Using Prudential Financial Alliance Account Services

When a loved one passes away, life insurance can be a lifeline to family members left behind. While money cannot bring back a loved one, it can provide financial security. As part of its suite of life insurance products, Prudential offers the Alliance Account Services program. The Alliance Account is a safe place for a beneficiary of a Prudential life insurance policy to keep any life insurance payout money until she can decide what to do with it.

A beneficiary of a Prudential life insurance policy must decide whether to receive the money as a lump sum or put the money in an Alliance Account. Along with being secure, the money in an Alliance Account earns interest as soon as it is deposited and continues to earn interest until the money is withdrawn. To qualify for an Alliance Account, the beneficiary must receive at least $5,000 in life insurance payments.

If a beneficiary of a Prudential life insurance policy does not choose the lump sum or Alliance Account, the money automatically goes into an Alliance Account established in the beneficiary's name.

A beneficiary can find the form on the Prudential website and mail it to the Prudential address on the form. A person can only have one Alliance Account open in her name at any given time, so if an account holder receives life insurance benefits from more than one policy, all the money goes into one Alliance Account.

An Alliance account holder can access the money anytime via draft. The Alliance account holder receives a draft book, which is similar to a checkbook, to take money out of the account. When she's ready, the account holder can also use one draft to withdraw the entire amount in the account. The account holder can also choose to transfer the money to another investment account.

The Alliance Account website lets users check account balances, transaction history and current interest rates. If an Alliance Account balance falls below $250, Prudential will a cut a check for the balance of the account plus any interest the account earned during the month that the account went below to $250.

If the Alliance account holder passes away, her beneficiary would receive any money left in the account. To assign a beneficiary, the account holder should fill out the Information Account form found on the Prudential website.

If an Alliance Account holder does not withdraw money or make any contact with Prudential regarding the account after a certain number of years, Prudential considers that account dormant. The amount of years that must pass before an account goes dormant varies from state to state. For dormant accounts, Prudential mails a check for the balance of the account to the account holder's last known address.