- 1Favreault M, et al. Long-term Services and Supports for Older Americans: Risks and Financing. ASPE Issue Brief. Department of Health and Human Services. July 2015, p.3, 9.
The BenefitAccess Rider is available for an extra premium. Additional underwriting requirements and limits may also apply. Receiving benefits under the terms of the rider will reduce and may eliminate the death benefit.
Benefits paid under the BenefitAccess Rider are intended to be treated for federal tax purposes as accelerated life insurance death benefits under IRC §101(g)(1)(b). Tax laws related to receiving accelerated death benefits are complex, and benefits may be taxable in certain circumstances. Receipt of benefits may affect eligibility for public assistance programs such as Medicaid. Accelerated benefits paid under the terms of the Terminal Illness portion of the rider are subject to a $150 processing fee ($100 in Florida). Please consult your tax and legal advisors before initiating a claim.
To qualify for chronic illness benefits, you (the insured) must be certified as chronically ill by a licensed health care practitioner. For chronic illness benefits to continue beyond one year, recertification by a licensed health care practitioner is required. Other terms and conditions may apply, including an elimination period. The elimination period is a term of 90 consecutive calendar days that must pass before benefits can be payable. To qualify for terminal illness benefits, you must be certified as terminally ill by a licensed physician. This rider is not Long-Term Care (LTC) insurance, and it is not intended to replace LTC. The rider may not cover all of the costs associated with chronic or terminal illness. It is a life insurance accelerated death benefit rider and is generally not subject to health insurance requirements. The availability of the rider as well as terms and conditions may vary by state.
The BenefitAccess Rider is a life insurance benefit that gives you, the policyowner the option to accelerate some or all of your life insurance policy's death benefit if you meet the criteria for a qualifying event described in the policy. This policy or certificate does not provide Long-Term Care insurance subject to California Long-Term Care insurance law. This policy or certificate is not a California Partnership for Long-Term Care program policy. This policy or certificate is not a Medicare supplement (policy or certificate). Benefits paid under the BenefitAccess Rider are intended to be treated for federal tax purposes as accelerated death benefits under IRC §101(g)(1)(B). Receiving benefits under the terms of the rider will reduce and may eliminate the net death benefit your beneficiaries will receive.
It is important to understand the differences between the BenefitAccess Rider (BenefitAccess) and Long-Term Care (LTC) insurance.
BenefitAccess is an Accelerated Death Benefit (ADB) rider on a life insurance policy and is not LTC insurance, nor is it intended to replace the need for LTC insurance.
- There is no requirement for the insured to incur LTC expenses in order to be eligible for BenefitAccess benefits. Eligibility for BenefitAccess benefits is based on the insured's chronic illness condition, not the LTC expenses they incur. LTC insurance policies pay on an expense reimbursement basis and benefit eligibility is based on evidence (such as receipts) that the insured has incurred qualified long-term care expenses. The benefit payment on an LTC policy amount is equal to the amount of LTC expenses incurred by the insured during that benefit period.
- The total benefit amount available under BenefitAccess is the death benefit of the life insurance policy. The total benefit amount available under an LTC insurance policy is based on a benefit level and a pool of money selected by the policyowner at the time of purchase.
- Once the insured qualifies for BenefitAccess benefits, payments can begin immediately and there are no restrictions on the use of benefit payments. LTC insurance policies often require that a waiting period or elimination period (such as 90 or 100 days) be satisfied before benefit payments begin, and benefits must be used to pay for qualified LTC expenses.
- There may be other differences between BenefitAccess and any specific LTC insurance policy. You should carefully review the specific details of each before making any decision to purchase.
For New York contracts: Please also note the rider is not subject to the minimum requirements of New York law, does not qualify for the New York State Long-Term Partnership Program, and is not a Medicare supplement policy. In addition, receiving accelerated death benefits may affect clients’ eligibility for public assistance programs and such benefits may be taxable. Benefit payments may only be made if the payments are subject to favorable tax treatment by the federal government. When determining whether the benefit payments will receive favorable tax treatment, the payment of benefits from all insurance policies must be considered. Benefit payments may be reduced or unavailable if they are expected to exceed the maximum amount eligible under Internal Revenue Code Section 101(g)(1) and all other applicable sections of federal law for favorable tax treatment.
PruLife Universal Protector (ICC16 ULNLG-2016, ICC16 ULNLGA-2016 or ULNLGA-2016); PruLife Essential UL (EULPR-2017 or ICC17 EULPR-2017), PruLife Founders Plus UL (IULPR-2017 or ICC17 IULPR-2017), PruLife Index Advantage UL (IUL-2017, ICC17 IUL-2017, or ICC16 IUL-2016), VUL Protector (VULNLG-2014 (in NY), ICC15 VULNLG-2015 or VULNLG-2015 and PruLife Custom Premier II (VUL-2015 OR ICC15 VUL-2015) are issued by Pruco Life Insurance Company, except in New York, where they are issued by Pruco Life Insurance Company of New Jersey. Both Pruco are Prudential Financial companies located in Newark, NJ and both are solely responsible for their own financial condition and contractual obligations. VUL Protector and PruLife Custom Premier II are offered through Pruco Securities LLC (member SIPC), Newark, NJ.
The form numbers for the BenefitAccess Rider are:
- PruLife UL Protector – (In CA: VL 145 B-2013 (ED 2015) CA); (In NY: VL 145 B4 2016); (All other states except CA and NY: ICC17 VL 145 B5-2017 or VL 145 B5 2017)
- PruLife Essential UL – (In CA: VL 145 B-2013 (ED 2015) CA); (In NY: VL 145 B4 2016); (All other states except CA and NY: ICC17 VL 145 B5-2017 or VL 145 B5 2017)
- PruLife Index Advantage UL - (In CA: VL 145 B-2013 (ED 2015) CA); (In NY: VL 145 B4 2016); (All other states except CA and NY: ICC17 VL 145 B5-2017 or VL 145 B5 2017)
- PruLife Founders Plus UL - (In CA: VL 145 B-2013 (ED 2015) CA); (In NY: VL 145 B4 2016); (All other states except CA and NY: ICC17 VL 145 B5-2017 or VL 145 B5 2017)
- VUL Protector - (In CA: VL 145 B3-2014 CA); (In NY: VL 145 B4 2016); (All other states except CA and NY: ICC17 VL 145 B5-2017 or VL 145 B5 2017)
- PruLife Custom Premier II - (In CA: VL 145 B3-2014 CA); (In NY: VL 145 B4 2016); (All other states except CA and NY: ICC18 VL 145 B6-2018 or VL 145 B6 2018)
Our polices contain exclusions, limitations, reductions in benefits, and terms for keeping them in force. A financial professional can provide you with costs and complete details. All guarantees are based on the claims-paying ability of the issuer and do not apply to the underlying investment options, if any.
For variable policies, please consider the investment objectives, risks and charges and expenses carefully before investing in the contract, and/or underlying portfolios. The prospectus, and, if available the summary prospectus, contain this information, as well as other important information. You can obtain a copy of the prospectus. You should read the prospectus carefully before investing. It is possible to lose money by investing in securities.
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