As signified in its logo, Prudential Financial promotes itself as a company built on a rock-solid foundation.
But there’s more to choosing the right life insurance company than picking a familiar brand, even one symbolizing strength and protection.
To decide whether or not Prudential is the best provider for you and your loved ones, you need to look at the company’s history, current financial performance, and future trajectory.
You also need to determine whether or not Prudential has the right policy to meet your needs.
Let’s talk more about what Pru can do for you.
Our Prudential Life Insurance Company Review
Not only is Prudential one of the top life insurance companies in all of America, but it’s also a leading provider of workplace benefits, annuities, and investment accounts.
Founded in Newark, New Jersey, where the company’s headquarters remain today, Prudential Financial has been in business since 1875.
It was formally named 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 it has since modified its structure to be held by stockholders.
With the ticker PRU on the NYSE, Prudential began its first official trading year at the end of 2001.
While the company no longer pays dividends to its policyholders, it does have an active dividend structure for its shareholders, which has been consistently paid, although fluctuating in value, since 2002.
Today, Prudential is universally recognized as an outstanding business.
Most recently, Prudential was named the number one life/health insurer on Fortune’s “World’s Most Admired Companies” list.
In 2017, Prudential donated $79.2 million to nonprofits, with employees contributing a combined 79,764 hours of community service in Newark and beyond.
Prudential was founded on a mission of making financial security available to everyone, regardless of their circumstances.
By all accounts, the company appears to be carrying the mantle well over a century after its inception.
Financial Strength & Ratings
As you may have guessed by the company’s rich history and accolades, Prudential is a financially strong company.
Prudential employs 50,000 men and women across the globe.
On the customer side of the house, Prudential has over $4 trillion of life insurance in force worldwide, with customers in over 40 countries.
Additionally, the company has over $1.497 trillion of assets under management
Prudential’s reputation as a household name is due largely in part to its financial prowess.
Another strong indicator of Prudential’s financial standing is its collection of credit ratings.
Here’s the breakdown:
- A.M.Best: A+
- Fitch: AA-
- Moody’s: Aa3
- Standard & Poor’s: AA-
These ratings imply Prudential’s strong likelihood of keeping its financial promises to policyholders and investors.
Unfortunately, Prudential Financial has a “C-” rating from the Better Business Bureau, though it is not BBB-accredited.
Bottom line: Prudential is one of the largest and most financially dominant life insurance companies in the industry, a name you can undoubtedly count on.
Prudential offers several lines of life insurance products, including:
- Indexed Universal
- Variable Universal
We’ll take a closer look at what each policy entails below.
Prudential offers 5 term life insurance products, which come in 10 to 30-year terms.
- Term Essential®: This policy is one of Prudential’s most affordable term life products, with a tax-advantaged death benefit to protect your loved ones or business. It comes with a number of riders and is convertible.
- Term Elite®: This product is similar to Term Essential, but it comes with conversion credits towards your first-year premium.
- SimplyTerm: The most basic option, SimplyTerm coverage is limited to $500,000 and comes with 10, 20, or 30-year term options. It can be bought easily online.
- PruLife® Return of Premium Term: In addition to the death benefit, this policy offers a refund. If you outlive your term, you get back the money you paid in premiums. You can also add a Living Needs Benefit rider.
- PruTermSM One: Prudential’s final term life policy comes in one-year terms, making it perfect for small-business owners with short-term debts to pay. This affordable coverage also comes with an optional Living Needs Benefit rider.
With Prudential, there is a term product for virtually everyone.
Prudential offers a variety of universal products for individuals looking to secure more permanent coverage.
Here’s a quick overview of each policy:
- PruLife® Universal Protector: This basic policy lets you guarantee a death benefit to virtually any age, or for as long as you live. The longer the guarantee, the higher premium payments will be. Any loans or withdrawals you take can have an effect on the guarantee if not paid back.
