Prudential Life Insurance Review for 2019

Whether you are interested in a term, universal, indexed, or variable life insurance, Prudential Financial –one of the oldest and largest U.S. insurance and financial companies – will deliver on its promise of protecting its consumers’ wealth.

Prudential life insurance company has been recognized and trusted for more than 140 years for helping consumers at every stage of their lives and careers.

We know it’s uncomfortable to ask “should I get life insurance?” because who wants to think about the day that you are no longer around?

But that’s the thing about life insurance, no matter what kind of policy you have.

Signing up for life insurance brings you peace of mind so that you no longer have to worry about this day. You can sign up, and move on.

No need to carry any subconscious worry about your legacy.

Taking the time to meet with a trusted insurance advisor, ask the uncomfortable questions, and make some important decisions will give you the green light to enjoy life freely.

And we’re here to help you. Here’s our 2019 review of Prudential Life Insurance.

Your Quick Guide to Prudential Financial:

Prudential Life Insurance Overview

prudential financial life insurancePrudential offers options for term life and universal life insurance, all of which are easy to apply for and based on streamlined underwriting.

Normally, because your coverage and rates are based on how your health compares to national health statistics, life insurance policies have typically required a medical examination at the time of applying.

But Prudential’s streamlined application and underwriting process through its questionnaire system, PruFastTrack, eliminates this need.

Prudential also assists with financial planning, investments and annuities, and other benefits like retirement savings and health insurance.

You can customize your Prudential plan to meet your needs, too. In total, Prudential has 15 unique plans in either one of six categories: term life, universal life, indexed universal life, survivorship universal life, variable universal life, survivorship variable universal life.

All of Prudential’s flexibility is great if you know what you’re looking for. But the many unique plans bring up a lot of questions, which is why we’re going to break them down for you today.

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What are Prudential’s Life Insurance Options?

Prudential provides a really helpful and comprehensive breakdown of their different policies on its website, but we’ll give you an overview of each here.

Prudential Term Life Insurance

Term Essential®

  • Comes With: Death Benefit and Business
  • Good For: Covering final expenses, paying a mortgage and other debts, replacing lost income for loved ones
  • Major Appeal: Affordability plus tailored-for-you riders for adding children, covering yourself in an accident, or waiving your premium you become ill or disabled.

Term Elite®

  • Comes With: Death Benefit
  • Good For: Covering final expenses, paying a mortgage and other debts, replacing lost income for loved ones
  • Major Appeal: Similar coverage to Term Essential® but added perks, like the ability to apply your premium payments towards a permanent policy if you convert in the first 5 years

SimplyTerm

  • Comes With: Death Benefit
  • Good For: Covering final expenses, paying a mortgage and other debts, replacing lost income for loved ones
  • Major Appeal: Easily purchased online and made for affordability. 10,20, or 30 years of coverage up to $500,000.

PruLife® Return of Premium Term

  • Comes With: Death Benefit plus Additional Income
  • Good For: Paying off your mortgage after your term is over.
  • Major Appeal: Like most terms, but with this added bonus: At the end of your term, your premium payments are returned to you tax-free. Plus, the ability to add on the Living Needs Benefit rider if you become seriously ill.

PruTerm OneSM

  • Comes With: Business
  • Good For: Small business owners paying off a short-term loan and want the extra coverage.
  • Major Appeal: The only policy to offer term life insurance for one year at a time.

Prudential Universal Life Insurance

PruLife® Universal Protector

  • Comes With: Death Benefit, Legacy, Offset Taxes, Business
  • Good For: People who want to adapt their life insurance policy while also providing a guaranteed benefit for loved ones while adjusting their individual term and premium.
  • Major Appeal: Flexibility plus tailored-for-you riders for adding children, covering yourself in an accident, or waiving your premium you become ill or disabled.

PruLife Essential UL®

  • Comes With: Legacy, Offset Taxes, Business
  • Good For: When a legacy is the most important consideration on your mind.
  • Major Appeal: Major focus on legacy plus an Enhanced Cash Value rider to let you access your cash value in your lifetime.

PruLife SUL Protector®

  • Comes With: Legacy, Offset Taxes
  • Good For: Estate planning for couples.
  • Major Appeal: Covers two lives and pays a death benefit when the first of the two insured dies. Can be used to pass your wealth onto a charity with a tax-free benefit.

Prudential’s Indexed Universal Life Insurance Policies

The benefits of an indexed universal life insurance policy are that the accumulated cash value gains interest at either a fixed rate or based on the S&P 500 performance.

Here are Prudential’s offerings of indexed universal life insurance policies:

PruLife® Founders Plus UL

  • Comes With: Death Benefit, Legacy, Illness, Offset Taxes, Business
  • Good For: Those who want to keep their insurance protection but higher cash value in retirement.
  • Major Appeal: Two options for building cash value towards extra retirement income. Plus – riders for covering minor children, covering yourself in an accident, or waiving your premium you become ill or disabled.

