Types of Life Insurance Sold by Prudential
Prudential made Forbes Advisor’s best universal life insurance list and offers these types of life insurance products:
- Term life
- Whole life
- Indexed universal life
Prudential’s Term Life Insurance
If you’re looking for life insurance to cover a specific period in your life, term life insurance is a simple option.
For example, suppose you want enough coverage so your family can pay off a mortgage if you die. In that case, a term life policy with a length that covers the remainder of the mortgage may be ideal. Term life insurance does not build cash value and, as a result, is often the most affordable type of life insurance to purchase.
Prudential offers three term life insurance policies: SimplyTerm, Term Essential and PruTerm One.
SimplyTerm is offered to people ages 18 to 75 with term options of 10, 15, 20 and 30 years, during which time premiums stay level. The minimum coverage is $100,000 and the maximum is $1 million. This is a no-exam life insurance product. A few health-related questions will help determine whether you qualify.
Term Essential is a lot like SimplyTerm, except it offers coverage amounts above $1 million and offers some rider options that SimplyTerm does not, such as the Living Needs Benefit, Waiver of Premium and Children’s Protection.
For shorter-term coverage, Prudential offers PruTerm One for buyers ages 18 to 85. This product allows you to renew your term life coverage every year. The minimum coverage amount is $50,000 and the maximum is $10 million. Coverage lasts for one year at a time. However, you can only purchase one of these policies in your lifetime, and PruTerm One coverage ends at age 95.
| Prudential Simply Term | Prudential Term Essential | PruTerm One | |
|---|---|---|---|
| Best for | Those seeking term coverage without a medical exam | Those seeking higher coverage amounts | Those seeking very short-term coverage with level premiums for one year |
| Death benefit | $100,000 to $1 million | $100,000 minimum | $50,000 to $10 million |
| Term options | 10, 15, 20 or 30 years | 10, 15, 20 or 30 years | 1 year |
| How to apply | With a broker, agent or online | With a broker, agent or online | With a broker, agent or online |
| Available for applicants | 18 to 75 years old | 18 to 75 years old | 18 to 85 years old |
| Option to convert to a permanent policy | No | Yes | Yes |
| Rider options | Accidental Death, Terminal Illness | Accidental Death, Children’s Protection, Waiver of Premium | Living Needs Benefit |
Prudential’s Universal Life Insurance
If you’re looking for coverage that can last a lifetime, universal life insurance is an option to consider. Universal life insurance policies allow you to vary your premiums and death benefit, within certain parameters. These policies also include a cash value component.
Universal life insurance and whole life insurance are both permanent life insurance, but universal life insurance can be cheaper than whole life insurance because it doesn’t offer the same guarantees.
Prudential’s PruLife Essential UL is a universal life insurance product with flexible premiums, a flexible death benefit and the potential for cash value accumulation. The death benefit is offered in three options: fixed, variable and return of premium. But if life changes, you’ll have the ability to change death benefit type (restrictions apply). Coverage amounts start at $100,000 for buyers ages 0 to 85.
The PruLife Essential UL offers a guaranteed minimum annual rate of 2% for cash value accumulation. In addition, you can withdraw or borrow against the cash value and have the assurance of a No-Lapse Guarantee.
Prudential also offers a survivorship universal life product called PruLife SUL Protector that covers two people and pays the death benefit when both individuals have passed away.
Prudential’s Indexed Universal Life Insurance
If you’re looking for a death benefit that has the potential to grow cash value based on an index, like the S&P 500, you may be looking at indexed universal life insurance. These policies also often have the flexibility to vary premiums and death benefits. Participation rates, caps and fees are commonly associated with indexed universal life insurance products, so make sure you understand how the policy will work.
PruLife Founders Plus UL gives you a flexible premium with a death benefit in three options: a fixed death benefit, a variable death benefit and a return of premium death benefit. Minimum coverage amounts begin at $100,000 for buyers ages 0 to 80 and $250,000 for buyers ages 81 to 85.
You can connect cash value to a fixed account with a guaranteed interest rate of 2.5% annually or an indexed account. The indexed account is based partly on the performance of the S&P 500 and has a 0% growth floor and a growth cap never less than 3%.
