Prudential Financial Inc. will temporarily suspend taking applications for 30-year term life insurance policies, effective April 13, a spokeswoman confirmed today.
The suspension, which will last until June, is in response to "unprecedented market volatility over the past month and the anticipated low interest rate environment for the foreseeable future," Prudential said in a statement.
Prudential is believed to be the first insurer to suspend term life insurance due to the pandemic-fueled volatility.
Here is the company's full statement:
Prudential is focused on helping customers with their life insurance needs in this challenging time. The product changes announced last week are in response to the unprecedented market volatility over the past month and the anticipated low interest rate environment for the foreseeable future. Moving forward we will maintain a prudent financial approach, continuously evaluating our product portfolio and making adjustments that enable us to continue to deliver for our customers.
InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.
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