The international financial services group Prudential plc serves more than 25 million customers and manages approximately £349.5 billion in assets.
The group has a significant presence in the U.S., Asia, and the UK, where it provides pensions and life products to approximately seven million customers.
In the UK, Prudential offers award-winning life insurance products under the name PruProtect. This reflects the partnership between Prudential and Discovery, a leading insurer based in South Africa.
A term life policy provides beneficiaries with a lump sum payout if, during the policy term, the insured is diagnosed with a terminal illness with a life expectancy of fewer than 12 months or dies. People use this coverage to provide loved ones with money to repay debts and cover living expenses for an extended period.
Including enough money to pay off the mortgage provides the insured with peace of mind that his or her death will not put the family in financial jeopardy.
A whole of life insurance policy lasts for the lifetime of the insured, not a specified term. Even if the mortgage has been repaid or the individual is retired, there is still need for coverage. The benefit can be used to pay for a funeral, cover final expenses, or help pay inheritance tax.
Whole of life coverage pays out a lump sum benefit whenever the insured dies. Waiting until the mortgage is repaid to take this coverage may result in high premiums. Therefore, consumers should consider allocating a portion of their budget for life insurance to a whole of life policy.
Whole of life serious illness coverage is also available. This pays a lump sum when the insured becomes seriously ill. There is no fixed term for this coverage. With the minimum protected account option, coverage is topped off to its original level after a claim is made.
If the insured selects protected life coverage, the value of the life insurance policy will remain the same even if a serious illness claim is made.
A joint life, second death whole of life policy covers spouses or partners but only pays out the lump sum after both individuals have died. Beneficiaries will have money to pay any inheritance taxes and will receive the entire value of the estate. Even if inheritance taxes are not due, this policy can help beneficiaries cover immediate expenses, long-term living costs, or higher education costs for the grandchild of the insured.
Family income coverage pays a guaranteed monthly income upon the death of the insured. The insured can also select coverage for serious illness. The comprehensive level of this coverage adds payment for typical household bills during the twelve months following the death of the insured.
The payout on these bills could be as much as the monthly income payout, doubling the benefit during the first year. With the primary level, beneficiaries receive an additional £1,000 lump sum for funeral costs, £2,000 with the comprehensive level.
With PruProtect life insurance, coverage can be increased without providing health information if the value of the estate increases or inheritance tax rules change. With the guaranteed insurability option, coverage can also be changed if the mortgage increases or the insured gets married or has a child.
With the accelerator option, the insured receives lower monthly premiums initially, allowing him or her to purchase the needed amount of coverage without stretching the budget too far. Premiums guaranteed not to increase are also available for life coverage.
The indexing option increases the coverage each year to match an increase in the cost of living. Consumers can pay an additional fee to have premiums waived upon serious illness, incapacity, or death. This helps the family manage financially during a very difficult time.
Purchasing both whole of life and term life coverage can be wise. If the insured dies within the term, beneficiaries will receive both lump sum benefits. In the worst-case scenario, beneficiaries will still receive the benefit from the whole of life policy.
Prudential has a positive reputation in the market due to the variety of life insurance products it offers. The company was the first mainstream insurer to offer life insurance to people with HIV. Those with this medical diagnosis may qualify for up to £250,000 worth of coverage for up to ten years.
Value-added services like membership to the Vitality health and wellness program provide consumers more for their money. An insured can even reduce premiums by using the Vitality program to monitor health.
Though having so many options is great, it can be difficult to find details about all the products. Let us do the legwork for you. Complete the short quote request form on our website and we will review Prudential products when we search for your new life insurance policy.
We provide our findings in a concise format, allowing you to quickly make a decision.