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Value for life.
PruLife Universal Plus, issued by Pruco Life Insurance Company, or in New York by Pruco Life Insurance Company of New Jersey, is an affordable, permanent alternative to term life insurance. With it, you can enjoy the security of lifetime protection and a guaranteed minimum 3% crediting rate, plus:
Plus, you'll receive annual statements.
Its competitiveness makes permanent life insurance possible for those who might otherwise consider a term insurance policy for their personal protection, business protection, or estate planning needs:
Personal Protection: The security of a guaranteed minimum interest-crediting rate, a short-term guarantee against lapse, and the potential for cash value growth help ensure your loved ones will have the funds they need to maintain their lifestyles and financial goals, even if you're no longer here to help them. As a secondary benefit, the cash value may also be used for other purposes, such as to supplement retirement income.
Business Planning: The flexible premium structure, ability to drop in additional payments, and the Return of Premium Plus Interest death benefit option, make it an ideal funding solution for business continuation arrangements.
Individual Estate Planning: The death benefit, which is generally received income tax-free according to Internal Revenue Code Section 101(a), can help provide needed funds to settle your estate, thereby preserving your other assets for your loved ones.
To review the basic concepts and mechanics of universal life insurance, visit The Concept of Universal and Variable Life Insurance. Part of a Rock-Solid® Tradition PruLife Universal Plus is issued by members of the Prudential Financial family of companies. Today, Prudential Financial serves millions of customers worldwide.
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Policy Features
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With PruLife Universal Plus, you choose when you want to make premium payments and the amount you'd like to pay, subject to certain limitations. You can pay anything from the minimum needed to support policy charges 1 to the maximum allowed by federal tax law. The more premiums you pay into the policy, the greater your potential to build cash value. Note that paying too much money into your policy can cause it to become a modified endowment contract (MEC), which is taxed less favorably than a policy that is not a MEC. 2
You can choose the method and timing of billing you prefer:
- Annual
- Semiannual
- Quarterly
- Monthly, via automatic transfers from your checking account (EFT)
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To guarantee your policy against lapse regardless of changes in the values within your policy, you can pay sufficient premiums to secure a death benefit guarantee. Paying a level of premiums known as the Short-Term Premium on time each year will maintain this guarantee for seven years for age 0-59 or five years for age 60 and older, provided you do not take policy loans or withdrawals. (Not making timely payments or changing how often you pay your premiums may also affect the guarantee.)
All guarantees are based on the issuing company's ability to pay claims.
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Your beneficiaries will receive the death benefit generally income-tax free3 to help cover your last expenses or maintain their lifestyle. You can choose one of three types of death benefits:
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Fixed: If you would like the potential to accumulate more cash value, then consider the fixed death benefit.
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Variable: If you anticipate that your need for insurance will likely increase over time, consider the variable death benefit. It generally increases each year and changes as the cash value increases or decreases but is never less than the face amount
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Return of Premium Plus Interest (Type C): If you own a business and plan to use the policy as part of a business continuation arrangement, consider the option that returns your premiums plus interest4.
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PruLife Universal Plus offers the potential to accumulate income tax-deferred cash value. Your premium payments, after any charges and fees are deducted, are paid into your policy's Contract Fund. The Contract Fund is held in Pruco Life's general account, which is backed by a portfolio of high quality assets. The Contract Fund is credited with a competitive interest rate, guaranteed to be at least an annual effective rate of 3%. A policy kept in force for the long term may earn even more interest with additional excess interest after the policy's 10th anniversary. (Not available in all states.)
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PruLife Universal Plus offers the potential to accumulate cash value, income tax-deferred. Although the primary purpose of life insurance is to provide a death benefit, once your policy has accumulated cash value, you may be able to access that value, potentially income tax free, through withdrawals or loans. Please note that loans are at interest and will void any No-Lapse Guarantee in effect; withdrawals may also negate the guarantee, depending on the amount taken. Taking loans or withdrawals reduces the death benefit and cash values, may make it necessary for you to pay more into the policy than you originally anticipated and may have tax consequences5 .
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PruLife Universal Plus offers the following riders and additional benefits to meet your needs.
Some riders may require additional premiums, and some are not available in all states.
