One of the key components of a good financial plan is life insurance. That is because the proceeds from a life insurance policy can be used in any number of ways by the beneficiary – such as debt payoff, payment of ongoing living expenses, and/or to ensure that a child or a grandchild will have the funds that they need to attend college in the future.
Before you purchase a life insurance policy, though, it is important to understand the type and amount of coverage that is right for you and your anticipated needs. It is also recommended that you review the insurance company that you’re considering buying the policy through in order to know whether or not it has a good reputation for paying its claims, and whether or not it is strong and stable financially. One insurance company that meets these criteria is Prudential.
The History of Prudential Insurance Company
Prudential Financial has more than 140 years of experience in the insurance and financial services industry. The company helps both individual and institutional customer with growing and protecting their wealth. Over the years, Prudential has become one of the most recognized brands, as well as one of the most admired companies in the world.
Today, Prudential has operations in the United States, as well as in Asia, Europe, and Latin America. The company offers a long list of products and services, which include life insurance and annuities, mutual funds, investment management, and other retirement-related services.
The company has earned many awards and accolades, such as ranking:
- First in the “Insurance: Life and Health” category of Fortune magazine’s 2017 list of the World’s Most Admired Companies
- Second-largest life insurer in the United States (based on life and health insurance combined, and total admitted assets)
- Third-largest individual life insurance business in the United States regarding statutory net written premiums
- Ninth-largest asset manager worldwide
- Fourth-largest seller of individual life insurance in the United States, based on recurring premiums
Prudential Financial, Inc. has a number of subsidiaries, including:
- The Prudential Insurance Company of America
- PRUCO Life Insurance Company
- PRUCO Life Insurance Company of New Jersey
- Prudential Annuities Life Assurance Corporation
- Prudential Retirement Insurance and Annuity Company
- The Prudential Life Insurance Co., Ltd. (Prudential of Japan)
- Gibraltar Life Insurance Company, Ltd.
- The Prudential Gibraltar Financial Life Insurance Co. Ltd.
- Prudential Life Insurance Co. of Taiwan, Inc.
Prudential continues to work towards its long-time mission of creating long-term value for its stakeholders through strong business fundamentals. The company is headquartered in Newark, New Jersey.
Prudential Life Insurance Review
Prudential has a widely recognized name in the U.S., as well as throughout the world. The company, through its subsidiaries, serves customers in more than 40 different countries. As of November 2017, Prudential (or “Pru”) had $1.366 trillion in total assets under management and approximately $3.7 trillion of gross life insurance in force worldwide.
The company is also well regarded as being environmentally friendly, as well as diverse regarding its employees and associates. As a stock insurance company, Prudential Financial, Inc. has common stock shares, which have traded on the New York Stock Exchange since 2001. The company’s stock symbol is PRU.
Insurer Ratings and Better Business Bureau Grade
Due in large part to its overall financial strength, as well as its ability to pay the claims of its policyholders, The Prudential Insurance Company of America, is highly rated by all of the major insurance company rating agencies. These include:
- A+ from A.M. Best Company
- AA- from Standard and Poor’s
- A1 from Moody’s Investor Service
- AA- from Fitch Ratings
Even though the company is strong from a financial standpoint, The Prudential Insurance Company of America – which is not a Better Business Bureau accredited company – as received a grade of F from the BBB. (This is on an overall grade scale of A+ to F).
Prudential has closed out a total of 33 customer complaints through the Better Business Bureau over the past three years – of which 9 were closed out within the past 12 months. Of these total 33 complaints, 24 had to do with problems with the company’s product and/or service, another 5 were related to billing and/or collection issues, 2 had to do with guarantee / warranty issues, one dealt with advertising and/or sales issues, and another one had to do with delivery issues.
Life Insurance Coverage Offered Through Prudential
Prudential offers both term and permanent life insurance policies. Many of these policies also offer riders so that the policy can essentially “customize” the policy to better fit their individual needs.
These riders may include:
- Living Needs Benefit
- Terminal Illness Rider
- Waiver of Premium
- Accidental Death Benefit
- Children’s Protection Rider
With term life insurance, there is death benefit only coverage. As its name suggests, term insurance is purchased for a set period of time, or “term.” Because there is no cash value or savings build up in a term policy, the premium for this coverage is frequently less than that of a comparable permanent policy (with all other factors being equal).
The level term options that can be purchased through Prudential offer an income tax-free death benefit, as well as premiums that will remain fixed throughout the life of the policy. Many of these plans will also offer the ability to access the death benefit funds while the insured is still living if he or she has been diagnosed with a terminal illness. In addition, many of these policies can also be converted over into a permanent form of life insurance without the need for the insured to undergo a medical exam to provide insurability.
There are currently six different term life insurance policies that are offered by Prudential. These are:
- Term Essential
- Term Elite
- PruTerm WorkLife 65
- PruLife Return of Premium Term
- PruTerm One
A permanent life insurance policy will provide death benefit protection, as well as a cash component that allows funds to grow tax-deferred (and won’t be taxed until they are withdrawn).
There are no time limits on owning a permanent life insurance policy, so as long as the premium is paid, the policy will remain in force. Through Prudential, there are several different types of permanent life insurance policies. These include universal life, indexed universal life, and variable universal life.
Universal life offers both permanent protection and flexibility in that the policyholder can – within certain guidelines – alter the premium due date, and can also decide how much of his or her premium dollars go towards the death benefit, and how much goes towards the policy’s cash value.
There are four universal life insurance policy options offered by Prudential, including the:
- PruLife Universal Protector
- PruLife Essential UL
- PruLife SUL Protector
- PruLife Universal Plus
With an indexed universal life insurance policy, the cash value return is based on the performance of an underlying market index that is being tracked, such as the S&P 500. This can allow the cash value to grow more than that of a regular universal life policy, yet without the worry of loss. That is because if the underlying index performs poorly in a given time period, the return that is credited is simply a 0%.
Prudential’s indexed universal life policies include:
- PruLife Founders Plus UL
- PruLife Index Advantage UL
- PruLife Survivorship Index UL
Prudential also offers variable life insurance policies. Here, the cash value return is based on underlying equities, such as mutual funds. In this case, the return can be quite high – or alternatively, there could be losses due to poor market performance. The variable life insurance options offered by Prudential include the following:
- VUL Protector
- PruLife Custom Premier ll
- PruLife SVUL Protector
Other Products and Services Offered
In addition to life insurance, Prudential also offers numerous other insurance and financial related products and services. These include:
- Retirement Annuities – These include fixed and variable related annuity products
- Investments – Prudential offers a wide variety of investments, including mutual funds and other retirement savings vehicles
- Workplace Benefits – Prudential’s workplace benefits include life insurance, disability insurance, and retirement savings plans
The company also offers financial education. This helps Prudential to create long-term value for its customers.
How to Get the Best Premium Rate Quotes on Prudential Life Insurance Policies
In getting the best premium rates on Prudential Life Insurance coverage – or any carrier’s policies – it is recommended that you work with an independent life insurance brokerage that can show you a variety of options. We can do this for you quickly and easily via your computer. To see the plans that may be right for you, just fill out the quote form on this page.
We can also answer any questions that you may have. Please feel free to reach out to us, toll-free, at 1-888-552-6159. The purchase of life insurance can be somewhat confusing – but with an expert on your side, you know you’ll obtain a plan that fits your specific needs. So, contact us today – we’re here to help.