Protect Today What You'll Leave Behind Tomorrow Prudential Legacy Protection Plus Death Benefit
As you prepare for retirement, you might be planning on leaving a legacy behind for your loved ones. A Prudential Premier Retirement® variable annuity with Legacy Protection Plus optional death benefit, available for an additional fee, can help you protect your legacy from market fluctuations while it continues to grow.
- 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 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. The additional fee for Legacy Protection Plus is as follows: Ages 55 or Younger 0.65%, Ages 56-70 0.80%, Ages 71 and Older 0.95%. Annual benefit charges are determined at issue, subject to the terms outlined in the prospectus. Benefit charges are assessed against the death benefit value, deducted quarterly from the account value and taken pro-rata across the permitted subaccounts. Charges paid during contract year of death will not be refunded and there will be no pro-rata roll-up in the death benefit value. We reserve the right to deduct a final pro-rated charge if terminated. Charges continue after the roll-up cap is reached, and cease upon death or termination of the benefit. We reserve the right to increase the benefit charge up to the maximum of 1.50% upon any new election of the benefit or on/or after the fifth contract anniversary. If we increase your benefit charge on or after your fifth contract anniversary, you may terminate the benefit.
- 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.
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) and P-CR/IND(2/10), et al. or state variation thereof.
Issued on riders: P-RID-DBROLL(5/17).
For Compliance Use Only: 1004569-00002-00