Like its logo signifies, Prudential has been built upon a rock solid foundation. It is one of the top companies in all of America for several categories of life insurance, and its poised to remain there for many years to come.
But just because you know the name and brand, does it make it the best product for you and your family? Below we break down every aspect of Prudential, and show you a few instances where they might be an excellent fit, and others where there may be other options.
Our Prudential Life Insurance Company review is our own, and is based on our research, industry experience, and other factors. We suggest you make the best judgement on carriers before applying, and consider your personal situation to ensure they are the most suitable. Let’s talk more on Pru.
Our Prudential Life Insurance Company Review
Founded where it still currently resides, in Newark, New Jersey, Prudential Financial has been in business since 1875. It is formally The Widows and Orphans Friendly Society and Prudential Friendly Society, by its creator and founder John Dryden.
In its earliest years, Prudential was a mutual life insurance company, owned by its policyholders, but has since modified its structure to be held by stockholders. Its ticker is PRU on the NYSE, and began its first official trading year at the end of 2001.
While it no longer pays dividends to its policyholders, it does have an active dividend structure to its shareholders, which has been consistently paid, although fluctuating in value, since 2002.
PRUCO’s Financial Strength & Ratings
Today, Prudential employs more than 47,000 men and women, holds more than a trillion dollars in assets under its supervision, and operates in 41 different countries worldwide.
A financially strong and suitable company, the reputation of Prudential has made it nearly a household name. With “A” or better ratings from all four major financial ratings agencies, including A.M Best, Fitch, Moody’s, and Standard & Poor’s, it is among an elite group of insurers to do so. This portrays the possibility PRUCO will be long standing, and its current financial solvency is extremely sound.
In 2013, Prudential was considered one of the best life insurance companies, boasting more than $13B in net life insurance premiums, the top of its industry in that year. Based on strictly total admitted assets, Prudential ranks second across the U.S.
Prudential also hosts a very long resume of awards and accolades, both nationally and internationally, including #3 for the World’s Most Admired Companies in its category. Among its other awards are for diversity, employing working mothers, and a perfect score for human equality for the last decade running.
Life Insurance Products From Prudential
Prudential offers several lines of life insurance products, including:
- Indexed Universal
- Variable Universal
Of the term products alone, there are six available from Prudential. They are:
- Term Essential®
- Term Elite®
- PruTerm Worklife 65SM
- PruLife® Return of Premium Term
- PruTermSM One
You’re not going to be left on the sidelines looking for term when it comes to Prudential. There is something for virtually everyone, with every need. Of course, one would expect it from such a large, household carrier.
For example, the MyTerm® can get you anywhere from $50,000 up to a quarter million in death benefit without even taking a medical exam! This is ideal for folks who are super healthy and want coverage quickly, without the hassle and inconvenience of the pesky needle.
If you are looking for an extremely affordable 10 to 30 year term, look no further than the Term Essential®. One of the cheapest options of the bunch, it’s a full-service term product, utilizing the exam, and makes a great term option for virtually any need.
If you do have plans to convert your policy to one of the permanent options listed below, perhaps the Term Elite® is the best choice for you. While it is very similar to the Term Essential®, it does have conversion privileges, meaning some of the premiums you pay in the first few policy years can go towards the premiums due on the permanent policy as a credit.
A bit more of a niche product, and one you likely won’t find anywhere else within the marketplace, is the PruTerm Worklife 65SM. Specifically tailored for those only looking to replace lost income from work, the policy is built to match your career, at least up to the age of 65. With extra benefits like free Waiver of Premium and a year of Unemployment coverage, this policy is unmatched from any other carrier.
To meet the demand of the consumers looking to get their money back if they outlive their policy, the PruLife® Return of Premium Term does just that.
Finally, the last term policy, called the PruTermSM One, is actually what is called an annually renewable term. For those needing coverage for a very short period of time, costs are minimal, and coverage can be extended year-by-year until you no longer need it. This is the most cost effective choice if you need death benefit coverage for 4 years or less.