- PruLife® SUL Protector: Policy number two offers the same benefits as the Protector policy, but it covers two lives as opposed to one. When both you and your partner die, the face amount of the policy is disbursed.
- PruLife® Essential UL: This option provides your loved ones with a death benefit and gives you the potential to accumulate cash value, with a number of optional riders granting you access to the cash value.
With universal coverage, you can get some amount of guarantee without paying as much as you would for whole life insurance.
Indexed Universal Life
A less common option which is offered by Prudential is their lineup of indexed universal policies.
An indexed universal policy aims to grow cash within the policy for tax-advantaged use later.
A portion of the premium payments goes towards interest or index growth avenues, allowing for greater growth potential, with minimum guarantees attached.
- PruLife® Founder’s Plus UL: This option allows you to choose from either a fixed interest rate, or potential growth tied to the S&P 500. You can add several riders to your policy.
- PruLife® Index Advantage UL: This policy comes with more potential for growth with four options for building interest. It also comes with a 20-year no-lapse guarantee and riders.
- PruLife® Survivorship Index UL: Prudential’s survivorship IUL policy pays out when both of the insured die. It comes with a locked minimum rate and the ability to guarantee the policy won’t lapse.
Variable Universal Life
Last but not least, Prudential offers variable life insurance products.
First things first, you should understand variable life insurance must be sold by a registered representative, not just a licensed agent.
This is an important distinction as variable policies are tied to the stock market and have more risk than standard life options.
Pru offers three variable choices:
- VUL Protector®: If you are primarily seeking guaranteed protection with moderate risk, the VUL Protector® will meet your needs. You can secure a no-lapse guarantee up to the duration of your life, while still giving yourself growth potential by utilizing mutual funds or other investment accounts for growth.
- PruLife® Custom Premier II: PruLife® Custom Premier II is centered around long-term growth and lets you take on higher risk in hopes of higher returns. Guarantees are still available, but not for as long of a duration.
- PruLife® SVUL Protector: The survivorship version of Prudential’s variable policy lets you decide how much risk to incur with your investments. It also has a no-lapse guarantee and optional riders. Once again, it pays out when both of the insured have passed.
In addition to its array of life insurance products, Prudential also offers a full selection of investment and retirement resources.
Among those are PruChoice mutual funds, annuities, retirement accounts, and group benefits for small and large businesses alike.
The company is on track to become a one-stop-shop for most, if not all, financial needs a consumer could have.
Prudential Financial excels in many areas of the life insurance industry.
Here are a few of the biggest advantages of purchasing life insurance from Prudential:
- Reputation: Prudential is one of the most well-known and trustworthy life insurance providers in the industry. They’re backed by the highest financial ratings and have proven to be an impressive force since the 1800s.
- High-risk coverage: Prudential offers the fairest underwriting in the industry for high risk applicants, including smokers.
- Product lineup: While Prudential lacks whole life insurance, it offers a remarkable number of flexible term and universal policies, with ample riders for customization.
- Financial tools: With a robust offering of retirement and investing solutions, Prudential could help you plan for your family’s financial future in more ways than one.
Like any company, Prudential does have a few shortcomings.
Consider the downsides of Prudential’s life insurances below:
- No exam: Unfortunately, Prudential does not offer no exam coverage, meaning you’ll have to get a physical when you apply for a policy.
- No whole life: While you can reap some comparable benefits with Pru’s universal products, there’s no true whole life policy on offer.
- Term life rates: While Prudential is an excellent option for risky applicants and their universal policies are affordable, their term life products aren’t the most competitively priced.
With a long-standing history, superior financial strength, and full array of both insurance and investment products, Prudential has become an iconic institution in the United States as well as worldwide.
Prudential Financial is driven by a mission to help all of its consumers reach their financial goals and attain peace of mind with life insurance.
Whether Prudential is on your shortlist or not, be sure to get quotes from them and other top providers.
A few moments now could save you a few thousand dollars in premiums tomorrow and connect you with the perfect policy for your needs.