Prudential At a Glance: Rates, Products and Reviews

Prudential Financial was founded in 1875 and serves 50 million customers in 50 countries. The company offers multiple annuity products, workplace benefits and life insurance. Annuity products sold through Prudential are issued by Pruco Life Insurance Company.

Prudential has earned strong financial strength ratings from top rating agencies, including AM Best, S&P Global and Moody’s. It was a top performer in the J.D. Power 2024 U.S. Individual Annuity Study and honored among Ethisphere World’s Most Ethical Companies in 2024.

Prudential offers many types of annuities including multi-year guaranteed annuities, fixed annuities and variable index annuities. Here’s what you need to know about these products.

Fixed annuities offer predictability and provide a steady income stream. Rates are guaranteed, and the insurer sets the rate you earn when you buy the annuity contract.

The Prudential WealthGuard™ multi-year guaranteed annuity is a top option for those looking for predictable growth over time. It offers three-, five- and seven-year terms and a guaranteed minimum interest rate that applies for the selected term.

WealthGuard annuity performance is not market-dependent and, like other fixed annuities, offers tax-deferred growth while funds are in the account. Further, you can access up to 10% of your account value each year without penalty.

Though there are no administrative or similar contractual fees, other fees such as surrender charges may apply.

Prudential offers variable and index variable annuities. Both offer an investment component, but each type provides a different growth structure. Variable annuities rely on investments in subaccounts, while the growth of index variable annuities is linked to market performance, specifically indices such as the S&P 500.

Fixed index annuities (FIAs) offer protection against losses while also allowing you to grow the value of your investment based on the performance of market indexes.

Prudential’s PruSecure® fixed index annuity protects your original premiums and growth against market downturns while allowing you to choose from a fixed-rate or index-based strategy. The fixed-rate strategy provides one year of guaranteed growth at a predetermined rate. With the index-based strategy, growth depends on index performance, which may yield higher earnings but can also leave you vulnerable to losses.

You can see current rates online on the PruSecure rate sheet for fixed index annuities to get an idea of what you could earn.

With PruSecure, there are no annual contract or administrative fees, and you can withdraw up to 10% of your money without penalty after the first contract year.

Many of Prudential’s annuity products indicate there are no contract or administrative fees. However, some fees may apply, particularly for early withdrawals, which may be subject to a hefty surrender charge. Surrender charges are standard, so this isn’t a reason to disqualify Prudential. In fact, its affordable costs make this annuity provider worth considering.

Prudential can connect you with local advisors who can help you to explore annuities and other financial products. You can request an appointment online to find a qualified advisor. You can also choose the chat option to get help online.

Prudential is not accredited by the Better Business Bureau (BBB), though the insurer maintains an F rating based on poor customer reviews. Of the available 5.00 points, Prudential receives a 1.15 rating based on 13 reviews. However, it’s worth noting that many insurers and annuity providers do have negative ratings from at least some customers, as providing these types of financial services can be complex.

A company’s financial strength indicates how likely they are to meet financial obligations, such as annuity and life insurance claim payments. Prudential’s annuities arm, PRUCO Life Insurance Company, has received a strong rating from each of the four top reporting agencies.

These ratings are: AM Best with an A+ (Excellent), Fitch Ratings with an A-, Moody’s with an Aa3 and S&P Global with an AA-.

With fewer fees than many competitors, solid financial strength ratings and valuable add-ons, including performance lock features, many investors will find that Prudential is a good company to do business with. Still, you should compare annuity offerings, including guaranteed returns, investment options, historical growth and fee structures, to decide which products best meet your financial goals.

Further, it’s also wise to consider your risk tolerance when determining which type of annuity best suits you. Prudential advisors can help you choose the right annuity, or you can contact your financial advisor for unbiased advice on whether these annuities belong in your diversified portfolio.

Editor Norah Layne contributed to this article.