrawals may also impact the length of the guarantee, depending on the amount taken and premiums paid. Taking loans or withdrawals reduces the death benefit and cash value, may make it necessary for you to pay more into the policy than you originally anticipated, and could trigger an unexpected taxable event. 4 The Living Needs Benefit is an accelerated death benefit and is not a health, nursing home, or long-term care insurance benefit and is not designed to eliminate the need for insurance of these types. There is no charge for this rider but, when a claim is paid under this rider, the death benefit is reduced for early payment, and a $150 processing fee is deducted. If more than one policy is used for the claim, each policy will have a processing fee of up to $150. Portions of the Living Needs Benefit payment may be taxable, and receiving an accelerated death benefit may affect your eligibility for public assistance programs. The federal income tax treatment of payments made under this rider depends upon whether the insured is the recipient of the benefit and is considered terminally ill or chronically ill. We suggest that you seek assistance from a personal tax advisor regarding the implications of receiving Living Needs Benefit payments. This rider is not available in Minnesota to new purchasers over age 65 until the policy has been in force for one year, and the nursing home option is not available in New York or the District of Columbia. This rider is not available in Connecticut, Massachusetts, and Washington state and is currently not available in Florida on Return of Premium Term, on Universal Protector, Universal Plus, or VUL Protector. In Oregon, term policies must include the waiver of premium benefit to be eligible for this rider. Life insurance policies contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your licensed financial professional can provide you with costs and complete details. This material is designed to provide general information about PruLife Universal Plus and is not a contract. This brochure is not intended to provide legal or tax advice. Consult your own professional advisors on how this product and its features may benefit your particular situation and how best to utilize any such product. Any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. Prudential, Prudential Financial, the Rock logo, and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ and its affiliates. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate. 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 www.prudential.com ALL RIGHTS RESERVED 0176302 0176302-00001-00 Ed. 04/2010
A permanent alternative to term life insurance, offering death benefit guarantees, the potential for cash value P R O D U C T H I G H L I G H T S Face Amount $25,000 $65 million (Subject to underwriting guidelines) $250,000 minimum for death benefit type C Issue Ages 0 90 (Limits may apply) 0 75 (Death Benefit Option C) Policy 4Flexible premium payments Features 4Two No-Lapse Guarantees 4Guaranteed minimum 2% interest-crediting rate 4Three Death Benefit types Riders 4Living Needs Benefit SM 5 (Form # ORD 87241) 4MyNeeds Benefit Rider (Form # PLI 526-2010; in NY, Form # PLY 127-2010) 4Enhanced Disability Benefit (Form # VL 100 B-2007) 4Children Level Term Rider (Form # VL 182 B-2000 and VL 184 B-2000) 4Accidental Death Benefit (Form # VL 110 B-2000) (except MA) 4Enhanced Cash Value (Form # PLI 496-2006 or PLI 492E- 2007 for option C only) (except NY) 4Overloan Protection Rider (Form # PLI 518-2008; in NY, PLY 123-2008) Rider form numbers can vary by state. Not all riders are available in all states and some are available for an additional charge. Underwriting We underwrite based on age at last birthday and offer good health credits to individuals with a wide range of medical considerations. A great opportunity to summarize UL Plus. Death benefit, cash accumulation and the additional riders available all help to make UL Plus 2010 an attractive possible solution for their needs. Assumption: You have completed a needs analysis that indicates a need for life insurance. P R U L I F E UNIVERSAL PLUS accumulation, and living benefits. + = PROTECTION CASH ACCUMULATION O V E R V I E W UL PLUS 2010 Please note that all ages and rating classes may not be available. 1 Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey, 213 Washington Street, Newark, NJ 07102, are Prudential Financial companies. Each is solely responsible for its own financial condition and contractual obligations. The policy form number is UL-2010 and can vary by state. 2 Excessively funding your policy can cause it to become a modified endowment contract (MEC). Distributions from a MEC (including loans and withdrawals within two years prior to your policy becoming a MEC) are taxed less favorably than those from a policy that is not a MEC. If you take a distribution before you are 59 1 2, a 10% federal income tax penalty may also apply. A MEC is generally created by paying too much into the policy, but it can also occur if you make certain changes to the policy. Please see your tax advisor for details. 3 Loans are at interest and will void any guarantee against lapse; withdrawals may also impact the length of the guarantee, depending on the amount taken and premiums paid. Taking loans or withdrawals reduces the death benefit and cash value, may make it necessary for you to pay more into the policy than you originally anticipated, and could trigger an unexpected taxable event. 4 The Living Needs Benefit is an accelerated death benefit and is not a health, nursing home, or long-term care insurance benefit and is not designed to eliminate the need for insurance of these types. There is no charge for this rider but, when a claim is paid under this rider, the death benefit is reduced for early payment, and a $150 processing fee is deducted. If more than one policy is used for the claim, each policy will have a processing fee of up to $150. Portions of the Living Needs Benefit payment may be taxable, and receiving an accelerated death benefit may affect your eligibility for public assistance programs. The federal income tax treatment of payments made under this rider depends upon whether the insured is the recipient of the benefit and is considered terminally ill or chronically ill. We suggest that you seek assistance from a personal tax advisor regarding the implications of receiving Living Needs Benefit payments. This rider is not available in Minnesota to new purchasers over age 65 until the policy has been in force for one year, and the nursing home option is not available in New York or the District of Columbia. This rider is not available in Connecticut, Massachusetts, and Washington state and is currently not available in Florida on Return of Premium Term, on Universal Protector, Universal Plus, or VUL Protector. In Oregon, term policies must include the waiver of premium benefit to be eligible for this rider. Life insurance policies contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your licensed financial professional can provide you with costs and complete details. This material is designed to provide general information about PruLife Universal Plus and is not a contract. This brochure is not intended to provide legal or tax advice. Consult your own professional advisors on how this product and its features may benefit your particular situation and how best to utilize any such product. Any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. Prudential, Prudential Financial, the Rock logo, and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ and its affiliates. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate. This brochure can help you introduce a conversation about UL Plus to prospects who have these secondary needs in addition to the death benefit that life insurance can provide: Those looking to bridge the retirement gap by supplementing retirement income Business owners looking to address income replacement needs Be sure to review this annotated brochure together with the consumer version to see all of the important information and disclosures that are visible on the consumer version. 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 www.prudential.com ALL RIGHTS RESERVED Issued by Pruco Life Insurance Company or by Pruco Life Insurance Company of New Jersey (in New York) 0176302 0176302-00001-00 Ed. 04/2010 0176302 0176299-00001-00 Ed. 04/2010 (Annotated) FOR INTERNAL USE ONLY.
