Benefits of Selling WorkLife 65

Transcription

1 PruTerm WorkLife 65 SM LEARN ABOUT THE PRODUCT AND MARKET Benefits of Selling WorkLife 65 Pru s new and innovative term product will resonate with your clients. WorkLife 65 is a new and innovative term product from Pru. It offers your clients level premium coverage to age 65 with built-in benefits that will waive your client s premiums in case of disability and/or unemployment, subject to conditions and limitations as explained below. Consumers Want Coverage to Age 65. 4Analysis performed by Prudential indicates that many of our Life customers are trying to purchase coverage until age 65. 4With traditional term products, consumers looking to purchase insurance with the specific goal of coverage that protects their earning capacity may be forced to buy coverage that is shorter or longer than what they are looking for. WorkLife 65 can be the ideal product for such clients. It s Simple! Consumers Understand WorkLife 65. 4Coverage to age 65 One purchase gives them term coverage until age 65. What s not to like? 4Valuable benefits automatically included Unemployment and disability are important concerns that many of your clients may face. That is why we designed WorkLife 65 to: Waive premium payments if the client becomes unemployed. If the insured becomes unemployed after the first contract anniversary, but before age 65, Prudential will waive one continuous year of premiums. The insured must remain unemployed for 60 days, receive state unemployment benefits, and have been continuously employed for a full year preceding the date unemployment began. The unemployment feature may only be used once. Waive premium payments if your client becomes disabled (at any time up to age 65). 4Premiums are guaranteed And will not increase before age 65. 4Conversion to age 65 It s simple! If your clients want to convert to a permanent policy before age 65, they can no questions asked. 1 4One of a kind No other leading insurance company can offer a term product that has the same blend of product benefits, features and length of coverage as WorkLife 65. 4Offered by Pru Rock Solid coverage from a leading life insurance company. Continued on page. 1 Prudential allows conversions to survivorship policies at the company's discretion; it may discontinue the practice at any time. WorkLife 65's built-in Insured's Waiver of Premium Benefit Rider for unemployment and disability is not eligible for conversion to a permanent policy. 011 Prudential Financial, Inc. and its related entities Ed. 01/011 Exp. 07/01

2 Consumer Focus Group Tested/Focus Group Approved! 4Participants from ages 5 to 55 expressed high interest in WorkLife % of participants indicated they would consider WorkLife 65 for their next life insurance purchase. 4Participants were willing to purchase WorkLife 65 when monthly premiums were $5 to $10 more a month compared with term products offered by well-known competitors. 4Participants indicated that they look at monthly premiums in order to consider affordability, just like they do for other monthly services, such as cable TV, cell phones, or car payments. 4Participants thought the most favorable aspects of WorkLife 65 were: The chance to get term coverage to age 65. The built-in benefits for disability and unemployment. The strength of the issuing company. The ability to convert to a permanent policy at any point up to age % of participants indicated that they would like additional information about the product when available. Producers Like It Too! 4WorkLife 65 tested positively with independent producers: 100% of participants said that they would present WorkLife 65 to their clients. 90% felt WorkLife 65 would help them increase their sales. 4They described the product as being: Comprehensive. A great value for the price. The right product for the times. One of a kind. 4Coverage to age 65 and built-in benefits for disability and unemployment tested very well with producers. Contact Your Prudential Wholesaler or Log On to for More Information. Source: Prudential Global Market Research, Research Study and Focus Group Testing, 010. PruTerm WorkLife 65 is issued by Pruco Life Insurance Company in all states (where available) except in New York, where, if available, 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. All guarantees are based on the claims-paying ability of the issuer. All products, features and benefits may not be available in all states. Terms and restrictions apply. See the WorkLife 65 Fast Facts for additional details. 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. This marketing material is subject to an expiration date, and use of this material must be discontinued as of the expiration date. 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 Ed. 01/011 Exp. 07/01