The PruLife Founders Plus UL gives you the option of withdrawing or borrowing money from your cash value for any reason. It also comes with a no-lapse guarantee when you need to guard against potential policy lapses.
PruLife Index Advantage UL is similar to PruLife Founders Plus UL but there are some differences. For example, the death benefit offers only the fixed death benefit and variable death benefit options.
Prudential also offers a survivorship indexed universal life product called PruLife Survivorship Index UL.
Prudential’s Variable Universal Life Insurance
If you’re seeking a life insurance policy with a lot of flexibility and investment potential, you might be looking at variable universal life insurance. With this type of policy, you can vary premium payment amounts and the timing of your payments. In addition, the cash value part of the policy can be tied to multiple investment sub-accounts you get to choose.
There is a fixed account option with a guaranteed minimum interest rate for people looking for a little less risk. Variable universal also gives you the option of borrowing or withdrawing money from your cash value if the need arises.
Prudential’s PruLife Custom Premier II is a variable universal life product available to people ages 0 to 85 in coverage amounts from $50,000 and up. Death benefit options include fixed, variable and return of premium. Depending on the death benefit option you choose, you may be able to change that selection down the road.
There is the option for a fixed rate account with a 1% minimum interest guarantee for cash value investments. Still, there are multiple variable funds to consider for those seeking higher cash value potential. In addition, loan and withdrawal options are available for those who wish to access some of their cash value money. This product comes with two levels of no-lapse guarantees, depending on the age of the policy.
VUL Protector uses the PruFast Track accelerated approach to underwriting, which means using your individual medical and health information instead of placing you into a category based on your age and insurance amount. This accelerated process can sometimes be completed without medical exam requirements, within only a few days. The VUL Protector product is available to people ages 18 to 60 with coverage ranging from $50,000 and up.
You can choose either a fixed or variable death benefit and then have the option to change from one to the other. For cash value accumulation, choose a fixed account with a 1% minimum guaranteed interest rate for lower risk, or choose from over 60 funds for higher potential investment gains.
As always, don’t buy a policy you don’t understand. Make sure you understand what’s guaranteed and what’s not when you’re looking at a life insurance policy illustration.
Prudential also offers a survivorship variable universal life product called PruLife SVUL Protector.
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How Much Does Prudential Life Insurance Cost?
Prudential’s Term Life Insurance Rates vs. Top Competitors
Prudential’s Term Essential costs an average of $255 a year for a 20-year, $500,000 policy for a healthy 30-year-old female, based on Forbes Advisor’s analysis. That’s higher than most other top companies.
Here’s a comparison of Prudential’s term life insurance rates to top competitors.
| Company | Term life insurance policy name | Cost per year: Female buyer age 30, $500,000 for 20 years | Cost per year: Male buyer at 30, $500,000, 20 years |
|---|---|---|---|
| PL Promise Term | $187 | $221 | |
| Classic Choice Term | $187 | $221 | |
| SwiftTerm | $187 | $221 | |
| Legal & General America | OPTerm | $187 | $221 |
| Select-a-Term | $188 | $223 | |
| Non-Convertible Term | $188 | $223 | |
| Trendsetter Super | $190 | $225 | |
| Lincoln Financial | TermAccel | $190 | $225 |
| Midland National | Premier Term | $205 | $240 |
| Prudential | Term Essential | $255 | $300 |
Prudential’s Life Insurance Riders
Life insurance riders are an option for buyers who want the flexibility of customizing a life insurance policy with extra coverage or features. Rider availability can vary by policy type. Here are life insurance riders offered by Prudential.
- Accidental Death Benefit Rider. If you’re seeking coverage for accidental death above your base policy limit, Prudential’s Accidental Death Benefit rider is an option.
- Child Life Insurance Rider. Prudential offers two child life insurance riders: the Children’s Protection rider (for term policies) and the Children Level Term rider (for permanent policies.) These riders offer a death benefit for minor children and include the option to convert the policies to a new permanent life insurance product when the children reach a certain age.
