Prudential life insurance review 2023
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“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Published 5:00 a.m. UTC Nov. 30, 2023
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Prudential
Pros
- Historically reliable policy illustrations.
- Low internal costs for cash value policies.
- Multiple investment options for cash value life insurance policies.
- Some term life insurance quotes available online.
Cons
- Higher-than-average volume of complaints to state insurance departments.
- Most policy applications must be completed with an agent.
- Whole life insurance only offers up to $30,000 in coverage.
About Prudential life insurance
Prudential entered the life insurance business nearly 150 years ago as The Prudential Friendly Society (PFS). After a couple of years, the company switched to The Prudential Insurance Co. of America. Today, it’s called Prudential Financial.
Prudential Financial sells more than life insurance. The company is an industry leader in investing, insurance, retirement and workplace benefits. Prudential is headquartered in Newark, New Jersey and has offices around the globe.
In this Prudential life insurance review, we’ll outline the types of coverage this insurer has to offer, to help you decide if it’s the best life insurance company for your financial goals.
Type of life insurance offered by Prudential
Prudential offers six primary types of life insurance: term, universal, final expense (whole life), indexed universal, indexed variable universal and variable universal.
Prudential term life insurance
Term life insurance is an affordable life insurance option, especially if you only need coverage for a limited time.
You can choose from three Prudential term life insurance policies: SimplyTerm, Term Essential and PruTerm One. Payments are level for the entire term and you can convert some policies to permanent life insurance coverage at any point — no additional medical exam required.
- SimplyTerm offers up to $1 million in coverage, with 10-, 15-, 20- or 30-year terms available. Eligible applicants can complete the application online without the need for a medical exam, though some applicants may need to provide additional health-related information. Policies may be issued to applicants up to 60 years old, though 30-year terms are limited to age 55 (45 for smokers).
- Term Essential offers higher coverage amounts — $10 million — and may be available at a lower cost to eligible applicants. Though you can get an instant quote online, you’ll need to complete the application process with an agent. This policy can be converted to a permanent policy without the need for another medical exam at the end of the level-payment period or by the age of 65, whichever comes first.
- PruTerm One offers $50,000 to $10 million in coverage for a single year with the option to renew each year, as necessary. Your premium will increase each year you renew. To get a quote or apply for PruTerm One, you’ll need to work directly with an agent.
Prudential universal life insurance
Universal life insurance is a form of permanent life insurance that includes a cash value component that builds over time and flexible death benefits and/or premiums.
Prudential sells two types of universal life insurance:
- PruLife Essential UL offers permanent coverage with a death benefit starting at $100,000, flexible premiums and a cash value, with a portion of your premium growing at a fixed interest rate. This policy also offers a no-lapse guarantee, ensuring your policy remains in effect (for a specific period), even if the value drops. Policies are available to new customers through age 85.
- PruLife Survivorship UL Protector allows two individuals, often spouses or partners, to gain universal life coverage under one policy. Under a survivorship policy, the life insurance beneficiary receives a death benefit after both insured individuals have died.
Prudential final expense life insurance
Prudential’s final expense life insurance is a whole life insurance policy available to applicants ages 50 to 80. This policy offers between $5,000 to $30,000 in coverage with no medical exams, and some applicants may be approved the same day they apply.
Final expense insurance through Prudential can be used to cover end-of-life expenses, such as funeral and burial costs, as well as other types of expenses, such as outstanding debts.
Prudential indexed universal life insurance
Prudential has three indexed universal life insurance options:
- PruLife Founders Plus Indexed UL: You can choose from three interest crediting options for your cash value growth:
- Option 1: Growth is at a fixed, declared interest rate. The current rate is 3.75%.
- Option 2: Growth depends upon the S&P 500 Index (0% floor that protects against losses, but also a cap that restricts how much the cash value can grow).
- Option 3: Growth depends upon the Goldman Sachs Voyager Index, which is more dependable during market volatility (also has a 0% floor but no cap).
- PruLife Index Advantage UL: Though similar to Founders Plus, this universal indexed life insurance option offers higher caps for its two S&P indexed account options, giving you the greatest potential for building your cash value.
- PruLife Survivorship Index UL: Like PruLife Survivorship UL Protector, this policy has two insureds and only pays out the death benefit when both have died. You can choose between a fixed interest rate and one of three S&P-indexed accounts.
