Web Content Viewer

Actions

Make Every Day Count for Your Retirement Prudential Highest Daily Lifetime® Income Annuity Benefit

A Prudential Premier Retirement® variable annuity with our optional Highest Daily Lifetime Income benefit, available for an additional fee, can help provide guaranteed daily growth of your retirement income – regardless of how the market performs. Plus, each day, you’ll have the opportunity for additional growth based on the investment performance of your account.

Web Content Viewer

Actions

A Variable Annuity with Highest Daily® Offers:

  • Guaranteed lifetime Income that grows daily for the first 10 years or until lifetime income begins, whichever comes first
  • Daily opportunities to lock in account highs for additional income growth
  • Protection of retirement income from market downturns
  • A range of investments to choose from
  • A built-in standard death benefit for your beneficiaries (we also offer an enhanced death benefit for an additional fee)

 

 

Please note lock-ins do not apply to the account value. The account value is not guaranteed, can fluctuate, and may lose value. The currently available Highest Daily Lifetime Income benefits are referred to as Highest Daily Lifetime Income v3.0 benefits in the prospectus.

Transcript

See how Highest Daily Lifetime Income could make retirement the best years of your life.

Web Content Viewer

Actions

Start at age 50

Start at age 50

Highest Daily Lifetime Income is available for an additional fee to investors as young as age 50.

Spousal versions

Spousal versions

Spousal versions are also available where income continues for both your life and your spouse’s.

Web Content Viewer

Actions

Building Retirement Income: There's No Way to Go But Up.

Highest Daily Lifetime Income can help increase your retirement income, protect it through market volatility, and guarantee that it lasts a lifetime.

Web Content Viewer

Actions
  • Every day your annuity reaches a new high, that value is locked in for retirement income purposes and immediately begins growing at an annual compounded rate for the first 10 years or until you take your first Lifetime Withdrawal, whichever comes first.
  • After 10 years, your highest daily account values can continue to grow for income purposes until you start taking lifetime withdrawals.
  • Even if markets go down, your retirement income remains locked in at its highest daily value and continues to grow.

Web Content Viewer

Actions

This is a hypothetical example for illustrative purposes only. It does not reflect a specific annuity, an actual account value or the performance of any investment.

Withdrawals in excess of the Annual Income Amount impact the value of your benefit and can also affect the certainty of your income. An excess withdrawal occurs when your cumulative Lifetime Withdrawals exceed your Annual Income Amount in any annuity year. If an excess withdrawal is taken, only the portion of the Lifetime Withdrawal that exceeds the remaining Annual Income Amount will proportionally and permanently reduce your Protected Withdrawal Value and your Annual 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.

The Account Value is separate from the Protected Withdrawal Value and is not guaranteed. The account value is not guaranteed, can fluctuate, and may lose value.

Web Content Viewer

Actions

Choose From a Range of Investments

We offer a broad spectrum  of investment portfolios from leading brand-name and boutique firms. Choose one of the four strategies below or combine portfolios to create your own.

Web Content Viewer

Actions

Traditional

Traditional portfolios offer management based on longer-term views of capital markets

  • Multi-Manager & Single Manager
  • Stocks & Bonds
  • Domestic & International

Tactical

Tactical portfolios offer management based on shorter-term views of capital markets

  • Active Management
  • Single Manager
  • Traditional Asset Classes & Exchange-Traded Funds

Quantitative

Quantitative portfolios offer a disciplined, quantitative approach to portfolio management

  • Defined Mathematical Models
  • Market Index-Based Research
  • Removes Human Emotion from Process

Alternative

Alternative portfolios offer traditional and non-traditional investments which can be less correlated to the market

  • Traditional & Non-Traditional Asset Classes
  • Absolute Return Focus
  • Long & Short Positions

Web Content Viewer

Actions

Web Content Viewer

Actions

Highest Daily Can Help You:

  • Create guaranteed lifetime income for retirement
  • Increase your retirement income in up markets, while protecting it through downturns
  • Gain access to professionally managed investment portfolios
  • Provide a guaranteed death benefit for your beneficiaries

Web Content Viewer

Actions

Talk to Your Financial Professional About Adding a Variable Annuity to Your Retirement Income Strategy.

ffp-location-only-blue-annuities

Actions

Web Content Viewer

Actions
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 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 is the Protected Withdrawal Value?