LIFETIME PROTECTION Life insurance can help do many things for the people you care about most. Its death benefit can help replace your income, send your children to college, DEATH BENEFIT OPand allow your family to maintain the lifestyle they're accustomed to. When TIONS you want life insurance that can do all this and more, PruLife Universal Plus, issued by Pruco Life Insurance Company, 1 may be right for you. Your beneficiaries will receive the death benefit PruLife Universal Plus can also give you guaranteed, conservative cash value generally income-tax growth and the freedom to select payment options to address the demands of free (according to IRC your budget. It can give you tax-deferred cash value growth and a generally 101(a)) to help cover income tax-free death benefit that will be there when your loved ones need it. your last expenses or help maintain their Flexible Premiums and No-Lapse Guarantees lifestyle. You can choose You choose when you want to make premium payments and the amount one of three types of you d like to pay, subject to certain limitations. Generally, the more death benefits: fixed, premiums you pay into the policy, the greater your potential to build taxdeferred cash value. Paying too much into your policy can result in tax premium. variable, or return of consequences, so please refer to footnote 2 for more information. 2 If guarantees are important to you, you can select one of two guarantees to protect the policy from lapsing: 4Paying the Short-Term Premium each year will maintain this guarantee for 10 years. 4Paying the Limited Premium each year will maintain a guarantee to the earlier of 25 years or age 75 (but never less than the short-term guarantee period). If you pay only the Short-Term or Limited No-Lapse Guarantee Premium, you will need to make additional premium payments to keep the policy in force if, at the end of the No-Lapse Guarantee Period, the policy s cash value is zero or less. Also, by paying only the premium required for the No-Lapse Guarantee, you may be foregoing the advantage of building tax-deferred cash value. All guarantees are based on the claims-paying ability of the issuing company. Reinforce the two death benefit guarantees available. Encourage clients to pay at least the Limited Premium amount. Higher premiums should be considered if using the product as a potential source of supplemental retirement income. Cash Value Accumulation and Access 3 Emphasize the competitive interest rates, low volatility and death benefit that make up UL Plus 2010! Enjoy the potential to accumulate cash value on an income tax-deferred basis. 4Your policy s Contract Fund is credited with a competitive rate. The interest-crediting rate may change, up or down, but will never be less than 2%. Your licensed financial professional can provide you with our current crediting rate. 4Also, after the policy s 10th anniversary, your policy may earn even more interest. A great opportunity to educate your prospects about tax-favored accumulation and taxadvantaged access to the cash value. Access your cash value potentially income tax-free. 4The primary purpose of life insurance is to provide a death benefit. However, once your policy has accumulated cash value, you may be able to access that value, potentially income tax-free, through withdrawals or loans. You can use the cash value in your policy to pay for unanticipated expenses or for planned needs, like supplementing your retirement income. It s money to use as you wish. 3 Loans and withdrawals may trigger a taxable event. Please refer to footnote 3 for more information. You can learn more about your policy, its fees, charges, and conditions by reviewing the sales illustration your licensed financial professional can provide. VALUE FOR LIFE Policy Enhancements for Added Value There are some additional benefits in this policy that can help make a difference in your life we call these our Living Benefits. 4If you become terminally ill, are confined to a nursing home, or need a vital organ transplant and meet certain criteria, the Living Needs Benefit SM4 rider can help. The rider, at no additional cost to you, enables you to receive a portion of the death benefit while you are alive to help relieve you of some of the financial burden of a prolonged illness. There are limitations, and this rider is not available in all states. Please refer to footnote 4 for more details. 4If your physician puts you into hospice or nursing home care, the MyNeeds Benefit can help. Should you need a withdrawal from your policy to help ease your life financially, this no-cost rider will waive all surrender and withdrawal charges and fees. It can be a relief to know that, at a time when you need it most, your life insurance policy can answer that call. Use this part of the brochure to discuss the valuable living benefits available with UL Plus 2010. 4If you suffer a disability (as defined in the rider) and can t pay your premiums, we have an optional benefit that will ensure that your policy will not lapse during that disability. It is called the Enhanced Disability Benefit and can be a comforting addition to your policy. This benefit is available for an additional charge. A number of other valuable riders and benefits are available on this policy. For a complete listing, please refer to the Product Highlights on the back cover of this brochure. Part of a Rock-Solid Tradition Because PruLife Universal Plus is issued by members of the Prudential Financial family of companies, you can rely on us to deliver on our promises. Today, Prudential Financial companies serve millions of customers worldwide.
