|Why choose a fixed annuity?
If you are more of a conservative investor, a fixed annuity may appeal to you. Fixed annuities offer steady, guaranteed growth. But fixed annuities also offer tax-deferral to help your money grow faster and a lifetime income option to keep your retirement secure.
Discovery Classic®Fixed Annuity
Enjoy the safety of principal, steady tax-deferred growth, a guaranteed rate of return (set annually), and guaranteed income options. In the first year your annuity will get off to a faster start with an additional interest rate credit (Purchases will earn an attractive rate, plus an Additional Interest Rate for the first contract year only. Total Interest Rate is composed of an Interest Rate plus the additional interest rate. Purchase payments received in the first contract year are eligible to receive any Additional Interest Rate that is in effect at the time of purchase payment for one year. Minimum initial purchase payment is $5,000. On each purchase payment anniversary, a new Interest Rate will become effective with a one-year guarantee.)
How does a fixed annuity work?
Your purchase payments earn a guaranteed interest rate for a set period of time. At the end of the period a new fixed rate becomes effective, based on current interest rates.
Earnings are not taxed until withdrawn (For tax purposes, earnings are withdrawn first. In addition, withdrawals during the first six years of your contract may be subject to a withdrawal charge of 6%, 6%, 5%, 5%, 4%, 2%, respectively. Withdrawals of taxable amounts will be subject to income tax, and prior to age 59 1/2, a 10% federal income tax penalty may apply).You also have a choice of payout options, including a lifetime income.
Discovery Classic Fixed Annuity is not available in all states.
All guarantees are based on the claims paying ability of the issuer.
Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Your licensed financial professional can provide you with cost and complete details.
Discovery Classic is issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102-3777. Discovery Classic is a service mark of Prudential. Oregon contract form number FPDA-97-OR.
0161868-00005-00 Ed. 11/2013