Enhanced Disability Benefit:
A disability can put a financial strain on everyone's budget. To ensure your policy will not lapse during a period of disability, under this rider Prudential will pay into your policy the greater of 9% of your Short-Term Premium or the monthly charges for as long as you are considered to be disabled under the terms of the rider. This benefit is available for an additional cost. (Form # VL 100 B2-2003)
Accidental Death Benefit:
An accidental death can be especially devastating. To help your loved ones, this rider will pay your beneficiary an additional death benefit if your death is accidental as defined in the rider. This benefit is available for an additional cost. (Form # VL 110 B-2003-OR)
Children Level Term Rider:
You can provide term insurance protection for your eligible children. This insurance offers level premiums and a level death benefit, and additional eligible children are covered automatically with no increase in premium. With an option for your children to convert to any permanent policy up to five times its face amount, without a medical exam, until they reach age 25, this rider can help them begin their own life insurance program This rider is available for an additional cost. (Form # VL 182 B-2000 and VL 184 B-2000)
Target Term Rider
For a flexible term insurance benefit until you reach age 100, consider this rider. You can specify the amount of term rider coverage you desire, up to four times your base policy's face amount. The combined coverage of your base policy and Target Term Rider must be at least $250,000. The amount of term rider coverage is guaranteed while the no-lapse guarantee is in effect. Please refer to the Target Term Rider At a Glance brochure for more information. This rider is not available in New York. (Form # VL 197 B2-2003 OR VL 197 B3-2003 for option "C" only)
Living Needs BenefitSM:
A long illness that precedes death can be financially devastating to loved ones. For no additional premium, this valuable rider can help relieve some of the financial strain by enabling you to receive part of the death benefit while you are alive if you become terminally ill, are confined to a nursing home, or need a vital organ transplant and meet certain criteria6. It may enable you to live a fuller life or die with dignity. This rider is not available in Massachusetts. (Form # ORD 87241-92-P)
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To keep abreast of changes in your policy, you will receive periodic statements listing information such as your policy's cash value, accumulated net premium payments, interest-crediting rates, notice of any adverse changes, and any transactions.
For secure access to your policy information 24 hours a day, 7 days a week, you can enroll for free online account access at Prudential's website.
IFS-A066232 Ed. 09/2004
1 Minimum Premium to Endow is a hypothetical, non-guaranteed premium that, based on current interest rates and charges, would keep the policy in force to age 100. Interest rates and charges will change over time, as will the Minimum Premium to Endow. The actual premium needed to keep the policy in force is based on actual results and may be higher or lower.
2 For distributions from a MEC prior to age 59½, a federal income tax penalty may apply. Distributions (including loans) are taxable to the extent of income in the contract and an additional 10% federal income tax penalty may apply. However, death benefits are still generally received income tax free pursuant to IRC §101(a). Please consult a tax advisor.
3 According to IRC §101(a). There are exceptions to this general rule, including certain changes in ownership or payment of any additional interest at death.
4 This option can be issued only at ages 0-85, and it is available only on policies with face amounts of at least $250,000.
5 Loans are generally tax free, and withdrawals are generally taxable to the extent they exceed cost basis. At surrender or lapse, any outstanding loan is taxable to the extent of gain in the policy. Different tax rules apply to policies classified as modified endowment contracts. Consult your tax advisor for advice regarding your particular situation.
6 When a claim is paid under this rider, the eligible death benefit amount is reduced and a $150 processing fee is deducted. Each policy on which a Living Needs Benefit is paid for the same claim will have an additional processing fee of up to $150. Receipt of the accelerated death benefit may be taxable; please consult your personal tax adviser. Receipt of the accelerated death benefit may affect eligibility for public assistance programs. The Living Needs Benefit 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. Availability and terms vary by state.
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 material is not intended to provide legal or tax advice. Consult your own professional advisers on how any product discussed may benefit your particular situation and how best to utilize any such product.
PruLife Universal Plus is issued by Pruco Life Insurance Company, an AZ corporation, in all states except New York, where it is issued by Pruco Life Insurance Company of New Jersey. Both Pruco Life companies are Prudential Financial companies and are located at 213 Washington Street, Newark, NJ 07102-2992. (Pruco Life California Certificate of Authority 3637). All guarantees are based on the claims-paying ability of the issuer.
Pruco Life Insurance Company, Pruco Life Insurance Company of New Jersey, and Prudential are each solely responsible for their own financial condition and contractual obligations.
Policy form number UL-2003.
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