3 PruTerm WorkLife 65 SM LEARN ABOUT THE PRODUCT AND MARKET Competitive Comparison Introducing a Product Too Unique for Comparisons You might be expecting to see product comparison charts. The truth is, we can t provide WorkLife 65 comparison charts because no other leading life insurance company offers a comparable term product. What does WorkLife 65 offer that makes it so unique? 4Consumers from age 5 to 55 (35 to 55 in WA) can have financial protection for their working years (to age 65) no matter when they purchase it. That means your younger clients can get up to 40 years of term coverage! 4WorkLife 65 provides a built-in benefit that waives premium payments if: Your client becomes disabled (at any time up to age 65). Your client becomes unemployed. If the insured becomes unemployed after the first contract anniversary, but before age 65, Prudential will waive one continuous year of premiums. The insured must remain unemployed for 60 days, receive state unemployment benefits, and have been continuously employed for a full year preceding the date unemployment began. The unemployment feature may only be used once. 4Plus, WorkLife 65 is convertible to Pru s entire permanent portfolio at any time up to age 65 without the need for a medical exam, guaranteed. Prudential allows conversions to survivorship policies at its discretion; it may discontinue the practice at any time. WorkLife 65 s built-in insured s Waiver of Premium Benefit Rider is not eligible for conversion to a permanent policy. NO OTHER LEADING LIFE INSURANCE COMPANY OFFERS A COMPARABLE TERM PRODUCT. WorkLife 65 helps protect your clients in more ways than ONE. Nearly one in 10 American workers is unemployed today. 1 THREE of 10 Americans will become disabled before they retire. 1 Source: Bureau of Labor Statistics as of September 010 News Release. Source: Council for Disability Awareness website, Chances of Disability, as of November, 010. Why will consumers be interested in WorkLife 65? Pru s consumer research while developing WorkLife 65 validates the market. Our consumer focus group results 3 show that: 49 out of 10 participants wanted to learn more about the product after reading a description. 4After seeing the pricing customized to their age and gender, 9 out of 10 participants thought WorkLife 65 offered better value than a basic term policy. Please note: Important disclosures on reverse side of flyer. 011 Prudential Financial, Inc. and its related entities Ed. 01/011 Exp. 07/01

4 3 Source: Prudential Global Market Research, Research Study and Focus Group Testing, 010. PruTerm WorkLife 65 is issued by Pruco Life Insurance Company in all states (where available) except in New York, where, if available, 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. All guarantees are based on the claims-paying ability of the issuer. All products, features and benefits may not be available in all states. Terms and restrictions apply. See the WorkLife 65 Fast Facts for additional details. This material is designed to provide general information in regard to the subject matter covered. Securities and Insurance Products: It should be used with the understanding that we are not rendering legal, accounting or tax advice. Not Insured by FDIC or Any Federal Government Agency. Such services should be provided by the client s own advisor. Accordingly, any information in this May Lose Value. document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate. Revenue Code. This marketing material is subject to an expiration date, and use of this material must be discontinued as of the expiration date Ed. 01/011 Exp. 07/01

