Prudential Term Life Insurance: Digging For Policy Details

Prudential offers a range of term life insurance policies to help protect your loved ones for a set period. Term life insurance is the most cost-effective way to provide death benefit protection for your family for a set number of years. You can choose your own term length, from 10 to 30 years, and your loved ones will receive the death benefit tax-free. Many term life insurance policies from Prudential also allow you to convert to a permanent life insurance policy with no additional medical exam. In this article, we will explore the different term life insurance options available from Prudential, including EssentialTerm Value and EssentialTerm Plus, and provide information on how to find out more about these policies and choose the right coverage for your needs.

Prudential's Term Life Insurance Product Suite

Prudential offers a range of term life insurance policies, each tailored to meet the diverse needs of its clients. The company's term life insurance product suite includes:

Prudential EssentialTermSM Value

This product is ideal for clients seeking cost-effective protection with the option to convert to a permanent policy as their needs evolve. It offers level-premium periods of 10, 15, 20, or 30 years, with fixed premiums during the level term. The policy can be converted to any permanent product within the first seven years or until the client turns 70, whichever comes first. Additionally, the Terminal Illness Rider allows the policy owner to accelerate the death benefit if the insured is diagnosed with a terminal illness, providing added flexibility at no extra cost.

Prudential EssentialTermSM Plus

The EssentialTermSM Plus is well-suited for clients who prioritize cost-effective protection and enhanced conversion benefits. Similar to the previous product, it offers level-premium periods of 10, 15, 20, or 30 years with guaranteed premiums. Conversion to any permanent product is allowed during the term or until the client reaches 70 years of age. The Terminal Illness Rider is also included, enabling the policy owner to accelerate the death benefit in the event of a terminal illness diagnosis.

PruTerm One®

PruTerm One® is a straightforward, convertible term life insurance option with competitive premiums. It offers level-premium periods of 10, 15, 20, or 30 years, with locked-in premiums during the level-premium period. The policy can be converted up to the first policy anniversary after the insured's 65th birthday, providing flexibility as circumstances change. Additionally, the Living Needs BenefitSM allows access to the death benefit under certain conditions without any additional cost.

Term Essential®

Term Essential® is designed for clients who require short-term coverage or a bridge to permanent insurance, such as covering temporary debts or business obligations. It offers a one-year level-premium period with the option to renew annually. The premiums are fixed for the first year and then adjusted annually. The policy can be converted through the fifth policy anniversary, providing a pathway to longer-term coverage. The Living Needs BenefitSM rider allows access to the death benefit under specific conditions without any extra charge.

Prudential EssentialTerm Value

With Prudential EssentialTerm Value, you can choose your own term length, ranging from 10 to 30 years, to suit your family's needs. The policy includes a free accelerated death benefit rider, and you can convert your term policy to any of Prudential's permanent life insurance options. It is important to note that the conversion option is available for the first seven years after purchasing the policy or until you turn 70, whichever comes first.

In addition to the death benefit, Prudential EssentialTerm Value offers optional riders to enhance your coverage and address specific concerns. These riders provide additional benefits such as access to the death benefit while you are still alive if you become terminally ill or need an organ transplant. There is also a Children's Protection Rider available for an extra cost, which provides life insurance coverage for your young children.

Prudential EssentialTerm Plus

Prudential's EssentialTerm Plus is a term life insurance policy that offers cost-effective protection and enhanced conversion benefits. It is ideal for those seeking straightforward, convertible term life insurance with competitive premiums. Here are the key features:

• Level-Premium Periods: EssentialTerm Plus is available with level premium periods of 10, 15, 20, or 30 years.
• Premium Guarantees: Premiums are guaranteed and locked in throughout the level-premium period.
• Conversion Options: This policy allows conversion to any permanent product during the term or until the policyholder turns 70, whichever comes first. This provides flexibility as circumstances change.
• Living Needs Benefit: This rider allows access to the death benefit under certain conditions without any additional cost.
• Target Customers: EssentialTerm Plus may be suitable for clients who prefer cost-effective protection and enhanced conversion benefits. It is also ideal for those seeking short-term coverage or a bridge to permanent insurance, such as covering temporary debts or business obligations.
• Age Eligibility: Applicants aged 18 to 62 can apply for the EssentialTerm Plus policy.
• Minimum and Maximum Coverage: The minimum coverage amount is $100,000, while the maximum coverage is $249,999.
• Additional Features: EssentialTerm Plus includes the Terminal Illness Rider at no extra cost. This rider allows the policy owner to accelerate the death benefit if the insured is diagnosed with a terminal illness and meets the rider's terms and conditions.

Prudential's term life insurance policies, including EssentialTerm Plus, offer competitive features and flexibility to meet the diverse needs of its customers. The ability to convert to permanent coverage and access benefits while alive enhances the attractiveness of these policies.

Term vs permanent life insurance

Term life insurance and permanent life insurance are two types of life insurance policies that provide financial protection for your loved ones in case of your death. The main differences between the two lie in the length of coverage, the benefits offered, and the cost structure.

Term Life Insurance

Term life insurance provides temporary protection for a set period, often 10, 15, or 20 years. It is a simple and relatively inexpensive way to get life insurance, as it does not build cash value. Your beneficiaries will receive a lump-sum death benefit if you pass away during the coverage period. While term life insurance does not offer cash value accumulation, some policies offer flexible features that allow you to access benefits early if you become terminally ill. You can also choose your own term length to suit your family's needs, whether it's 10, 15, 20, or 30 years.

Permanent Life Insurance

Permanent life insurance, on the other hand, provides long-term or lifelong coverage as long as you continue to pay the premiums. It generally offers long-term death benefit protection and features that allow you to build cash value. This cash value can be accessed later in life to help pay for unexpected emergencies or milestone events like college and retirement. Permanent life insurance is generally more expensive than term life insurance, but the premiums are locked in at the time of purchase and are guaranteed not to increase.

Choosing the Right Coverage

When deciding between term and permanent life insurance, consider your unique needs and circumstances. If you need short-term coverage or have a limited budget, term life insurance may be a better option. On the other hand, if you require long-term financial protection, want to create an inheritance for your heirs, or prefer stable premiums, permanent life insurance might be more suitable. It's important to carefully consider your time frame, budget, and specific needs when choosing the type of coverage that fits you best.

Customise your policy

Accidental Death Benefit Rider

This rider provides an additional death benefit in the event of accidental death. This is an optional benefit and is available for an additional cost.

Children's Protection Rider

This rider provides protection for your children in the event of your death. It can help cover the costs of raising and educating your children.

Waiver of Premium Rider

This rider waives the premium payments due on your policy if you become disabled or are unable to work. This can provide financial relief during a difficult time.

Living Needs Benefit Rider

This rider allows you to access the death benefit early if you are diagnosed with a terminal illness, confined to a nursing home, or in need of an organ transplant. This can help cover medical and living expenses during your lifetime.

You can also choose the term length for your policy, ranging from 10 to 30 years, to best suit your family's needs. Additionally, you have the option to convert your term life insurance policy to a permanent life insurance policy with no additional medical exam required. This flexibility ensures that your policy can adapt to your changing needs over time.

Frequently asked questions