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The main reason to have life insurance is because you want your loved ones to receive money after you die to help them financially. This is one reason, but there are many others.
Have you heard any of these four myths about life insurance? Take a look at the facts and then let's talk.
I don’t need to make my family rich when I die.
Myth 4
Life insurance benefits are ONLY for after I die.
Myth 3
It’s too much of a hassle to buy it.
Myth 2
Life insurance costs too much.
Myth 1
Term life insurance for a healthy 30-year old is around $13 per month.
Get a quote and see how affordable life insurance can be for you
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• Protect What Matters Most
• Understanding Your Life Insurance Options
• What Every Consumer Should Know About Life Insurance
A term insurance policy from Prudential can provide straightforward, affordable coverage. The option to convert the policy to a permanent one within a few years can help them move into another policy if their needs or budget changes.
• Taking control of their future together.
• Staying current on their mortgage.
• Student loan debt.
(This information is hypothetical and not representative of any particular product).
Newlyweds Mike and Chris are excited and a bit nervous about what the future holds for them. They just moved into their lovely new home but the realities of keeping up with the mortgage, paying off other debts, and planning a family have settled in. They want to start their life together on solid footing by buying life insurance but aren’t sure that they can afford it.
Chicago, IL
35, is a teacher at an elementary school.
Chris,
36, is a designer for a local ad agency.
Mike,
You may be able to get more for your money with a newer policy. Your financial professional can review a current policy if you have one, evaluate your needs today to see if they’ve changed, and see if another policy might be more suitable for you with a better price.
The value in permanent policies goes beyond what your heirs receive when you die. In addition to the death benefit, they can have the ability to grow cash value, an optional chronic illness benefit, and more.
Term life insurance is a cost-effective way to have death benefit protection you need for a period of time and can be a perfect starting point.
More than half of Americans overestimate the cost of individual life insurance by as much as three times! Younger Americans overestimate by as much as six times!
Term Essential (PLTIC-2019 or ICC19 PLTIC-2019) is issued by Pruco Life Insurance Company in all states except New York, where it is issued by Pruco Life Insurance Company of New Jersey. Product may not be available in all states. This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any clients or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing a client’s retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional. Federal tax law limits the amount of premium contributions that can be made to a policy in order for it to retain certain tax advantages. When premium contributions exceed this limit, the policy is classified as a modified endowment contract (MEC). Distributions from MECs (such as loans, withdrawals, and collateral assignments, including distributions made in the two years prior to becoming a MEC) are taxed less favorably than distributions from policies that are not MECs to the extent there is gain in the policy. For distributions from a MEC prior to age 59½, a 10% additional tax may apply to the extent there is gain in the policy. However, death benefits are still generally received income tax-free pursuant to IRC §101(a). The death benefit will be reduced by any withdrawals or loans (plus unpaid interest). Clients should consult a tax advisor. We do not provide tax, accounting, or legal advice. Clients should consult their own independent advisors as to any tax, accounting, or legal statements made herein. All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not backed by the broker-dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them make any representations or guarantees regarding the claims-paying ability of the issuing insurance company. Policies contain exclusions, limitations, reductions in benefits, and terms for keeping them in force. A financial professional can provide you with costs and complete details. • Not FDIC insured • Not insured by any federal government agency • Not a deposit or other obligation of, or guaranteed by, any bank or its affiliates • Subject to investment risks, including possible loss of the principal amount invested © 2023 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. 1051976-00003-00 Ed. 10/2023 ISG_WE_ILI148_01
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Top Misconceptions About Life Insurance (limra.com), 2021. Availability and actual rates will vary based on how you satisfy our underwriting and eligibility criteria.
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$100,000 death benefit, male, Preferred Non-Tobacco, Term Essential 20 year. Rates as of 09/18/23.
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Issuance of the policy may depend upon the answers to the health questions set forth in the application.
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Life insurance policy cash values grow tax-deferred and are potentially income tax-free. You can access your cash value through loans and withdrawals. In general, loans are charged interest; they are usually not taxable. Withdrawals are generally taxable to the extent you take more money out of the policy than you've paid in premiums. Any loans that remain unpaid when the policy lapses or is surrendered while the insured is alive will be taxed immediately to the extent of gain in the policy. Loans and withdrawals may reduce or eliminate cash values and the death benefit payable to your beneficiaries.
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IRC §72.
[5]
Walt Disney Timeline, accessed 9/25/2023,
[6]
www.justdisney.com
Subject to meeting terms and conditions of the rider. Receiving benefits under the terms of this feature (rider) will reduce and may eliminate the death benefit for your beneficiaries. It is not Long-Term Care (LTC) insurance, and it is not intended to replace LTC. Additional premiums, underwriting requirements and limits may also apply.
[7]
Under the current tax law, the federal estate tax exemption is set to expire at the end of 2025. Starting in 2026, the exemption will return to approximately $5 million with an adjustment for inflation. Prudential does not provide tax or legal advice, please consult an independent tax advisor regarding your personal tax situation.
[9]
Top Misconceptions About Life Insurance, 2021,
[8]
www.limra.com
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The cost of term life insurance for a healthy 30-year-old is around $13 per month ($158 per year).
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Say YES to life insurance and see how hassle-free it is
• eCapabilities Video
• eCapabilities by the Numbers flyer
• eCapabilities Testimonial flyer
Buying a life insurance policy from Prudential has never been easier. The process for many can be completed on a phone or laptop and may not require medical tests. Coverage approval can be as quick as 48 hours after everything is complete.
• Time management.
• Paying his monthly bills.
• Ensuring his daughter is protected.
