Prudential Life Insurance: Is It A Good Choice?

Prudential Financial is one of the largest life insurance providers in the world, offering a wide range of term life, whole life, and other permanent life insurance policies. The company was founded in 1875 and has since amassed 50 million customers and prestigious ratings from third-party agencies for financial stability and customer service. Prudential's life insurance offerings are primarily divided into two types: term and universal. Within these categories are several options, allowing policyholders to tailor their policies to their unique circumstances.

Prudential's term life insurance policies include Term Essential and PruTerm One. Term Essential provides coverage for 10, 15, 20, or 30 years, with the option to convert to a permanent policy, and offers coverage amounts ranging from $100,000 to $65 million or more. PruTerm One is a one-year renewable policy, offering coverage from $50,000 to $10 million, and is ideal for business owners with short-term needs.

Prudential's universal life insurance portfolio includes nine different policies that cater to a wide range of financial needs and preferences. These policies offer a mix of premium flexibility, death benefits, and opportunities to grow cash value, making them suitable for those seeking both protection and investment opportunities.

Prudential also offers a Final Expense Whole Life policy, designed to help cover funeral, burial, and other final expenses. This policy is available for individuals aged 50 to 85 and offers customizable coverage amounts from $5,000 to $30,000, with no medical exams required and locked-in premiums.

Prudential has a strong financial stability rating of A+ (Superior) from AM Best. However, the company has received mixed reviews from customers, with a high complaint index from the National Association of Insurance Commissioners and a below-average J.D. Power customer satisfaction rating. While Prudential offers a wide range of life insurance options, potential customers should consider its lower-than-average customer satisfaction scores before making a decision.

Prudential's term life insurance policies

Prudential offers a range of term life insurance policies to cater to different budgets and coverage needs. Here is a breakdown of each term insurance product they offer:

EssentialTerm Value

This is Prudential's most cost-effective option, perfect for a wide range of clients seeking temporary protection with the flexibility to convert to a permanent policy in the future. It offers level-premium periods of 10, 15, 20, or 30 years, and fixed premiums during the level term period. The policy can be converted to any permanent product within the first seven years, or until the policyholder turns 70, whichever comes first. 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.

EssentialTerm Plus

The EssentialTerm Plus option is ideal for clients who prefer cost-effective protection and enhanced conversion benefits. It offers level-premium periods of 10, 15, 20, or 30 years, with premiums guaranteed through the level premium period. The policy can be converted to any permanent product during the term or until the policyholder turns 70, whichever comes first. It 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.

PruTerm One

PruTerm One is designed for clients needing short-term coverage or a bridge to permanent insurance, such as covering a temporary debt or business obligation. It offers coverage one year at a time, with the option to renew annually. The premium is fixed for the first year, with subsequent annual adjustments. The policy can be converted to a permanent policy through the fifth policy anniversary. It also includes a living needs benefit at no extra charge, which allows access to the death benefit under certain conditions.

Prudential's universal life insurance policies

Prudential offers two competitively priced universal life insurance policies, PruLife Essential UL and PruLife SUL Protector, which both offer valuable death benefit protection and a no-lapse guarantee.

PruLife Essential UL

PruLife Essential UL offers the following benefits:

• Living Needs Benefit and BenefitAccess Rider: Provides benefits if you become terminally or chronically ill.
• Enhanced Disability Benefits: Protects your policy from lapsing if you become disabled.
• Accidental Death Benefit Rider: Provides an extra death benefit to your family if you die in an accident.
• Children Level Term Rider: Adds coverage for your minor children.
• Overloan Protection Rider: Lets you avoid a lapse in coverage if you take substantial loans from your policy.
• Enhanced Cash Value Rider: Offers higher cash surrender values if you need to give up your policy in the early years. This is primarily for business owners.

PruLife SUL Protector

PruLife SUL Protector offers the following benefits:

• Guaranteed Policy Split Rider: Allows you to divide one policy into two if estate laws change or you get divorced.
• Estate Protection Rider: Increases the death benefit by up to 100% if both people on the policy die before the fourth policy anniversary.