UL PLUS ILLUSTRATING SUPPLEMENTAL RETIREMENT INCOME Helpful Hints on how to run this ISP Sales Concept for our repriced 2010 UL Plus Our revised and repriced PruLife Universal Plus offers your clients valuable death benefit protection along with the potential for conservative cash value accumulation. This cash value potential may appeal to your clients who want to use these funds to supplement retirement income. Want to discuss how this may work with your clients? The ISP illustration software allows you to use policy values in UL Plus to show specific sales concepts, like the Supplemental Retirement Income. Here s how: How to run a Sales Concept Presentation in ISP After running an illustration in ISP, click on Select a Concept and select Supplementing Your Retirement Income presentation. These guidelines must be followed when using concept presentations with your clients: 4You must present a complete individual illustration along with the Concept Presentations. 4You must provide a complete presentation and you must review the concept piece in its entirety. It s important to review with your client all of the information and scenarios included in the Concept Presentation. Doing so will help him or her understand how the policy works and how it can help meet their needs. Each Concept Presentation has an ID number at the bottom of each page. This ID number must match the ID number at the bottom of the page on the individual illustration. This ensures that you are using the correct illustration and presentation with your client. Like an individual illustration, the values in the Concept Presentation are based on hypothetical assumptions. Remind your clients to pay particular attention to whether the actual cash value of the policy is sufficient to keep the policy from lapsing. Running Supplement Retirement Income Sales Concept Quick Tips: 1. Run a new business illustration with policy distributions. Helpful hint: If, based on current interest rate, the policy lapses prior to age 121, a Supplemental Retirement Income presentation is not available. 2. Click on Select a Sales Concept. 3. Select Supplementing Your Retirement Income. This material is designed to provide general information in regard to the subject matter covered. It should be used with the understanding that we are not rendering legal, accounting or tax advice. Such services should be provided by the client s own advisor. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. PruLife Universal Plus is issued by Pruco Life Insurance Company in all states except New York, where it is issued by Pruco Life Insurance Company of New Jersey, both located in Newark, NJ. This marketing material is subject to an expiration date, and use of this material must be discontinued as of the expiration date. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. Securities and Insurance Products: Not Insured by FDIC or any Federal Government Agency May Lose Value Not a Deposit of or Guaranteed by any Bank or Bank Affiliate 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0175563-00001-00 Ed. 03/10 Exp. 09/11
No-Sell Buy-Sell Arrangement If you work with business clients helping to structure and fund buy-sell arrangements, you ve probably met business owners who have yet to realize the rewards of the work they put into building their business. While they project substantial appreciation in the future, they worry that if they die too soon their heirs might lose the right to share in this potential bonanza. If the business owners have a desire to equalize the benefits between the first and last to die and all agree that a deceased owner s heirs should share in the anticipated future appreciation, the no-sell buy-sell may be a solution. Facts: ABC Corporation has been in business for seven years. Its two owners, Abbott (age 45) and George (age 40), each contributed $500,000 to start the company. The company just introduced a new product that is expected to stimulate substantial growth in the company especially in the international market. The company s current fair market value (FMV) of $5 million is expected to double over the next decade. Solution: Recognizing that the business is on the verge of rapid growth, a no-sell buy-sell arrangement may be the right choice. Here are the necessary steps: ABC common stock is recapitalized so that each owner has 10 voting shares and 90 nonvoting shares. Each owner sets up an irrevocable life insurance trust (ILIT) and makes gifts to that ILIT to provide funds to pay life insurance premiums. The ILIT then purchases $2.5 million of life insurance on its respective donor and is the owner, beneficiary, and premium payer of the policy. The death proceeds will replace the cash that would be received by heirs under a more traditional buy-sell agreement. The owners enter into a cross purchase agreement where the survivor agrees to buy only the voting stock at the other s death. The nonvoting stock will pass directly to family heirs or to a trust for their benefit. Each owner is the owner and beneficiary of a policy on the life of the other owner to help fund the buyout of the voting interest. Here s What Happens at Abbott s Death. A $2.5 million death benefit is paid to Abbott s ILIT. This money can be used to support the heirs or provide liquidity for estate taxes. George buys ABC Corporation voting stock from Abbott s estate. The value of the voting shares is $250,000. Abbott s heirs retain the nonvoting shares. The value of the nonvoting stock may be discounted for lack of control, resulting in estate tax savings. Product Selection for Buy-Sell: While the ILITs for both Abbott and George purchased a single life product providing a death benefit guarantee; to help fund the buyout of the voting stock, Abbott and George selected the PruLife Universal Plus because: If Either Dies Before Retirement: The Death Benefit Option C with Interest feature provides growth in the total death benefit, which may help meet growth in voting stock value. If They Live to Retirement: The competitive longterm cash value accumulation can be accessed to help supplement retirement. Of course, withdrawals and loans reduce policy cash values and death benefits, may affect any guarantees against lapse, and may have tax consequences. Plus: Prudential s underwriting criteria with international travel and experience in financial underwriting of relatively new businesses resulted in Abbott and George receiving the face amount and underwriting rating desired. CHART IS ATTACHED PruLife Universal Plus is issued by Pruco Life Insurance Company except in New York where it is issued by Pruco Life Insurance Company of New Jersey. Both are Prudential Financial companies located in Newark, NJ, and each is solely responsible for its financial condition and contractual obligations. Product availability varies by state. This material has been prepared to assist our licensed financial professionals. It is designed to provide general information in regard to the subject matter covered. It should be used with the understanding that we are not rendering legal, accounting or tax advice. Such services should be provided by the client s own advisors. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. QUESTIONS? CALL ADVANCED MARKETING 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0176592-00001-00 Ed. 04/10 Exp. 04/12 (Old IFS-A081510)
Structure of the No-Sell Buy-Sell Arrangement ABC Corporation Recapitalization Gifts Premium Abbott 10 shares voting, 90 shares nonvoting stock George 10 shares voting, 90 shares nonvoting stock Gifts Premium Abbott s ILIT $2.5 million life policy on Abbott Established Cross Purchase Agreement (Voting Shares) George s ILIT $2.5 million life policy on George AT ABBOTT S DEATH, the cross purchase arrangement is honored George 20 shares voting, 90 shares nonvoting stock $$$ 10 Shares Voting Stock Abbott s Estate 90 shares nonvoting stock The Heirs The Results George owns 100% of the voting and 50% of the nonvoting stock and retains control of the business. Abbott s heirs own 50% of the nonvoting stock and continue to share in the upside potential of the business. Abbott s ILIT has access to $2.5 million cash for estate liquidity purposes or to purchase the nonvoting shares. Abbott s estate may be able to value the nonvoting stock at a discount, thereby reducing the estate tax due. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC.
