People often put off purchasing life insurance because it seems less important than other types of insurance that we must have, like auto and homeowners. However, planning for the future and supporting your family if something happens to you shouldn’t be overlooked.
Many people spend many hours researching the right life insurance policy, and it can be not very easy to understand the differences between the available options.
One of the most popular companies purchasing individual life insurance is Prudential Financial Insurance. Here we’ll provide an overview of Prudential Financial Insurance to help you better understand if the company’s offerings might meet your life insurance or other insurance needs.
Considered one of the largest life insurance companies in the United States, Prudential Financial has been around for more than 140 years. They have life insurance options to meet every need, and their policies allow for high customization.
Founded in 1875 by John Fairfield Dryden, an insurance agent, Prudential was the first company to make the life insurance affordable for people in the working class. It sold insurance to low-income industrial workers for as little as 3¢ a week in premiums. By 1879, the company expanded greatly and sought to serve the newly emerging middle class. By this year, the company’s assets had reached $1,000,000.
Recently, the company has earned recognition as one of the “top 50 companies for diversity” and offers its products to people in the United States, Asia, Europe, and Latin America.
The company stresses that’s its earned its reputation due to its commitment to keeping its promises to its customers and that it has grown into one of the world’s most admired companies.
Life Insurance Options Available
Prudential Life Insurance offers different options for life insurance that meet a variety of needs and budgets. You can quickly receive a quote from the Prudential website in a few minutes or choose to have an agent contact you for more personalized service. You can also choose your policy based on risk assessment and how you’d like to manage it.
Prudential offers term and universal life policies for a variety of clients. Here’s a quick overview of the options you can expect to review.
Term Life Options
Term life insurance provides a death benefit for a pre-defined period, such as 10, 20, or 30 years. You can choose from their SimplyTerm®, Term Essential®, or PruTermSM policies.
The SimplyTerm® policy makes an affordable solution for a death benefit paid out to your family for a set period. Coverage options can be up to $1,000,000. It offers the flexibility for you to choose the term and the payment schedule that works best for you. Your payments remain consistent for the whole term. After your selected term ends, you can choose to continue paying it, end your coverage, or easily convert it into a permanent policy. You can purchase this coverage completely online without speaking with an agent. Just answer some questions and receive your quote in a few minutes. If you are happy with the quote, finish the next steps to secure your policy.
The Term Essential® option expands upon the SimplyTerm® policy and provides death benefit protection and a Living Needs Benefit. This benefit allows for a portion of your death benefit to be paid out during your life if you become terminally ill.
You can also further customize your policy to include an accidental death benefit, a waiver of premium rider, and a children’s protection rider. These extra customizations you add to the policy will increase your premium rate.
The PruTermSM One option works best for people who only want to purchase life insurance coverage a year at a time. It allows individuals to have coverage without committing to a longer-term (like 10 or 20 years). It results in a policy with lower premiums than those policies with more extended coverage.
This type of coverage does not work for everyone. For example, someone who has another life insurance policy but wants additional protection designed to cover a short-term loan or expense might benefit from this type of policy. It might also work for a business owner whose death would cause extreme financial hardship to their family if it happened during the year. Finally, it makes a good option if you need to fill a temporary gap in your life insurance coverage, maybe due to the loss of a job or other life change.
The PruTermSM One policy also includes the Living Needs Benefit. The customer can choose to add additional customization options (riders) for an extra cost.
Less flexibility of payment exists for this option. Since it is only for a year at a time, you must pay the entire premium annually and cannot choose from semi-annual, quarterly, or monthly payment options.
Prudential’s term life insurance policies allow the customer to convert to a permanent policy without a separate application process if the need arises.
Permanent Life Insurance Options
Permanent life insurance guarantees coverage for the rest of your life rather than a set term. Prudential offers three types of permanent life insurance policies: Universal Life Insurance, Indexed Universal Life Insurance, and Variable Life Insurance.
Universal Life Insurance Option
Their Universal Life Insurance option offers the opportunity for you to build cash value within your policy. You earn this cash value from earning a fixed interest rate on the part of your monthly premiums. All of the Universal options provided by Prudential have the option of additional riders that the policyholder can add to meet their individual needs.
The PruLife Essential Universal Life Policy provides you a way for beneficiaries to receive a death benefit with an affordable premium. Your coverage continues without any lapse in it for as long as you continue to pay your premiums.
Each time you pay your premium, a portion of it accumulates daily interest, steadily growing. Customers can choose to pay the minimum premium required to keep the policy active or increase the amount of premium they pay to accumulate faster cash value.
This cash value growth means that you can potentially use your benefit while still alive by choosing a Living Needs Benefit (no extra charge) or BenefitAccess Rider (additional costs). The BenefitAccess Rider accelerates the death benefit payment if you become terminally or chronically ill. You also access your policy’s “cash value” portion through withdrawal options, such as income-tax-free loans.
The PruLife SUL Protector provides death benefit protection for two people and pays the benefit after both individuals have died. It helps individuals to pass on their wealth by allowing them the option to leave a gift, fund a trust, preserve a family business, privately distribute the money outside of their will, or care for someone in their family that has special needs. Your coverage remains guaranteed with lapse for as long as you pay your premiums.
Indexed Universal Life Insurance Options
These policies are very similar to the basic Universal Life Insurance options. However, instead of building cash value with a fixed interest rate, your interest rate is tied to the market performance of an indexed account and can fluctuate.
Prudential Life Insurance offers three Indexed Life Insurance options.
