If you have questions, please contact your Prudential representative or call Customer Service at (800) 496-1035.
About the Alliance Account:
Eligible proceeds from your Prudential claim may be made available to you in an interest-bearing Prudential Alliance Account. Payment of the full benefit amount is accomplished by placing the proceeds from your Prudential claim into an interest-bearing Prudential Alliance Account and providing you with personalized drafts. The account begins earning interest from the day it is opened. With the Alliance Account you will have a flexible way to access your money. Simply by writing drafts, you can get the funds you need now for immediate expenses, then take as much time as you want to decide what to do with the rest. You may wish to access the money periodically, or all at once.
How It Works:
The Alliance Account is an interest-bearing account with draft writing privileges that allows full access to your funds immediately without any monthly fees. Alliance drafts are considered checks under federal law for certain purposes. Certain businesses may have their own policies and procedures for accepting drafts. For complete information and eligibility requirements regarding the Alliance Account, please see the information below. The Alliance Account gives you flexibility and convenience with all these benefits.
Easy and Immediate Access
Upon approval of the death benefit claim, the full amount of the proceeds payable to you are paid via an interest-bearing Alliance Account established in your name.
Convenience and Flexibility
You can leave the funds in the account for as long as you wish, access any or all of your funds, and transfer funds to another available settlement option at any time and at no cost.
Your Money Continues to Grow
The funds in your Alliance Account begin earning interest immediately and will continue to earn interest until they are withdrawn.
Advantages of the Alliance Account
Your Funds Are Secure
The Alliance Account is a settlement option under the original life insurance policy and is backed by the financial strength of The Prudential Insurance Company of America. Funds held in the Alliance Account are guaranteed by State Guaranty Associations. See How the Alliance Account Works for details.
No Usage Fees
The Alliance Account has no monthly charges, per draft charges or draft reorder fees. Other fees such as stop payments may apply. See How the Alliance Account Works for details.
Multiple Payments – One Account
If you are the beneficiary on more than one life insurance policy or already have an Alliance Account, proceeds will be paid into one account. A key benefit of the Alliance Account is that you are able to name a beneficiary. This allows you to pass the claim proceeds on to your beneficiary, in many cases tax free.
Dedicated Customer Support
You can speak directly with a customer service representative between 8 a.m. and 8 p.m. Eastern Time, Monday through Friday at 800-496-1035. Written inquiries can be sent to Prudential, P.O. Box 13902, Philadelphia, PA, 19176. You can also call go online or call our automated voice-response system 24 hours a day to check your account balance, request additional drafts and more.
How the Alliance Account Works
All funds are held within Prudential’s general account. It is not FDIC insured because it is not a bank account or a bank product. Funds held in the Alliance Account are guaranteed by State Guaranty Associations. Please contact the National Organization of Life and Health Insurance Guaranty Associations (www.nolhga.com) Opens in new window to learn more about coverage limitations on your account. State guaranty fund coverages are not determined by the insurance company.
The funds are guaranteed by the Colorado Life and Health Insurance Protection Association. Please contact the Colorado Life and Health Protection Association (http://www.colifega.org Opens in new window - State Guaranty Association).
How Interest Is Earned:
The funds in an Alliance Account begin earning interest immediately and will continue to earn interest until all funds are withdrawn. Interest is accrued daily, compounded daily and credited every month. The interest rate may change without notice, but not more than once a month and will vary over time. The interest rate credited to your Alliance Account is adjusted by Prudential at its discretion and may be more or less than the rate Prudential earns on the funds in the account. Currently, the interest rate is based upon a nationally recognized index of average taxable retail money market fund crediting rates, with certain minimums. In the future, we may change the index. The minimum interest rate that will be paid on this account will be no lower than 1.5% (and may be as high as 3.5%). This rate may differ if you already have an existing open Alliance Account. The higher rate will prevail. Call Customer Service at 800-496-1035 if you have any questions regarding the interest rate that will be credited or the minimum rate for your specific account. The interest earned on the Alliance Account may be taxable. For tax information, please consult with a tax advisor because neither we nor our representatives can provide tax advice.
You will receive regular (either monthly or quarterly) statements showing your current balance, the interest you earned, the drafts you have written, your current interest rate, and any other account activity. The frequency at which the statements are mailed to you is determined by the activity in your Alliance Account.