Premium Financing: A Concept to Address Estate/Business Planning Needs Do you have clients with a high net worth ($10m+) and a significant need for life insurance for estate or business planning? Do you have clients who own a large investment portfolio of low basis, high market value assets that would result in considerable tax if liquidated? Do you have clients who are earning high returns on their assets and who don t want to liquidate them to pay insurance premiums? If so, then read on. Facts: Lance Gottbling 1 is in his mid-60s, and is healthy and wealthy. After reviewing his estate plan with his legal and financial advisers, the advisors expressed concern about a potentially large estate tax liability and the need for estate liquidity. Lance has established an ILIT and is considering a large universal life policy to address his estate liquidity needs, but the proposed annual premium exceeds the available annual exclusions. He wants to avoid paying gift taxes for contributions to the trust. Solution: Lance s legal advisors have recommended a premium finance concept offered by a concept sponsor to help meet his insurance needs. Premium financing combines the use of life insurance to address an estate or business need with the borrowing of money from a lending institution to pay life insurance premiums. In Lance s situation, the concept will help him to meet his estate liquidity need, avoid gift taxes, and allow his existing assets to grow at rates greater than the expected cost of borrowing. Although the concept has benefits, Lance also considered the risks with his legal advisor before entering into the concept. Some of the risks he considered were: the possibility of policy lapse, loss of collateral, changes in the interest rate or investment environment that may cause the structure to no longer make economic sense, and the potential for failure to requalify with the lender to keep the financing in place. Given the risks of a premium finance concept, Lance s advisors have suggested he consider an exit strategy. The advisors have proposed paying back the loan from trust assets after 10 years. The trust assets will come from three sources: increases in trust assets, zeroed out 10-year GRATs, and policy cash values. Of course, withdrawals and loans reduce policy cash values and death benefits, may affect any guarantees against lapse, and may have tax consequences. Product Features: PruLife Universal Plus has the following product and compensation features: Enhanced Cash Value rider, which provides higher surrender values in the early years (where available) Death Benefit Option C with Interest can provide sufficient growth in the total death benefit to help meet liquidity needs, cover the premium financing amounts, and perhaps some accrued interest Flexible premium structure Competitive long-term cash value accumulation Two no-lapse guarantee options short-term and limited Issued to age 90, based on actual age Competitive compensation structure, unreduced by age or risk impairment. Since premium financing concepts are complex and contain many risks, Prudential requires a client to work with an organization, not associated with Prudential, that specializes in the design, implementation, and monitoring of the transaction (concept sponsor). In addition, the client s legal counsel must review the transaction to determine if the concept is appropriate for the client s situation and risk tolerance. For information on concept sponsors specializing in this market, contact the Advanced Marketing team. 1 All information is hypothetical in order to illustrate a fact pattern. PruLife Universal Plus is issued by Pruco Life Insurance Company except in New York where it is issued by Pruco Life Insurance Company of New Jersey. Both are Prudential Financial companies located in Newark, NJ, and each is solely responsible for its financial condition and contractual obligations. Product availability varies by state. This training material has been prepared to assist our licensed financial professionals. It is designed to provide general information in regard to the subject matter covered. It should be used with the understanding that we are not rendering legal, accounting or tax advice. Such services should be provided by the client s own advisors. Prudential s sole role with regard to any premium finance arrangement is that of a product provider. Prudential is neither endorsing the use of the premium finance strategy nor the use of any premium finance concept sponsor. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. QUESTIONS? CALL ADVANCED MARKETING 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0163635-00002-00 Ed. 04/10 Exp. 04/12 (Old IFS-A108889)
The Structure Insurance Producer Concept Sponsor 1 2 4 Insured/ Grantor 3 5 6 Lender 9 ILIT 8 Heirs 7 Insurance Company 1. Insurance producer identifies need for insurance with insured/grantor. 2. Insured/grantor works with advisors and concept sponsor to determine whether the concept makes sense for insured/grantor s situation. 3. Insured/grantor establishes an ILIT to own the life insurance policy. 4. Concept sponsor works with insured/grantor and advisors to implement concept, which includes arranging the financing to pay premiums. 5. Insured/grantor pledges additional assets as collateral. 6. Trustee borrows funds to pay the premiums due and collaterally assigns the policy to the lender. Depending on the terms of the loan, loan interest may be borrowed or paid. 7. Trustee pays premiums with the borrowed funds. 8. At the death of the insured, a portion of the death benefit equal to the outstanding loan is paid to the lender with the remainder paid to the trust. 9. Trustee distributes proceeds to the heirs in accordance with the terms of the trust. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC.