Dylan is a caring, devoted, and protective father. His daughter Sophie is his world since his wife died a year ago, and he is hers. Which makes him feel the pressure of how to protect her if he should die too. The prospect of getting life insurance makes sense but he has no time for a lengthy purchasing process.
Philadelphia, PA
$78,000
Annual Income:
37, Sophia 6.
Dylan,
If you are healthy, detailed medical questions or screenings may not even be necessary. If additional medical information is needed, it can often be obtained electronically. If you’ve ever been turned down for life insurance for a health condition, it’s worth trying again! More people are insurable than ever before!
Many times, a link can be sent to you when your application is received. You can complete the interview at your own pace on a laptop, a tablet, or your phone.
Today, most applications are done electronically with your financial professional, and in some cases, you can do it yourself online!
Today, most of the application process can be completed electronically, depending on the insurance carrier, your health, how much protection you want, and your preferences.
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can be as easy as
Getting your policy
opening your email.
Walt Disney borrowed from his life insurance policy in 1953 to help fund Disneyland.
Get a quote to see the cash value growth opportunities
A permanent life insurance policy with a chronic illness rider added can give Stella a valuable death benefit to leave as part of her financial legacy. It also has flexibility to accelerate up to 100% of the death benefit if she's faced with a chronic or terminal illness and meets the terms of the rider. Having access to these funds can reduce the risk that Stella will deplete her savings and other assets to pay for costs associated with the illness, or that she'll have to rely on her children for care.
• Life Insurance with the Chronic Illness Rider
• Comparing Chronic Illness Solutions
• Do You Know the Four C’s of Chronic Illness?
• Not wanting to rely on her children for care if she falls ill.
• Leaving a legacy.
Stella is aware of the financial impact of not being able to work while ill and the expenses associated with a chronic illness. She took care of her sick mother years ago and doesn’t want to place that burden on her children. She wants to make sure that she is protected and can get the care she needs if something happens to her, and reduce the stress her life-changing event could have on her family.
Jacksonville, FL
55, is a data analyst at a large firm.
Stella,
• Chronic Illness Rider Concierge Care Overview
Some life insurance policies offer an optional chronic or terminal illness feature, called a "rider," sometimes available at an additional cost. These riders allow you to “accelerate” (or use) part of the death benefit for yourself in any way you choose if you become chronically or terminally ill.
There are times when you might choose to use some cash value from a life insurance policy as income. The advantage is that that you will generally pay no income taxes or penalties on what you withdraw, there are no age requirements, and there are no required minimum distributions.
You can buy policies that have potential to grow tax-deferred cash value. You can then take tax-free loans and withdrawals and use the money any way you choose. You could pay for things like a wedding, or a down payment on a home, etc.
With certain life insurance policies, you can grow cash value within it. With these types of life insurance policies, you can use the cash value and/or “accelerate” (or use) part of the death benefit for yourself as a "living benefit."
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Your estate tax burden may not seem problematic today with a federal estate tax threshold of $12.92 million (for 2023), but if your assets are positioned well, they will likely grow, and your future estate could have a tax problem. Tax laws can change at any time. Under current law, the exemption will return to $5M (with inflation adjustments) in 2026. Life insurance can also be a great way to protect and potentially enhance your legacy.
When you die, your surviving spouse or other dependents may still need income. The tax-free death benefit could provide that. It’s as simple as that. If you have a dependent with special needs, the need for support may never end.
The median life insurance coverage offered at the workplace is a flat sum of $20,000 or one year’s salary.
Understanding what might happen if you die and your income is suddenly gone helps negate this myth. It is generally a calculation using your salary, debt, financial responsibilities, and college expectations.
If you were to die suddenly, without warning, the livelihood of your family could be at risk. There are expenses around housing, food, clothing, college, etc., that will not die with you.
Look at a needs calculator to see how much life insurance makes sense
A permanent life insurance policy can give them a confidence that they’ll be able to leave a meaningful legacy for the next generation.
• Estate Planning Checklist
• Wealth Transfer: Leaving a Legacy
• The Legacy Advantage Strategy
• Retiring comfortably.
• Leaving a financial legacy to their children.
Bill and Joanne's retirement is near and they're planning how they want their next chapter to be. They've worked hard and have tried to save for a long time. Now they want to retire comfortably and have enough to leave a financial legacy to their children. They worry about the uncertainty of the financial markets and want to be prepared for any potential market downturn so their plans for the future don't get derailed.
Indianapolis, IN
59, is a claims examiner for an insurance company.
Bill,
• Legacy Advantage: An Asset Repositioning Strategy
Joanne,
56, is a graphic designer for a local print shop.
• Market volatility.
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Provide coverage for the rest of your life. Most policies have the ability to grow cash value and allow you the ability to access money in the policy.
This can be thought of as the "beneficiary benefit." The total amount of money the beneficiaries receive when the covered person(s) dies.
Underwriting, a term used frequently in the insurance industry, is an evaluation of your current health, medical history, family medical history, and lifestyle. To purchase life insurance, you may have to take a medical exam to assess your health.
Features and benefits of a life insurance policy the covered person can use while they are alive. These benefits can be things like chronic illness benefits, or loans and withdrawals, and more.
Money that can grow in a permanent policy. This money in the policy can usually be accessed by taking withdrawals or policy loans. Outstanding loans and withdrawals will reduce policy cash values and the death benefit and may have tax consequences. Being able to tap into this money can be part of your strategy and among the reasons for buying a particular policy.
These are optional benefits or additions you can make to your life insurance to provide specific coverages and tailor your policy to your needs.
These are the payments you make to the insurance company.
Provides temporary coverage, usually for a period of 10, 15, 20, or 30 years.