Prudential Life Insurance: Is It Worth The Hype?

Prudential Life Insurance is a good option for people looking for temporary coverage or flexible permanent policies. The company offers a range of term and universal life insurance policies, making it a good fit for various needs. Founded in 1875, Prudential Financial is one of the largest life insurance companies in the U.S. and has an excellent financial strength rating. The company's term life insurance policies have level premiums for 10, 15, 20, or 30 years, and policyholders can also convert their term policies to any of Prudential's permanent life insurance options. Prudential also offers universal life insurance, indexed universal life insurance, and variable universal life insurance, including survivorship policies. While Prudential has received fewer consumer complaints than expected for a company of its size, it has ranked below average in recent customer satisfaction surveys. The company's customer service has been a common pain point in reviews, with complaints about long wait times, unhelpful representatives, and a lack of email and live chat support. Overall, Prudential Life Insurance is a solid choice for individuals seeking flexible life insurance options, but it falls short in terms of customer satisfaction and service.

Prudential's customer service

One common complaint is the lack of email and live chat support, with customers reporting that they have spent hours on the phone trying to resolve issues. There have also been reports of lost payments, lapsed policies, and challenges with establishing power of attorney. Additionally, Prudential's customer satisfaction ratings are below average compared to other life insurance companies, according to J.D. Power's 2024 U.S. Life Insurance Study.

However, Prudential has received fewer consumer complaints than expected for a company of its size, according to the National Association of Insurance Commissioners (NAIC). The company also provides a dedicated customer service phone line and offers resources on its website for updating personal details, changing beneficiaries, and making premium payments.

Prudential's financial strength

Prudential Financial has a history spanning over 140 years, making it one of the largest life insurance companies in the US. The company has an excellent financial strength rating and is known for its robust financial strength, receiving high ratings from major rating agencies such as AM Best, Standard & Poor's, and Moody's. Prudential's financial stability is further demonstrated by its ability to meet financial obligations to policyholders and clients, as evidenced by its long track record.

Prudential's term life insurance policies

Prudential offers a range of term life insurance policies, which can be tailored to meet the unique needs of its customers. Term life insurance is designed to provide death benefit protection for a set number of years, typically ranging from 10 to 30 years. Here is a detailed overview of Prudential's term life insurance policies:

Prudential EssentialTerm ValueSM

This policy offers cost-effective protection with the flexibility to convert to a permanent policy in the future. It provides level premiums for 10, 15, 20, or 30 years. During the first seven years of the term or until the client turns 70 (whichever comes first), the policy can be converted to any permanent life insurance policy offered by Prudential. The policy also includes a Terminal Illness Rider at no extra cost, which allows the policy owner to accelerate the death benefit if the insured is diagnosed with a terminal illness.

Prudential EssentialTerm PlusSM

The EssentialTerm Plus policy offers affordable protection with enhanced conversion benefits. It provides level premiums for 10, 15, 20, or 30 years. The policy can be converted to any permanent product during the term or until the insured reaches the age of 70, whichever comes first. It also includes the Terminal Illness Rider, which allows the policy owner to accelerate the death benefit in the event of a terminal illness diagnosis.

PruTerm One

PruTerm One is an annually renewable term life insurance policy, providing coverage for one year at a time. It is ideal for individuals with short-term needs, such as small business owners paying off a short-term loan. The policy can be renewed annually, but at a higher rate. While PruTerm One typically requires a medical exam, applicants under the age of 60 may not always need one. This policy also includes the option to add the Living Needs Benefit Rider, which allows access to the death benefit under certain conditions.

Term Essential

Term Essential is one of Prudential's main term life insurance policies, offering level premiums for 10, 15, 20, or 30 years. After the term ends, policyholders have the option to continue their coverage, but premiums may increase or the amount of coverage may decrease. Term Essential offers higher coverage amounts, starting at $250,000, and applicants in good health may qualify for up to $3 million in coverage without medical tests. The policy includes a free accelerated death benefit rider, and it can be converted to any of Prudential's permanent life insurance options.