Bridging the Retirement Gap Do you have clients who have assets that lost value as a result of the recent turmoil in the market? Are some of these clients concerned that the losses will be detrimental to their retirement lifestyle, especially if an income earner dies prior to recouping the losses? If these clients are also interested in tax-favored products to help supplement their retirement, then read on. Facts: Ron and Natasha Martin are in their 50s and currently have assets of approximately $1.25 million. Ron is concerned that the losses they incurred in the recent market turmoil will negatively impact their desired retirement income stream, especially if Ron should die prior to recouping their losses. They are also worried that the deficit spending by the federal government will lead to higher taxes and fear the impact this could have on their retirement income. They want to know if you can do anything to help them meet their retirement savings objective while helping them bridge their retirement gap in the event Ron dies before their portfolio values are restored. Solution: The recent market turmoil has made planning for retirement more of a challenge for pre-retirees who experienced a drop in portfolio values. While the market may recover, that takes time. Meanwhile, individuals like Ron and Natasha are looking for ways to help supplement their retirement income in a tax-efficient manner while providing protection to a surviving spouse in the event an income earner dies prior to recouping their lost market value. If you have clients like the Martins who need life insurance, consider suggesting the purchase of a life insurance policy with cash accumulation potential. An individual life insurance policy on Ron s life can help bridge the gap between what Ron and Natasha have in their retirement nest egg and the value lost in the recent market downturn in the event Ron dies before the asset values are restored. In addition, life insurance cash values can be accessed on a taxed-favored basis to help supplement retirement income. Product Features: PruLife Universal Plus is wellsuited to meet the needs of people who desire both death benefit protection and the potential for supplemental retirement income because of the following product features: Issue to age 90, based on actual age of the insured. Two no-lapse guarantee options short-term and limited. Flexible premium structure. Competitive long-term cash value accumulation that can be accessed on a tax-favored basis to help supplement retirement income. 1 Preferred loan rate on or after the 10 th policy anniversary, reducing the drag on policy values when cash value is accessed to help supplement retirement income. Overloan protection rider to ensure that the policy does not lapse and cause a taxable event when the owner has accessed the policy through loans. Where the desire to provide supplemental income is part of a business executive benefit arrangement, the enhanced cash value rider can provide higher surrender values in the early policy years, reducing hit to earnings concerns for corporate-owned policies. 1 Life insurance policy cash values are accessed through withdrawals and policy loans. Loans are at interest. Loans and withdrawals cause a reduction in cash values and death benefits, may affect any guarantees against lapse, and may have tax consequences. PruLife Universal Plus is issued by Pruco Life Insurance Company of America except in New York where it is issued by Pruco Life Insurance Company of New Jersey. Both are Prudential Financial companies located in Newark, NJ, and each is solely responsible for its financial condition and contractual obligations. Product availability varies by state. This material has been prepared to assist our licensed financial professionals. It is designed to provide general information in regard to the subject matter covered. It should be used with the understanding that we are not rendering legal, accounting or tax advice. Such services should be provided by the client s own advisors. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. QUESTIONS? CALL ADVANCED MARKETING 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0176760-00001-00 Ed. 04/10 Exp. 10/10
UL Plus is an attractive insurance option for your clients who have enough liquid capital to highly fund their policy and desire conservative cash value growth potential. UL Plus, 20 th Year Cash Value (30 th Year Cash Value for Age 35), paying $50,000 in annual premium to age 65 (paid 20 years for age 55) while solving for the minimum non-mec death benefit: All Companies Same Age Age Last Birthday Companies One Year Younger Males Ages Pref Best Pref NT NS PLUS NS Pref SMK Smoker Ages Pref Best Pref NT NS PLUS NS Pref SMK Smoker 35 1 1 45 1 1 55 35 1 1 45 1 1 55 Females Ages Pref Best Pref NT NS PLUS NS Pref SMK Smoker Ages Pref Best Pref NT NS PLUS NS Pref SMK Smoker 35 1 1 1 45 55 35 1 1 1 45 1 55 Ranking is between 1 and 4 or within 5% from number 1 Ranking is between 5 and 12 This information was compiled by Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey. We have selected certain scenarios that highlight our competitive position. These scenarios are not indicative of our competitive position in every scenario. Companies used in these comparisons were identified as our top competitors based on their total premium sales reported to LIMRA and the overall competitiveness of their products. We can only confirm the accuracy of the values shown for our products and make no representations regarding the accuracy or comparability of the other values shown. All exhibits in this presentation are intended to provide only a general view of relative illustrated values. Different assumptions regarding issue ages, rating classes, states of issue, nonguaranteed rates of return, charges, face amounts or premium payments will produce different relative results. Pricing structures and administration of charges and fees may also differ and would affect relative results. Use of this material with the public is prohibited. If is intended for Producer/Broker use only. Data shown as of March 4, 2010. When comparing products, price is not always the determining factor. Features and benefits are equally important. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC.