Prudential indexed variable universal life
Prudential’s FlexGuard indexed variable universal life insurance is a permanent life insurance policy that offers various ways to grow cash value. Like other variable products, cash value is based on indexes, like the S&P 500, and other investment funds, with control resting primarily in the policyholder’s hand. Cash value growth strategies include:
- Fixed-rate growth, which is low-risk and offers steady growth.
- Indexed strategies, which rely on market performance and offer some protection from volatility with floors and buffers.
- Variable, which relies on market performance but lacks the floors and buffers, making it a higher-risk option but with the opportunity for more growth.
Prudential variable universal life insurance
Variable universal life insurance gives policyholders more control over how their cash value is invested. This can lead to increased cash growth, though it also increases risk. Prudential offers three types of variable universal life insurance:
- VUL Protector is a variable universal life insurance policy that offers moderate risk and gains. It includes Prudential’s No-Lapse Guarantee, allows for flexible premium payments and lets you choose from a variety of funds to achieve cash value growth. VUL Protector policyholders also have the option to select a custom, guided or managed portfolio approach, allowing you to choose the track that best suits your investment knowledge and skill set.
- PruLife Custom Premier II though similar to the VUL Protector in terms of investment options, this plan is considered a long-term investment vehicle that is more aggressive than the VUL Protector.
The increased risk of this policy can yield higher earnings over time. In addition, policyholders can choose between two no-lapse guarantee periods and three death benefit growth options: Fixed, variable or return of premium. The option you choose will impact the death benefit your beneficiary will receive as well as your policy premium, providing enhanced control over your policy.
- PruLife SVUL Protector is another option for individuals who want to purchase a survivorship life insurance policy. The policy is structured similarly to the VUL Protector plan, but it only pays out a death benefit when both insured individuals have passed.
Prudential life insurance riders
Optional riders can extend the benefits of your life insurance policy, but they also typically raise your premium. Prudential offers the following riders when signing up for a policy:
- Accidental death benefit rider: Your beneficiary receives an additional death benefit if you die in an accident.
- Children’s protection benefit and children level term rider: You can add (minor) children to your coverage.
- Enhanced cash value rider: If you have to surrender your policy early on, this rider gets you a higher surrender cash value.
- Enhanced disability benefit: This prevents your policy from lapsing should you become disabled.
- Estate protection rider: Your death benefit can increase by up to 100% if both insureds on the policy die within the first four years of the policy.
- Guaranteed policy split rider: You can divide a single policy into two. This may be useful if you get divorced or if estate laws change.
- Living needs benefit and benefit access rider: You can access your death benefit early if you become terminally ill.
- Overloan protection rider: This prevents a lapse in coverage even if you take out significant loans from the cash value of your policy.
- Survivorship benefit access rider: If you have a terminal or chronic illness, Prudential will accelerate the death benefit.
- Waiver of premium: If you become disabled, Prudential will waive the policy premium so you can stay covered.
Prudential life insurance riders may vary depending on the policy you choose and the state in which you live.
Prudential life insurance reviews
Prudential holds an A+ rating from AM Best, reflecting its ability to pay out customer claims. Despite its high financial strength and wide range of policies, Prudential amasses a higher volume of customer complaints compared to other insurers in the nation, according to data from the NAIC.
Based on data from Veralytic, a company that analyzes life insurance policies, Prudential’s cash value life insurance policies have low internal costs and historically reliable policy projects, both of which are important when shopping for permanent life insurance that accrues cash value.
Before purchasing a plan, always get at least three life insurance quotes so you can compare rates and coverage. It’s also helpful to read multiple Prudential life insurance reviews online and ask friends, family members or coworkers with Prudential policies if they’re satisfied with their coverage and customer experience.
Other products offered by Prudential
In addition to life insurance, Prudential offers:
- Annuities.
- Exchange traded funds (ETFs).
- Target date funds.
- Workplace solutions, including:
- Absence services and disability insurance.
- Accident insurance.
- Accidental death and dismemberment insurance (AD&D).
- Critical injury insurance.
- Hospital indemnity insurance.
Prudential life insurance is best for a wide range of customers, especially those looking for cash value policies, such as universal, indexed universal or variable universal life insurance. Many of these policies can be good for experienced investors with an appetite for moderate to high risk.
Prudential also offers multiple term life insurance options, making it a suitable option for those looking for affordable coverage for a specific period.
Prudential is not a good option for those searching for whole life insurance with more than $30,000 in coverage.
Eligible applicants can get Prudential’s no-exam life insurance policy, SimplyTerm, online, though some applicants may need to provide additional health-related information. Other Prudential life insurance policies, including its universal and indexed universal life insurance policies, are only available through an agent.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
