Prudential Life Insurance Review

Prudential, an A+ rated company founded in 1875, is among the best life insurers in terms of underwriting applicants with complicated medical histories, including cancer and diabetes.

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Overview

Prudential, an A+ rated company founded in 1875, is among the best life insurers in terms of underwriting applicants with complicated medical histories, including cancer and diabetes. Their policy includes a “Living Needs Benefit” which advances part of the death benefit for policyholders who have been confined to a nursing home or have been diagnosed with a terminal illness with a maximum life expectancy of 6 months.

Our Take

Prudential’s application process is average, with a quick turnaround time in the beginning of the process, but they require an extra phone interview with an underwriter during the final application. Their customer service is above average, with many actions available online. Prudential is best in class for underwriting applications with complicated medical histories, including cancer, CAD, and diabetes.

Financial Strength

Founded

1875

PolicyholderstooltipThis is how many active US life insurance customers this company insures.

3,800,000

AM BesttooltipA.M. Best is an independent rating agency that evaluates the financial strength of insurance companies. Ratings as of May 2016, on a scale from A++ to D.

A+

BBB RatingtooltipBetter Business Bureau (BBB) is a non-profit that collects consumer feedback on businesses around the country.

A

JD PowertooltipJ.D. Power and Associates is a global marketing information services firm that conducts surveys of customer satisfaction, product quality, and buyer behavior.

3 of 5

Finding the best rates

Each insurer approaches health conditions differently. One insurer might ignore a heart attack from a few years ago, whereas a different insurer might rate you as a higher risk for the same thing. Here are the details of how Prudential treats a variety of common health conditions from an underwriting perspective.

Pricing for health conditions
Health ConditionPricing
Survivor/Family HistoryFair
Recent Weight LossExcellent
Heart AttackGood
DiabetesExcellent
Sleep ApneaExcellent
Former Tobacco UseExcellent
High Blood PressureGood
High CholesterolExcellent

Excellent - Above average; company provides excellent coverage for clients with this condition.

Good - Spot on; company doesn’t look at this condition unfavorably in underwriting.

Fair - Could use some work; clients with this condition may be issued a lower health rating, and subsequently higher rates than other insurers.

Accolades

Prudential was named Fortune magazine’s #1 Life or Health Insurance company in their 2016 “World’s Most Admired Companies” ranking. Prudential was also named Ethisphere Institute's World’s Most Ethical Company in 2015.

Prudential plan details

Unique features

  • Among the best in terms of underwriting applicants with complicated medical histories (including cancer, CAD, and diabetes)
  • The policy includes a unique "Living Needs Benefit" which provides some coverage for chronic illness and terminal illness

When applying

How's the application process?

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Pros

  • Electronic application
  • Average number of application forms
  • Faster than average application approval (23 days)

Cons

  • Policy delivery by mail

After you're a policyholder

How's the customer service?

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What you can do online

  • Updating beneficiaries
  • Changing address
  • Changing payment info

What you can't do online

  • Policy cancellation requires a phone call plus paper forms

Sample quotes

Quote for: $500,000, 20-year term life insurance policy for healthy, nonsmoking individuals, in California, monthly premiums