How Prudential's Universal Life Insurance Policies Work

Universal life insurance can provide long-term or permanent coverage instead of coverage for a set period. It also offers several additional benefits:

• Your beneficiaries will receive a death benefit that is typically free from federal income tax. Plus, growth within the policy is tax-deferred.
• You have the potential to build cash value in the policy, with a portion of your monthly premiums earning fixed interest.
• If your circumstances change, you can adjust the amount of your premium payments.

You can also make extra payments into an interest-earning account to build your policy's cash value. Your payment amounts are flexible, and you can choose your payment schedule (monthly, quarterly, biannually, or annually).

Prudential's customer service

However, Prudential has also received positive feedback for its wide range of term and universal life insurance policies, as well as its 13 available riders for policy customisation. The company's financial stability has been recognised with an A+ (Superior) rating from AM Best, indicating its historical financial robustness and ability to honour claims.

Overall, while Prudential offers robust insurance options, its customer satisfaction ratings are below average, suggesting that there is room for improvement in its service experience.

Prudential's financial stability

Prudential Financial has a long-term reputation in the life insurance industry. Founded in 1875, it initially focused on providing affordable life insurance to working-class families. Today, Prudential is one of the largest life insurance providers in the world, with 50 million customers and a presence in over 40 countries. The company has received high ratings from third-party agencies for its financial stability and customer service. Prudential's life insurance products are offered nationwide across all 50 states and Washington, D.C.

In addition to its strong financial stability rating, Prudential also has a long history of financial performance and sustainability. The company has a multifaceted approach to corporate sustainability and community engagement, including investing, corporate interaction, and philanthropic contributions. Prudential has donated nearly $18 million to nonprofit organisations and granted over $45 million to nonprofits. The company has also channelled over $1 billion into impact investments for various financial entities.

Prudential's commitment to financial stability and sustainability is further demonstrated by its approach to pension risk transfer. Prudential was selected to handle close to $1 billion in pension obligations for about 2,000 retirees from a PSEG business segment, demonstrating its continued leadership and innovation in the pension risk transfer market.

Overall, Prudential's financial stability is well-regarded in the industry, and its strong credit rating from AM Best provides confidence in its ability to meet its financial obligations.

Prudential's riders

Prudential offers a wide range of riders to add extra coverage to your life insurance policy. Here are some of the most notable ones:

BenefitAccess Rider

The BenefitAccess Rider is an optional, accelerated death benefit rider that 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 at issue in most states with many of Prudential's currently available single-life permanent policies. It is designed for U.S. residents aged 20 to 80, with a minimum basic insurance amount of $100,000 and a maximum of $5,000,000. It is important to note that there is a possibility of being approved for basic insurance coverage but not the BenefitAccess Rider. This rider is available at an additional charge that varies depending on the insured's age, gender, underwriting class, and maximum monthly benefit option chosen at the policy issue (2% or 4%).

Living Needs Benefit Rider

The Living Needs Benefit Rider 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 of Prudential's single-life permanent and level-term life insurance policies. This rider is not available in Washington state and has special considerations for several other states.

Waiver of Premium Rider

The Waiver of Premium Rider forgives premiums if the insured becomes totally disabled.

Children's Protection Rider

The Children's Protection Rider covers your children under your policy when they are young.

Enhanced Cash Value Rider

The Enhanced Cash Value Rider provides a higher cash surrender value if you need to give up your policy early in the term.

Overloan Protection Rider

The Overloan Protection Rider helps prevent policy lapse if you have an outstanding policy loan.

Estate Protection Rider

The Estate Protection Rider helps protect your heirs and beneficiaries if both insured people die very early on and can help adapt your policy to changes in your life or tax law.

These are just a few examples of the riders available with Prudential life insurance policies. The availability of specific riders may vary by product and state, so it is essential to review the details of your desired policy and consult with a Prudential agent to ensure you understand the options available to you.

Frequently asked questions