PruLife® Index Advantage UL

  • Comes With: Additional Income, Illness, Offset Taxes, Business
  • Good For: Those who want to keep their insurance protection but higher cash value in retirement.
  • Major Appeal: Out of all of Prudential’s policies, this one has the greatest potential for building cash value due to different market environments based on the S&P 500 index.

PruLife®Survivorship Index UL

  • Comes With: Legacy, Offset Taxes
  • Good For: Estate planning for couples.
  • Major Appeal: Covers two people and pays the death benefit when both have died. Plus – riders to cover illness, increase cash value, and protect your estate.

Prudential’s Variable Universal Life Insurance Policies

Variable life insurance policies also give you the best of both worlds by providing opportunities to build wealth with a feature called an “underlying investment.”

VUL Protector®

  • Comes With: Legacy, Additional Income, Illness, Offset Taxes, Business
  • Good For: When your biggest focus is protecting your assets and you’re in the financial situation to take on moderate risks for moderate returns.
  • Major Appeal: Whether the cash value of the policy increases or decreases due to fluctuations in the market, the no-lapse guarantee still covers your family in the event of a loss.

PruLife® Custom Premier II

  • Comes With: Additional Income, Illness, Offset Taxes, Business
  • Good For: When your biggest focus is on growing your assets and you’re in the financial situation to take on higher risks for higher returns.
  • Major Appeal: Whether the cash value of the policy increases or decreases due to fluctuations in the market, the no-lapse guarantee still covers your family in the event of a loss. This also applies in the early stages of the policy, for up to the first 10 years when the cash value has not reached the limits of the policy’s coverage.

PruLife® SVUL ProtectorSM

  • Comes With: Legacy, Offset Taxes, Business
  • Good For: When your focus is leaving a legacy for your favorite charity or organization.
  • Major Appeal: Covers two people and pays out the benefit as a legacy when both people have died. Also offers a no-lapse guarantee and a number of riders to personalize the policy.

The Difference Between Universal Life and Term Life

First thing’s first. What’s the difference between the two broadest of these categories, universal and term life?

Prudential breaks the categories into smaller subsets, but since these are the two most fundamental differences in policies, we’ll start here.

Term Life Insurance

So what is a term life insurance policy? It’s simply a more affordable way to gain life insurance, namely in the form of a death benefit, for a set amount of time – usually five to 30 years.

Term life insurance policies are more affordable because they don’t come with the ability to borrow on the accrued cash value of your policy and tap into the money you’ve paid over your lifetime when you retire.

That’s what universal life insurance policies do. Term life policies are basically a way to cover your death costs, plus any outstanding debts if a tragedy were to occur. They are a peace-of-mind policy, and nothing more – but they are more affordable.

Many people opt for a term life policy simply to ease their worries and find other ways to build wealth so that, eventually, their other retirement investments take the place of what a life insurance death benefit would offer.

Because term policies have lower premiums, they offer more wiggle room in the budget to do this.

But if you’re interested in a robust life insurance policy that lets you do both – a universal life policy might be speaking your language.

Universal Life Insurance

So what is a universal life policy? It is a policy that stays with you for the duration of your life and builds cash value over the years.

In this way, universal life policies are like whole life policies, but they are more flexible.

Sometimes universal life is called “adjustable life insurance” because it is just that – adjustable!

This means you can adjust your death benefit amount and premium payments at any point in time.

But since universal life insurance policies are meant to last for your lifetime and even provide income in your retirement, you’ll expect to pay a higher premium.

Quick Pros and Cons of Prudential Insurance

Pros

  • Streamlined underwriting process that eliminates the need for medical examinations
  • Up to 15 different policies depending on your needs
  • Superior financial strength rating

Cons

  • No whole life policies
  • You will need to purchase your policy through an agent (except for the SimplyTerm policy)

Prudential’s Financial Strength

Last but not least, we’ll leave you by celebrating Prudential’s superior A.M. Best Financial Strength rating. Prudential earned an A+, which is a superior rating.

Why is financial strength rating important in a life insurance policy?

Because financial strength is the best indicator we have of the insurer’s ability to pay its claims. We can assume because Prudential is one of the largest, oldest insurance companies in the nation, that it is good for its promise.

But because life insurance policies don’t pay out for up to 30+ years, you want to feel really secure in your company’s financial solvency. We’re happy to say that Prudential has the cash reserves to remain stable for the long haul – and now, so can you!

Grant Sabatier

Creator of Millennial Money and Author of Financial Freedom (Penguin Random House). Dubbed "The Millennial Millionaire" by CNBC, Grant went from $2.26 to over $1 million in 5 years, reaching financial independence at age 30. Grant has been featured in The New York Times, Wall Street Journal, BBC, NPR, Money Magazine and many others. He uses Personal Capital to manage his money in 10 minutes a month.

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