Prudential Life Insurance Company Review 2017

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  • Prudential Life Insurance Company Review

One of the hardest things for a potential life insurance client to find out is how to know which company is right for him or her. Does Prudential’s rock symbol truly reflect its strength and security? Let’s dive into an insider Prudential Life Insurance company review in which I will look at underwriting niches, life insurance products and sample rates against other carriers.

Prudential Life Insurance Company History

Prudential or Pruco has been helping individuals meet their financial goals for 141 years. Prudential Friendly Society was founded by an insurance agent, John Fairfield Dryden, in a basement in downtown Newark, N.J., in 1875. The company first sold burial life insurance to lower-income families.

Four years later, their sales extended beyond New Jersey into New York and Philadelphia and were geared towards a middle-class clientele. Prudential later adopted The Rock of Gibraltar as it’s company symbol, reflecting security and strength. Prudential stands for integrity and commitment in helping clients achieve their financial goals by keeping promises. Today, Prudential is serving individuals in the US, Asia, Europe and Latin America.

Prudential Life Insurance Company Ratings

  • A.M. Best: A+
  • Standard & Poor’s: AA-
  • Moody’s: A1
  • Fitch Ratings: AA-

Prudential at a Glance

Prudential has…

  • more than 49,000 employees worldwide
  • 1.264 trillion in assets under management
  • 47 countries and territories where they serve clients

Prudential Term Life Insurance Products Review

Term life insurance is the simplest, most affordable insurance coverage you could buy. It’s a temporary protection ranging from 1 to 30 years with the 20-year policy the most common one preferred by clients. It’s often called “pure insurance” since it offers no cash value; you only pay for the protection itself without having cash or savings benefits attached.

Prudential has a few term life products all providing you with flexibility in converting them to a whole life policy should your needs change in the future.

PruTerm WorkLife 65

This is a term life insurance policy that gives you coverage to a specific age rather than a duration such as 10, 20 or 30 years. Prudential’s plan offers you the ability to get this coverage until you’re 65, so, if you bought this product when you were 25, you could have 40-year term life insurance that you couldn’t buy anywhere else.

It makes sense to me; up to 65, you could be at your peak earning, and you may have expanded your family and taken on a mortgage and such. Those may be the most sensitive years to protect should something happen because of the liabilities. This plan offers coverage until retirement age no matter when you buy it.

They call it the working years. After 65 years, you may not need that protection, and you could either convert the policy to a whole life policy or be self-insured and get rid of it. It also comes with unemployment and disability premium protection, so, if you lose your job or become disabled, the policy will not lapse. Think of it as total protection until retirement.

PruTerm WorkLife 65 Highlights

  • Term life insurance up to age 65 years
  • Waiver of premium rider is included
  • Level premium (premium stays the same) until you’re 65
  • Face amounts $100,000–$3,000,000
  • Issue ages 25–55 years
  • Coverage ends at 85 years (if you didn’t choose to convert the policy)
  • Fully convertible policy anytime through age 65
  • Accelerated death benefit is included at no extra cost

Term Essential

This is a typical term life insurance policy offering coverage for 10-, 15-, 20-, and 30-year level premium periods. It is also a convertible policy, which means, once the term is over, you could convert it to any permanent policy without answering any health questions or going through underwriting again.

Term Essential Highlights

  • Issue ages 18–75 years
  • Accelerated death benefit included at no extra cost
  • Face amounts $100,000 and up
  • No limit on death amount that can be accelerated
  • Fully convertible policy on the policy anniversary or after the insured’s 65th birthday

Term Elite

This product is typically for individuals looking for a permanent life insurance but who have not decided on which type of permanent policy to choose. Term Elite allows those folks to convert this policy within 5 years and also gives them credit back if they converted it within 5 years.

Unlike most term life insurance, this will only let you convert towards the end of the term period. So let’s say you bought a 30-year term; you will need to get to year 29 before they will let you convert the policy. It also comes with an accelerated death benefit rider, which allows you to tap into your death benefit without a limit (most companies allow 50%–75% of the death benefit) if you were diagnosed with a terminal illness and have a life expectancy of 6 months or less. Clients can still choose 10, 15, 20 or 30 years, and the premiums are guaranteed to stay the same for the same term period.

The coverage is also guaranteed to age of 95, which means that, if you didn’t convert the policy after your term ended, it will continue (for a higher rate) to age of 95 while the payment will increase every year. The issue ages are from 18 to 75 years, and the minimum death amount is $100,000.

