Prudential Life Insurance Review | 2020 Update

Heidi Mertlich Heidi Mertlich Posted in Reviews
Last updated on March 14, 2020

Prudential Life Insurance Company, a highly-rated carrier, offers a number of valuable life insurance products.

Is Prudential right for you? Possibly.

You will want to understand your life insurance needs, first, and compare them to the products offered by Prudential.

Here, you will find everything you need to know – a company overview, product details, quotes, and frequently asked questions.

Table Of Contents

  1. Company Overview
  2. Life Insurance
  3. Quotes
  4. FAQs
  5. Next Steps

Prudential Overviewprudential life insurance

Originally called, The Widows and Orphans Friendly Society, Prudential was founded by John F. Dryden, in Newark, New Jersy, in 1875.

The company logo is the rock of Gibraltar, representative of strength and security.

Initially, Prudential only sold one product – burial insurance. Over time, the company grew through acquisitions and product expansion.

By 1989, over $2 billion in assets were under management.

Since 2001, Prudential has been traded under the New York Stock Exchange.

Today, there are approximately $4 trillion of gross life insurance in force worldwide, with over 40 countries served.

Key Features

  • Excellent rates for individuals with health complications
  • Superior financial rating (A.M. Best – A+)
  • Online options for policyholders

Prudential Life Insurance

Prudential provides five primary forms of life insurance coverage.

You can have peace of mind today knowing those who depend on you will be secure tomorrow with life insurance. – Prudential
prudential

Quick Navigation Guide

  1. Term
  2. Universal
  3. Indexed Universal
  4. Variable Universal
  5. Survivorship
  6. Compare

Important – product details and availability are subject to change.

Prudential Term Life Insurance

Term life insurance lasts for a certain period of time, for instance, 20 years.

It is designed to provide financial protection during the stage of your life when you need it most, like your working years.

With highly competitive rates for those with underlying health conditions, Prudential’s term coverage is a top-seller.

Specific health conditions with favorable underwriting:

Features

  • Term lengths of 10, 15, 20, and 30 years
  • Level premiums for the initial term
  • Option to convert to a permanent product

Prudential offers four types of term coverage:

  1. Term Essential
  2. Term Elite
  3. SimplyTerm
  4. PruTerm One

Term Essential

Prudential’s most popular term insurance product.

A term life insurance product with face amounts of up to $10 million (or more) available.

Essential Facts

  • Affordable
  • Available for ages 18 – 75
  • Multiple health classes
    • Preferred Best
    • Preferred Non-Tobacco
    • Non-Smoker Plus
    • Non-Smoker
    • Preferred Smoker
    • Smoker
  • Different payment modes available
    • Annual (most affordable)
    • Semi-Annual
    • Quarterly
    • Monthly (via electronic funds transfer)
  • Premiums increase after the initial level term period
  • Coverage ends at age 95

Conversion Options

Your term policy is convertible.

No medical exam is needed to convert your policy.

You must convert to a permanent product during the lesser of the level-premium period or the first policy anniversary on or after the insured’s 65th birthday, but at least 5 years.

Partial conversions are permitted.

Riders

Term Essential offers the following riders:

  1. Living Needs Benefit (LNB)*
  2. Waiver of Premium
  3. Accidental Death Benefit (ADB)
  4. Children’s Protection Rider

*The Living Needs Benefit is a type of accelerated death benefit. It is not a health, nursing home, or long-term care insurance benefit.

Term Elite

Prudential’s Term Elite product is similar to Term Essential – with a couple of additional benefits.

For example, if you opt to convert your policy to a permanent product within the first five years, you will receive credit for the first year of premiums.

SimplyTerm

Prudential’s SimplyTerm provides an online purchasing platform.

Up to $500,000 in coverage is available for term lengths of 10, 20, and 30 years.

Note – the maximum issue age for SimplyTerm is 50 years old.

PruTerm One

PruTerm One is specifically designed for business owners.

There are a few instances in which this form of coverage makes sense:

  • You need life insurance to fulfill the requirements of an SBA loan.
  • There is a temporary life insurance coverage need.
  • For a short period of time, your business would experience a substantial financial impact should you pass.

Prudential Universal Life Insurance

Universal life insurance provides a guaranteed death benefit and can be designed to last your entire life.

Further, a universal life insurance policy provides flexibility. For example, you can decide to pay more into the policy than the cost of insurance.

The additional funds will grow in a cash-value account with a fixed interest rate. As your cash grows, your funds are accessible for loans and withdrawals.

Features

  • Flexible policy features
  • Policy may last your entire life
  • Cash-value component
  • Policy loans and withdrawals available

Prudential offers two types of individual universal coverage:

  1. PruLife Universal Protector
  2. PruLife Essential UL

PruLife Universal Protector

PruLife Universal Protector offers lifetime protection and a cash-value account.

Through your premium payments, you determine just how long you want your policy to last. In other words, the length of your universal policy is in your control, unlike a term policy.

