Prudential starting in May will offer their first Indexed Universal Life (IUL) called PruLife® Index Advantage UL. The indexed account will be S&P 500® Index with annual point-to-point crediting. That’s a very basic design and similar to another late entry to the Indexed UL market John Hancock. Prudential intends to be competitive in premiums and cash value accumulation. They are already very competitive in premiums for guaranteed universal life and survivor universal life.
It’s important to judge which Indexed Universal Life carrier is best for the long haul. Prudential indicates they are more going for superior overall design rather than focusing on a high cap rate. The highest cap rate doesn’t necessarily mean the best performing product. Cost of insurance and the internal rate of return are something to review even more closely.