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Prudential Reprices Term Products

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Prudential Financial Inc. announced it has repriced 2 term life insurance products.

Prudential, Newark, N.J. says it repriced its Term Essential and Term Elite products to be more competitive in the marketplace, especially for policies with a face value of over $1 million and for 10-, 15-, 20- and 30-year level premium paying periods.

The changes use “age-last birthday,” an underwriting method that is a measure of an applicant’s calendar age on any given date.

Basing premiums on a client’s current age, whether they apply within the first or second half of any given year, can translate into “significant savings,” says Rich Brugger, vice president, marketing in Prudential’s individual life insurance business.

Brugger cites as an example a 44 year-old man applying for a Pruco Life Insurance Company Term Essential 30-year policy with a face amount of $1 million, who qualified for Prudential’s second-best non-smoker underwriting class. This client would, under an age-last-birthday plan, receive a premium of $2,175 regardless of when he applied within the year after turning 44. If the premium were calculated using “age-nearest birthday,” this same man would pay $2,375, assuming he applied anytime after 6 months of turning 44.


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