What is GIFT?
Guaranteed Income For Tomorrow, (GIFT)®, is a deferred income annuity designed to provide you with regular, guaranteed income that will start on a date you choose and continue for as long as you live. It can complement your overall retirement strategy and may help meet your future income needs.
How does GIFT work?
When you open a GIFT contract, you contribute from your bank account. You can also make individual lump-sum contributions. Each contribution buys a guaranteed income amount that will start on your Income Start Date (you choose this date when you enroll). Income payments will be paid on a regular basis (you choose the frequency) for as long as you live.
What are the fees?
There are no explicit fees or charges with GIFT; our costs are factored into the purchase rates used to calculate your guaranteed lifetime income. Some states impose a premium tax charge that is deducted from each contribution.
How do I determine if GIFT is right for me?
It’s up to you to decide whether GIFT is right for you. Here are some questions to think about:
- Do I understand how GIFT works? Will it help me meet my overall financial objectives?
- Am I taking full advantage of my tax-deferred opportunities, such as 401(k)s, 403(b)s and IRAs?
- Will I use GIFT for a long-term goal like retirement? If so, how could I achieve that goal if the income from GIFT isn’t as much as I expected it to be?
- Does GIFT offer me a guaranteed minimum income payment?
- Do I understand all of the taxes, fees, charges and adjustments?
- Am I comfortable that I cannot receive a lump sum at any time and that I will only receive Annuity Income Payments after my Income Start Date?
- Do I understand if my beneficiaries will receive any payment from GIFT if I die?
What happens if I die?
As the GIFT annuity owner, you may name primary and contingent beneficiaries for your contract. If you name multiple beneficiaries, each will receive their allocated portion. If you don’t choose a beneficiary, then any death benefit would be paid to your estate. If you pass away:
* Certain states impose a premium tax charge that is deducted from each contribution when it’s made.
† Assumes the owner and annuitant are the same person.
How do I view and manage GIFT?
Our secure website offers everything you need. You can:
- Start, stop or modify your contributions
- View account details, including the guaranteed lifetime income you’ve purchased to date
- View statements, other important documents and transaction history
- Update your address beneficiary information and more
- Access various educational tools designed to help you plan for guaranteed lifetime income
If you’d prefer to speak to someone, call our dedicated GIFT Service Team at 1-800-773-8137.
Can I cancel my GIFT contract?
You can revoke your contract only within a specified “free look” period based on your state’s requirements (generally ten calendar days), to receive a refund of your initial contribution(s). This period begins five calendar days after we receive your first contribution(s) to establish your contract. You cannot cancel your contract after the free look period. This free look period only applies to the period of time immediately after your contract is issued (there is no new free look period for any subsequent contributions).
Can Prudential terminate my GIFT contract?
If you do not contribute to your contract for at least two full years, and the total monthly Annuity Income Payment you have purchased so far is less than $20, we may terminate your contract and pay you a lump sum.