The PruLife Founders Plus UL policy offers policyholders three options to accumulate cash value on the policy. The first option is a fixed, declared interest rate. The second option bases the interest rates on the S&P 500 index performance. This option allows for more significant potential growth but carries more risk. The third option is the Goldman Sachs Voyager Index, which allows for consistency when the market is volatile and is exclusive to Prudential.
The PruLife Index Advantage UL is the option with the most potential for the policyholder to build cash value. It has two options that the policyholder can select. The first option is a fixed, declared interest rate, and the second option is, again, based on the performance of indexed accounts.
Policyholders can choose from several indexed linked accounts to build their cash value. Finally, The PruLife Survivorship Index UL covers two individuals, similar to the PruLife SUL Protector option. Again, it pays the death benefit only after both individuals have passed away and the policyholders decide if it is paid to an individual, trust, charity, etc.
Variable Universal Life Insurance Options
The third type of Universal Life Insurance option is the Variable policy type. These policies allow the customer to make additional payments that surpass the insurance cost. These payments are, in turn, put into investment options that include equity, bond, and money markets. The policyholder can tax-defer any cash value growth incurred with their policy.
Like the termed and indexed options, the variable policies also come in three levels. The most basic level is the VUL Protector option. The customer takes on a moderate risk with this option and can expect reasonable returns. The PruLife Custom Premier II Option focuses more on long-term growth and suits customers willing to take a bit more of a risk with the market fluctuations. The increased risk can, however, lead to higher returns. Customers can choose either a Short-Term guarantee period or a Limited guarantee period depending on their current life circumstances.
The PruLife SVUL Protector policy serves as a legacy-building option. Offering coverage for two people allows you to personally select investment options based on the level of risk that you feel comfortable taking. As long as you pay your premiums, your coverage will continue, and the death benefit is paid out upon the death of both covered individuals.
Available Optional Riders
Prudential’s insurance policies allow the policyholder to purchase additional “Riders” or additional options for their policy. These options meet various needs and will increase the cost of your premium.
Termed Policy Riders
The first two levels of the termed policies include Enhanced Disability Benefits, Accidental Death Benefit, Children Level Term Rider, Overload Protection Rider, and Enhanced Cash Value Rider options.
The survivorship option for the termed policy offers the Guaranteed Policy Split and Estate Protection rider options.
Indexed and Variable Policy Riders
The first two levels of the indexed and variable policies allow customers to choose
Enhanced Disability Benefits, Accidental Death Benefits, Overload Protection, Extended Cash Value, and Children Level Term.
The survivorship options for the indexed and variable policies offer the customers the optional Survivorship Benefit Access, Enhanced Cash Value, Guaranteed Policy Split, and Estate Protection riders.
Your agent will help you decide which customized riders meet your individual needs and are appropriate for your policy.
Other Prudential Financial Insurance Options
Although its main focus is on life insurance products, Prudential Financial offers more individual insurance options. They have individual health insurance options that include short-term health plans, health insurance for you if you are unemployed, health insurance for self-employed people, and medicare plans for individuals over 65. They also provide individual ACA “marketplace” plans that offer the required benefits of the Affordable Care Act.
For Retirement options, Prudential offers plans such as IRAs. Customers can easily roll over older 401k plans to a Prudential IRA. Prudential offers a free service to help customers roll over their plans successfully.
Finally, they offer fixed and variable annuity options and other products geared toward investment and financial planning, including advisors who will work one-on-one with the client to help them meet their retirement and investment goals.
Final Review of Prudential Financial Insurance
If you are looking for life insurance, you should consider Prudential Financial a viable option during your comparison shopping. As mentioned earlier, it is the largest life insurance company in the United States and has a history of providing a good products.
Offering twelve different options for termed and universal life insurance and a variety of “riders” that customers can add on, anyone seeking life insurance or wealth protection coverage should find what they need from Prudential Financial. Additionally, most of their policies do not require a medical exam, and customers can receive instant quotes for some of the termed policies online.
Compared to other life insurance companies, Prudential Financial has received fewer numbers of complaints than one would expect from a company that size. JD Power’s 2021 Life Insurance Study ranked Prudential Financial as the number 15 company for satisfaction. US News ranked it as the number 12 Best Life Insurance Company of 2022.
It is also a financially-stable company and has $1.62 trillion in assets under its management and $3.6 billion in highly-liquid assets.
The table below shows the significant insurance company ratings for Prudential Financial Insurance.
|BBB||N/A, not BBB accredited|
In addition to those ratings, the following summary of the pros and cons of Prudential Financial Insurance should help give you a clearer picture of the key benefits of doing business with this company. The points included are based on research and customer feedback.
- Has a history of over 145 years in business providing life insurance policies.
- Has term life insurance and universal life insurance options available.
- Additional optional “riders” allow policyholders to customize their policies to meet their individual needs and financial goals.
- Offers a variety of retirement planning options and annuities.
- It provides individual health insurance options that customers can purchase if they do not have employer-sponsored health plans.
- Customers can get quotes online, and the website has a rate calculator feature.
- Customers can buy term policies for up to $250,000 online without speaking with an agent.
- Most life insurance policies do not require a medical exam.
- Life insurance policies are available to anyone up to age 85.
- No option to file claims online. Customers must contact their agent to file a death claim.
- No mobile app is available for customers.
- Prudential does not offer whole life insurance options.
- The company does not offer any discounts for bundling of policies.
- Some customers say that premium rates are higher than other insurance.
- Some customers don’t like that they must speak with an agent to file a claim.