Term Elite Highlights

  • Guaranteed coverage to age 95
  • Choice of 10-, 15-, 20- or 30-year policy
  • Policy conversion within 5 years or the insured’s 65th birthday, whichever is longer
  • No limit on death amount that can be accelerated

PruLife Return of Premium Term

This is a term product called “ROP” or return of premium life insurance. Essentially, it’s a term life insurance policy that offers level benefit and premium, returning the paid premium to the insured at the end of the contract term (if all premium are paid). So, if you bought a 20-year ROP for $100 per month and you outlive the policy, you will get back $1,200 × 20 ($24,000) back. Before you jump and smile, keep in mind ROP will cost you more, and most of the time, it isn’t ideal.

PruLife Return of Premium Term Highlights

  • Accelerated death benefit included at no extra cost
  • Choice of 15-, 20- or 30-year policy
  • Guaranteed return of premium
  • Guaranteed coverage to age 95 years
  • Cash value accumulation
  • Fully convertible policy on the first policy anniversary or after the insured’s 65th birthday
  • Automatic Premium Loan (APL) – You could get a loan against your cash value.

PruTerm One

This is a short-term life insurance policy in which the premium stays level for one year. The policy is renewable annually, and it’s a very niche-oriented policy, which means it isn’t for the regular Joe looking to get life insurance.

It’s ideal for individuals who currently have life insurance policy and are looking to add a second one for a limited term or have a business loan and only need it for a few years. This may also suit someone in between jobs who needs a temporary life insurance policy to fill a gap.

PruTerm One Highlights

  • Short-term coverage, level premium for 1 year
  • Annually renewable to age 95
  • Convertible to a permanent product within the first 5 years
  • Accelerated Death Benefit Rider

Prudential Universal Life Insurance Products Review

Universal life policy, often called UL, is a permanent life policy with cash benefits that offers clients flexible options such as changing premium amounts, skipping payments, and increasing or decreasing death benefit. Prudential Life offers five products. Let’s take a look.

PruLife Universal Protector

PruLife UL Protector is a flexible premium policy that offers lifetime coverage and a guaranteed death benefit. You can add the BenefitAccess rider to the policy at extra cost, which can help paying income in the event you become chronically or terminally ill.

PruLife Universal Protector Highlights

  • Issue ages 0–85 years
  • Lifetime no-lapse guarantee (as long as min premiums are paid)
  • Age last birthday for underwriting process
  • First-year flexibility, which will protect your no-lapse guarantee even if the payment is delayed
  • Flexibility – You can decide on how long you wish to have the death benefit in place including up to a lifetime or a specific age
  • Min policy amount $50,000 and up

PruLife UL Plus

This is a universal life policy that also offers guaranteed accumulation of cash value on an income tax-deferred basis in addition to the flexible premium and guaranteed death benefit. Each year, this fund is credited an interest rate, and, while it can change every year up or down, this policy will never earn less than 2% interest per year. You can add extra riders such as disability or the living need benefit.

PruLife UL Plus Highlights

  • Issue ages 0–90 years
  • Min face amount $25,000
  • Fixed death benefit
  • Builds cash value

PruLife Index Advantage

This is a type of UL that offers a flexible premium option with a cash accumulation through interest crediting. This is achieved through either a fixed interest rate or three indexed interest accounts based on the S&P 500 Index. It is best suited to consumers seeking retirement income or supplementing their 401K.

PruLife Index Advantage Highlights

  • Issue ages 0-85 years
  • Min face amount $100,000
  • Four account options: 1 fixed and 3 indexed
  • Lower cost policy loan in future years
  • Multiple tax benefits such as tax-deferred accumulation of cash value and tax-advantage for loans and withdrawals
  • BenefitAccess rider for chronic and terminal illness included

PruLife Founders Plus

This UL product is geared to the same people who are looking for the flexibility that universal life offers but are also looking for a cost-effective one. It offers the same permanent death protection with the guarantee against lapsing, which can be extended as long as minimum premiums are paid.

It comes in three flavors: fixed, plus 50 and plus 100. The fixed account offers a fixed rate that can change but the minimum interest crediting rate of 2.5%. The other 2 are subject to the performance of the S&P 500, offering a cap and a floor.

PruLife Founders Plus Highlights

  • Fixed interest rate option no less than 2.5%
  • Plus 50 option has a cap interest rate of 5.75% and 0% floor
  • Plus 100 option has a cap interest rate of 9.25% and 0% floor
  • Issue ages 0–85 years
  • Min face amount $100,000

Prudential Survivorship Life Insurance Products Review

Survivorship universal life, also called second-to-die, policies were designed to protect two people under one policy. The death benefit is only paid after the second one pass away. Traditionally, this product has been used by wealthy individuals as part of estate planning.

PruLife SUL Protector

PruLife SUL Protector can help you preserve more of your wealth so you can pass it on after you die. For instance, the policy death benefit can be used to pay estate taxes so you can pass more of your estate to your family.

