Term Essential
® and Term Elite
® provide safe and straightforward life insurance protection to help meet your challenges. They offer:
- Good value for your dollar by providing you with affordable coverage.
- Premium payments that stay the same for the period of coverage you select, guaranteed.
- A tax-favored death benefit. Your beneficiary should not have to pay federal taxes on this money.*
- The ability to convert part or all of your coverage to permanent life insurance, should your needs change, without having to take another medical exam.
Life insurance can provide the financial means for your loved ones to carry on without you. It can help them meet what lies ahead by helping to:
- Pay final expenses.
- Pay for your children to go to college.
- Pay off your mortgage.
- Replace your income.
- Pay off debt.
Certain periods in your life require more life insurance than others. For the years when you are earning an income and have a mortgage or other loans or debts, having life insurance that ends when the debts do makes sense. That's where term life insurance fits in.
It is temporary life insurance, which ends at a specific point, such as at the end of your 30-year mortgage.
Term life insurance can also be a cost-effective option to meet the demands of your budget. It is a basic type of life insurance that provides a guaranteed death benefit for the period you choose. The death benefit is the amount that is paid income-tax free* to your beneficiary if you die during the term of the policy. Plain and simple.
"Level premiums" simply means your premiums stay the same.
You get the protection you need for an amount that works in your budget today and for the length of the level-premium period (10, 15, 20 or 30 years). After the level-premium period ends, if you choose to keep the policy, your premiums will increase annually as outlined in your contract and stop at age 95, when coverage ends.
Most term policies offer basic death benefit protection and very little else. Term Essential
® and Term Elite
® are unique because of the combination of features that are available—like our conversion privilege and the Living Needs Benefit
SM. Most companies offer a term conversion privilege and many also offer an accelerated death benefit. However, not all companies offer both privileges that are equal to ours.
1 Our term policies are ready to meet your challenges head-on.
- Our conversion privilege allows you to convert to any permanent policy we offer, guaranteed and without taking another medical exam. Your health may change, but you can't be denied a permanent policy that can last for as long as you live.2 Term Elite even offers a premium credit if you convert to permanent insurance within the first 5 years.
- If you become terminally ill, our Living Needs Benefit3 will pay out a portion of your death benefit while you're still living to help ease the financial burden. You should know that the Living Needs Benefit is an accelerated death benefit and is not a health, nursing home, or long-term care insurance benefit and is not designed to eliminate the need for insurance of these types.
You can add other features to tailor your policy to meet your specific needs. Both are available for additional premium:
- The Accidental Death Benefit will pay an additional death benefit if your death is a direct result of an accident.
- The Children's Protection Rider lets you provide life insurance for your children while they are young.
This matters for a few reasons.
- Permanent insurance is designed to be able to last as long as you live; term insurance is designed to be temporary.
- Permanent policies often build cash value. Term Essential and Term Elite don't build any cash value.
- Permanent policies often allow the owner to borrow or withdraw money from the cash value, if any. With Term Essential and Term Elite, since there is no cash value, you can't take any loans or withdrawals from the policy.
MEETING OUR CUSTOMERS' CHALLENGES FOR OVER 135 YEARS.
Prudential Financial, Inc. is a worldwide financial leader with a long tradition of meeting the challenges of our customers. Prudential Financial has approximately 50 million customers. Our well known Rock symbol is an icon of strength, stability, expertise, and innovation that has stood the test of time. Bring us your challenges.
*Life insurance death benefits are generally federal income-tax free, according to IRC §101(a).
1This is based on a comparison with 15 leading term insurance carriers. Conversion privileges or accelerated death benefit provisions may in some cases be more restrictive than those available from Prudential.
2Prudential allows conversions to survivorship policies at the company's discretion—it may discontinue the practice at any time. Term Essential can be converted to age 65 or the end of the level-paying period, whichever is earlier. Term Elite is convertible to age 65. On either policy, you will never have less than five years to convert.
3The Living Needs Benefit is an accelerated death benefit and is not a health, nursing home, or long-term care insurance benefit and is not designed to eliminate the need for insurance of these types.There is no charge for the Living Needs Benefit rider but, when a claim is paid under this rider, the death benefit is reduced for early payment, and a $150 processing fee ($100 in Florida) is deducted. If more than one policy is used for the claim, each policy will have a processing fee of up to $150 ($100 in Florida). Portions of the Living Needs Benefit payment may be taxable, and receiving an accelerated death benefit may affect your eligibility for public assistance programs. The federal income tax treatment of payments made under this rider depends upon whether the insured is the recipient of the benefit and is considered "terminally ill" or "chronically ill." We suggest that you seek assistance from a personal tax advisor regarding the implications of receiving Living Needs Benefit payments. This rider is not available in Minnesota to new purchasers over age 65 until the policy has been in force for one year, and the nursing home option is not available in Connecticut, Florida, Massachusetts, New York or the District of Columbia. This rider is not available in Washington state. In Oregon, term policies must include the waiver of premium benefit to be eligible for this rider. Rider form number ORD 87241-90-P.
Life insurance policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force. A financial professional can provide you with costs and complete details. All guarantees are subject to the financial strength and claims-paying ability of the issuer.
Term Essential and Term Elite are issued by Pruco Life Insurance Company in all states except New York, where they are issued by Pruco Life Insurance Company of New Jersey. Each is solely responsible for its own financial condition and contractual obligations. The contract numbers are PLTIC-2008 and PLTI-2008, respectively, and may be followed by a state code. Not available in all states. The form number for the Accidental Death Benefit is TB 113-2000 and the Children's Protection Rider is TB 182-2000.
This material is designed to provide general information about Term Essential and Term Elite and is not a contract. Prudential Financial, its affiliates, and its representatives do not render legal or tax advice. Consult your own tax and legal advisors on how any product discussed may benefit your particular situation and how best to utilize any such product. Note that information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code.
Securities and Insurance Products:
Not Insured by FDIC or Any Federal Government Agency. May Lose Value.
Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate.
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Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities.
0204997-00004-00 Ed. 07/2011
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