Further, you determine how much the cash-value account grows through the amount you pay in premiums.

Essential Facts

  • Death benefit guarantee
  • Premium flexibility
  • Cash-value component
  • Policy loans with a charged interest
  • Policy withdrawals
  • Can help offset taxes
  • Provides legacy for loved ones

Riders

PruLife Universal Protector offers the following riders:

  1. Accelerated Death Benefit (up to 100% of death benefit)
  2. Waiver of Premium
  3. Accidental Death Benefit (ADB)
  4. Children’s Term

PruLife Essential UL

An affordable universal life insurance policy, PruLife Essential UL is a policy that can be customized to fit your needs.

Specifically, this universal policy includes a number of benefits to be used while you are living.

Essential Facts

  • Specializes in living benefits
  • Death benefit
  • Cash-value component
  • Policy loans with a charged interest
  • Policy withdrawals
  • Can help offset taxes
  • Provides legacy for loved ones

Riders

Riders are a key feature of PruLife Essential UL:

  1. Living Needs Benefit (No extra charge for benefit.)
  2. Benefit Access Rider
  3. Waiver of Monthly Deductions
  4. Children’s Term
  5. Accidental Death Benefit
  6. Enhanced Cash Value
  7. Overloan Protection Rider

Prudential Indexed Universal Life Insurance

Indexed universal life insurance, considered an advanced product, provides a permanent death benefit, and the opportunity to grow cash value through subaccounts.

When you make premium payments, any amount that is more than the cost of insurance will be placed in either a fixed or indexed account.

Indexed accounts are subject to floors and caps – think of them as protective measures.

Said differently, you will not lose money in your indexed cash-value account (floor), and the carrier will have a threshold for how much interest they required to pay you (cap).

  1. Fixed account – a fixed interest rate that is determined by the carrier
  2. Indexed account – the interest rate is based on the performance of the S&P 500 index

Features

  • Flexible policy features
  • May provide lifetime protection
  • Cash-value component
  • Policy loans and withdrawals available

Prudential offers the following indexed universal life insurance products:

  1. PruLife Founders Plus UL
  2. PruLife Index Advantage UL

PruLife Founders Plus UL

PruLife Founders Plus UL allows you to maintain coverage for as long as you want via the adjustable guarantee against lapse.

Essential Facts

  • Death benefit
  • Two interest crediting options for cash-value:
    1. Fixed interest rate (basic interest)
    2. Interest rate based on the performance of the index (S&P 500)
  • Often used as a source of income during retirement

Riders

Your policy can be tailored to fit your needs:

  1. Living Needs Benefit
  2. Enhanced Disability Benefit
  3. Accidental Death Benefit
  4. Overloan Protection
  5. Enhanced Cash Value
  6. Children’s Level Term

PruLife Index Advantage UL

Of the indexed universal products, PruLife Index Advantage UL provides the most potential for cash-value growth.

Additionally, the guaranteed against lapse feature lasts up to 20 years.

Essential Facts

  • Death benefit
  • Four interest-crediting options for cash-value:
    1. Fixed interest rate (basic interest)
    2. Indexed account
    3. Indexed account with multiplier
    4. Uncapped indexed account
  • Often used as a source of income during retirement

Riders

The following riders are available:

  1. Living Needs Benefit
  2. BenefitAccess
  3. Waiver of Premium
  4. Children’s Level Term
  5. Accidental Death
  6. Enhanced Cash Value
  7. Loan Protection

Prudential Variable Universal Life Insurance

Variable universal life insurance offers life insurance protection and cash-value accumulation that includes exposure to stock market performance.

This form of coverage makes sense for someone who is comfortable with more risk. You do have the potential to accumulate more cash value than other products, however, the risk is greater as well.

Once the cost of insurance is paid for, additional money from premium payments is placed in investment accounts with the potential to grow.

Features

  • Permanent coverage
  • Flexible policy features
  • Cash-value component
  • Policy loans and withdrawals
  • Exposure to stock market performance

Prudential offers the following variable universal life insurance products:

  1. VUL Protector
  2. PruLife Custom Premier II

VUL Protector

The VUL Protector offers a balance between life insurance protection and cash value accumulation.

There is a no-lapse guarantee feature, which guarantees a death benefit regardless of the investment component’s performance.

Your asset allocation, with the help of a financial professional, can be tailored to fit your preferences to find your ideal balance of risk and reward.

Essential Facts

  • Death benefit
  • Focused on protection
  • Flexible policy design
  • Permanent life insurance
  • Cash-value component
  • Stock market exposure
  • Policy loans and withdrawals

Riders

  1. BenefitAccess
  2. Living Needs Benefit
  3. Enhanced Disability Benefit
  4. Accidental Death Benefit
  5. Enhanced Cash Value
  6. Overloan Protection
  7. Children’s Level Term

PruLife Custom Premier II

PruLife Custom Premier focuses on longterm cash-value growth, in addition to providing a death benefit.

