Please read this disclosure.
Life insurance policies issued by The Prudential Insurance Company of America or one of its affiliates (collectively, "Prudential"), which are all Prudential Financial companies, offer as many as four premium payment options: monthly (12 payments), quarterly (4 payments), semiannual (2 payments), and annual (1 payment). For policies that are not flexible premium paying, selecting a payment option other than annual typically results in a higher yearly premium amount. This is due to:
- the added administrative cost incurred to collect additional premium payments, and
- the fact that the Company does not have the use of the entire premium amount at the beginning of the policy year.
If you are considering a payment option other than annual, you may find it useful to know the amount of the additional cost, expressed as an "Annual Percentage Rate" (APR). Please note that the additional cost is not an extension of credit on the part of Prudential to policyowners who opt to pay premiums over time, rather than annually. It is also not a loan that we place on your policy or an interest charge.
APR Calculator Instructions
To calculate an APR on the APR calculator, you will need to provide the annual premium and the monthly, quarterly, or semiannual premium for the same policy. If you have a policy issued by a Prudential Financial company, you can get these amounts from your policy or by calling 1-800-778-2255. If you do not have a policy issued by a Prudential Financial company, please contact your local representative, or click here to find one of our licensed financial professionals.
Each Prudential Financial company is located in Newark, NJ and is solely responsible for its own financial condition and contractual obligations.
Our policies contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. One of our financial professionals can provide you with costs and complete details.
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0150516-00004-00 Ed. 3/2014