5 PruTerm WorkLife 65 SM LEARN ABOUT THE PRODUCT AND MARKET Fast Facts Overview 4PruTerm WorkLife 65 SM ( WorkLife 65 ) offers term life insurance protection with guaranteed level premiums until age 65. 4WorkLife 65 automatically includes an Insured s Waiver of Premium Benefit for both disability and unemployment. This benefit cannot be removed from the policy. Disability If the insured becomes disabled prior to age 65, policy premiums will be waived until the insured recovers or turns 65, whichever happens first. Unemployment If the insured becomes unemployed after the first contract anniversary, but before age 65, we will waive one continuous year of premiums. The insured must remain unemployed for 60 days, receive state unemployment benefits, and have been continuously employed for a full year preceding the date unemployment began. The unemployment feature can be used only once. Issuing Company 4Pruco Life Insurance Company 4Pruco Life Insurance Company of New Jersey (in NY, if available) Level Premium Period To age 65 Premium Guarantees Minimum Face Amount $100,000 Maximum Face Amount 1 $3,000,000 Premiums are guaranteed in all years. Face Amount Bands Band Minimum Face Amount Maximum Face Amount 1 1 $100,000 $49,999 $50,000 $999,999 3 $1,000,000 $3,000,000 Issue Age Range Ages 5 55 (35 55 in WA) Underwriting Categories 4Preferred Best 4Non-Smoker 4Preferred Non-Tobacco 4Preferred Smoker 4Non-Smoker Plus 4Smoker Payment Modes 4Annual 4Quarterly 4Semi-Annual 4Monthly (Electronic Funds Transfer only) Policy Constant 4$85.00 annual 4$.53 quarterly 4$44.0 semi-annual 4$7.65 monthly (Electronic Funds Transfer only) 4Non-commissionable Premium Paying Period At the end of the level period (age 65), premiums increase annually for 0 years. The annually increasing premiums are guaranteed. Coverage ends at age 85. Optional Riders 4Living Needs Benefit SM (LNB) 3 4Children s Protection Rider 4 4Accidental Death Benefit (ADB) 4 Conversion Options Convertible during the level premium period. Partial conversions are permitted. The resulting permanent policy cannot have Waiver of Premium. If a WorkLife 65 policy is converted while its premiums are being waived, the premiums on the permanent policy will not be waived. Conversion Premium Credit Term Conversion Premium Credit is not available. Restriction on Multiple Purchase Once an insured receives unemployment benefits under the Waiver of Premium Benefit, he or she becomes ineligible for additional purchases of PruTerm WorkLife 65. Please note: Important disclosures on reverse side of flyer. 011 Prudential Financial, Inc. and its related entities Ed. 01/011 Exp. 07/01

6 1 Maximum available face amount is reduced by the total Waiver, Applicant's Waiver of Premium (AWP), or other disability benefit, Prudential inforce and applied for. Premium modes other than annual may result in higher aggregate premiums. 3 The Living Needs Benefit SM 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. 4 Available for an additional cost. PruTerm WorkLife 65 SM is issued by Pruco Life Insurance Company in all states (where available) except in New York, where, if available, it is issued by Pruco Life Insurance Company of New Jersey. Each is a Prudential Financial company located in Newark, NJ and is solely responsible for its own financial condition and contractual obligations. All guarantees are based on the claims-paying ability of the issuing company. All product features and benefits may not be available in all states. Terms and restrictions apply. This material is designed to provide general information about PruTerm WorkLife 65 and is not a contract. Prudential Financial, its affiliates, and its representatives do not render legal, accounting or tax advice. Clients should consult their own tax and legal advisors on how any product discussed may benefit their particular situation and how best to utilize any such product. Note that information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. This marketing material is subject to an expiration date, and use of this material must be discontinued as of the expiration date. 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 Ed. 01/011 Exp. 07/01

7 PruTerm WorkLife 65 Ready to Sell List (as of April 1, 011) STATE Ready to Sell AL Alabama /14 AK Alaska /14 AZ Arizona /14 AR Arkansas /14 CA California Not Approved CO Colorado /14 CT Connecticut Not Approved DE Delaware /14 DC District of Columbia /14 FL Florida 1 4/1 GA Georgia /14 HI Hawaii /14 ID Idaho /14 IL Illinois /14 IN Indiana /14 IA Iowa /14 KS Kansas /14 KY Kentucky /14 LA Louisiana /14 ME Maine /14 MD Maryland Not Approved MA Massachusetts /14 MI Michigan /14 MN Minnesota /14 MS Mississippi /14 MO Missouri /14 MT Montana /14 NE Nebraska /14 NV Nevada /14 NH New Hampshire /14 NJ New Jersey /14 NM New Mexico /14 NY New York Not Approved NC North Carolina /14 ND North Dakota /14 OH Ohio /14 OK Oklahoma /14 OR Oregon /14 PA Pennsylvania /14 RI Rhode Island /14 SC South Carolina /14 SD South Dakota /14 TN Tennessee Not Approved TX Texas /14 UT Utah /14 VT Vermont /14 VA Virginia /14 WA Washington Not Approved WV West Virginia /14 WI Wisconsin /14 WY Wyoming /14 GUAM Guam 4/1 Total Approved : 46 1 FL approved without Living Needs Benefit. MA approved without Living Needs Benefit or Accidental Death Benefit. 011 Prudential Financial, Inc. and its related entities. NRP Ed. 4/011