There are two no-lapse guarantee features to protect your death benefit even if there is a market downturn. This is especially helpful during the early years of your policy.

There are four investment styles to choose from:

  1. Equity
  2. Fixed income/bond
  3. Asset allocation/balanced
  4. Fixed options

Essential Facts

  • Death benefit
  • Focused on growth
  • Flexible policy design
  • Permanent life insurance
  • Cash-value component
  • Stock market exposure
  • Policy loans and withdrawals

Riders

  1. BenefitAccess
  2. Living Needs Benefit
  3. Enhanced Disability Benefit
  4. Accidental Death Benefit
  5. Enhanced Cash Value
  6. Overloan Protection
  7. Children’s Level Term
  8. S&P 500 Indexed Account (market volatility protection)

Prudential Survivorship Life Insurance

Survivorship life insurance, which is often referred to as second-to-die coverage, covers two individuals and only pays a benefit upon the second individual’s death.

Prudential offers three forms of survivorship life insurance:

  1. Universal life insurance (PruLife SUL Protector)
  2. Indexed universal life insurance (PruLife Survivorship Index UL)
  3. Variable universal life insurance (PruLife SVUL Protector)

Many survivorship policies are purchased to plan for estate taxes and to leave a legacy to future generations.

In particular, if a partner or spouse has serious health conditions and cannot secure affordable coverage on their own, a survivorship policy can make sense.

Just like their individual counterparts, these joint-life policies include features like:

  • Death benefit
  • Permanent life insurance
  • Flexible policy design
  • Cash-value component
  • Policy loans and withdrawals
  • Offset estate taxes
  • Legacy for heirs

Additionally, to tailor your survivorship policy a number of riders are available. Specific riders are dependent on the type of policy you purchase:

  1. Survivorship BenefitAccess
  2. Guaranteed Policy Split
  3. Estate Protection
  4. Enhanced Cash Value
  5. Overloan Protection

Compare Prudential Life Insurance

Each product type includes different functions and features.

Compare and contrast with your needs to better understand what form of coverage makes sense for you.

Compare Prudential Life Insurance Products

 Death BenefitCash ValuePermanent CoverageMarket Risk
TermYesNoNoNo
UniversalYesYesYesNo
Indexed UniversalYesYesYesMinimal
Variable UniversalYesYesYesYes

Prudential Life Insurance Quotes

The most popular form of coverage purchased is term life insurance.

For a general idea of cost, consider the following sample quotes. Keep in mind rates are not reflective of individual considerations.

Examples are for a 10-year term policy for healthy non-tobacco individuals.

Prudential Term Life Insurance Quotes Male

 $250,000$500,000$1,000,000
20 Year Old$20.13$32.81$43.31
30 Year Old$19.03$30.63$36.31
40 Year Old$21.00$34.56$48.56
50 Year Old$31.06$54.69$95.81
60 year Old$65.19$122.94$226.19
70 Year Old$200.38$393.31$745.06
10-year term policy.

Prudential Term Life Insurance Quotes Female

 $250,000$500,000$1,000,000
20 Year Old$14.88$22.31$29.31
30 Year Old$15.53$23.63$31.06
40 Year Old$17.28$27.13$38.06
50 Year Old$30.41$53.38$84.44
60 year Old$47.25$87.06$151.81
70 Year Old$124.47$241.50$457.19
10-year term policy.

Keep in mind, Prudential’s rates do not necessarily provide cheap coverage for healthy individuals. However, if you have a health condition or two, rates tend to be affordable. 

Frequently Asked Questions

Frequently asked questions about Prudential and their answers.

How do I decide if Prudential is right for me?

First, it’s best to conduct a needs analysis to determine the best type of life insurance for you.

To start, ask yourself the following:

  1. What are the financial needs of those who depend on me?
  2. How long will someone depend on me?
  3. What is my annual income?
  4. How many years until retirement?
  5. What are my debts?
  6. Do I have charitable goals?
  7. How is my health?
  8. Who is the life insurance for? (You? Your parents?)

Then, compare your needs with the types of life insurance products Prudential offers.

Is Prudential a good life insurance company?

Prudential is highly rated and a go-to carrier for many applicants.

To date, they have approximately $4 trillion in life insurance in force worldwide.

They are also a go-to carrier for individuals with health complications.

Do I need to take a medical exam?

Yes, usually.

Prudential does not specialize in no exam life insurance.

I use tobacco. Can I still qualify for coverage?

Yes, typically.

As long as your overall health is adequate, Prudential is an excellent company for tobacco users to purchase life insurance through.

Next Steps

Plan to do two things in order to apply for coverage, whether through Prudential or another carrier.

Independent agent

You will want to partner with an independent agent. Why? They have access to multiple carriers and multiple quotes.

That way, you can compare and contrast products and rates to find the best policy to fit your needs.

Prepare

Conduct a needs analysis to understand your financial requirements.

Jot down your pertinent information so that you are ready for the application. For example, be ready to communicate your beneficiary information, general health, lifestyle, and occupation information.

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