PUT LIFE INTO THE DEATH BENEFIT SALE Effective May 1, 2010, our Revised PruLife Universal Plus will offer both the Living Needs Benefit SM Rider and our NEW MyNeeds Benefit Rider UL Plus will be our first product to feature our new MyNeeds Benefit Rider. While the name of this new rider may sound like our Living Needs Benefit Rider, each rider offers its own distinct benefits that work to give your clients additional living benefit protection. And, neither rider requires that your clients pay additional premiums! MyNeeds Benefit Rider waives surrender and/or withdrawal charges (if applicable) if an insured is confined to nursing home or hospice care prescibed by a physician and requests a withdrawal from his/her UL Plus 2010 policy. Living Needs Benefit Rider 1 adds flexibility by advancing the death benefit 2 of the client s UL Plus policy if the insured: 4Becomes terminally ill and has a life expectancy of six months or less; 4Is confined to an eligible nursing home for at least six consecutive months and is expected to be permanently confined; or 4Requires an organ transplant and would have only six months or less to live without the transplant procedure. 3 Note: The maximum amount the insured can receive is: 4Approximately 70-80% of the death benefit for the Nursing Home option; and 4Approximately 90-95% of the death benefit for the Terminal Illness option. When you combine these two riders into one UL Plus policy, you are offering your clients additional living benefit protection. 1 The Living Needs Benefit is an accelerated death benefit and is not a health, nursing home, or long-term care insurance benefit and is not designed to eliminate the need for insurance of these types. There is no charge for this rider but, when a claim is paid under this rider, the death benefit is reduced for early payment, and a $150 processing fee is deducted. If more than one policy is used for the claim, each policy will have a processing fee of up to $150. Portions of the Living Needs Benefit payment may be taxable, and receiving an accelerated death benefit may affect eligibility for public assistance programs. The federal income tax treatment of payments made under this rider depends upon whether the insured is the recipient of the benefit and is considered terminally ill or chronically ill. We suggest that clients seek assistance from a personal tax advisor regarding the implications of receiving Living Needs Benefit payments. This rider is not available in Minnesota to new purchasers over age 65 until the policy has been in force for one year, and the nursing home option is not available in New York or the District of Columbia. This rider is not available in Connecticut, Massachusetts, and Washington state and is not currently available in Florida on Return of Premium Term, Universal Protector, Universal Plus, or VUL Protector. In Oregon, term policies must include the waiver of premium benefit to be eligible for this rider. 2 The entire contract may be accelerated. After the actuarial reduction is applied, the maximum Living Needs Benefit the policyowner can receive in most cases is 90-95% of the death benefit under the terminal illness option and 70-80% of the death benefit under the nursing home option. 3 Option available prior to the transplant only. This material is designed to provide general information in regard to the subject matter covered. It should be used with the understanding that we are not rendering legal, accounting, or tax advice. Such services should be provided by the client s own advisor. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency May Lose Value Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate PruLife Universal Plus is issued by Pruco Life Insurance Company in all states except New York, where it is issued by Pruco Life Insurance Company of New Jersey. Both are Prudential Financial companies located in Newark, NJ. This marketing material is subject to an expiration date, and use of this material must be discontinued as of the expiration date. FOR INTERNAL USE ONLY. NOT FOR USE WITH THE PUBLIC. 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0175788-00001-00 Ed. 03/2010 Exp. 09/2011
PRULIFE F A S T F A C T S UNIVERSAL PLUS Availability is subject to state approval. Overview PruLife Universal Plus is a Universal Life Product that can accumulate cash value. It offers flexible premiums, 2 guarantees against lapse, and death benefit types A, B and C. PruLife Universal Plus is available for: 4 conversions from individual policies 4an exchange option from the joint and survivor policy (including spouse and child riders) (no longer available for sale) 4 conversions from PruTector policies 4an exchange option from a Divorce and Tax Law 4 exercise of OPAI options Rider or the Policy Split Rider 4 conversion from a Children Level Term Rider 4new business applications as outlined below PruLife Universal Plus is a non-participating policy, which means policy dividends are not paid. Target Markets Individual Market Business Market 4 Mass affluent to high net worth consumers 4Business owners 4 Foreign nationals 4Executives Design Highlights Capacity 1 Underwriting Categories 4 2 No-Lapse Guarantee periods: 4 Short-Term No-Lapse Guarantee: 10 years for all ages 4 Limited No-Lapse Guarantee: the lesser of 25 years or age 75, but not less than the Short-Term No-Lapse Guarantee period 4 Premium finance 4 Cash value accumulation potential 4 Age last birthday $65 million. Capacity is reduced by amounts in force and applied for. Capacity can also be reduced by underwriting factors such as age, ratings, residence, travel and occupation. Higher amounts will be considered on a case-by-case basis. We offer six underwriting categories, including four Non-Smoker and two Smoker categories. Non-Smoker Preferred Best Preferred Non-Tobacco Non-Smoker Plus Non-Smoker* Smoker Preferred Smoker Smoker* *Only categories available for policies under $1,000,000, for issue ages under 18 and for certain substandard ratings and extras. The chart below is a general correlation of underwriting categories and is provided as a guideline to help prepare initial illustrations. Underwriting categories are not meant to represent any specific company s rating classes. Companies with 3 Classes Non-Smoker Plus Standard Non-Smoker Smoker Prudential Companies with 4 Classes Preferred Best Preferred Non-Tobacco Preferred Non-Tobacco Non-Smoker Plus Non-Smoker Plus Non-Smoker Standard Non-Smoker Preferred Smoker Smoker Smoker 1 The capacity, or maximum face amount, may be subject to availability of reinsurance. FOR THE EDUCATION OF PRODUCERS/BROKERS ONLY. NOT FOR USE WITH THE PUBLIC.
