Prudential FlexGuard^® indexed variable annuity A Retirement Strategy as Individual as You Are

Hypothetical example for illustrative purposes. Assumes no withdrawals and that the Account was held for the complete Index Strategy Term. Past performance does not guarantee future results. Your actual results will vary. When investing in FlexGuard, it is not possible to invest directly in an index.

Please speak with a financial professional for a full illustration.
The FlexGuard product and all of its features are not approved in all states or through all broker dealers. 

•  Performance and Methodology

  Performance Disclosure

  These results were calculated using annual historical index returns and current strategy rates as of the run date of the illustration, which we assumed did not change at any time during the time period illustrated.

  This interactive illustration is hypothetical and based on the index crediting strategy selected. Index Strategy credits will fluctuate, and may be negative, so that the Account Value, when redeemed, may be worth more or less than the original purchase amount. If a withdrawal is taken from an Index Strategy during the term period, the Interim Value will apply; however it is not illustrated.

  Variable investment options are offered with this product however are not included for illustration purposes. Please refer to the product prospectus for fund investment strategies and fee information.

  The interactive illustration does not reflect the effect of income taxes, penalty taxes, and premium taxes. Withdrawals or surrenders may be subject to contingent deferred sales charges and Interim Value of the index strategies. If the variable investment options are elected, the contract is subject to mortality, expense, and administration charges of 1.30%, and any applicable underlying fund expenses. 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 death benefits.

  Methodology Disclosure

  Down Market: A down market is to be considered any 1 year, 3 year, or 6 year term in which performance for the selected index/indices is negative. Time periods for S&P 500^®, MSCI EAFE^®, Invesco QQQ ETF, and iShares Russell^® 2000 ETF were chosen based on their proximity to the average down market for each term. The average down market was calculated by excluding all terms with positive performance. In the absence of any negative performance for the term, we use the lowest trending performance, which would be positive. The down market illustrates the following:

  S&P 500^® price index returns: 1-year term period 01/01/2001 – 12/31/2001; 3-year term period 01/01/2007 – 12/31/2009; 6-year term period 01/01/2000 – 12/31/2005.

  MSCI EAFE^® price index returns: 1-year term period 01/01/2018 – 12/31/2018; 3-year term period 01/01/2007 – 12/31/2009; 6-year term period 01/01/2006 – 12/31/2011.

  iShares Russell^® 2000 ETF: 1-year term period 01/01/2018 – 12/31/2018; 3-year term period 01/01/2007 – 12/31/2009; 6-year term period 01/01/2007 – 12/31/2012**.

  Invesco QQQ ETF: 1-year term period 01/01/2001 – 12/31/2001.

  Footnotes

  ** Positive performance

  Up Market: An up market is to be considered any 1 year, 3 year, or 6 year term in which performance for the selected index/indices is positive. Time periods for S&P 500^®, MSCI EAFE^®, Invesco QQQ ETF, and iShares Russell^® 2000 ETF were chosen based on their proximity to the average up market for each term. The average up market was calculated by excluding all terms with negative performance. The up market illustrates the following:

  S&P 500^® price index returns: 1-year term period 01/01/2020 – 12/31/2020; 3-year term period 01/01/2017 – 12/31/2019; 6-year term period 01/01/2014 – 12/31/2019.

  MSCI EAFE^® price index returns: 1-year term period 01/01/2004 – 12/31/2004; 3-year term period 01/01/2012 – 12/31/2014; 6-year term period 01/01/2003 – 12/31/2008.

  iShares Russell^® 2000 ETF: 1-year term period 01/01/2020 – 12/31/2020; 3-year term period 01/01/2013 – 12/31/2015; 6-year term period 01/01/2002 – 12/31/2007.

  Invesco QQQ ETF: 1-year term period 01/01/2010 – 12/31/2010.

   

  For Compliance Use Only:

  1033463-2

  1033463-00009-00

   

