Prudential Life Insurance Company Review

Written by Jeff Root

Deciding upon life insurance providers can be difficult, especially if you are older, have diabetes, or smoke. How do you know where to start? 

We work with dozens of life insurance companies, Prudential being one of them.  Depending on your life insurance needs, Prudential may be the right life insurance provider for you and your family.

In this article, we will take a deep look into Prudential’s life insurance policies, rates, who they are best for, and how they compare to other options.

First, here is a brief overview of our Prudential Life Insurance Review:

Attribute Details
Background
  • Founded – 1875
  • Assets – $766 Billion
  • Customer Satisfaction – 4.2 / 5
Life Insurance Policies
  • Term life
  • Universal life
  • Indexed life
  • Variable universal life
Financial Rating
  • A.M. Best – A+
  • Moody’s – A2
  • Fitch –  AA-
  • S&P – AA-
Pros
  • Some of the best term life insurance rates on the market
  • Affordable life insurance for smokers, diabetics, people with high blood pressure, high cholesterol (other high-risk classifications)
  • Permanent life insurance policies with very good annual gains in cash value
  • Good selection of policy riders
Cons
  • Not always the best option for your specific situation
  • Best to shop around before making a decision

Overall, Prudential has very competitive life insurance rates and is ranked as one of the best life insurance companies on the market.

Prudential life insurance policies are also very affordable for smokers, and people with other medical conditions such as diabetes. This affordable life insurance coverage is one area where Prudential stands out and excels.

Now, let’s take a deeper look at some of Prudential’s life insurance products.

Prudential Life Insurance Policies

Prudential Financial Insurance Company offers these types of life insurance:

  • Term life insurance
  • Universal life insurance
  • Indexed universal life insurance
  • Variable universal life insurance

It is important to understand the differences between these products, before determining which one is best for you and your family.  Let’s take a quick minute to explain these different types of life insurance policies offered by Prudential. 

What is term life insurance? 

Term life insurance policies are issued for a set time period or term.  These terms are usually 10 to 30 years, and often offered in 5-year increments.

Term life insurance policies expire once the term is over, but can be renewed annually after that, or could be converted to a permanent life insurance policy prior to expiration.

Permanent life insurance policies are the opposite of term life, coverage lasts your entire life. These policies often have cash value appreciation over time and offer other benefits that term life policies do not.  They are also more expensive as a result of them having guaranteed payouts.

What is universal life insurance? 

Universal life insurance policies allow for excess premiums to be paid into the policy, which counts towards the cash value of the policy.  This can lead to faster accumulation of cash value, and more long-term gains over time.

What is indexed universal life insurance? 

Indexed universal life insurance is a type of permanent life insurance. Indexed universal policies get their name from the way that the policies can accumulate cash value over time. Policyholders have the choice to invest in various indexes which determine their returns.

Don’t worry, these policies usually have a minimum guaranteed return, or at least prevent losses.

What is variable life insurance?

Variable life insurance is also a type of permanent life insurance, that additionally allows the variance of payments over the life of the policy.  For example, some months you can pay less than your average premium, and some months more, as needed.

These policies also gain cash value over time, and there are a number of vehicles which can be chosen to do so with.

Term Life Insurance Policies

Prudential offers several different term life insurance products, they are: 

Term Essential 

A convertible term life insurance policy that is available for 10, 15, 20, and 30 year terms.  Prudential’s Term Essential is also renewable until age 95.

This type of term life insurance offered by Prudential is a level premium term life insurance policy, meaning that the premiums are the same throughout the life of the policy.

Term Elite

This gives you more options beyond the basic coverage, like adding life insurance for any minors you have in your home. If you have a policy and you want to change to permanent coverage within the first five years of having the policy, you will get one year of premium credit.

MyTerm

MyTerm another coverage option which provides between $50,000 and $250,000 of quick coverage. For this plan, there is no medical exam required for the application. This policy is not convertible to permanent life insurance. 

PruTerm WorkLife

PruTerm is a term life insurance policy for those who are up to 65 years of age. If you become disabled later in life, then this policy will waive the premium you pay until you are no longer disabled, or until you turn 65. The policy will also waive your premium for one year if you find yourself unemployed.

PruLife Return of Premium Term

PruLife Return of Premium is a unique type of term life insurance. This option returns your premium at the end of your term if you are still living, did not void or cancel your policy.  As a result, these policies cost more than regular term life policies.

