Prudential Financial
Insurance FAQs
Life Insurance FAQ | |
> | Why do I need life insurance? |
> | How much life insurance should I have? |
> | Do I really need individual life insurance if I have group life insurance? |
> | If I already have life insurance, should I purchase life insurance on my spouse? |
> | Should I purchase life insurance on my child? |
> | How do I get started? |
> | How much does it cost? |
> | When should I review my current coverage? |
> | How does my health affect the amount I pay for life insurance? |
> | Why does the company need information about my health and is it safe to give that information? |
> | My financial professional told me I need quite a bit of life insurance; can I really get that much? |
> | Is it true that hobbies and activities I participate in are considered during underwriting? |
> | Should I even bother applying for life insurance if I know I have an existing medical condition? |
> | Why are you concerned with my medical condition when my doctor may not be? |
> | Will I have to take a medical exam and if so, what are some of the things I may be asked to do? |
> | How long does the underwriting process take? |
Life Insurance FAQ | |
Q. | Why do I need life insurance? |
A. | Life insurance provides a death benefit, money that your beneficiary or beneficiaries can use for whatever purposes they choose, helping to:
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Q. | How much life insurance should I have? |
A. | There's no single right answer. “Rules of thumb” can range anywhere from 2 to 10 times your annual gross salary—provided you have an income. But estimates provide only ballpark figures, which may be inappropriate for a particular family's needs and goals, especially if your family or spouse relies on you for more than just income. For more, see our Life Insurance Needs Estimator. Back to top |
Q. | Do I really need individual life insurance if I have group life insurance? |
A. | Participating in your group life insurance is a good idea because you will often be able to receive life insurance at a lower, group price. When deciding whether to buy insurance beyond your group coverage, consider these questions:
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Q. | If I already have life insurance, should I purchase life insurance on my spouse? |
A. | If your spouse contributes to the family's annual income, then he or she should have adequate life insurance protection to replace that income in the event of his or her death. If your spouse does not earn an income, life insurance can still play an important role in helping to pay for valuable services he or she provides—for example, providing child care, elder care, or home maintenance. For an estimate of that cost, use our Value of All You Do calculator. Back to top |
Q. | Should I purchase life insurance on my child? |
A. | There are two reasons you may want to consider purchasing life insurance on, or more accurately, for your child*:
Back to top |
Q. | How do I get started? |
A. | When you're ready to speak to someone about life insurance, you need a life insurance agent, also called a licensed financial professional. If you don't already have a licensed financial professional, locate one in your area. The process is pretty easy:
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Q. | How much does it cost? |
A. | The cost depends on several factors, including the type of policy you buy, how much you buy, and the status of your health and personal situation. For an estimate of the cost, you can get an online quote for our term products as well as for PruLife® Universal Protector. For other products, you can request a quote and one will be sent to you. Back to top |
Q. | When should I review my current coverage? |
A. | When you bought your life insurance policy, your situation may have been significantly different from what it is now. If something were to happen to you today, would your family have enough protection? If you have undergone any life-changing events, such as any of the following since you bought your policy, it's possible you may be underinsured.
Your life insurance coverage should be reviewed annually. Back to top |
Q. | How does my health affect the amount I pay for life insurance? |
A. | Underwriting is the evaluation of factors—including your height, weight, current health, medical history, family history, occupation, hobbies, driving record, and whether you have ever smoked or piloted a plane—that may affect your eligibility for life insurance at the time you apply. Through this evaluation, we can determine whether you are eligible and offer you a fair price for the risk we assume to provide you with coverage. Most people can qualify for insurance. The premium you pay is based on your overall health. If you are not in perfect health—and most people are not (only 30% of our policies are issued with our very best rates)—you can still get life insurance at an affordable price. Even individuals with health impairments such as coronary artery disease, cancer, diabetes, or a history of stroke may be eligible for insurance. Back to top |
Q. | Why does the company need information about my health and is it safe to give that information? |
A. | Having a clear view of your medical history helps us determine how your health fits in with the general health of the rating category you fall into. When you purchase insurance, you are placed in a group of people with similar risk characteristics. Not every person in the group will have the same life span but, overall, the group will have a fairly predictable life expectancy. This group, known as a rating class, gives us a basis to determine your premiums. We realize that information we request is personal and sensitive. For this reason, the information we collect is kept confidential and shared with only those who must have this information to determine your eligibility for life insurance. Back to top |
Q. | My financial professional told me I need quite a bit of life insurance; can I really get that much? |
A. | The amount of insurance we issue will depend on a number of factors such as your individual need for life insurance, your income and financial worth, the amount of life insurance you already have, the types of activities you engage in, and so on. For this reason, we will ask how much income you earn, if you have income from sources other than your work such as investments, and your total family income or household income. Your financial worth (what you own and may owe) is also important information we may need from you. It is important to disclose all financial information fully so we can properly determine your eligibility for the amount of insurance you are asking for. In some cases, depending on the amount of insurance you are requesting, you may also be asked to provide actual records of your income and worth such as a copy of your tax return or bank statement. Back to top |
Q. | Is it true that hobbies and activities I participate in are considered during underwriting? |
A. | The types of activities you participate in can reflect how much risk you are exposed to on a regular basis. While many activities present no unusual hazard, certain activities, such as flying a plane, scuba diving, driving carelessly or while intoxicated, and traveling to some areas of the world, present added risk and need to be evaluated. If you have a history of speeding tickets or frequent travel to certain areas, for example, the risk we assume to cover you is higher and, therefore, your premiums may be higher. Back to top |
Q. | Should I even bother applying for life insurance if I know I have an existing medical condition? |
A. | Yes! Even individuals with health impairments like coronary artery disease, cancer, diabetes or strokes may be eligible for insurance. Back to top |
Q. | Why are you concerned with my medical condition when my doctor may not be? |
A. | If you have a medical problem that requires no immediate attention, your physician may not be concerned and may convey that sentiment to you. When the medical condition becomes more severe or when complications develop, your doctor can respond by starting treatment or ordering further evaluation. However, when evaluating that same medical condition, insurance companies have only the narrow window of time during which underwriting takes place to make their assessment. Back to top |
Q. | Will I have to take a medical exam and if so, what are some of the things I may be asked to do? |
A. | Based upon your age and the amount of life insurance you are applying for, an exam and/or additional medical tests may be required to help us make the most informed underwriting decision. These tests will provide us with the information we need to fairly assess your eligibility for life insurance. The medical exam is conducted at our expense, by either a paramedical examiner at your home or business or by a doctor at a physician's office, depending on your age and the amount of coverage you've applied for. During the exam, the examiner will check and record your blood pressure, pulse, height and weight. You may also be asked to:
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Q. | How long does the underwriting process take? |
A. | If we do not receive all information necessary to complete the underwriting process within 60 days of the initial request for coverage, we will close your file. Once we receive the outstanding information, we will resume the process. When the underwriting process is complete, we will either approve you for coverage (with or without changes or exclusions) or decline coverage. If you're approved, your policy will be issued and delivered by your licensed financial professional. Back to top |
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