•  Key Terms and Definitions

  Key Terms

  • Application Signed Date – The date the application is signed. For applications transmitted through electronic order entry, the Application Signed Date is the e-signature date. In the absence of an e-signature date, the e-signature Application Signed Date would default to the submission date prior to the wet signature.
  • Account Value – The Interim Value for each Index Strategy plus the total value of any allocations in the Variable Investment Subaccounts (including the Holding Account) and the Transfer Account on any Valuation Day other than the Index Strategy Start Date and Index Strategy End Date. The Interim Value does not apply to an Index Strategy on the Index Strategy Start Date and the Index Strategy End Date. On an Index Strategy Start Date, the Index Strategy Base applicable to that Index Strategy would be used instead of the Interim Value. On an Index Strategy End Date, the Index Strategy Base plus the Index Credit applicable to that Index Strategy would be used instead of the Interim Value.
  • Buffer – The amount of protected negative Index Return applied to the Account Value allocated to an Index Strategy at the end of an Index Strategy Term. Any negative Index Return in excess of the Buffer reduces the Account Value.
  • Cap Rate – For the Point-to-Point with Cap Rate Index Strategy the maximum rate percentage that can be credited at the end of an index term; the Cap Rate is set prior to the start of each index term. A different Cap Rate may be declared for different indices and different Index Strategy Terms.
  • Death Benefit –  Return-of-premium death benefit is available on all contracts for no additional charge. It is equal to the greater of: 1) Account Value: The money in the account at the time of death or 2) Purchase Payments: The total of the payments the client made since the issue date, reduced proportionally by any withdrawals.
  • Free Withdrawal Amount – The amount of money that can be withdrawn from the annuity each year during the surrender charge period, without incurring a surrender charge. This amount is equal to 10% of the purchase payments.
  • Holding Account – A Variable Subaccount the owner can allocate some or all of their initial purchase payments to. The Holding Account is also used for additional purchase payments received between Index Anniversaries.
  • Index (Indices) – The underlying Index or exchange traded fund associated with an Index Strategy and used to determine the Index Return in determining the Index Credit. You do not directly participate in an Index.
  • Index Anniversary Date – The same day, each calendar year, as the day of the initial allocation to an Index Strategy.
  • Index Credit – The amount the Owner receives on an Index Strategy End Date based on the Index Return and the Index Strategy. The Index Credit can be negative, meaning the Owner can lose principal and prior earnings.
  • Index Return – The percentage change in the Index Value from the Index Strategy Start Date to the Index Strategy End Date, which is used to determine the Index Credit for an Index Strategy. An Index Return is calculated by taking the Index Value on the Index Strategy End Date, minus the Index Value on the Index Strategy Start Date, and then dividing the result by the Index Value on the Index Strategy Start Date.
  • Index Strategy – Any index linked Allocation Option we make available in the Annuity for crediting interest based on the underlying Index associated with the Index Strategy, Buffer, and Index Strategy Term. We may offer other Index Strategies from time to time, subject to our rules.
  • Index Strategy Base – The amount of Account Value allocated to an Index Strategy on an Index Strategy Start Date. The Index Strategy Base is used in the calculation of any Index Credit and in the calculation of the Interim Value. The Index Strategy Base is reduced for any transfers or withdrawals that occur between and Index Strategy Start Date and Index Strategy End Date in the same proportion that the total withdrawal or transfer amount reduces the Interim Value.
  • Index Strategy End Date – The last day of an Index Strategy Term. This is the day any applicable Index Credit would be credited to the Index Strategy.
  • Index Strategy Start Date –The first day of an Index Strategy Term.
  • Index Strategy Term – The time period allocated to each Index Strategy. The term begins on the Index Strategy Start Date and ends on the Index Strategy End Date.
  • Interim Value – The value of an Index Strategy on any day during an Index Strategy Term. It is a calculated value and is used when a withdrawal, death benefit payment, transfer, annuitization, or surrender occurs during an Index Strategy Term. The interim value does not reflect the actual performance of the applicable index.
  • Owner – An eligible entity or person named as having ownership rights in relation to the annuity.
  • Participation Rate – The percentage of any Index increase that will be used in calculating the Index Credit at the end of an Index Strategy Term for the Tiered Participation Rate Index Strategy or the Step Rate Plus Index Strategy. A different Participation Rate may be declared for different Index Strategies and Buffers.
  • Performance Lock – A feature that allows clients to capture the Performance Lock Value. A Performance Lock Request may be submitted on any Valuation Day prior to the Index Strategy End Date. Only one Performance Lock may be active for any given Index Strategy during a respective Index Strategy Term. Performance Locks may not be applied retroactively and must be for the full amount of the Performance Lock Value. Partial “locking” of an Index Strategy is not permitted. Once “locked,” Index Credits will not apply on the Index Strategy End Date.
  • Performance Lock Date – The Valuation Date on which we process the Performance Lock transaction.
  • Performance Lock Request – Clients may request a Performance Lock by contacting us and providing in Good Order instructions. Instructions received in Good Order after the close of any Valuation Day will be applied on the next Valuation Day.
  • Performance Lock Value – The value of an Index Strategy at the end of any Valuation Day during an Index Strategy Term other than the Index Strategy Start Date and Index Strategy End Date. It is a calculated value that differs from the Interim Value Calculation (refer to the Prospectus for additional information) and is used when a Performance Lock transaction occurs. The Performance Lock Value is calculated daily and once “locked,” will not fluctuate for the remainder of the current Index Strategy Term, unless a withdrawal or a reallocation were to occur, and will be as of the Performance Lock Date.
  • Step Rate – The declared rate that may be credited to amounts allocated to the Step Rate Plus Index Strategy for any given Index Strategy Term if the Index Return is between zero and the declared Step Rate. A different Step Rate may be declared for different Indices.
  • Surrender Charge – A type of charge that may be deducted when a surrender or partial withdrawal from the annuity occurs that is greater than the Withdrawal Amount.
  • Tier Level – The declared Index Return that is used to determine which Participation Rate tier applies in the calculation of Index Credit for Tier Level 1 and Tier Level 2 in the Tiered Participation Rate Index Strategy.
  • Transfer Account – An account we make available for use with the allocation of the Initial Purchase Payment(s) and any Purchase Payments received within the Transfer Account Period. The Transfer Account is available for a period of time ending upon the expiration of the Transfer Account Period or the Index Effective Date, whichever occurs first. No interest accrues or is paid on funds in the Transfer Account. No charges are applicable on funds in the Transfer Account. Transfer Account assets are held in Pruco Life’s General Account.
  • Transfer Account Period – A time period beginning on the date the client’s application is signed and ending 45 calendar days later.
  • Variable Investment Option – A division of the Variable Separate Account.

Terms in Blue apply to the Pruco Life Insurance issuing company only for applications with a signed date on or after January 18, 2022.