Review of Prudential Life Insurance Company
How do you know if the company you are applying with is the right company? At TermLife2Go, we work with dozens of companies offering the best life insurance in the marketplace. However, there is no one size fits all company. Many companies, Prudential Life Insurance included, focus on niche underwriting. It is by aligning each client with the specific niche that best serves their need that we can place our clients with the best life insurance company, based on each clients unique health and lifestyle.
If you are looking for Prudential life insurance reviews (or Pruco Life Insurance reviews) then you have come to the right place. Prudential life is one of dozens of life insurance carriers that TermLife2Go represents. In the following review we will cover the positives, negatives and alternatives to Prudential Life Insurance Company.
When you are in the market for coverage, in order to find the best life insurance quotes on any product it is important to know your options by comparing the different top rated carriers. In the following video we briefly explain why comparing life insurance companies is so important.
Prudential Life Insurance: The Positives
Self proclaimed owner of one of the most recognized and trusted brand symbols: The Rock ®, an icon of strength, stability, expertise, and innovation, Prudential Life is definitely a force to be reckoned with in the world of life insurance. Prudential’s life insurance division is known as Pruco Life Insurance Company and will be used interchangeably throughout this article.
Prudential Life’s Ratings
As you may have read in other Prudential Life Insurance reviews
Prudential Life Insurance Company of America offers life insurance in all states but NJ and NY. In those states, coverage is offered by Pruco Life Insurance Company of New Jersey.
Either way, the company’s financial strength is top notch. Prudential Life is one of the most financially secure life insurance companies in the world, as is evidenced by the following ratings. (Ratings last updated September 2017)
- A.M. Best rating: A+
- S&P rating: AA-
- Fitch rating: AA-
- Moody’s rating: A1
- Comdex ranking: 92
Of note, Pruco Life Insurance Company of New Jersey comes in a bit higher with a Comdex ranking of 94.
Prudential Life Insurance Favorable Underwriting for “niche” clients
One of the main reasons Prudential Life is in our top 10 best life insurance companies list is due to the company’s unique underwriting. Pruco Life Insurance Company has some very unique niches in the life insurance landscape.
The company is an innovator when it comes to underwriting for various niches including travel, DUI’s, cigar smokers, chewing tobacco, cancer survivors, and diabetes. Often, Pruco Life will offer the best rate class and price for clients who fall into these categories.
Some (of the many) niches where Prudential Life excels are:
- Prudential Life may offer a preferred rate class for clients with HDL levels up to and including 6, even if the client is taking cholesterol medication.
- Prudential Life also looks for the best possible impaired risk treatment for clients with asthma, atrial fibrillation, bladder and breast cancer, hepatitis C, mood disorders, and prostate and thyroid cancers.
- Prudential Life is excellent at insuring non U.S. residents who do business in the United States or U.S. residents living abroad.
Prudential Life also has a niche category termed “non smoker plus“.
This is a rate class that falls in somewhere between a standard plus and preferred rate class for those who qualify.
Some categories of individuals who may qualify for Pruco Life Insurance Company’s Non-Smoker Plus ratings:
- Cigar/pipe smokers and smokeless tobacco users such as Nicotine patch or Nicorette Gum users
- Individuals with Cholesterol/HDL levels up to and including 7.0, even if they are on cholesterol-lowering medications
- Large build clients ages 18-64: Males and Females 6’0″ up to 243 pounds
- Large build clients 65 and over: Males and Females 6’0″ up to 294 pounds
- Private pilots 25 years of age or older with more than 600 hours in total flight time and between 30 and 300 hours per year
- Diabetics seeking life insurance with excellent control
Products offered by Prudential Life Insurance Company
Prudential Life offers term life insurance and several universal life insurance products.It is important to be able to distinguish between term life vs permanent life insurance when looking for the right policy that fits your needs and objectives.
The company offers term life, universal life, indexed universal life, and variable universal life insurance.
Basically, if there is a life insurance product that you need, chances are Pruco Life has the product. In fact, the only product we don’t find is whole life insurance.
Term Life Insurance
Prudential has a handful of term life options to choose from.
MyTerm is no medical exam life insurance that provides death benefit coverage up to $250,000. You can choose from different term lengths, including 10, 15, 20 and 30 years.
