On Monday, February 23rd, Prudential released revised rates for their PruLife Universal Protector (2013). In an environment where two companies recently pulled their no lapse guarantee products and others are raising rates, Prudential made a counter move, making their guaranteed universal life product more competitive.
The rate revisions primarily focused on strengthening the competitive positioning for non-smokers ages 50 and above. As ages increased, rates reduced more and more significantly. At age 50, rates dropped by 0%-4%, while at age 85 reductions averaged over 20%. This premium reduction pattern was seen across the entire no-lapse guarantee solve objectives (Lifetime, A105, A100 & A90).
Ranking for full-pay premiums prior to the revision hovered around 10th; the aggressive pricing reduction at the older ages now provides for competitive positioning within the top 5. For limited-pays, PruLife UL Protector further enhanced its competitive positioning and now ranks in the top 5 for a large amount of ages and risk classes.
As expected, target premiums experienced reductions by similar percentages. There were no changes below age 50.
Prudential touts their Age Last Birthday advantage. This Overview Analysis was based on Age Nearest (or same age versus competing products). As expected, when looking at Age Last Birthday, the competitive positioning is further enhanced.
Rates were updated on the LifeTrends website Tuesday, February 24th, 2015.