Neither one is the wrong answer, and the tiebreaker most people reach for does not apply here: both are publicly traded stock companies, so neither sells the dividend paying whole life people often picture, and both build permanent coverage on universal life instead. What separates them is what each one put beside the death benefit. Lincoln Financial pairs its universal and indexed universal line with MoneyGuard, a contract that pays for long term care out of the policy itself, and it is placed through a financial professional. Prudential went the other way and built outward: five individual life categories including indexed variable universal life, a term application with no medical exam, and the group contract behind SGLI and VGLI for military families. One note before you read on, because it trips people up constantly: Lincoln Financial is not Lincoln Heritage, the Phoenix final expense carrier, and the two have no relationship.
At a glance
| Lincoln Financial | Prudential | |
|---|---|---|
| Company structure | Lincoln National Corporation, publicly traded (NYSE: LNC) | Prudential Financial, publicly traded (NYSE: PRU) |
| Who issues the policy | The Lincoln National Life Insurance Company, Fort Wayne, Indiana | Prudential Insurance Company of America and Pruco Life |
| In business since | Founded 1905 in Fort Wayne, home office now in Radnor, Pennsylvania | Founded 1875 in Newark, New Jersey, home of the Rock |
| Individual life shelf | Level term, universal, indexed universal and variable universal life | Term, universal, indexed, indexed variable and variable universal life |
| Signature permanent piece | MoneyGuard, life insurance linked to long term care benefits | Indexed variable universal life, and no lapse guarantees on the death benefit |
| How you buy it | Through financial professionals and brokers, no online checkout | Financial professionals, plus an online term path with no exam |
| Participating (dividend) whole life | Not part of the individual lineup | An older participating block only, not offered to new buyers |
| Military group coverage | Not involved | Insures and administers SGLI and VGLI through OSGLI |
| Easy to mix up with | Lincoln Heritage, an unrelated final expense carrier in Phoenix | A VA benefit, because the Prudential name is on VGLI paperwork |
One went deep on a single planning problem, the other went wide on doors in
Ownership is the usual tiebreaker in a carrier matchup, and it settles nothing here. Both of these are publicly traded stock companies, so neither writes the dividend paying whole life people picture, and both build permanent coverage on universal life. The difference that actually moves the decision is what each company attached to that coverage. Lincoln's permanent shelf is anchored by MoneyGuard, a linked benefit contract that pays for long term care out of the policy itself, so one contract answers two questions at once: what happens if care is needed, and what happens if it never is. It reaches you one way, through a financial professional or broker who designs the funding with you. Prudential built outward instead. Its individual site lists five product categories, term, universal, indexed universal, indexed variable universal and variable universal life, it advertises a term application with no medical exam that you can start yourself, and it insures and administers the SGLI and VGLI group coverage carried by service members and veterans. One company went deep on a single planning problem. The other went wide on the number of doors into the building.
Who each one actually suits
Lincoln Financial
A publicly traded Fort Wayne insurer built around universal and indexed universal life
- The thing that worries you is not only the funeral, it is a long term care bill, and MoneyGuard is built to pay for care out of the policy rather than leaving you to buy two separate contracts.
- You want indexed universal life designed and funded over decades, which is the part of the shelf Lincoln is best known for.
- You already work with a financial professional or broker who can set Lincoln next to several other carriers, since that is how Lincoln life coverage is placed.
- You want level term now with the option to convert it into permanent coverage later at a company whose center of gravity is permanent coverage.
Prudential
A publicly traded Newark insurer with a broad shelf and military group coverage
- You would rather start online and finish quickly, since Prudential offers a term path with no medical exam alongside the advisor route.
- You or your spouse holds SGLI or VGLI, and there is comfort in a company that already administers that coverage through its Office of Servicemembers Group Life Insurance.
- A no lapse guarantee on the death benefit is high on your list, since Prudential describes that guarantee on both its indexed universal and variable universal policies.
- Indexed variable universal life is what you are shopping for, which Prudential lists as its own product category rather than a variation on something else.
- You want to weigh several permanent designs, cash value credited from an interest rate, from an index, or from investment subaccounts you select, inside one lineup before you commit.
If you already hold one of them
Start by reading the first page of the contract, because on both of these the brand on the envelope is not always the company on the policy. A Lincoln policy is usually issued by The Lincoln National Life Insurance Company, or by Lincoln Life and Annuity Company of New York if you live there, and a Prudential policy may name Pruco Life rather than The Prudential Insurance Company of America. If what you hold is universal or indexed universal life, ask the issuing company for an in force illustration, which shows whether the policy is funded the way it was originally designed. If your Prudential policy was issued before the company became a stock company at the end of 2001, it may sit in the older participating block and still be receiving a dividend, which is worth knowing before anyone suggests replacing it. Plenty of these reviews end with keep what you have, and that is a good ending.
Common questions
Is Lincoln Financial the same company as Lincoln Heritage?
