What is a variable annuity?
A variable annuity is a contract with an insurance company. It's a long-term investment designed for retirement purposes. You 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 you retire, your investment can be used to generate a stream of regular income payments that are guaranteed for as long as you live. In addition, variable annuities may provide a guaranteed death benefit for your beneficiaries. It is important to remember that annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force.
Why does the company behind the annuity matter?
When the time comes for you to use the benefits that are offered by a variable annuity, it is important to remember that all references to income certainty and guarantees, including the optional benefits, are backed by the claims-paying ability of the issuing insurance company and do not apply to the underlying investment options.
Who can help me determine if an annuity is right for me?
Your financial professional can help you determine if a variable annuity is suitable for you. Prudential Annuities and its distributors and representatives do not provide tax, accounting, or legal advice. Please consult your own attorney or accountant when making important investment decisions. Prudential Annuities does not provide investment advice. The selections you choose together with your financial professional are all dependent on your investment goals and your risk tolerance.
What happens if I need access to my money?
There are limitations and restrictions when making withdrawals. 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 proportionately.
What are the costs associated with the MyRock Advisor Variable Annuity?
MyRock Advisor is available at an annual insurance charge of 0.40% for net purchase payments less than $1 million, and 0.25% for net purchase payments of $1 million or greater, with additional fees related to the professionally managed investment portfolios. We reserve the right to increase the insurance charge for new contracts up to 2.00%. The Defined Income Benefit is available for an additional annual benefit charge of 0.80%. We reserve the right to increase the benefit charge for new elections of the benefit and, for existing contracts, after the third benefit year up to 1.50%. The Return of Purchase Payments Death Benefit is available for an additional annual benefit charge of 0.10%. We reserve the right to increase the benefit charge for new contracts up to 0.50%. Additional fees, such as withdrawal fees, transfer fees and administrative fees also apply. Please see the prospectus for additional information.
What are the limitations and restrictions I need to consider?
Please note, unlike many other annuity contracts, the annuity does not currently provide a diverse set of investment choices that would provide the option to allocate money among a variety of investment choices with different investment styles, objectives, strategies and risks.
The product and/or optional benefits may not be available in every state and have requirements for election and other restrictions. The Defined Income Benefit cannot be cancelled in the first year following election; however, upon specified events, we may terminate the benefit. The benefit charges are in addition to fees and charges associated with the basic annuity. Please see the prospectus for more information.
What happens if I take excess withdrawals from my account?
Withdrawals in excess of the Guaranteed Income Amount impact the value of your benefit and can also affect the certainty of your income. An excess withdrawal occurs when the cumulative Lifetime Withdrawals exceed the Guaranteed Income Amount in any benefit year. If an excess withdrawal is taken, only the portion of the Lifetime Withdrawal that exceeds the remaining Guaranteed Income Amount will proportionally and permanently reduce your Guaranteed Income Amount for future years. If an excess withdrawal reduces the account value to zero, no further amount would be payable and the contract terminates. Please note that Non- Lifetime Withdrawals proportionally reduce the Guaranteed Income Amount by the ratio of the Non-Lifetime Withdrawal amount to the Account Value immediately prior to the Non-Lifetime Withdrawal.
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 on the prospectus page or from your financial professional. Please read the prospectus carefully before investing.
Issued on contracts: ICC19‐P‐VA/IND(6/19), P‐VA/IND(6/19) et al, or state variation thereof
Issued on riders: ICC19‐P‐RID‐LI(6/19), P‐RID‐LI(6/19) et al, or state variation thereof; ICC19‐P‐SCH‐LI(6/19), P‐SCH‐LI(6/19) et al, or state variation thereof; ICC19‐P‐RID‐ROP(6/19), P‐RID-ROP(8/19) et al, or state variation thereof; ICC19‐P‐SCH‐ROP(6/19), P‐SCH‐ROP(6/19) et al, or state variation thereof