Prudential Life Insurance is known as “The Rock.”
… but it’s more than just a solid company.
For over 135 years this highly established life insurance icon has delivered solid and consistent underwriting that is unsurpassed.
It is one of the TOP “Go to” companies used by independent life insurance agents throughout the U.S. and in many countries around the world.
In this Prudential Life Insurance Review, we are going to back this up, and give you 7 Reasons Prudential stomps the competition, along with a few situations when Prudential might not be the best carrier to use.
Quick Article Guide:
- Case Study
- Lifestyle Underwriting
- Financial Stability
- Products Offered by Prudential
- Company History
- 5 Instances When You Might NOT Want to Use Prudential
Note: While we recommend Prudential very frequently to our clients, they don’t always have the lowest premiums for healthy individuals, so if you’re in good health, be sure to compare their rates here:
Also known as The Prudential Insurance Company of America, Prudential is a Fortune Global 500 and Fortune 500 company that started in Newark, New Jersey in 1875. Prudential operates in all 48 US States. In New Jersey and New York, Prudential operates under the business name Pruco Life Insurance Company of New Jersey.
Prudential has some excellent niches for underwriting that can save you lots of money. Every company has its own strengths and weaknesses when approving a policy. Some companies are more concerned with your height and weight while other companies may be more concerned with your family history of health issues, the medications you take, or your lifestyle. Prudential is known for the saying, “Bring Your Challenges,” and they mean it!
Prudential specializes with some health and lifestyle issues that other companies will not even insure.
Due their underwriting strengths, A+ Rating, and proven track record of excellent customer service, Prudential is one of the top-10 insurance companies in the United States, especially due to that fact that they offer leniency where other companies will not.
This Prudential life insurance review will show that this company is by far, one of the most lenient companies in the life insurance industry. Prudential is excellent with anyone who is considered to be a few pounds overweight, especially after the age of 60.
In fact, Prudential’s weight allowances are some of the best in the industry. If you are 6 feet tall and weigh 228 pounds, you may still qualify for Prudential’s best rate class, “Preferred Plus”. Most companies would consider someone with this exact build to be at least one or 2 rate classes lower.
Prudential is also excellent with tobacco users who are non-cigarette smokers. Most companies will consider you to be a “smoker” whether or not you actually smoke cigarettes. Prudential is one of the few companies that will offer a non-smoking rate to someone who:
- Smokes cigars,
- Chews daily,
- Uses an e-cigarette,
- Uses nicotine gums and/or patches, or
- Even occasionally smokes marijuana.
If you use tobacco but do not smoke cigarettes, Prudential’s rates are probably unbeatable.
Attention Light/Social Smokers: However, if you are a light cigarette smoker, such as 12-24 cigarettes per year, you DON’T want to use Prudential. They will classify you as a smoker. If that’s you, get a quote from our other carriers below:
As a real life example of this is my client Ron from California. Ron is retired and smokes a cigar every Sunday when he goes golfing. When Ron applied for his life insurance with his local agent, he tested positive for cotinine, a chemical that shows up in your urine if you have ingested nicotine within 7-10 days.
Ron’s rates tripled in price and he did not want to pay the additional amount, so he called us. Ron said, “I am not a smoker and I refuse to pay a smoker’s rates!” I explained to Ron that most companies do not care how the nicotine good into his system and that he needed to consider another company like Prudential that differentiates between a smoker and a tobacco user. Ron said, “I’m not giving up my cigars, they’re the only vice I have.”
After reviewing some quotes, Ron decided to apply with Prudential and ending up cutting his life insurance costs in half, saving more than $1000 a year. In addition to their leniency with Tobacco, Prudential may also offer credits for build with no other issues present. Some examples of the health issues in this Prudential life insurance review that the company may offer this for are;
- Well-controlled diabetes,
- Sleep apnea without complications, and
- Malignant tumors that are under doctor surveillance.