CompanyPlanMale - Age 30Male - Age 40Male - Age 50Female - Age 30Female - Age 40Female - Age 50
AIGSelect-a-Term$21.11$30.62$79.93$18.08$28.46$59.60
AIGROP Select-a-Term$91.21$150.77$281.97$75.80$124.95$261.56
Banner LifeOPTerm$21.44$32.38$94.07$18.19$26.60$58.62
John HancockTerm$26.95$34.65$81.70$24.20$34.00$78.99
Lincoln FinancialLifeElements$28.44$38.94$78.75$23.63$30.63$58.63
Lincoln FinancialTermAccel$21.00$29.75$78.75$17.94$25.81$57.31
Mutual of OmahaTerm Life Answers$21.66$33.47$85.53$23.41$28.66$64.09
Pacific LifePacific PROMISE Term$20.84$29.59$77.09$19.18$26.68$61.67
PrincipalTerm$22.75$31.94$79.63$20.04$27.56$59.24
ProtectiveCustom Choice UL$20.37$28.91$76.82$17.93$25.25$55.75
ProtectiveClassic Choice Term$20.21$28.38$75.68$17.63$25.94$55.47
PrudentialTerm Essential$34.20$43.65$88.65$27.90$38.70$76.95
PrudentialReturn of Premium Term$101.00$143.62$291.99$88.12$130.04$253.37
SBLILevel Premium Term$21.32$40.05$96.06$24.48$34.71$65.87
TransamericaTrendsetter Super$22.36$37.85$79.12$18.06$30.96$62.78
TransamericaTrendsetter LB$24.95$38.27$92.89$20.65$34.84$73.11

Details

Annual Payment Discount

5%

Payment methods available

Check; Auto bank draft; No credit cards accepted

Is coverage available without a medical exam?

No

What is the rule for converting the policy?

The policy is convertible to the lesser of level premium period (LPP) or to the first policy anniversary on or after your 65th birthday, but at least 5 years. Partial conversions are permitted.

Is temporary coverage available?

Yes, up to $1,000,000.

Available Riders

Riders are additions to your overall life insurance policy that turn a basic life insurance policy into something that covers more circumstances.

  • checkmarkChild Protection RidertooltipYou can get life insurance for all children (ages 15 days - 18 years old) in one rider. Available coverage of $10,000 - $100,000.

    Provides life insurance coverage for all eligible children.

  • checkmarkDisability Income RidertooltipPremiums are waived if you become disabled.

    If you become totally disabled as a result of a qualifying event, you will not have to pay premiums for a fixed period of time.

  • checkmarkAccelerated Death Benefit RidertooltipAdvances part of the death benefit if you've been confined to a nursing home for 6 months and are expected to be in the nursing home permanently or you've been diagnosed with a terminal illness with a max life expectancy of 6 months.

    Allows you to receive a portion of the death benefit if you are diagnosed with a qualifying terminal illness.

  • checkmarkAccidental Death Benefit RidertooltipPays an additional death benefit if your death is a direct result of an accident.

    Pays an additional death benefit on top of the base policy's death benefit if the death resulted from qualifying accidental injuries.

Rules

What is the rule for accelerating the death benefit? The Living Needs Benefit (included at no extra cost) pays out a portion of benefit upon terminal illness diagnosis.

What is the rule for converting the policy? The policy is convertible to the lesser of level premium period (LPP) or to the first policy anniversary on or after your 65th birthday, but at least 5 years. Partial conversions are permitted.

Common features

This policy, like all term life policies offered on our site, provides life coverage for a specific period of time (the term). The key features of this policy are standard across all the term policies we offer:

  • Level premium - which means the cost of the policy (the premium you pay) is fixed for the entire term of the policy. It will not increase during the term of the policy.
  • Good value - term life policies are significantly less expensive for the same amount of death benefit coverage than permanent life policies.
  • Regulated - the cost of this term life policy, for a given coverage amount and term, will always be the same for you regardless of who you buy it from. That’s because the policy will be priced based on the underwriting table the insurer files with the state insurance regulator.
  • No-risk obligation for you - you, as the policyholder, can cancel your policy at any time if you decide you don’t want it anymore. The insurer, however, cannot cancel your policy as long as you pay the premiums on time.
  • No exclusions - except for suicide during the first two years of the policy (which is standard by law across life insurance policies).
  • Terminal illness benefit - you can access a portion of the policy’s death benefit while you’re still alive if you’ve been diagnosed with a terminal illness. You might see this referred to as an "accelerated death benefit."
  • Convertible - which means, if you choose to, you can convert the term life policy to a permanent life policy. The conversion will generally cost you more and is subject to certain conditions.

The review on this page is only for this company's term life insurance products.

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22 West 19th St, Floor 8

New York, NY 10011

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