A terminal illness rider is available which allows you to access a portion of your death benefit if you are diagnosed terminally ill with 6 months left to live.
On negative of MyTerm is it is NOT convertible life insurance. So if you are nearing the end of your time and you want permanent coverage the policy would not qualify.
Term Essential is level premium term life insurance. Terms available include 10, 15, 20 and 30 years and the policy is renewable to age 95.
The policy is also convertible term life, so you can convert to permanent life without a medical exam.
PruLife Return of Premium Term
Prudential offers return of premium life insurance with term lengths of 15, 20 and 30 years. At the end of your policy term you will receive your premiums back, assuming you did not cancel early, withdraw funds, or die (of course).
Permanent Life Insurance
Prudential offers three types of permanent life insurance: universal, indexed and variable.
One of the primary benefits of universal life is its flexibility. You can adjust premium payments, adding more in good times and paying less in bad financial seasons. Your policy earns interest and offers cash value growth, although the potential for high cash value growth is great with the next two products below.
Indexed Universal Life
Pruco offers three different indexed universal life policies. One is focused on the death benefit and lapse protection. Another is focused on cash value growth. And the third is survivorship life insurance that insures the life of two people, paying out upon the death of the survivor. For our purpose in this Pruco review we will focus on PruLife Index Advantage UL.
PruLife Index Advantage UL
This IUL offering from Prudential focuses on cash value growth. You can choose to allocate funds to a fixed account or to three different indexed accounts: Indexed account, Indexed account with multiplier, and uncapped indexed account. The indexed accounts credited interest returns are measured by a formula that tracks the S&P 500 performance, excluding dividends. It should be noted that you are NOT investing directly in the market.
Each account has it purpose. In general market advances where gains are slow and steady, the indexed account offers the best option. For markets that return lower than average returns, using the indexed account with multiplier may offer higher credited interest than the other indexed accounts. And when you anticipate strong upside potential, the uncapped indexed account may offer the highest potential credited interest.
How does IUL work?
The company offering your indexed universal life (IUL) policy places your premium in a general account. You can then allocate your funds to a fixed account or to one of the indexed accounts. Since you are not directly investing in the market, each account has a guaranteed floor which protects against market loss.
Generally, you have a cap and floor, although some companies uncapped returns. The guaranteed floor in the fixed account is typically 1-3%. The guaranteed floor in the indexed accounts is usually 0-1%.
The maximum interest credited in your account depends on the declared interest rate set by the company in the fixed account and the cap in the indexed accounts. The declared rate and cap are subject to change.
Variable Universal Life
Variable universal life (VUL) offers the same flexibility of universal life and higher potential gains than indexed universal life. VULs offer a death benefit and an investment feature. With VULs you are making direct investment into variable sub-accounts, AKA underlying investment options. As was the case with Prudential’s IUL policies, Prudential also offers 3 VUL policies: VUL Protector, PruLife Custom Premier II and PruLife SVUL Protector.
How does VUL work?
VUL is similar to IUL in its mechanics. However, the main difference is the lack of caps and floors. With VUL, since you are making an investment into variable sub-accounts you take on more risk/reward. You have the potential for unlimited gains and losses depending on how your underlying investment options perform.
Life Insurance Riders
Prudential Life Insurance Company of America and Pruco Life Insurance Company of NJ offer several life insurance riders, including:
Living Needs Benefit: accelerated death benefit that allows you access to your policy’s death benefit if you suffer from a qualifying event, such as being diagnosed terminally ill, become confined to a nursing home, or require a vital organ transplant.
Children’s Protection Rider: child term rider that protects the lives of all your children from 15 days and older, up to 18 years of age.
Waiver of premium rider: a waiver of premium rider allows premiums to not be paid if you become disabled before a certain age, typically by age 60 or 65.
Prudential Life uses the client’s actual age. Most life insurance carriers use the client’s nearest age to determine their “life insurance age.” Pruco Life’s clients are at an advantage here if the client is within six months of their actual birthday. Most companies will bump that client’s age up to the next year but Prudential Life will keep the client’s age until the client’s actual birthday. And in life insurance, age is a huge factor in determining the price the client will pay. Therefore, in many cases Pruco Life will be the better option for someone who is past that six month mark from their last birthday.