- Chronic and Terminal Illness Rider. Prudential’s BenefitAccess Rider lets you access your own death benefit available if you become chronically or terminally ill. The Living Needs Benefit rider is for policyholders who are terminally ill or need an organ transplant. While the BenefitAccess Rider has an additional cost on top of the base policy, the Living Needs Benefit is included in some products, and there is only a charge if you use the benefit.
- Disability Rider. Prudential’s Enhanced Disability Benefit rider helps you avoid loss of coverage if you’re unable to pay your premiums on permanent life insurance policies due to disability.
- Early/Enhanced Cash Value Rider. This rider is primarily for business purposes but offers higher surrender values if you need to surrender your policy within the first few years.
- Estate Protection Rider. This rider is available on Prudential survivorship policies. If both people who are insured on one policy die before the fourth policy anniversary, this rider increases the death benefit by up to 100%.
- Guaranteed Policy Split Rider. This rider is available only on Prudential survivorship policies. If estate laws change or the two insured parties divorce, this rider allows you to split the policy into two policies.
- Lapse Protection Rider. This ensures your policy won’t lapse if cash value dips below a certain level.
- Overloan Protection Rider. If you borrow money from your cash value, it’s possible your policy could lapse if there isn’t enough cash value to cover the policy fees. If used, this rider has a one-time charge and helps prevent a lapse.
- Waiver of Monthly Deductions. If you become disabled for at least six continuous months, this rider will pay your monthly policy charges.
- Waiver of Premium Rider. If you become disabled or unable to work, Prudential’s Waiver of Premium rider helps you keep your term life insurance coverage if you cannot pay your premiums for a period of time.
How Do I Buy Life Insurance From Prudential?
Prudential life insurance is available through independent brokers, financial advisors and agents who sell only Prudential products.
How to File a Claim with Prudential
You can begin the life insurance claims process with Prudential on its website and get help from its virtual assistant by calling (833) 626-1865 if your policy number begins with the letters “FE” and by calling (800) 778-2255 if your policy number does not begin with “FE.”
Prudential Company History
Prudential Financial was established in Newark, New Jersey, more than 145 years ago as The Prudential Friendly Society (PFS) to sell life insurance. Two years later, PFS changed its name to The Prudential Insurance Co. of America (PICA), shortly after issuing its 5,000th policy. Prudential’s logo is the Rock of Gibraltar, which it says is a symbol of the company’s strength.
In the early 1900s, Prudential began issuing disability insurance and entered into the retirement planning market soon after. By the late 1970s, the company expanded globally to Japan, but that was only the beginning. By 1989, Prudential sold life insurance in Italy, Korea, Spain and Taiwan.
After many years of large acquisitions such as Merrill Lynch Realty, Merill Lynch Relocation Management, Kyoei Life and part of Cigna, Prudential Financial is now a Fortune 500 and Fortune Global 500 company with more than $4 trillion of life insurance.
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Methodology
To find the best universal life insurance companies, we used data provided by Veralytic, an independent publisher of life insurance research and analytics. Veralytic measures the competitiveness of permanent life insurance products and can provide a customized analysis to you and your financial advisor of policies you own or are considering buying.
Our evaluation was based on:
Cost competitiveness of cash value policies (30% of score): This measures the level of premiums and internal policy charges, including the cost of insurance, fixed administration expenses and cash value-based wrap fees.
Historical performance (25% of score): This measures whether the historical performance of the company’s investments that fuel cash value growth are superior to other companies’ comparable products.
Reliability of policy illustrations (25% of score): This factor measures the reliability over time of the company’s illustrations for its permanent life insurance products. When you plan to be holding on to a policy for decades and counting on cash value to accumulate, you want an illustration that’s accurate.
Financial strength (10% of score): This measure incorporates the insurer’s financial strength ratings from four major ratings agencies: AM Best, Fitch, Moody’s and Standard & Poor’s. Financial strength is particularly important when you’re relying on a company’s ability to pay claims many decades from now.
Access to cash value (10% of score): This measure evaluates the liquidity of cash value and a policyholder’s access to it. Some policies will build cash value better in the early years, and with other companies you may be waiting several years before you have meaningful cash value within a policy. Generally speaking, the higher the liquidity, particularly in early policy years, the better—but some insurers charge more for greater liquidity, so consider the possible tradeoff.
