A variable annuity is a contract with an insurance company. It's a long-term investment designed for retirement purposes. Your clients invest money in professionally managed investment portfolios, where it accumulates tax-deferred. Investment returns and the principal value of an investment will ﬂuctuate so that an investor’s units, when redeemed, may be worth more or less than the original investment.
When your clients retire, their investment can be used to generate a stream of regular income payments that are guaranteed for as long as they live. In addition, variable annuities may provide a guaranteed death benefit for their beneficiaries. It is important to remember that annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force.
Investors should consider the features of the contract and the underlying portfolios’ investment objectives, policies, management, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectus, which can be obtained by contacting the National Sales Desk. Your clients should read the prospectus carefully before investing.
Variable annuities are issued by Pruco Life Insurance Company (in New York, by Pruco Life Insurance Company of New Jersey), Newark, NJ (main office) and 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 of Prudential Financial, Inc.
All references to guarantees, including optional benefits, are backed by the claims-paying ability of the issuing company and do not apply to the underlying investment options.
Withdrawals or surrenders may be subject to contingent deferred sales charges. 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, sometimes referred to as an additional income tax. Withdrawals reduce the account value and the living and death benefits.
Withdrawals in excess of the income amount impact the value of a product orfit and can also affect the certainty of the income. An excess withdrawal occurs when cumulative Lifetime Withdrawals exceed the income amount in an annuity year. If an excess withdrawal is taken, only the portion of the Lifetime Withdrawal that exceeds the remaining income amount for that year will proportionally and permanently reduce future guaranteed amounts. If an excess withdrawal reduces the account value to zero, no further amount would be payable and the contract terminates.
Important information about Prudential Premier Retirement with Highest Daily Lifetime Income:
Prudential Annuities uses a predetermined mathematical formula to mitigate some of the ﬁnancial risks we incur in providing the guarantee under the t through all market cycles. Each business day, the formula determines if any of the account value in the permitted subaccounts (asset allocation portfolios), including any Dollar Cost Averaging (DCA) Market Value Adjustment (MVA) options needs to be automatically transferred into or out of the AST Investment Grade Bond Portfolio (the “Bond Portfolio”). On any given day, no more than 30% of the account value in the permitted subaccounts (plus any DCA MVA options) may be transferred to the Bond Portfolio pursuant to the formula. Therefore, at any given time, some, most or none of the account value from the permitted subaccounts may be allocated to the Bond Portfolio. The formula could mean that you miss opportunities for investment gains in permitted subaccounts while amounts are allocated to the Bond Portfolio. The formula’s allocation of amounts to the Bond Portfolio, however, could also protect your account value from losses. We are not providing investment advice through the formula. See the prospectus for complete details.
Optionalts have certain investment, holding period, liquidity, and withdrawal limitations and restrictions. The benefit fees are in addition to fees and charges associated with the basic annuity.
Important information about Prudential
The annuity does not provide a diverse set of investment choices, nor does it provide the option to allocate your client’s purchase payments or account value among a variety of investment choices with different investment styles, objectives, strategies and risks. The performance of your client’s account value will depend entirely on the performance of the AST Multi-Sector Fixed Income Portfolio.
Fixed income investments are subject to risk, including credit and interest rate risk. Because of these risks, the portfolio’s value may ﬂuctuate. If interest rates rise, bond prices usually decline. If interest rates decline, bond prices usually increase.
PGIM Fixed Income is a business of PGIM, Inc. (formerly Prudential Fixed Income and Prudential Investment Management, Inc., respectively).
For Financial Professional Use Only. Not for Use with the Public.
Issued on contracts: P-BBND(2/13), P-BLX/IND(2/10), P-CR/IND(2/10), et al. or state variation thereof
Issued on riders: P-RID-LI-DB(5/14), P-RID-HD(2/14), P-RID-HD-HDB(2/14), et al. or state variation thereof
For Compliance Use Only: 1001975-00003-00