For basic, long-lasting life insurance, you do have several choices from Prudential as far as universal life goes. Here are the three prominent options:
- PruLife® Universal Protector
- PruLife® SUL Protector
- PruLife® Universal Plus
A universal life insurance contract is drafted to allow permanent coverage for less while still building in some guarantees for the future.
The PruLife® Universal Protector is the most basic of the bunch, allowing you to guarantee the death benefit to virtually any age, or for as long as you live. The longer guarantee you choose, the higher your premium payments will be, and any loans or withdrawals you take can have an effect on the guarantee if not paid back.
Much like the aforementioned the PruLife® SUL Protector does much of the same, but covers two lives. This is used primarily for the transfer of wealth, like estate planning or planned giving, and won’t pay a death benefit until both insured’s have passed.
If growing cash value is more your aim, the PruLife® Universal Plus is your best option from Prudential without taking on too much risk.
Indexed Universal Life
A less common option which is offered by Prudential is their lineup of indexed universal policies. They are the:
- PruLife® Founder’s Plus UL
- PruLife® Index Advantage UL
- PruLife® Survivorship Index UL
An indexed universal policy is typically aimed at attempting to grow cash within the policy for some type of tax advantaged use later. A portion of the premium payments you make go towards interest or index growth avenues, allowing for greater growth potential, with a ‘floor’ of minimum guarantees attached.
The PruLife® Founder’s Plus UL, for example, allows you to choose from either a fixed interest rate, or other options such as growth tied to the S&P 500.
The PruLife® Index Advantage UL is much the same, but has slightly more options and income potential in the future.
Finally, the PruLife® Survivorship Index UL is the final indexed option, and utilizes the dual-life structure to aid in proper (and cheaper) wealth transfer.
An indexed universal policy is not for everyone, so make sure you understand the pros and cons before you apply.
Variable Universal Life
To wrap up the life insurance products from Prudential, do understand variable life insurance must be sold by a registered representative, not just a licensed agent. This is an important distinction as variable contracts are tied to the stock market and have more risk than standard life options.
Pru offers two choices:
- VUL Protector®
- PruLife® Custom Premier II
If you are primarily seeking a death benefit (with guarantees) but don’t mind a little bit of risk, the VUL Protector® will meet your needs. You can guarantee a minimum death benefit with the no-lapse guarantee, while still giving yourself growth potential by utilizing mutual funds or other investment types for growth.
If you are strictly focused on growth within a life insurance policy, look no further than Prudential’s PruLife® Custom Premier II, which will let you take on higher risk in hopes of higher returns. Guarantees are still available, but not for as long of a duration.
Speak to a registered representative with further questions or to see if it is a suitable product for your needs and wants.
Other Product Lines
Outside of its full array of life insurance products, its also operates with full investment and retirement resources. Among those are its PruChoice mutual funds, its own family of funds under the Strategic Investment Research Group (SIRG) within the Prudential Investments, LLC. division.
Prudential also gives access to its consumers and clients many different annuities, retirement accounts, and even group benefits for small and large businesses alike. These benefits include AD&D, critical illness, disability and more.
Their aim is to become a one-stop shop for most, if not all, financial needs a consumer could have.
Final Thoughts On Prudential Life Insurance Company
With a long standing history, a superior financial strength, and full array of both insurance and investment products, Prudential has become an iconic institution in all of the United States as well as worldwide. With a target market of middle class to upper affluent, Prudential Financial has a mission to help all of its consumers get to the financial status they seek, while keeping their own peace of mind.
Prudential was named to 2016’s FORTUNE magazine Most Admired Companies within the life insurance sector, and was named No.1. We strongly believe in Prudential, as well, and you should have no worry making them your carrier for your family in 2017.
|Company Name (and Subsidiaries)||Prudential Financial, Inc.|
The Prudential Insurance Company of America
PRUCO Life Insurance Company
Prudential Annuities Life Assurance Company
Prudential Retirement Insurance and Annuity Company
|Company Ratings||A.M. Best (A+)|
Moody’s Investors Services (A1)
Standard & Poor’s (AA-)
|Headquarters (Address, Phone, Web)||751 Broad Street|
Newark, NJ 07102
Phone: (973) 802-6000
|Policy Types Available||Term|