Prudential
 
Guaranteed Retirement Income Solutions for Individuals

A Whole New Way to Guarantee Retirement Income

Explore the advantages of a Prudential annuity with Highest Daily LifetimeSM 6 Plus, an innovative guaranteed lifetime withdrawal benefit. Highest Daily LifetimeSM 6 Plus can help redefine your thinking about retirement with guarantees that help maximize income and reduce risk.
  • Your lifetime income is based on 6% compounded growth of your annuity's highest daily value—guaranteed.
  • You can shield your retirement income from market downturns.
  • Enjoy access to your account value whenever you need it.

Remember, not all guaranteed income solutions are the same. Choose one that can help make the most of your money and give you more flexibility in retirement.

What is a variable annuity?
It’s a contract with an insurance company. You put money in to invest for retirement, and can defer taxes every year until you withdraw the money. When you retire, you can turn your savings into a stream of regular payments that are guaranteed for life. This used to mean giving up control of your savings. Not anymore. Read more about variable annuities.

How does HD Lifetime SM 6 Plus work?
You add the guaranteed withdrawal benefit to a Prudential annuity. Then, you allocate your money among professionally managed portfolios based on your needs. Prudential gives you choices, including alternative asset classes, which add diversification that can help reduce the effects of market volatility. When you retire, you can activate your guaranteed withdrawal option, which allows you to draw regular income for life—even if your account value should hit zero.


Am I protected if the market goes down?
Yes. Like any annuity, the account value is subject to market fluctuation, investment risk, and possible loss of principal. But, should the market go down, Prudential guarantees your income base will achieve at least 6% annual compounded growth on the highest daily account value until your first lifetime withdrawal. Also, during periods of negative account performance, HD Lifetime 6 Plus may automatically move a portion of your assets from variable portfolios to the AST Investment Grade Bond Portfolio to help minimize risk to your account value. Money may be moved back to the variable portfolios when your account value experiences positive performance. You should know that, depending on the timing of the transfer, this could affect your ability to participate immediately in market recoveries.


What if I want to access my account value?
You can do so at any time. Please note, however, that excess withdrawals will proportionately affect the amount of subsequent income. As with most annuities, surrender charges may apply. Withdrawals made before age 59½ may be subject to a 10% federal income tax penalty. Withdrawals also reduce the annuity’s death benefit and account value.

Who stands behind the guarantees?
Annuity guarantees are based on the claims-paying ability of the issuing company. That’s why it’s wise to choose one with proven financial strength. Prudential issues annuities through three U.S.-based companies: Pruco Life Insurance Company in New York; Pruco Life Insurance Company of New Jersey, Newark, NJ; and Prudential Annuities Life Assurance Corporation, Shelton, CT.

Is there a fee?
There is a fee for electing a Guaranteed Lifetime Withdrawal Benefit. Also, variable annuities have fees, expenses, and surrender charges, which you'll find in the prospectus.

What is a variable annuity?
A variable annuity is a contract between you and an insurance company whereby the insurer agrees to make periodic payments to you, beginning either immediately or at some future date. You can make a single or a series of purchase payments and there are generally no contribution limits.

Variable annuities offer a wide range of professionally managed investment options, guaranteed death benefits, and a variety of payout options, including guaranteed income for life. Plus, any investment gains grow tax-deferred. When you need income, annuities generally offer, without charge, annual access up to 10% of purchase payments.

Withdrawals are subject to ordinary income taxes and, if taken prior to age 59½, a 10% federal income tax penalty may apply. Withdrawals exceeding a specified annual amount may be subject to a withdrawal charge, which is assessed for a period of time and generally reduces each year. Withdrawals will reduce the death benefit. The costs vary depending on the annuity and include the cost of: issuing and maintaining the contract, base death benefit, and investment management expenses.

Also, many variable annuities offer guaranteed optional living and death benefits that, for an additional fee, can help provide an added measure of security during your lifetime and for your beneficiaries. All guarantees are based on the claims-paying ability of the issuing company. Please note that all investment options may not be available with certain optional benefits.

 

Talk to your Financial Advisor about Prudential annuities and Highest Daily LifetimeSM 6 Plus
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Solutions for retirement savings plan participants
Prudential Resources
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Understanding Annuities
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HD LifetimeSM 6 Plus & Spousal HD LifetimeSM 6 Plus
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Prudential Product Prospectus
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Annuity Comparison Chart
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Investors should consider the contract and the underlying portfolios' investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectuses, which can be obtained by contacting your financial professional. Please read the prospectuses carefully before investing.

