Prudential Life Insurance Review 2024 (2024)

Prudential made Forbes Advisor’s best universal life insurance list and offers these types of life insurance products:

• Term life
• Whole life
• Indexed universal life

Prudential’s Term Life Insurance

If you’re looking for life insurance to cover a specific period in your life, term life insurance is a simple option.

For example, suppose you want enough coverage so your family can pay off a mortgage if you die. In that case, a term life policy with a length that covers the remainder of the mortgage may be ideal. Term life insurance does not build cash value and, as a result, is often the most affordable type of life insurance to purchase.

Prudential offers three term life insurance policies: SimplyTerm, Term Essential and PruTerm One.

SimplyTerm is offered to people ages 18 to 75 with term options of 10, 15, 20 and 30 years, during which time premiums stay level. The minimum coverage is $100,000 and the maximum is $1 million. This is a no-exam life insurance product. A few health-related questions will help determine whether you qualify.

Term Essential is a lot like SimplyTerm, except it offers coverage amounts above $1 million and offers some rider options that SimplyTerm does not, such as the Living Needs Benefit, Waiver of Premium and Children’s Protection.

For shorter-term coverage, Prudential offers PruTerm One for buyers ages 18 to 85. This product allows you to renew your term life coverage every year. The minimum coverage amount is $50,000 and the maximum is $10 million. Coverage lasts for one year at a time. However, you can only purchase one of these policies in your lifetime, and PruTerm One coverage ends at age 95.

Prudential’s Universal Life Insurance

If you’re looking for coverage that can last a lifetime, universal life insurance is an option to consider. Universal life insurance policies allow you to vary your premiums and death benefit, within certain parameters. These policies also include a cash value component.

Universal life insurance and whole life insurance are both permanent life insurance, but universal life insurance can be cheaper than whole life insurance because it doesn’t offer the same guarantees.

Prudential’s PruLife Essential UL is a universal life insurance product with flexible premiums, a flexible death benefit and the potential for cash value accumulation. The death benefit is offered in three options: fixed, variable and return of premium. But if life changes, you’ll have the ability to change death benefit type (restrictions apply). Coverage amounts start at $100,000 for buyers ages 0 to 85.

The PruLife Essential UL offers a guaranteed minimum annual rate of 2% for cash value accumulation. In addition, you can withdraw or borrow against the cash value and have the assurance of a No-Lapse Guarantee.

Prudential also offers a survivorship universal life product called PruLife SUL Protector that covers two people and pays the death benefit when both individuals have passed away.

Prudential’s Indexed Universal Life Insurance

If you’re looking for a death benefit that has the potential to grow cash value based on an index, like the S&P 500, you may be looking at indexed universal life insurance. These policies also often have the flexibility to vary premiums and death benefits. Participation rates, caps and fees are commonly associated with indexed universal life insurance products, so make sure you understand how the policy will work.

PruLife Founders Plus UL gives you a flexible premium with a death benefit in three options: a fixed death benefit, a variable death benefit and a return of premium death benefit. Minimum coverage amounts begin at $100,000 for buyers ages 0 to 80 and $250,000 for buyers ages 81 to 85.

You can connect cash value to a fixed account with a guaranteed interest rate of 2.5% annually or an indexed account. The indexed account is based partly on the performance of the S&P 500 and has a 0% growth floor and a growth cap never less than 3%.

The PruLife Founders Plus UL gives you the option of withdrawing or borrowing money from your cash value for any reason. It also comes with a no-lapse guarantee when you need to guard against potential policy lapses.

PruLife Index Advantage UL is similar to PruLife Founders Plus UL but there are some differences. For example, the death benefit offers only the fixed death benefit and variable death benefit options.

Prudential also offers a survivorship indexed universal life product called PruLife Survivorship Index UL.

Prudential’s Variable Universal Life Insurance

If you’re seeking a life insurance policy with a lot of flexibility and investment potential, you might be looking at variable universal life insurance. With this type of policy, you can vary premium payment amounts and the timing of your payments. In addition, the cash value part of the policy can be tied to multiple investment sub-accounts you get to choose.

There is a fixed account option with a guaranteed minimum interest rate for people looking for a little less risk. Variable universal also gives you the option of borrowing or withdrawing money from your cash value if the need arises.

Prudential’s PruLife Custom Premier II is a variable universal life product available to people ages 0 to 85 in coverage amounts from $50,000 and up. Death benefit options include fixed, variable and return of premium. Depending on the death benefit option you choose, you may be able to change that selection down the road.

There is the option for a fixed rate account with a 1% minimum interest guarantee for cash value investments. Still, there are multiple variable funds to consider for those seeking higher cash value potential. In addition, loan and withdrawal options are available for those who wish to access some of their cash value money. This product comes with two levels of no-lapse guarantees, depending on the age of the policy.

VUL Protector uses the PruFast Track accelerated approach to underwriting, which means using your individual medical and health information instead of placing you into a category based on your age and insurance amount. This accelerated process can sometimes be completed without medical exam requirements, within only a few days. The VUL Protector product is available to people ages 18 to 60 with coverage ranging from $50,000 and up.

You can choose either a fixed or variable death benefit and then have the option to change from one to the other. For cash value accumulation, choose a fixed account with a 1% minimum guaranteed interest rate for lower risk, or choose from over 60 funds for higher potential investment gains.

As always, don’t buy a policy you don’t understand. Make sure you understand what’s guaranteed and what’s not when you’re looking at a life insurance policy illustration.

Prudential also offers a survivorship variable universal life product called PruLife SVUL Protector.