Blog Post

Prudential Income Advantage Upgraded!

John Darer • Jan 25, 2024

Prudential announced a change to the death during deferral period option for Income Advantage, its Indexed Structured Settlement Annuity


Prudential income advantage

What’s changing?


According to a January 25, 2024 release by Prudential Insurance Company of America:


  • Effective immediately, if a claimant (or attorney structuring their fee) dies during the deferral period, any interest will continue to be credited during the deferral period. Payments will then be made, as they become due, to the designated beneficiary(ies). This will be the new default option.
  • Alternatively, the claimant may elect at the time of settlement (at no additional cost) to commute the accumulation amount (the total of the premium plus any index-linked growth).** If elected, and the claimant dies during the deferral period, the beneficiary(ies) will receive a designated percentage (as set forth in the Annuity Certificate) of the accumulation amount in a lump sum; provided that such amount will not be less than the minimum amount under applicable law. Previously, this was the only option available.


Good heads up play by Prudential!


What’s not changing?

The death during payout options and all other Prudential structured settlement annuity products.


** If commutation is elected, and the claimant then dies during the deferral period, and the death occurred relatively close in time to the date of sale, it is possible that the lump sum payable to the beneficiary(ies) could be an amount that is less than the premium amount paid for the annuity.



Prudential Insurance Company of America, founded in 1875, with its home office in Newark, New Jersey, is one of America's oldest insurance companies.


Still Work to Be Done Industry Wide


There is still work to be done, in my opinion to move to an adoption of second generation responsive commutation riders. I have authored several articles about the need for responsive structured settlement payment riders on my Structured Settlement Watchdog blog.


Structured Settlement Commutation Riders Must Be Revisited Before Estate Tax Cuts Expire in 2025 - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)



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