No, and this is the most common mix up we hear. Lincoln Financial traces back to a company founded in Fort Wayne, Indiana in 1905, and its policies are issued today by The Lincoln National Life Insurance Company. Its individual shelf is term, universal, indexed universal and variable universal life, placed through financial professionals. Lincoln Heritage is a separate, privately held carrier based in Phoenix, Arizona, and it focuses on final expense coverage through its Funeral Advantage program. Same first name, no relationship, two different jobs. If burial coverage is what you came looking for, our Lincoln Heritage review is the right page.
Neither of these is a mutual. Does that change what I get?
It changes one specific thing, and not the things people usually worry about. A mutual is owned by its policyholders and can pay them a dividend on participating whole life. Lincoln National Corporation is a public company, and Prudential became one when The Prudential Insurance Company of America converted from a mutual at the end of 2001, so a new policy from either is not going to be dividend paying whole life. What you do get from both is permanent coverage built on universal life, which is designed to be flexible on premium and on how the cash value grows. Claims paying ability has nothing to do with structure. Both are graded by the independent rating agencies, and you can look up the current rating for any issuing company at ambest.com.
What is Lincoln MoneyGuard, and does Prudential offer something similar?
MoneyGuard is Lincoln’s linked benefit line. It is a life insurance contract that can be used to pay for long term care while you are alive, drawing on the same pool of money that would otherwise go to your family, so you are not paying for a standalone care policy that pays nothing if care is never needed. It is the piece of the Lincoln shelf that has no direct twin at Prudential. Prudential approaches living needs through riders on its individual policies instead, and rider availability changes by product and by state. If planning for care costs is the main reason you are shopping, say that out loud early, because it narrows the list quickly.
I have VGLI. Does that mean my next policy should come from Prudential?
Not necessarily, and the two decisions are separate. The Prudential Insurance Company of America insures and administers VGLI through the Office of Servicemembers Group Life Insurance under a group policy the VA supervises, which is why Prudential appears on your billing. Buying your own coverage is a fresh shopping decision. One rule matters if you are converting: the VA states that a conversion policy must be a permanent policy such as whole life, and that term, variable life and universal life policies are not eligible for conversion. Since universal life is the backbone of both of these companies, check the VA list of participating companies and confirm the exact policy type before you assume a conversion will work. Our VGLI guide walks through how that process runs.
Can I apply to either one without a medical exam?
Prudential is the more direct yes. It advertises life insurance with no medical exam on its term shelf and lets you move from quote to coverage online, and it also has the traditional route through a financial professional if you want one. Lincoln life coverage is placed through financial professionals and brokers rather than an online checkout, and how much underwriting you face depends on the product, the amount and your age. Accelerated underwriting is common across large carriers now, so the honest answer for either company is that a licensed professional can tell you within a few questions whether you are likely to qualify for the shortcut.
Which one fits better if my health history is complicated?
That is decided by the specific condition, not by the company name. Big carriers each have conditions they read more generously than the rest of the market, and those internal guidelines change from year to year, so the carrier that wins for a heart history may not be the one that wins for a diabetes history or a past cancer. Both of these are very large, long established insurers with a wide range of underwriting outcomes available. The practical move is to have someone shop the same application across several carriers rather than applying to one and accepting whatever comes back.
Which one is cheaper?
There is no fixed answer, and any figure quoted before your details are known is an average rather than your price. Cost turns on your age, your sex, your health, tobacco use, the coverage amount, your state, and above all which product you are pricing. Comparing a term quote from one company against an indexed universal life illustration from the other is comparing two different things: term buys the largest death benefit per dollar for a set number of years, while permanent coverage costs more because it is designed to last and to hold cash value. Fix the product type and the face amount first, then price both, and the comparison becomes readable.
If I already have one of these, should I switch to the other?
Not automatically, and often not at all. Coverage you already own was priced on the health you had when it was issued, so if your health has changed since, replacing it can cost more or may not be available on the same terms. Any honest comparison starts by valuing what you already hold, and a review that ends in keep what you have is a perfectly good result.
Can I hold policies from both companies at once?
Yes. There is no rule against owning coverage from more than one insurer, and plenty of households do, often because policies were bought at different life stages for different reasons. What matters is that the total coverage matches what your family would actually need, and that you are not paying twice for the same job.
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The right answer depends on you, not on the brochure.
Rates for Lincoln Financial and Prudential both depend on your age and health, which means the better buy for your neighbour may be the worse buy for you. A licensed professional will price both against what you already have and tell you which is genuinely better, including when the honest answer is to keep what you have.
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This comparison is general information, not legal, tax, or financial advice. Product availability, pricing and underwriting differ by state, age and health, and change over time. Policy Review Center is a free comparison and referral service, not an insurance agency, insurer, or producer, and it connects you with independent licensed agents. Carrier names are used for reference only and do not imply any endorsement or affiliation.