Prudential may also issue credits for various heart impairments including:
- Heart blocks,
- Major and minor t-waves,
- PVCs, and
- Coronary Artery Disease with a normal ECBT or ECG.
Prudential is also one of the best companies in the industry for US Non-Resident Citizens and travelers.
Prudential is one of the few companies that will still offer a US Citizen life insurance even if they do not reside in the US full-time or if they travel for more than 3 months of the year.
In addition, Prudential may also offer life insurance to applicants who are not US Citizens or Permanent Residents. If you have:
- A Visa/Work Permit and
- Are legally residing in the United States, or
- If you live in another country and visit or stay in the US for work, you may be eligible for coverage.
If you have had a DUI in the last year or 2, Prudential may be your only option. Most companies will decline an applicant who has had a DUI within the last 24 months, but Prudential may still offer you insurance even if you have had a DUI in the last 2 years.
Prudential is an excellent company for anyone over the age of 60.
After the age of 60, Prudential increases their weight allowances by roughly 12%. That’s right! Prudential will actually allow you to weigh more as you age and still qualify for their best rates.
In addition to their weight allowances, Prudential is also more lenient with rates depending on your age. If you are within 6 months of your next birthday, buying your insurance through Prudential may save you money. What most people do not realize is that life insurance companies use rounding up to determine your “insurance age” and final rates, also known as “Age Nearest”. If you are within 6 months of your next birthday, most insurance companies will consider you to be a year older. Prudential does not round up your age or use “Age Nearest”, they will consider your actual age at the time of your application. After the age of 60, if you are within 6 months of your birthday, this could save you 12-15% by being considered a year younger. Prudential also offers a policy reduction for its clients. This is a great feature for someone who is getting ready to retire or is living on a fixed income. If you need to reduce the amount of coverage you have, Prudential will allow you to:
- Reduce your coverage and
- Your cost for the life insurance.
An example of this might be paying off your mortgage. Let’s say you buy a policy to protect your mortgage for $300,000 but you pay off your house early. Prudential will let you reduce your amount of coverage and keep your rates that same as they were when you bought the policy. So if you decide to reduce your coverage to $100,000 when you pay off your house, your rates for $100,000 of coverage will be the same as the day you were approved for your policy allowing you to keep coverage and maintain your budget.
Attention – Do You Need Lifetime Coverage?: If you need a policy that lasts for the rest of your life, Prudential may not be your best option. As we have mentioned, they are wonderful underwriting seniors, and for term, they will usually be competitive, but for permanent policies, you want to get another quote here:
Life insurance is one of the most heavily regulated industries in the United States. Each state has its own appointed commissioner to oversee the life insurance companies appointed to sell business in their state. In addition, the life insurance industry also relies on third-party assessments to determine the financial strength of each life insurance company. These companies usually assign each insurance company a letter grade.
AM Best is the most trusted and widely used assessor of the financial stability of Life Insurance Companies. AM Best has assigned Prudential their “Superior” A+ Rating due to their proven financial stability.
As of 2014, Prudential holds over $766 billion in assets and has over 2 trillion of life insurance in-force. Prudential is a publicly traded company on the New York Stock exchange under the symbol PRU. Prudential has an extremely diverse international business profile representing close to 50% of its operational earnings. Prudential’s A+ Rating reflects the company’s strong market positons and financial flexibility. With almost 140 years of proven history and an A+ Rating, our Prudential life insurance review reveals that the company easily finds its way into the top 1% of all insurance companies within the United States. Prudential has never failed to pay a valid life insurance claim and offers a wide variety of financial and retirement services.
Prudential maintains a “5 star” customer service rating and is renowned as one of the easiest and most responsive life insurance companies to work with. In fact, some of my clients actually ask for them by name even if their rates are slightly more expensive than their competition.