Variable annuities are appropriate for long-term investing and designed for retirement purposes. Investment return and principal value of an investment will fluctuate so that an investor's unit values, when redeemed, may be worth more or less than their original cost. Withdrawals or surrenders may be subject to contingent deferred sales charges (CDSC). Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59½, may be subject to an additional 10% federal income tax penalty. Withdrawals, for tax purposes, are deemed to be gains out first. Withdrawals reduce the living benefit, death benefit and account value.

Highest Daily Lifetime 6 Plus and Spousal Highest Daily Lifetime 6 Plus use a predetermined mathematical formula to help manage your clients' guarantee through all market cycles. Each business day, the formula determines if any portion of the account value needs to be transferred into or out of the AST Investment Grade Bond Portfolio (the "Bond Portfolio").
Amounts transferred by the formula depend on a number of factors unique to your client's individual annuity and include:
(i) The difference between the account value and the Protected Withdrawal Value;
(ii) How long your client has owned Highest Daily Lifetime 6 Plus or Spousal Highest Daily Lifetime 6 Plus;
(iii) The amount invested in, and the performance of, the permitted subaccounts;
(iv) The amount invested in, and the performance of, the Bond Portfolio; and
(v) The impact of additional purchase payments made to and withdrawals taken from the annuity.
Therefore, at any given time, some, most, or none of the account value may be allocated to the Bond Portfolio. Transfers to and from the Bond Portfolio do not impact any income guarantees that have already been locked in. The Protected Withdrawal Value (the basis for guaranteed lifetime income) is separate from the account value, and only available through withdrawals, not as a lump sum.
Any amounts invested in the Bond Portfolio will affect your clients' ability to participate in a subsequent recovery within the permitted subaccounts. Conversely, the account value may be higher at the beginning of the recovery; e.g., more of the account value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected. Please note: Your client may not allocate purchase payments or transfer account value into or out of the Bond Portfolio. See the prospectus for complete details.

Your needs and the suitability of an annuity product should be carefully considered before investing. When evaluating your needs, please consider other variable annuities available from Prudential Financial companies.

This material was prepared to support the promotion and marketing of variable annuities available through Prudential. Prudential, its affiliates, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S. federal, state or local tax penalties. Please consult your own independent advisor as to any tax, accounting or legal statements made herein.

Variable annuities offered by Prudential Financial Companies are available at an annual cost of 0.65% to 1.65% for mortality, expense and administration fees, with an additional fee related to the professional investment options.

The AST Investment Grade Bond Portfolio will invest in a diversified portfolio of high-quality bonds and other securities and instruments. Although it may invest in individual bonds of any maturity, the average duration is expected to be within six months of the Barclays Capital U.S. Government/Credit 5-10 Year Index, the subaccount’s primary benchmark. The Barclays Capital U.S. Government/Credit 5-10 Year Index is the non-securitized component of the U.S. Aggregate Index. It includes Treasuries (i.e., public obligations of the U.S. Treasury that have remaining maturities of more than one year), Government-Related issues (i.e., agency, sovereign, supranational, and local authority debt), and USD Corporates.

Investment return and principal value of an investment will fluctuate so that an investor’s unit values, when redeemed, may be worth more or less than their original cost. Withdrawals or surrenders may be subject to surrender charges.

Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Your licensed financial professional can provide you with costs and complete details.

Optional benefits may not be available in every state and may not be elected in conjunction with certain optional benefits. Optional benefits have certain investment, holding period, liquidity, and withdrawal limitations and restrictions. The fees are in addition to fees and charges associated with the basic annuity. Please see the prospectus for more information. All guarantees, including optional benefits, are backed by the claims-paying ability of the issuing company and do not apply to the underlying investment options.

Variable annuities are issued by Pruco Life Insurance Company (in New York, by Pruco Life Insurance Company of New Jersey), Newark, NJ, or by Prudential Annuities Life Assurance Corporation, Shelton, CT. All are distributed by Prudential Annuities Distributors, Inc., Shelton, CT. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations. Prudential Annuities is a business unit of Prudential Financial. Prudential, Prudential Financial, Prudential Annuities, the Rock logo and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America and its affiliates.

Issued on riders: RID-HD6(8/09), RID-HD6-LIA(8/09), P-RID-HD6(8/09), P-RID-HD6-LIA(8/09), et al. or state variation thereof.

0162943-00002-00 Ed. 10/2009