Death Benefit Types 4Fixed Death Benefit (Type A) 4Variable Death Benefit (Type B) 4Return of Premium Plus Interest (Type C) Interest rates range from 0 8% in 0.50% increments Issue Ages 2 40 90 (0-75 for policies issued with Death Benefit Type C) Minimum Face Amounts Tiered Commission Target Premium Enhanced Cash Value Rider (ECV) Interest Crediting Rate No-Lapse Guarantee Issue Age of Insured Minimum Face Amount 0 75 $25,000 76 80 $100,000 81 90 $250,000 3 Note: Minimum face amount for UL policies with Death Benefit Type C is $250,000 of total coverage regardless of age. The Tiered Commission Target Premium (TCTP) is a second commission target premium that increases first year CTP by 10-20% for large up-front premium cases (i.e. Maximum 7-Pay Non-MEC cases). When eligible first year premiums equal or exceed a specified premium amount, known as the Tiered Commission Threshold, your CTP is then increased by 10-20%. This increase is compensated at first year commission levels. Meeting or exceeding the Tiered Commission Threshold must occur within the contract s first 12 months (i.e. approximately the 7-Pay Maximum Non-MEC). Eligible first year premiums exclude premiums received from non-commission conversion credits and internal rollovers from any Prudential policy. The Enhanced Cash Value (ECV) Rider is an optional rider that, during the early years, provides an additional amount to the cash surrender value of the policy. ECV is primarily suitable for business owned or premium financed insurance. It may only be added to a policy at issue and cannot be removed after the New Business Change Period. When adding ECV to the policy, it is important to consider the following: 4There is a $250,000 minimum face amount. 4While short-term cash values may be higher, the long-term cash values may be lower. 4 ECV enhances the policy s cash surrender value, however it does not enhance the policy s contract fund value. 4ECV does not enhance the policy s loan value. 4There will be a one-time charge of $0.75 per thousand of coverage amount for ECV. The charge will be deducted from the first monthly deduction on the policy. 4Compensation rates and structure differ on policies with ECV. A portion of first year compensation is earned and payable in policy year 1. Provided the policy remains inforce, contingent future commission is payable in policy years 2-6. 4Policies surrendered as part of an exchange under Sec. 1035 of the IRS Code will not receive the higher values. 42% guaranteed minimum effective annual interest rate 4Additional interest may be credited 4A bonus interest rate of up to 0.40% may also apply beginning in the 11th policy year. The No-Lapse Guarantee provides a death benefit protection period, assuming required premiums are received on or before the due date and no loans or withdrawals are taken. In order to guarantee the death benefit, a certain level of premiums must be received. As long as premiums paid into the policy at 3% minus withdrawals accumulated at 3% are equal to or greater than the amount shown in the Table of No Lapse Guarantee Values in the contract, and the policy has no excess policy debt, the guarantee will remain in effect. No-Lapse Guarantee Issue Ages Guarantee Period Short-Term No-Lapse Guarantee All ages 10 years Limited No-Lapse Guarantee* All ages Earlier of 25 years or age 75, but will be no less than the Short-Term No-Lapse Guarantee period * The Limited No-Lapse Guarantee is not available for policies issued with Death Benefit Type C. 2 There are no extended or exception issue ages. 3 Consideration will be given for face amounts as low as $200,000. You should submit an inquiry to Underwriting before submitting an insurance request on an individual over age 80 for guidance on whether the risk may be considered. If the case can be submitted, requests between $200,000 and $249,000 must be submitted using the paper application. FOR THE EDUCATION OF PRODUCERS/BROKERS ONLY. NOT FOR USE WITH THE PUBLIC.
Available Benefits 4Accidental Death Benefit (ADB) 4Children Level Term Rider (CLT) and Riders 4 4Enhanced Cash Value Rider (ECV) 4Enhanced Disability Benefit (EDB) 4Living Needs Benefit (LNB) 5 4Overloan Protection Rider 4MyNeeds Benefit Rider Face Amount Bands Band Minimum Face Amount Maximum Face Amount Band 1* $1 $24,999 Band 2 $25,000 $99,999 Band 3 $100,000 $249,999 Band 4 $250,000 $999,999 Band 5 $1 million and up * Band 1 is available for individual life contractual conversions only. Premiums 4Premiums can be paid to attained age 121. Billing Modes 4Annual 4Semi-Annual 4Quarterly 4Monthly (Electronic Funds Transfer only) Face Amount Increases Face Amount Decreases Death Benefit Option Changes Definition of Life Insurance Test Face amount increases are available after the first policy anniversary. Each increase results in a new surrender charge period and is subject to evidence of insurability for the increased portion of coverage. 4 Minimum increase: $25,000 for base coverage ($50,000 in NY for base coverage) Face amount decreases are permitted at any time after policy issue, upon request, provided the total coverage, after the decrease, is not below the company s minimum requirement. Surrender charges may apply to the decreased amount. 4Minimum decrease: $5,000 for base coverage 4Changes from Option A & C to B and B & C to A are allowed. 4Option C can be changed to A and B but cannot be changed back to C. Choice of: Cash Value Accumulation Test (CVAT) or Guideline Premium Test (GPT) Withdrawals 5 Minimum amounts of $250 Loans 6 (Standard & Preferred) Loans are available at any time provided loan value exists and the policy is not in default. Loan Types Maximum Amount Crediting Rate Applied Interest Rate Charged Standard 100% of cash value 3% 4% (available any time loan value exists) Preferred Equal to the total loan value 3% 3.25% (available on or minus the total premiums after the 10th paid less withdrawals policy anniversary) Note: If preferred loans become available, existing standard loans will not be automatically converted to preferred loans. 4 All riders, supplemental benefits and product features may not be available in all states. Additional limitations may apply based on age and underwriting. 5 The Living Needs Benefit is an accelerated death benefit and is not a health, nursing home, or long-term care insurance benefit and is not designed to eliminate the need for insurance of these types. There is no charge for this rider but, when a claim is paid under this rider, the death benefit is reduced for early payment, and a $150 processing fee is deducted. If more than one policy is used for the claim, each policy will have a processing fee of up to $150. Portions of the Living Needs Benefit payment may be taxable, and receiving an accelerated death benefit may affect eligibility for public assistance programs. The federal income tax treatment of payments made under this rider depends upon whether the insured is the recipient of the benefit and is considered terminally ill or chronically ill. We suggest that clients seek assistance from a personal tax advisor regarding the implications of receiving Living Needs Benefit payments. This rider is not available in Minnesota to new purchasers over age 65 until the policy has been in force for one year, and the nursing home option is not available in New York or the District of Columbia. This rider is not available in Connecticut, Massachusetts, and Washington state and is not currently available in Florida on our Return of Premium Term, Universal Protector, Universal Plus, or VUL Protector. In Oregon, term policies must include the waiver of premium benefit to be eligible for this rider. 6 Life insurance cash values are accessed through loans and withdrawals, which will reduce cash values and death benefits, and may have tax consequences. FOR THE EDUCATION OF PRODUCERS/BROKERS ONLY. NOT FOR USE WITH THE PUBLIC.