PruLife SUL Protector Highlights

  • Issue ages 18–85 years
  • Min face amount $250,000
  • Flexible premiums
  • A limited no-lapse guarantee during the first 5 years
  • 2% guaranteed minimum annual interest rate

PruLife Survivorship Index UL

This product was designed to help you build a legacy by not suffering excessive taxation for your heirs. It offers a fixed or guaranteed annual interest rate.

PruLife Survivorship Index UL Highlights

  • Issue ages 18–85 years
  • Min face amount $200,000
  • Choice between two interest crediting methods for wealth building
  • No-Lapse Guarantee extends to age 90 or beyond

Prudential Life Insurance Riders Review

Riders are an add-on to supplement or enhance the life policy. Most riders are offered at extra cost, but there are a few that are included with Prudential such as the Living Needs Benefit. Let’s go ahead and review the policy riders offered by Prudential Life.

BenefitAccess Rider

This is an accelerated death benefit rider that allows the insured to access his/her death benefits while still alive if he/she becomes chronically or terminally ill. It’s worth mentioning that Prudential allows you to access the entire death benefit without any restrictions. Many companies allow 50% of your death benefit at most.

Living Needs Benefit

This rider will accelerate the death benefit if the insured is diagnosed with a terminal illness or is permanently confined to a nursing home. This rider comes automatically with the term products by Prudential with no extra cost.

MyNeeds Benefit

This rider is limited to the PruLife Universal Plus product only. If the insured requests a cash surrender or a withdrawal from his/her cash value in the policy while he/she is in a nursing home, the policy charges associated with these transactions are waived.

Waiver of Premium

As the name implies, Prudential will waive the premium should the insured become disabled and become unable to work so the policy will stay active.

Children’s Rider

This is a life insurance policy for children under the parent’s policy. This policy can be converted in the future to a whole life policy.

Accidental Death Benefit

This rider will pay an additional benefit to the current death benefit if the insured should die from an accident.

Overloan Protection Rider

This rider is exclusively for the Universal Life (UL) policies. It’s a one-time charge that, if executed, will keep the policy from lapsing if there is an outstanding loan.

Enhanced Cash Value

This helps the policy gain higher cash value if you choose to surrender early. It’s only available to the UL policies.

Guaranteed Policy Split Rider

This is limited to the Survivorship policies. It allows the policy to be split into two individual policies if an insured couple gets a divorce.

Estate Protection Rider

This is also limited to the Survivorship policies. It will increase the death benefit by 100% if both insured individuals die before the policy has been in force for 4 years.

Prudential Underwriting Strength

It’s great to know what products a company offers, but without actually knowing what health conditions they will consider, issuing a policy is pretty useless. Just because a company offers a product I may like, it doesn’t mean that I will actually get it.

Life insurance depends on so many variable such as current health, previous health, medication and family history, to name a few. Every life insurance company on the market has specific conditions or health risks they are comfortable with accepting. If you choose the wrong company for your condition, you will risk a higher rate or a denial.

Prudential is known to be a high-risk carrier, which means they will offer a preferred rating class for a few conditions for which others will give you table ratings. Prudential also offers last birthday rates, not nearest. So, if you are 31 and 8 months, most insurance carriers will give you a rate for 32 years while Prudential gives you a 31-years-old rate.

Some Categories of Individuals Who May Qualify for Preferred Include:

  • Most commercial and business pilots for U.S based airlines
  • Clients who plan to travel to most countries for a period of six months or less annually
  • Scuba divers who dive up to 100 feet
  • Clients with cholesterol/HDL levels up to 6, even if they are on cholesterol-lowering prescriptions
  • Men/women 6’0”, ages 18–59, up to 228 lbs
  • Men/women 6’0”, age 60 and over, up to 258 lbs

Some Categories of Individuals Who May Qualify for Non-Smoker Plus Include:

  • Cigar/pipe smokers and smokeless tobacco users
  • Nicotine patch or Nicorette Gum users
  • Clients with cholesterol/HDL levels up to 7, even if they are on cholesterol-lowering prescriptions
  • Men/women 6’0”, ages 18-59, up to 242 lbs
  • Men/women 6’0”, age 60 and over, up to 294 lbs
  • Private pilots over the age 25 with over 600 hrs in total flight time and who fly between 30 and 300 hrs per year

Underwriting Credit Opportunities

Prudential strives to do their very best while underwriting individuals with high-risk conditions. Therefore, they have created this credit opportunity system in which they give underwriting points to any face amount, age, product or table rating to offset some of the costs involved with high rates for unhealthy individuals.

For example, they may use treadmill credits to offset overweight and blood sugar issues. Some credits can result improvement in a standard rating table to a preferred one. They have more than two dozen impairments in which they offer credits—for instance, blood pressure, breast cancer, diabetes, and Crohn’s disease, to name a few.