The Protected Withdrawal Value is only used to calculate the initial guaranteed lifetime income and the charge for the benefit. It is separate from the account value and is not available as a lump sum withdrawal. The account value is not guaranteed, can fluctuate, and may lose value.

What are the costs associated with purchasing this product?

Prudential Premier Retirement Variable Annuity is offered at an annual cost of 0.55% to 1.95% for mortality expense and administration fees, with additional fees related to the professional investment options. The fees will vary depending on the underlying annuity and investment options selected. If you choose an optional benefit, additional fees apply. These fees are based on the greater of the account value and the Protected Withdrawal Value and are as follows: Highest Daily- 1.00%; Spousal Highest Daily - 1.10%; Highest Daily with Highest Daily Death Benefit (not available in NY) - 1.50%; Spousal Highest Daily with Highest Daily Death Benefit (not available in NY) - 1.60%; Highest Daily with Highest Annual Death Benefit (available only n NY) - 1.40%; Spousal Highest Daily with Highest Annual Death Benefit (available only in NY) - 1.50%. Additional fees, such as withdrawal fees, transfer fees and administrative fees, also apply. See the prospectus for more information.

What are the limitations and restrictions I need to consider?

Highest Daily benefits have certain investment, holding period, liquidity, and withdrawal limitations and restrictions. Optional living and death benefits may not be available in every state and may not be elected in conjunction with certain optional benefits. See the prospectus for more information.

What are some of the other considerations that I need to think about when investing in various asset allocation portfolios offered by a variable annuity?

When purchasing an annuity it is important to remember that asset allocation does not ensure a profit or protect against a loss. 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. The value or price of a particular stock or other equity or equity-related security owned by a portfolio could go down and you could lose money. Additionally, fixed income investments are subject to risk, including credit and interest rate risk. Because of these risks, subaccount's share value may fluctuate. If interest rates rise, bond prices usually decline. If interest rates decline, bond prices usually increase.

Certain asset allocation portfolios may use leverage, short sales, and derivatives or engage in other speculative practices within their alternative investments. These practices include a high degree of risk and may increase the risk, size, and velocity of investment losses. Although certain alternative strategies seek to reduce risk by attempting to reduce correlation with equity and bond markets, no guarantee can be given that such efforts will be successful. The fees and expenses associated with alternative investments are generally higher than those for traditional investments. Lastly, diversification does not assure against loss in a declining market.

How does Prudential manage the guarantees associated with Highest Daily?

It starts with our prudent product design where we manage risks in three important ways. First, we offer a broad selection of asset allocation portfolios that helps provide the potential for greater returns and helps us manage investment risk. Second, 10% of all purchase payments is automatically allocated to the Secure Value Account (SVA) - a fixed account that provides an annual guaranteed interest rate. You cannot make transfers into or out of the SVA. The SVA will earn interest daily at a crediting rate declared annually. And third, Highest Daily benefits use a predetermined mathematical formula, that is designed to help mitigate some of the financial risk associated with providing and managing your guarantees during all market cycles.

What is the predetermined mathematical formula?
Highest Daily suite of benefits uses a predetermined mathematical formula to mitigate some of the financial risks we incur in providing the guarantees under the optional benefits through all market cycles. Each business day, the formula determines if any portion of your 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"). Amounts transferred by the formula depend on a number of factors unique to your individual annuity and include:
  1. The difference between the account value and the Protected Withdrawal Value;
  2. How long you have owned the benefit;
  3. The amount invested in, and the performance of, the permitted subaccounts, the Bond Portfolio and the Secure Value Account and
  4. The impact of additional purchase payments made to and withdrawals taken from the annuity.
The formula will not transfer amounts to or from the Secure Value Account. 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. Transfers to and from the Bond Portfolio do not impact any income guarantees that have already been locked in. You may not allocate purchase payments or transfer account value into or out of the Bond Portfolio.

The formula could mean that you miss opportunities for investment gains in the 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 that may occur in the permitted subaccounts. Please note: We are not providing investment advice through the formula. See the prospectus for complete details.

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 P-BLX/IND(2/10), P-BLX/IND(2/10)NY, P-CR/IND(2/10),P-CR/IND(2/10)NY. Riders: P-RID-HD(2/14), P-RID-HD-HDB(2/14) et al. or state variation thereof.

For Compliance Use Only: 1004569-00001-00

Web Content Viewer

Actions

Web Content Viewer

Actions