Prudential EssentialTermSM

The Prudential EssentialTerm policy is ideal for clients seeking cost-effective protection with the flexibility to convert to a permanent policy as their needs change. It offers level premiums for 10, 15, 20, or 30 years. The policy can be converted to any permanent product within the first seven years or until the insured reaches the age of 70, whichever comes first. After the seventh year, clients can still convert to a designated permanent product until the end of their term or until age 70. This policy also includes the Terminal Illness Rider at no extra cost.

Prudential EssentialTermSM Plus

The EssentialTermSM Plus policy is designed for clients who prefer cost-effective protection and enhanced conversion benefits. It offers level premiums for 10, 15, 20, or 30 years. The policy can be converted to any permanent product during the term or until the insured reaches the age of 70, whichever comes first. It also includes the Terminal Illness Rider at no extra cost.

PruTerm WorkLife 65

PruTerm WorkLife 65 is a term life insurance policy designed for employers who want to provide coverage for their employees. It offers level premiums for 10, 15, or 20 years, and the coverage amount is based on the employee's income. The policy includes an Accelerated Death Benefit Rider, which provides access to a portion of the death benefit if the insured is diagnosed with a terminal illness.

Prudential's permanent life insurance policies

Prudential offers a range of permanent life insurance policies, which can be ideal for those seeking lifetime protection without a specific endpoint in mind. The company's permanent life insurance options include universal life insurance, indexed universal life insurance, indexed variable universal life insurance, variable universal life insurance, and survivorship or second-to-die insurance.

Universal life insurance provides flexible premium payments and coverage amounts, allowing policyholders to adjust their payments and coverage as their needs change. This type of policy also has the potential to build cash value over time, which can be accessed through loans or withdrawals.

Indexed universal life insurance offers protection along with the potential for greater growth. However, this comes with the risk of a lower rate of return compared to other investment options.

Indexed variable universal life insurance provides a death benefit as well as cash value growth potential through underlying investment options and index crediting strategies. This type of policy combines features of both indexed and variable universal life insurance, offering a blend of market-linked growth and protection.

Variable universal life insurance offers a death benefit and the greatest potential for building cash value compared to other permanent policies. However, the cash value can decline if the underlying investments perform poorly.

Survivorship or second-to-die insurance is a single policy that covers two individuals and pays the death benefit after both have passed away. This type of policy is ideal for those who want to ensure their loved ones are financially protected after their deaths.

Overall, Prudential's permanent life insurance policies offer flexibility, protection, and the potential for cash value growth, making them a good choice for individuals seeking long-term coverage without a specific endpoint.

Prudential's riders

Prudential offers a range of riders to its life insurance policies, allowing customers to customise their coverage. The specific riders available to you will depend on your state and the type of policy you choose. Here are some of the riders that Prudential offers:

• Children's protection and children's level term: These riders allow you to insure a child on your life insurance policy. The "protection" version is for term policies, and the "level term" version is for permanent policies.
• Overloan protection: If you have a Prudential universal life policy, you may be able to take out a loan against your cash value. This rider protects you from a potential lapse caused by unpaid loans. It covers one incident, and there is a fee for using this rider.
• Survivorship BenefitAccess: If you have a survivorship policy that insures two people, this rider allows some of the death benefit to be paid out if both insureds, or just the survivor, become chronically or terminally ill.
• Waiver of premium: This common rider allows you to stop paying your premiums if you become disabled and are unable to work.
• Living Needs Benefit: This is an accelerated death benefit rider that advances a portion of the policy's death benefit in the event of a terminal illness, confinement to a nursing home, or an organ transplant. It is available at no additional premium on most single-life permanent and level-term life insurance policies.
• BenefitAccess: This optional rider advances up to 100% of the policy's death benefit in the event of a chronic or terminal illness. It is available for an additional premium on most of Prudential's single-life permanent policies.

Frequently asked questions