Prudential Expands EssentialTerm Suite With Added Coverage Flexibility

Prudential Financial, Inc. PRU, a leading global financial services provider, has broadened its EssentialTerm Suite, now extending coverage options of $0.25 million and higher. The expansion aims to deliver greater flexibility and affordability, enabling more individuals to select policies aligned with their unique financial needs and goals.

Prudential highlights the role of life insurance in protecting one’s legacy, providing both death benefit coverage and long-term planning support. The EssentialTerm Suite links short-term protection with lasting value, offering flexibility to transition into permanent coverage as needs evolve.

Prudential’s EssentialTerm Suite, issued by Pruco Life Insurance Company, includes two enhanced term life options. EssentialTerm Value offers affordable temporary protection with the flexibility to convert to permanent coverage for lifelong protection and cash-value growth, while EssentialTerm Plus provides a stronger conversion feature for customers focused on long-term financial planning.

The EssentialTerm Suite offers flexible protection with term options of 10, 15, 20, or 30 years, featuring guaranteed level premiums throughout. It also provides the opportunity to convert to a permanent Prudential policy while keeping the same health classification, supported by a conversion credit within the first seven years to ease the transition.

Alongside these core benefits, the plan includes a built-in terminal illness rider, granting early access to part of the death benefit if the insured is diagnosed with a terminal illness. Policyholders can further customize coverage with optional riders such as waiver of premium for disability, accidental death benefit, and a child conversion feature, ensuring protection that evolves with individual and family needs.

The expansion of Prudential’s EssentialTerm Suite is set to strengthen its financial performance by generating higher premium income from larger policy sizes and flexible term options, while the built-in conversion feature promotes long-term revenue streams and stronger customer retention as policyholders transition to permanent coverage. The inclusion of optional riders may add incremental income with limited underwriting risk. Together, these factors may enhance profitability and reinforce Prudential’s position in the insurance market.

PRU’s YTD Price Performance

In the year-to-date period, Prudential’s shares have lost 7.8% compared with the industry average. Due to prolonged low interest rates, weakness in its group disability business and rising expenses, Prudential continues to face pressure.

Zacks Rank & Key Picks

PRU currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the  Insurance - Multi line space are Hippo Holdings Inc. HIPO, Horace Mann Educators Corporation HMN and Allianz SE ALIZY. While Hippo Holdings sports a Zacks Rank #1 (Strong Buy), Horace Mann Educators Corporation and Allianz SE carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hippo Holdings’s current-year earnings indicates 88.3% year-over-year growth and a massive improvement in the following year. Hippo surpassed earnings estimates in three of the last four reported quarters, missed in one, with the average surprise being 71%. The consensus estimate for Hippo’s current-year revenues is pegged at $470.4 million, implying 26.4% year-over-year growth.

The Zacks Consensus Estimate forHMN’s current-year earnings is pegged at $4.21 per share, implying 32.4% year-over-year growth. Horace Mann’s earnings surpassed estimates in three of the last four quarters, met in one, the average surprise being 40%. The consensus estimate for Horace Mann’s current-year revenues is pegged at $1.7 billion, implying 5.8% year-over-year growth.

The Zacks Consensus Estimate for Allianz’s current-year earnings is pegged at $3.24 per share, indicating 17.8% year over year increase. Allianz surpassed estimates in three of the last four reported quarters, mossed in one, the average surprise being 2.52%. The consensus estimate for Allianz’s current-year revenues is pegged at $113.8 billion, implying 0.9% year-over-year growth.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research