Coverage Beyond Age 121 Basic Insurance Amount (BIA) coverage continues beyond the Insured s attained age 100 provided the policy is in effect at the time (subject to state approval). If coverage is extended beyond age 121, the policy will continue to be credited with interest. However, premiums will no longer be accepted and charges, other than interest on any outstanding policy loans, will no longer be deducted. Minimum Initial Premium 49% of the Short-Term Premium Underwriting Categories for Conversions The underwriting categories available for all PruLife Universal Plus policies issued as a result of: Conversions from PruTector 4Standard Exercising the Option to Purchase Additional Insurance (OPAI) 4Non-Smoker 4Smoker Conversions from any individual Term policy or selected Term Rider The underwriting categories available will vary based on the policy face amount. Conversions to face amounts of $1-$99,999: 4Non-Smoker 4Smoker - only available at ages 15 or greater Conversion to face amounts of $100,000 or more: 4Preferred Best 4Preferred Non-Tobacco 4Non-Smoker Plus 4Non-Smoker 4Preferred Smoker 4Smoker The new PruLife Universal Plus policy will be in the same rating or equivalent classification as the plan being converted. Please note that only the Smoker and Non-Smoker categories are available: for policies under $100,000 for issue ages under 18 substandard table ratings A-H, permanent flat extras (occupational ratings), aviation extras, or temporary extra premiums apply. Permanent flat extras, applied only for hazardous avocations or foreign travel, are also available in the Preferred Non-Smoker category. Preferred categories are only available for policies with minimum face amounts of $100,000. FOR THE EDUCATION OF PRODUCERS/BROKERS ONLY. NOT FOR USE WITH THE PUBLIC.
CONTRACT CHARGES DEDUCTED FROM PREMIUM PAYMENTS Current Guaranteed Premium Based Administrative Charges (Taxes) 43.75% 47.5% Charges for Sales Expenses (on all premiums) 4Policy Years 1-4: 4.5% 4Policy Years 5-10: 3.0% 4Policy Years 11+: 0.5% Varies by duration (In NY: 3.6% on all premiums) 4All Years: 8% on all premiums paid CHARGES DEDUCTED MONTHLY FROM THE CONTRACT FUND Administrative Charges Monthly per $1,000 Charge Cost of Insurance Charge Charges for Riders and/or Supplementary Benefits Years 1-2: $20 per month Years 3+: $10 per month Minimum Varies by duration (In NY: $15.00 per month in all years) 45 years per $1,000 charge. Varies by sex, issue age, duration, premium class, and rating class. Varies by sex, issue age, duration, band, and premium class. Based on riders and/or supplementary benefits selected All years: $20 per month Maximum In NY, all years: $15 per month All years per $1,000 charge (except in NY: 5 years per $1,000 charge.) Varies by sex, issue age, duration, premium class and rating class. Varies by sex, issue age, duration, and premium class. Same as current TRANSACTION CHARGES DEDUCTED FROM THE CONTRACT FUND Surrender Charge Based on client s age, face amount, and underwriting category. Declines annually after issue or increase in coverage. See schedule of maximum surrender charges in the contract data pages for more detail. Same as Current Withdrawal Charge Lesser of $25 or 2% of withdrawal amount Same as Current Living Needs Benefit SM Rider 5 Charge Up to $150 processing fee each time a claim is paid. Same as Current Overloan Protection Rider Charge 3.5% of the contract fund amount Same as Current Administrative Charge for any Change in Basic Insurance Amount (BIA) None $25 per increase/decrease in BIA This highlighter includes an expiration date. The use of this highlighter must be discontinued as of the expiration date. PruLife Universal Plus is issued by Pruco Life Insurance Company in all states except New York, where it is issued by Pruco Life Insurance Company of New Jersey. Both are Prudential Financial companies located in Newark, NJ. Each is solely responsible for its own financial condition and contractual obligations. The policy form number is UL-2010. Product availability varies by state. This information does not supersede contractual provisions. Not all products, features and guarantees are available in all states. All guarantees are based on the claims-paying ability of the issuer. 2010 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 0176077-00003-00 Ed. 04/2010 Exp. 10/2011 FOR THE EDUCATION OF PRODUCERS/BROKERS ONLY. NOT FOR USE WITH THE PUBLIC.
LIFE INSURANCE PRODUCT PORTFOLIO OVERVIEW g u I d e T o o u R C u R R e N T I N S u R A N C e P R o d u C T H I g H L I g H T S A N d K e Y f e A T u R e S 2 0 1 0 L I F E I N S U R A N C E The Prudential Insurance Company of America has its roots in the life insurance industry dating back to 1875, when we first opened our doors in downtown Newark, New Jersey. Since then we, together with our affiliated companies, have built a Rock-Solid reputation based on trust, service, underwriting expertise, and competitive product offerings. We are carriers with whom you can feel confident developing a long-term relationship. At the end of the day, we will be there... for you and your customers. 4 T E R M E S S E N T I A L 4 T E R M E L I T E 4 P R U L I F E R E T U R N O F P R E M I U M T E R M 4 P R U L I F E U N I V E R S A L P R O T E C T O R 4 P R U L I F E U N I V E R S A L P L U S 4 P R U L I F E S U L P R O T E C T O R 4 P R U L I F E C U S T O M P R E M I E R I I 4 V U L P R O T E C T O R S M FOR THE EDUCATION OF PRODUCERS/BROKERS ONLY. NOT FOR USE WITH THE PUBLIC. 0158872-00008-00 Ed. 04/2010 Exp. 10/2011