PruTerm One

PruTerm One is another term life insurance option but this one is meant for small business owners. Using this policy, you get coverage for one-year increments. So, you can sign up for one year at a time. 

This is really more of a policy for people in need of quick coverage, as rates quickly increase each year, and are not competitive with that of their other term policies.

Term Life Insurance Rates

Here is a sample of some term life insurance rates for Prudential.

Note that all rates are for people in excellent health, who are non-tobacco smokers, and that all term policies are for $500,000 of coverage.

Age Term Male Female
30 10 Year $30.62/mo. $23.63/mo.
20 Year $33.25/mo. $27.13/mo.
30 Year $35.44/mo. $31.06/mo.
40 10 Year $34.56/mo. $27.13/mo.
20 Year $41.56/mo. $37.63/mo.
30 Year $58.19/mo. $48.13/mo.
50 10 Year $54.69/mo. $53.38/mo.
20 Year $83.56/mo. $72.63/mo.
30 Year $140.00/mo. $107.63/mo.
60 10 Year $122.94/mo. $87.06/mo.
20 Year $250.25/mo. $171.06/mo.

Permanent Life Insurance Policies Review

Prudential offers several different permanent life insurance products, they are: 

Universal Life

Prudential offers universal life insurance, which as we discussed earlier, allows for flexible premium payments and fast cash value accumulation. This type of life insurance policy is considered great for people in the real estate business, and people who are looking to really utilize the full potential of their permanent life insurance policy as an investment vehicle.

Indexed Universal Life 

Prudential offers three types of indexed universal life insurance, which each focus on a different aspect of coverage:

  • Cash value growth
  • Death benefit
  • Survivorship life insurance

The first two just offer different premium payment options in order to either maximize cash value growth or death benefit when the policy begins.

Survivorship life insurance focuses on insuring couples, and protecting the remaining spouse in the event of the death of one.

As we discussed earlier, these policies are invested in a market index, and cash value is built based on the performance of the index.

Variable Universal Life

Variable life insurance offers the same payment flexibility as indexed universal life, with a higher potential gain. These policies also can be broken down into investments in subaccounts, which each perform on their own.  This can be used to maximize cash value gains.

Prudential Life Insurance Policy Riders 

Prudential also offers some great life insurance riders, which are essentially add-ons to life insurance policies.  These cost additional premiums but are very low in cost.  Here is a list of some of the life insurance riders offered by Prudential:

Living Needs Benefit 

This is an accelerated death benefit that allows you to receive a portion of your death benefit if you are diagnosed with a terminal illness.

Children’s Protection Rider 

This is a rider that protects all of your children who are ages 15 days to 18 years old.

Waiver of Premium Rider 

This policy rider allows you to not have to pay your premium if you are disabled before a certaine age (60 to 65 usually).

Tobacco Users and Prudential Life Insurance

Prudential is one of the best companies out there for tobacco users. If you chew tobacco, for example, this company offers ideal life insurance policies because they do not have different ratings for people who chew tobacco.

By comparison, other companies will place you in a different class if you use any type of tobacco product including shoe, dip, cigars, nicotine gum, and nicotine patches. Not every company is as accommodating of people who are trying to quit or people who are not habitual users. Prudential is different.

Below is a real-life example of the savings someone who chews tobacco could have on their $1,000,000 policy between different companies:

Company 20-year term 30-year term
Prudential $103 per month $147 per month
AIG $214 per month $366 per month
Annual savings $1,331 $2629
Total policy savings $26,628 $78,872

How Do You Know Which Plan to Buy?

Each situation is different and that is why if you are considering one of the Prudential life insurance plans you should speak with an agent who works directly for the company to evaluate your lifestyle and health situations to best determine which policies and potential riders are favorable.

Depending on your situation and financial needs, Prudential may or may not be the best life insurance company for you and your family.

The best thing to do while searching for life insurance policies is to speak with an independent life insurance agent.  We can help you compare dozens of rates from the best life insurance companies to identify the best life insurance policy for your family.

Compare the Best Life Insurance Rates

Great coverage, great rates.



 

About Best Life Insurance Companies
About Best Life Insurance Companies

We work with individuals across the nation to secure the best life insurance rates.

This entry was posted in Company Reviews. Bookmark the permalink.

Leave A Reply