Prudential vs Other Carriers Sample Rates

Male 20-year Term $250,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $12.69 $17.50 $41.78 $190.53
 Protective $13.22 $17.91 $41.96 $112.86
 AIG $13.54 $19.38 $42.73 $114.74
 Banner $13.78 $18.87 $42.66 $114.16
 Mutual of Omaha $14.18 $20.08 $46.55 $134.05
 North American $14.30 $20.02 $43.56 $115.06
 Principle $14.66 $19.25 $43.09 $111.56
 Transamerica $14.41 $22.79 $51.17 $114.17
 Assurity $15.88 $28.93 $68.51 $176.61
 Prudential $20.93 $25.65 $48.15 $135

Female 20-year Term $250,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $11.16 $14.87 $31.72 $160.13
 Protective $11.95 $15.44 $31.67 $78.54
 AIG $12.02 $18.51 $35.59 $89.66
 Banner $12.03 $15.75 $32.21 $81.16
 Mutual of Omaha $12.64 $17.46 $36.05 $94.02
 North American $12.76 $16.94 $34.10 $81.84
 Principle $13.30 $17.06 $32.90 $77.92
 Transamerica $12.90 $18.92 $35.69 $92.45
 Assurity $13.05 $23.71 $53.51 $137.68
 Prudential $17.77 $23.18 $42.30 $94.73

Male 20-year Term $500,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $20.13 $28.87 $77.83 $214.33
 Protective $20.38 $28.92 $76.86 $207.96
 AIG $21.11 $31.05 $78.20 $213.57
 Banner $20.96 $32.37 $78.18 $213.27
 Mutual of Omaha $21.61 $33.42 $85.49 $249.55
 North American $22.44 $33.44 $79.20 $218.68
 Principle $22.75 $31.94 $79.63 $216.56
 Transamerica $22.36 $38.27 $92.45 $212.42
 Assurity $25.67 $51.76 $130.94 $347.13
 Prudential $34.20 $43.65 $88.65 $262.35

Female 20-year Term $500,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $17.06 $24.94 $56.39 $148.05
 Protective $17.93 $25.26 $55.78 $140.83
 AIG $18.08 $29.32 $63.06 $163.40
 Banner $17.94 $26.25 $56.87 $153.12
 Mutual of Omaha $18.99 $28.61 $64.05 $169.93
 North American $19.36 $28.16 $61.60 $154.88
 Principle $20.04 $27.56 $59.24 $149.27
 Transamerica $19.78 $30.96 $62.78 $170.71
 Assurity $20.01 $41.33 $100.92 $269.27
 Prudential $27.90 $38.70 $76.95 $181.80

Male 20-year Term $1,0000,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $49.00 $70.00 $147.70 $418.78
 Protective $34.99 $51.99 $143.84 $400.83
 AIG $36.68 $54.84 $146.53 $418.14
 Banner $36.67 $59.50 $146.30 $418.13
 Mutual of Omaha $37.80 $59.68 $163.80 $481.42
 North American $39.16 $60.28 $150.92 $427.24
 Principle $38.94 $56.00 $149.63 $422.63
 Transamerica $39.56 $69.66 $147.92 $415.38
 Assurity $45.24 $97.44 $255.78 $688.17
 Prudential $52.65 $77.85 $166.05 $485.55

Female 20-year Term $1,000,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $38.50 $53.38 $108.50 $283.80
 Protective $29.43 $43.94 $103.55 $269.92
 AIG $30.62 $52.25 $117.12 $309.15
 Banner $29.75 $47.25 $108.50 $286.12
 Mutual of Omaha $31.67 $51.80 $119.18 $324.80
 North American $32.12 $48.84 $113.08 $283.80
 Principle $32.16 $47.25 $108.94 $286.13
 Transamerica $30.96 $55.90 $116.10 $323.36
 Assurity $33.93 $76.56 $195.75 $532.44
 Prudential $38.25 $64.12 $139.05 $349.65

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of Feb 2017 and are subject to underwriting approval.*

The Bottom Line

Prudential is one of the oldest insurance companies with a strong financial rating and will be one of the best choices for a policy if you aren’t in the best of health. If you are in perfect health, you may find other companies to be more competitive price-wise. If you are a cigar smoker, Prudential will be the best company to go with because other carriers will charge you a smoker rate, which tends to be 2–3 times as much as a non-smoker.

Prudential is only one company from the 50-plus companies we represent. You can go ahead and run a life insurance rate using the quoter on the right-hand side of the page, or give us a call at 866-326-3053 so you can receive a personalized quote for your specific situation and goals.

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2017-10-24T19:47:19+00:00 April 9th, 2017|Company Reviews|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has 2 amazing rescued pit bull puppies. He also enjoys real food, heavy squats, critical thinking, and reading.

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