This material is not approved for use with residents in the state of Oregon.
PruLife® Index Advantage UL (IUL-2011) is issued by Pruco Life Insurance Company in all states except 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. This product may not be available in all states. All guarantees are based on the issuing company's ability to pay claims. Unpaid loans and withdrawals reduce cash values and death benefits, may negate or reduce the length of the guarantee against lapse, may have tax consequences, and may cause the policy to lapse.
The primary purpose of PruLife® Index Advantage UL is to provide a death benefit (the amount paid to your beneficiaries when you die) for your loved ones.
You can choose a Fixed (A) or Variable (B) death benefit.
These guarantees help ensure that your policy will remain in place for a specific period (20 or 30 years). They are based on the premiums you pay and your age. Generally, your guarantee period can be affected by:
If you pay only the minimum premium required for a guarantee, you may be foregoing the potential to build tax-deferred cash value. It is important that you pay your planned premiums when they are due. Missed or late payments may shorten or eliminate the policy's guarantees. Payments to restore the guarantee may be higher than those you were originally paying. Once your guarantee period ends, you may have to pay additional premiums to keep your policy in force.
Life insurance policy cash values are accessed through withdrawals and policy loans. Interest is charged on loans. In general, loans are not taxable. Withdrawals are taxable to the extent they exceed basis in the policy. Loans outstanding at policy lapse or surrender before the insured's death will cause immediate taxation to the extent of gain in the policy. Unpaid loans and withdrawals reduce cash values and policy benefits and negate any guarantee against lapse. If a policy is a Modified Endowment Contract (MEC), distributions (including loans) are taxable to the extent of income in the policy. An additional 10 percent federal income tax penalty may apply. You may wish to consult your tax advisor for advice about your situation.
A portion of each of your payments is used to pay administrative and sales charges. What's left, called the net premium, is applied to the account value (known as the Contract Fund). As monthly charges come due, they are deducted from the Contract Fund. The Minimum Contract Fund is an alternative way to calculate the insurance benefit and the cash surrender value. It's calculated regardless of Basic Interest Account and Indexed Account performance. The policy will guarantee a cumulative return of 1% annually on net premiums, reduced by monthly charges (other than the asset-based administrative fee), withdrawals, and any partial surrender charges. When the Minimum Contract Fund value is more than the actual Contract Fund value, the Minimum Contract Fund will be used in its place for most policy provisions. These provisions include calculating:
Please note that there is no guarantee that the Minimum Contract Fund will be a positive value. Charges and other reductions can deplete it.
The potential to build cash value in the Indexed Account is based on the performance of the S&P 500® Index, which excludes dividends (using an index growth cap and floor) on an annual point-to-point basis. This is based on a 100% participation rate (subject to change). Money that is placed in the Indexed Account is not a direct investment in the S&P 500® Index. If amounts in the Indexed Account are withdrawn before the end of the one-year term, no interest will be credited on the withdrawn portion. The cap is generally stated as a percentage. This is the maximum rate of interest that will be credited at the end of the one-year Index Segment Duration, regardless of performance of the index over the cap. The cap is declared for each Index Segment in advance of each Index Segment Duration. The cap is subject to change at our discretion, both up and down, but is guaranteed to never be less than 3.00%. Changes to the cap could result in different policy performance and/or different values than shown. Changes to the cap are not tied to the performance of the underlying index. They may be based on interest rates, market volatility, and other factors. Caps and floors may be different in selected states.
PruLife® Index Advantage UL has a 15-year declining surrender charge. Surrender charges may reduce the policy's cash value in early years. The policy's cash surrender value is the accumulated value less the surrender charges. Other charges include, but are not limited to, premium-based administrative charges and monthly charges including cost of insurance.
"Standard & Poor's®", "S&P®", "S&P 500®", and "Standard & Poor's 500™" are trademarks of Standard & Poor's and have been licensed for use by The Prudential Insurance Company of America for itself and its affiliates. This indexed product is not sponsored, endorsed, sold or promoted by Standard & Poor's. Standard & Poor's makes no representations regarding the advisability of purchasing an indexed policy. S&P 500® index values are exclusive of dividends.
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.