As an independent online life insurance agency, we get the opportunity to shop around with many companies. Being a consumer first agency, over time we found that some products perform better than others for our clients. So in lieu of that, we started the “InsureChance Approves” series of articles, highlighting products that customers pick over others, time and time again. And if it’s great for our clients, we give it the InsureChance stamp of approval.
Next Up: Prudential Term Essential
In summary, here is what the product entails:
- Level rates guaranteed for the entire length of the coverage.
- Coverage available for a length of 10, 15, 20, and 30 years.
- Comes with an option to convert the policy to a permanent one without taking an exam.
- Additional riders include: Accidental Death Benefit, Child Protection, Living Needs Benefit and Waiver of Premium.
- Best company for E-cigarette users.
- One of the most reputable companies on the market.
Now let’s discuss the product features in detail and why it has been approved by InsureChance.
(To see rates for Prudential Term Life Insurance use our quoter)
Prudential Term Essential
Prudential Life Insurance Company has a term life insurance product called Term Essential that provides guaranteed level premiums for the entire length of the policy. That means that for whatever term length you decided to get the coverage, your monthly premium will not go up or down. So if you were approved at a Preferred rate at $45 a month for a 10-year term product. That is what you can expect to pay for the entire 10 year period.
Once the term expires it will start to renew annually. This means that the rate will go up every year according to your new age. The good part is that it happens on a guaranteed basis. Which means you wouldn’t have to prove health or go through underwriting even if you’re indeed in poor health at the time of the expiration. The bad part is that the renewability causes a huge increase in premium so it’s often better to convert the policy at this point if there is still a need for coverage.
Convertible Option
Like most of its competitors, this term life insurance product comes with an option to convert. This means that an end of the policy’s term, or age 65, whichever comes first, you will be able to convert the term policy to a permanent policy. This happens on a guaranteed basis. For you, that means you will not have to prove insurability. That means no exams, no underwriting and you get the same health class you were approved for at the inception of the policy, despite your current health.
For example, let’s say that you got a Preferred Plus rating when you were 30 years of age. If you have a 20-year term policy, it would be set to expire when you turn 50. However, in the meantime, you happened to get cancer, which if you were trying to get a new policy would usually result in a decline. The convertible option would allow you to convert the term to a permanent policy, at the Preferred rate, regardless of cancer. The only thing that would be adjusted is your premium for the new age. So at this point, you would pay for the rates of a healthy 50-year-old for the remainder of the policy.
The good news is if your temporary needs for life insurance have dissipated, whether it was a mortgage or your kid’s college education, you can lower the coverage amount to better cope with the increase in premium.
Options to Customize
Like any good term life insurance product, Prudential Term Essential comes with a few options to customize the policy to your needs. Riders are add on’s to the policy that allows you to enjoy other benefits with your life insurance policy. Let’s discuss those that come with this term product.
- Accidental Benefits Rider – this is a rider that pays out more money if your death is the result of an accident. For example, if you die as a result of a car accident, your beneficiaries will receive an extra death benefit payout. If you die from illness or natural cause, they would receive the original death benefit.
- Children Protection Rider – This is an add-on that will provide life insurance coverage for your children up to a certain age.
- Living Needs Benefit – this rider does exactly what it sounds like: provides a living benefit. If you’re diagnosed by a doctor as being terminally ill, this add-on will allow you to receive a portion of your death benefit to help deal with the expense that comes with being terminally ill.
- Waiver of Premium – this is often called a disability rider but it also does what it says. In the case of a disability, the company will allow you to waive your premium without causing your policy to go inactive.
That’s the gist of it. Most of the add on’s vary by state regulation so check with our agents for specific details when doing your shopping.
The Application Process
Prudential is one of the companies that has offered “E” applications that can be done over the phone with an agent and then e-mailed for signature. So for the application portion, you won’t have to deal with paperwork until approval.
The process is usually a 5 step one and it includes:
- Needs Analysis – At this point in the application your agent should analyze your need for life insurance and determine how much and what kind of policy you should have in force. There should also be a short pre-qualification to determine the most probable rate you can be approved for. You should be asked basic questions like birthdate, height/weight, as well as more detailed questions like overall health, hobbies, and background history.
- Application – The application will require some more detailed personal information like address, social security, driver’s license number, etc. It will be an electronic application that can be done over the phone with your agent and sent to you for e-sign. During the application, you will be able to assign the beneficiaries and the medical exam will be scheduled at your convenience.
- Medical Exam – The medical exam is a fairly simple process. A nurse will come out to your home at a time of your choosing. It will run like a typical physical along with a blood and urine sample. It should take no longer than 10 to 20 minutes.
- Underwriting – This is the longest part and this is where it is determined what you qualify for. The life insurance company will look through the Medical Information Bureau, review your applicant, medical exam results, and background history. Once all of this is complete they will return to you with a decision within 6 to 8 weeks. Your rate will be determined by some of the following factors:
- Build(height/weight ratio)
- Age
- Sex(gender, not frequency)
- Health
- Prescription use
- Family health history
- Background
- Occupation/Avocation
- Lifestyle
- Tobacco use
- Other factors
That’s the life insurance process in a nutshell when applying for a term life insurance coverage with Prudential, as well as most carriers in its class.
Underwriting Specialties
Most companies have a certain niche when it comes to high-risk clients. And while this isn’t always stable, it does provide opportunities for certain cases. When considered a high risk, the company with the lowest rate on the quote engine may not be the company with the lowest rate for you, given your specific risk. In the case of Prudential, they’re great for e-cigarette smokers. If all you do is smoke e-cigarettes, you have a potential for non-smoker rates with Prudential. Which can mean a huge difference in premium.
About Prudential
Prudential has been around since 1875, which mean they have a track record of about 140 years. Currently, they have over 48,000 employees and close to $1.2 trillion in assets under management according to their website. As of September 17, 2015, they’re rated A+ by A.M Best.
Why We Approve
Prudential Term Essential is approved for a very simple reason, it is a superior life insurance product. Along with others in this series, it has been a term life insurance product that has won over customers and has been the best option in many cases. It has very few competitors because it is often competitively priced, with an incredibly reputable company, and has an amazing underwriting specialization for e-cig users. We give Prudential Term Essential two thumbs up.
Start Here
InsureChance Inc. is the first online life insurance marketplace that offers only the best to our clients. To compare Term Essential quotes vs it’s competitors simple use our quoter here. If you have questions call us at 888-492-1967, or hit the chat button below. Welcome to InsureChance!