Like most life insurance companies within the US however, they are located on the East Coast in New Jersey so if your are on the West Coast and need to service your policy, you will need to contact Prudential’s policy services during East Coast business hours. Or, you can contact your agent who may be able to handle the request for you. Prudential has an expedited approval process and typically, they approve their life insurance policies within 3-6 weeks.
As with all insurance companies however, if you have extensive medical records, it could take additional time to approve your policy. The only downside to Prudential’s Service is that they do not offer the option to electronically sign your policy at approval. Prudential will actually mail a hard copy to you which can take a few additional days. Some of our clients actually prefer a paper copy of their policy to an electronic copy however so this may be a benefit to you.
Prudential offers a huge variety of financial products and services. In addition to:
- Term Life Insurance
- Guaranteed Universal Life Insurance, and
- Variable Insurance, Prudential also offers
- Mutual Funds,
- Retirement Plans, Annuities, and
- Real Estate Services.
Prudential’s Life Insurance options are almost limitless. They offer a standard 10, 15, 20, or 30 year level term and well as Guaranteed Universal Life Options that can extend your coverage to the age of 121.
In addition, Prudential also offers a one year term polices and policies that protect your working years or until you reach the age of 65. Prudential’s term policies require a medical exam for approval and are convertible to a permanent policy without a medical exam. Prudential also offers some great additions that can be added to you policy, also known as riders. These include,
- Return of Premium, which will refund your payments if you outlive the policy, and a
- Living Benefit rider that can provide money to your family while you are alive if you become terminally ill.
Prudential also offers the ability to reduce your rates once your policy is approved. If you have a health issue that is being monitored, once your health improves, Prudential will allow you to reapply to see if they can save you money. If they are unable to save you money or your health condition has not improved, you will still be able to keep the policy you already have regardless of your current health. They also offer this option for someone who has quit smoking after 12 months of their policy being active and in-force.
When You Should Consider Getting Another Quote – While PRU has a host of policy options, they aren’t typically the most competitive when it comes to permanent insurance, annual renewable term, or policies that offer living benefits.
In addition, Prudential is typically NOT the best option if you have:
- a family history of cancer or heart disease
- smoke the occasional cigarette (12-24 per year)
- are in good or excellent health
Life insurance is a long-term commitment. Be sure you’re getting the best deal. You can compare rates here:
Prudential started in Newark, New Jersey in 1875 under the name The Widows and Orphans Friendly Society shortly thereafter the name was changed to Prudential Friendly Society. At this time in history, Prudential sold burial insurance only, but by the turn of the 20th century Prudential began selling life insurance to industrial workers door to door. Prudential has since transitioned from a mutual insurance company that is owned by its policyholders to a joint stock company that is publicly traded on the NYSE.
Prudential has a perfect history of paying claims, in 139 years of business, they have never failed to pay a valid claim. If a life insurance company fails to pay a claim, they will be barred from selling another policy until the claim is settled as long as the life insurance claim that is filed is valid.
What Makes a Claim Valid or Invalid?
A valid claim is a claim where there is no fraud suspected. What is life insurance fraud? Life insurance fraud means that you had someone else pretend to be you and essentially “stood-in” for your medical exam. Fraud may be also suspected if foul-play is involved, if a criminal investigation is being conducted on the person who passed away, and you are not found to be guilty of ending that person’s life, the life insurance company will pay out. Fraud may also be suspected if the insurance company finds out that you were diagnosed with a terminal illness prior to your application and you did not disclose it. An example of a terminal illness is advanced stage cancer, HIV, or heart disease.
7 Reasons PRU Stomps the Competition (in Review)
- Competitive Pricing
- General underwriting leniency
- History of excellence
- Financial Stability
- Suite of term and UL products
- Additional policy benefits/riders
- Niche markets (such as cigar smokers)
Do you want to compare Prudential rates, or let our independent agents shop over 40 companies to find the lowest rates available to you? Call JRC at 855-247-9555 today and we will shop the market to find the lowest rates available for you.
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