High Retention Limits
Prudential Life’s retention limit is up to $20 million on fully underwritten single life policies and second to die policies. These limits enable Pruco Life to issue up to $65 million for most single life and second to die life cases. These retention limits are among the highest available in the life insurance marketplace.
Anniversary Rate Reduction
In certain instances, (e.g., smoking, height and weight, occupation, aviation, etc…) reductions may be considered after the first policy anniversary. For example, if after the first year anniversary of the policy a client has stopped smoking, Prudential Life Insurance will consider a smoker to non smoker reduction in the rate class. This will subsequently change the premium from a smoker premium to a non smoker premium with huge savings attached. The advantage of doing this compared with re-applying is that the client would keep their original age and the premium would reflect that original age instead of the client’s current age. And after two years of no smoking, Prudential Life will consider a preferred rate class for the client.
HIV Life Insurance
Prudential life insurance company consistently sets itself apart as an innovator. And now the Company is continuing in that tradition by offering people life insurance with HIV. Once launched, policies will be available in 10 and 15 year term limits, with a conversion option to permanent coverage available.
In offering the new coverage, Prudential has partnered with ÆQUALIS, a financial services startup serving HIV-positive people, which has researched medical underwriting, life expectancy and other data on HIV/AIDS and has been key to developing the product. The startup will provide information to consumers and insurance agents as well as manage the application process for Prudential. Source
Sample Male Prudential Life Insurance Quotes
All quotes are based on a 50 year old male at a preferred plus non-tobacco health class as of February 2015. Rates subject to change and must be qualified for.
|Face Amount||10 Year||15 Year||20 Year||30 Year||GUL to 121|
Sample Female Prudential Life Insurance Quotes
All quotes are based on a 50 year old female at a preferred plus non-tobacco health class as of February 2015. Rates subject to change and must be qualified for.
|Face Amount||10 Year||15 Year||20 Year||30 Year||GUL to 121|
For more quotes from Prudential and its competitors, check out our life insurance rates by age chart or enter your info below.
Prudential Short Term and Long Term Disability Insurance
Prudential is one of the best disability insurance companies for group employer plans. Offered through Prudential Life Insurance Company of America, both short term and long term plans are available.
If you are injured or ill and cannot return to work, short term disability insurance can provide financial relief to get you over the hump as you are on the mend. It can also act as a buffer until your elimination period on your long term plan kicks in.
If you have a disability that lasts more than 90 days, the statistics show that your disability will probably last between 2-4 years on average. Long term disability insurance offers income replacement to protect your financial livelihood.
This insurance types is probably one of the least understood but most important coverage in the market. Please check out our guide to learn more on why you need disability insurance.
All good Prudential Life Insurance Reviews need to point out that the company does have a negative…
Not always the Best Option
Prudential Life is a great option for life insurance. However, the company is not always the best option. That is why it is so important to go with an agency that has many options to choose from. You never want to go with just one company. By providing multiple companies we have the greatest chance of helping you obtain the best rates available.
Prudential Life is but one company of many available
Pruco Life is not the only kid on the block. As great of an innovator that Prudential Life is there are still many occasions when another top rated life insurance company will be willing to offer a more competitive policy, rate class and price. This is why having alternatives as a consumer is so important.
Consumers seeking Prudential life insurance reviews are serious about finding the best deal available. The truth is Prudential Life Insurance is often a great option.
However, there is no “one size fits all” life insurance carrier. Every company has its own positives and negatives. The key is knowing which company is best for you and your unique health profile. That is where TermLife2Go comes in.
TermLife2go is an agency that works with dozens of the top rated life insurance companies. Our #1 priority is to find you the best company at the best price…for you! That means we tailor a policy specifically to you because no two clients are alike. Let us leverage our expertise for you and see if we can’t save you thousands of dollars on life insurance.
We do not favor one life insurance company over another. Instead, we find out what you need and then we recommend the lowest priced, best life insurance company to meet your specific need. Therefore, if price matters to you, give us a chance to earn your business. We are here to serve you!
So, what are you waiting for? Give us a call today to see what we can do for you!
If you enjoyed our article, Prudential Life Insurance Company Reviews: Why We Love Pruco!, or have additional questions, please leave a comment below.