Special Service Fees:
There are fees for special services, which are subject to change, and include stop payments ($12.00 per draft/$25.00 maximum for 3 or more per day); cashed draft copy or statement copy ($2.00 per); drafts returned for insufficient funds ($10.00 per draft) and overnight delivery (based on carrier’s charge).
If the balance falls below $250, you will receive a check for the remaining balance plus interest at the end of the monthly cycle in which the balance fell below $250. You can close the Alliance Account at anytime by calling the Customer Service office. A check for the remaining balance and interest will be sent to you. Or, you can close the account by writing an Alliance draft for the balance and cashing it or depositing it at your own bank. Since interest accrues daily, a check for the remaining accrued interest will be sent to you.
State law requires that if there is no account activity and we have had no contact with you regarding your Alliance Account after a number of years (which time period varies by state), your Alliance Account may be considered “dormant”. If your Alliance Account becomes “dormant”, you will be mailed a check for the remaining balance plus interest, at your last address shown on our records. If you do not timely cash that check, your funds will be transferred to the state as unclaimed property. If your funds are transferred to the state, you may claim those funds from the state but you may be charged a fee by the state. Once your funds are transferred to the state, we no longer have any liability or responsibility with respect to your Alliance Account.
FOR FURTHER INFORMATION, PLEASE CONTACT YOUR STATE DEPARTMENT OF INSURANCE.
The Bank of New York Mellon is the Administrator of the Prudential Alliance Account Settlement Option, a contractual obligation of The Prudential Insurance Company of America, located at 751 Broad Street, Newark, NJ 07102-3777. Draft clearing and processing support is provided by The Bank of New York Mellon. Alliance Account balances are not insured by the Federal Deposit Insurance Corporation (FDIC). The Bank of New York Mellon is not a Prudential Financial company.
Understanding Your Options
A claim is not eligible for an Alliance Account when:
- Benefits from all policies total less than $5,000.
- The beneficiary resides outside US, is a minor, corporation, partnership, tax exempt entity, or other ineligible third party.
- The beneficiary is a trust with more than one trustee, the trust is not authorized to own or withdraw funds from a life insurance policy, or the trust is a testamentary trust.
- The person who owned the policy established specific provisions about death benefit payment. In these situations, the claim is paid by check or another option.
You may choose one of the following settlement or payment options as an alternative to the Alliance Account. If you would like more information on the payment options available to you, please call 800-496-1035 to request the Your Options brochure.
Lump Sum Payment Options
Prudential offers a few types of lump sum payment options. Each option type provides full payment through either a single check or immediate access to the entire proceeds of the policy as described below.
Alliance Account: Access funds immediately or in the future by writing drafts, while earning interest.
Proceeds Held At Interest: While proceeds are held at interest, you receive regular interest payments with the right to withdraw the unpaid balance. You may also elect to have interest accumulate.
Lump Sum Check: Receive the full benefit in a single lump sum check.
Installment Payment Options
Prudential also offers a number of deferred payment options, which pay out the proceeds over a period of time that you select (e.g., monthly payments for the rest of your life, or payment over a fixed number of years). If you select a deferred payment option, we will provide you with a written description of the terms of the installment payment option you selected.
Life Income: Monthly payments to you for life.
Life Income with a Certain Period: Monthly payments to you for life with a certain period of guaranteed payments to you or your named beneficiary.
Fixed Period: Payment for an elected number of years, with the right to withdraw the present value of unmade payments.
Fixed Amount: Payments of a selected amount until the proceeds and interest earned are fully paid to you, with the right to withdraw the unpaid balance.
The tax treatment of the death benefit may be different depending on the settlement option you choose. Please consult your tax advisor for advice. In addition, there may be other settlement options available to you. Should you have any questions about these settlement options, please contact Prudential at (800) 496-1035.
For Arkansas Policies:
If payment is made after 30 days from the day we receive proof of death of the insured, life insurance death benefits payable under policies issued in Arkansas will include interest at the rate of 8 percent per year. This interest will be payable from the date of death to the date of payment.
For Illinois Claimants:
Interest shall accrue on the proceeds payable because of the death of the insured, from the date of death, at a rate of 10% annually on the total amount payable or the face amount if payments are to be made in installments until the claim payment or first installment is paid, unless payment is made within thirty-one (31) days from the date of receipt by the company of due proof of loss and sufficient information to determine the appropriate payee legally entitled to the proceeds in accordance with 215 ILCS 5/224(1)(l).
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