Any insurance company which has been in business as long as Prudential Insurance has been operating has probably sold a great number of different insurance products over the years. Established in 1875 as The Widows and Orphans Friendly Society, the company sold one product only and that was burial insurance. However, as time progressed more insurance products were added, some of which were later discontinued which leaves the company where it is today.
Prudential Insurance Products
The products that are currently available directly through Prudential Insurance are Life Insurance, Annuities and Long Term Care Insurance. While Auto, Home, Watercraft, RV and Personal Liability Insurance products are offered through Prudential, it should be understood that Prudential is not the carrier. Their agents do sell those products, but the policies are underwritten by totally different insurance providers.
Categories of Prudential Life Insurance
Life insurance accounts for the greatest portion of products sold by Prudential and those policies include Term Life, and Permanent Life Insurance products which includes Universal Life, Variable Life and Survivorship Life insurance. Each of those broad categories are further broken down into different types of insurance that can provide specific coverages to meet the policy holder’s needs.
Term Life Insurance
Term Life is offered directly through one of the Prudential family of insurance companies, Pruco Life Insurance Company. This provides coverage for a limited, finite time, usually in 10, 15, 20 or 30 year terms. There are actually three different types of term life insurance through Prudential, Term Essential, Term Elite and PruLife Return of Premium. Each has its own unique set of coverages and terms.
- Term Essential – Entry level, low cost insurance with initial level premiums and option to convert to permanent life. If coverage continued beyond initial term, premiums go up each year until 95 years of age.
- Term Elite – Considered as a stepping stone to Prudential’s permanent life insurance products. Level premiums during initial period (10, 15, 20 or 30 years) thereafter increasing each year through age 95. However, there is a ceiling set in contract whereby premiums will never increase beyond those stated.
- PruLife Return of Premium Term – Level premiums for 15, 20 or 30 years with annual increases beyond initial term up to 95 years of age. This policy will return any premiums paid out of pocket during the initial period that have not been borrowed against. This policy can also be converted to permanent life.
Permanent Life Insurance
There are two main benefits in purchasing a permanent life insurance product and those would include the fact that the policy can be in effect for your entire lifetime as long as premiums are paid and also that this type of policy accumulates a cash value over time which means that it can be borrowed against or redeemed for the cash value at the time of sale. There are three different types of permanent life which include Universal Life Insurance, Variable Life Insurance and Survivorship of Life Insurance.
Over the years Prudential Insurance has sold other insurance products as well, yet opted to sell them when they did not meet the company’s expectations for providing adequate revenues. A good example of this would be the healthcare division that was sold to Aetna in 1999 and the Specialty Auto Insurance product to Nationwide Mutual Insurance Company in 2003. Even so, Prudential Insurance still has hundreds of subsidiaries and does a $2 trillion business annually worldwide.