Speak with an experienced advisor! Who Is Prudential
Prudential started as the Prudential Friendly Society in 1875 and in 1877 changed their name to Prudential Insurance Company of America.
Prudential has been around for over 140 years with the focus on offering affordable life insurance to working class individuals.
They have over $13.7 Trillion of gross life insurance in force and are the second largest insurance company in the US.
They are a very financially solid company and hold the financial ratings of:
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- A+ with A.M. Best
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- AA- with Standard & Poor’s
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- A1 with Moody’s
- AA- with Fitch Ratings
They are a perfect company to do any term life conversion with.
What Is Term Life Conversion
A Term life conversion in its purest form is taking your term policy and converting it into either a universal life product or a whole life product.
When you buy a term life insurance policy, you are mostly looking at the monthly premium and the term length.
These periods usually go from 5 years up to 30 years depending on the company.
However, these policies will eventually end, and you will have to either renew them, let them lapse, or convert them.
Of the 3 options, in my opinion, conversion is always the best option.
This is very true if you have a medical condition that may prevent you from getting coverage at a later time.
You can do this conversion without having to take any type of exams or prove insurability as long as you convert the policy before the conversion expiration period.
Prudential Products & Conversion Options
Term Essential
Term Essential is one of Prudential’s most affordable products and is used to help ensure that your loved ones can carry on after you’re gone.
When it comes to conversions, this product doesn’t offer any term conversion credits and is convertible to a survivor product as we detail below.
Conversion Period
The Term Essential product is convertible to the lesser of the level-premium period or to the first policy anniversary on or after the insured’s 65th birthday, but at least five years.
For Example:
If you have a 15 year term policy and you are currently 55, you will have to convert the policy within 10 years before reaching the age of 65.
If you have a 15 year term policy and you are currently 62, you will have five years to convert your policy.
Term Essential Conversion Options
Once you have decided to convert your policy, you can convert your policy to any of the permanent products offered at the time of conversion.
Survivorship Conversion Options
You can also convert your individual term policy to a Survivorship policy.
If you convert your individual policy then the person you are adding to the Survivorship policy still must go through underwriting.
Waiver Of Premium Conversion Options
At an extra cost, Prudential has a rider available that provides you with a waiver of your required premiums if you become totally disabled.
The disability must happen before your 65th birthday while the policy is in force.
If your policy is currently being paid by the Waiver of Premium rider you can still convert your policy to a permanent plan.
Additional Conversion Features
You have no limit on the number of conversions you can do, and you are also able to do partial conversions as long as you don’t fall below the product minimum.
Term Elite
The Term Elite product works almost like the Term Essential product, however, it gives additional benefits in regards to conversions.
When it comes to conversions, this product offers term conversion credits and is convertible to a survivor product as we detail below.
Conversion Period
The Term Elite product is convertible to the first policy anniversary on or after your 65th birthday or fifth policy anniversary, whichever is longer.
For Example:
If you have a 15 year term policy and you are currently 55, you will have to convert the policy within 10 years before reaching the age of 65.
If you have a 15 year term policy and you are currently 62, you will have five years to convert your policy.
Term Elite Conversion Options
Once you have decided to convert your policy, you can convert your policy to any of the permanent products offered at the time of conversion.
Term Conversion Credits
If you decide to convert to a permanent policy within the first five policy years, you will receive credit on your first-year premium.
This can help make the transition from term to permanent coverage a bit easier.
Survivorship Conversion Options
You can also convert your individual term policy to a Survivorship policy.
If you convert your policy, then the person you are adding to the Survivorship policy still must go through underwriting.
Waiver Of Premium Conversion Options
At an extra cost, Prudential has a rider available that provides you with a waiver of your required premiums if you become totally disabled.
The disability must happen before your 65th birthday while the policy is in force.
If your policy is currently being paid by the Waiver of Premium rider you can still convert your policy to a permanent plan.
Additional Conversion Features
You have no limit on the number of conversions you can do, and you are also able to do partial conversions as long as you don’t fall below the product minimum.
PruLife Return of Premium Term
This policy is like most term policies—if you die during the term you choose, your beneficiaries will receive a death benefit.
However, it’s also unique because if you are still alive at the end of the term, your premium payments will be returned to you, tax-free.
When it comes to conversions, this product doesn’t offer any term conversion credits and is convertible to a survivor product as we detail below.
Conversion Period
With Return of Premium Term, you can convert your policy at the end of the level-premium period or age 65, whichever is earlier, but you will have at least five years after purchasing the policy to convert.
If you wish to convert at the end of the level-premium period, you can elect to have the returned premium amount applied to the new policy.
This will, in effect, reduce your premium amount for the new policy.
For Example:
If you have a 15 year term policy and you are currently 55, you will have to convert the policy within 10 years before reaching the age of 65.
If you have a 15 year term policy and you are currently 62, you will have five years to convert your policy.
PruLife Return of Premium Term Conversion Options
Once you have decided to convert your policy, you can convert your policy to any of the permanent products offered at the time of conversion.
Survivorship Conversion Options
You can also convert your term policy to a Survivorship policy.
If you convert your policy, then the person you are adding to the Survivorship policy still must go through underwriting.
This is up to the discretion of Prudential and if they are currently still offering a Survivorship product.
Additional Conversion Features
You have a limit of 1 conversion available, and you are not able to do partial conversions with the Return Of Premium Product.
PruTerm WorkLife 65
PruTerm WorkLife 65 is designed to provide cost-effective coverage during your working years, up to age 65.
One of the nice things about this policy is that there are certain riders automatically built in at no extra cost such as the waiver of premium rider.
When it comes to conversions, this product doesn’t offer any term conversion credits and is not convertible to a survivor product.
Conversion Period
With WorkLife 65, you can convert your policy up to the age of 65.
For Example:
If you have a 15 year term policy and you are currently 55, you will have to convert the policy within 10 years before reaching the age of 65.
If you have a 15 year term policy and you are currently 62, you will have three years to convert your policy.
PruTerm WorkLife 65 Conversion Options
Once you have decided to convert your policy, you can convert your policy to any of the permanent products offered at the time of conversion.
Additional Conversion Features
You have no limit on the number of conversions you can do, and you are also able to do partial conversions as long as you don’t fall below the product minimum.
PruTerm One
PruTerm One is unlike a lot of policies because it offers coverage one year at a time.
This policy may be an ideal solution if you are a small business owner who is paying off a short-term loan.
When it comes to conversions, this product doesn’t offer any term conversion credits and is convertible to a survivor product as we detail below.
Conversion Period
The PruTerm One product is convertible to the 5th policy anniversary, so as long as you convert within five years of having this annual policy, you will be set.
PruTerm One Conversion Options
Once you have decided to convert your policy, you can convert your policy to any of the permanent products offered at the time of conversion.
Survivorship Conversion Options
You can also convert your term policy to a Survivorship policy.
If you convert your policy, then the person you are adding to the Survivorship policy still must go through underwriting.
Additional Conversion Features
You have no limit on the number of conversions you can do, and you are also able to do partial conversions as long as you don’t fall below the product minimum.
How To Get Started
Since we convert policies through Prudential all the time and there’s no charge for our service, the easiest thing to do is to contact us.
We have created a Simple 3 Step Process for term life conversions:
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- We get a detailed understanding of your situation, and budget then we send you rates.
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- If the rates we send over work for you, we’ll collect all the documents needed.
- Finally, we process the paperwork for you and become the agent on your new policy.=
It is essential that you deal with seasoned agents when going through a term conversion and we are here to assist you.
Again, we make it simple, simply fill out the form on this page to get started or give us a call at 1-888-554-3432.
