Prudential Income Advantage Upgraded!

John Darer • January 25, 2024

Prudential announced a change to the death during deferral period option for Income Advantage, its Indexed Structured Settlement Annuity


Prudential income advantage

What’s changing?


According to a January 25, 2024 release by Prudential Insurance Company of America:


  • Effective immediately, if a claimant (or attorney structuring their fee) dies during the deferral period, any interest will continue to be credited during the deferral period. Payments will then be made, as they become due, to the designated beneficiary(ies). This will be the new default option.
  • Alternatively, the claimant may elect at the time of settlement (at no additional cost) to commute the accumulation amount (the total of the premium plus any index-linked growth).** If elected, and the claimant dies during the deferral period, the beneficiary(ies) will receive a designated percentage (as set forth in the Annuity Certificate) of the accumulation amount in a lump sum; provided that such amount will not be less than the minimum amount under applicable law. Previously, this was the only option available.


Good heads up play by Prudential!


What’s not changing?

The death during payout options and all other Prudential structured settlement annuity products.


** If commutation is elected, and the claimant then dies during the deferral period, and the death occurred relatively close in time to the date of sale, it is possible that the lump sum payable to the beneficiary(ies) could be an amount that is less than the premium amount paid for the annuity.



Prudential Insurance Company of America, founded in 1875, with its home office in Newark, New Jersey, is one of America's oldest insurance companies.


Still Work to Be Done Industry Wide


There is still work to be done, in my opinion to move to an adoption of second generation responsive commutation riders. I have authored several articles about the need for responsive structured settlement payment riders on my Structured Settlement Watchdog blog.


Structured Settlement Commutation Riders Must Be Revisited Before Estate Tax Cuts Expire in 2025 - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)



independent life structured settlement annuities
By John Darer March 16, 2025
In the structured settlement annuity industry, dominated by many of the largest life insurers in the United States, Independent Life Insurance Company (ILIC) achieved significant milestones in 2024. Good news, positives and some concerns discussed in this lattest post.
Prudential and Pacific Life are among the world's most ethical companies
By John Darer March 13, 2025
Prudential and Pacific Life have once again been named among the world's most ethical companies. Prudential received the award for the 11th time., Pacific Life received the award for the 8th time. Prudential and Pacific Life are leading issuers of structured settlement annuities.
structured settlement annuity market expansion 2025
By John Darer March 13, 2025
John Darer reviews structured settlement annuity market expansion featuring 3 new entrants Athene Life & Annuity, American National (ANICO) and Puritan Life as well as MetLife's development of a best in class
settlement agreement and release
By John Darer February 11, 2025
What is a Settlement Agreement and Release? What is the role of a Settlement Agreement and Release in establishing a structured settlement? What is a compromise?
structured settlement market explained
By John Darer February 11, 2025
John Darer reviews the primary structured settlement market, secindary market and tertiary structured settlement markets
tax free structured settlement annuity
By John Darer February 7, 2025
A structured settlement annuity does not drive the tax consequences of structured settlement annuity payments. It is the type of damages the structured settlement annuity payments represent, as reflected in the relevant settlement documentation executed by the settling parties
structured settlement beneficiary
By John Darer January 29, 2025
Structured settlement beneficiary death claim. An executor cannot change the beneficiary of a structured settlement annuity. StructuredTypically, settlement agreements permit the Payee to name or change a beneficiary, provided such change is in writing and submitted to the Assigmment Company or annuity issuer in writing and in proper form.
new york structured settlements, new york city structured settlements, nyc structured settlement cos
By John Darer January 23, 2025
Which life insurance companies write structured settlement annuities for personal injury and wrrongful death settlements in Bronx, Brooklyn, Staten Island, Queens, Manhattan, Long Island, Westchester, Erie, Rockland, Albany,Monroe in 2025 through licensed representatives?
structured settlement annuities
By John Darer January 8, 2025
Why Structured Settlements? Because Certain Sells® Structured settlements offer predictable income streams, which can be appealing to rein in uncertainty. John Darer reviews some other reasons that structured settlements are increasingly being used to settle cases:
structured settlements history
By John Darer December 13, 2024
Structured settlements have roots that trace back more than 100 years, from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as the core personal injury settlement planning tool it is today.
More Posts