New Highest Daily Death Benefit Locks in Account Value Highs for
NEWARK, N.J.--(BUSINESS WIRE)--
Prudential Annuities, the domestic annuity business of Prudential
Financial, Inc. (NYSE:PRU), today announced the launch of Highest Daily
Lifetime Income 2.0, which includes the introduction of a Highest Daily
Death Benefit. Highest Daily Lifetime® Income 2.0 replaces Highest Daily
Lifetime® Income and Spousal Highest Daily Lifetime Income benefits in
all states where it has been approved.
Prudential’s Highest Daily Lifetime Income benefits allow investors to
‘lock in’ the highest daily value of their annuity contract, for income
purposes, each day the market is open and can be purchased for an
additional fee with a variable annuity from Prudential issuing
companies. The new benefits offer a Protected Withdrawal Value (the
basis for guaranteed lifetime income) based on the Highest Daily account
value plus an immediate five percent annual compounded growth until an
investor begins lifetime withdrawals.
“The introduction of our Highest Daily Death benefit will allow
investors in The
Retirement Red Zone® to combine the power of our daily
guarantees with legacy planning,” said Bruce Ferris, head of Sales and
Distribution for Prudential Annuities. “Today’s launch of Highest Daily
Lifetime Income 2.0 reflects our proactive approach to risk management,
as well as our commitment to maintaining the compelling value it brings
to those planning for retirement.”
Highest Daily Lifetime Income 2.0 retains the five percent annual
compounded growth rate of the Highest Daily Lifetime Income product
suite, while adding the new death benefit. Fees, age eligibility, payout
bands and an investment fund choice have been adjusted for the new
Specific details are outlined below:
- Ages 50-54: 3 percent
- Ages 55-64: 4 percent
- Ages 65-84: 5 percent
- Age 85+: 6 percent
- Spousal versions are 50 basis points lower for all age bands.
Launched in 2006, Prudential Annuities’ Highest Daily suite of living
benefits are the only benefits available that offer daily lock-ins for
retirement income purposes—and immediately grow them until the first
lifetime withdrawal. Key features include:
Reinforcing the value investors place on retirement income guarantees,
overall election rates for Prudential Annuities’ variable annuity
optional living benefits grew to 92 percent during the second quarter of
Prudential Financial, Inc. (NYSE: PRU), a financial services leader, has
operations in the United States, Asia, Europe, and Latin America.
Prudential’s diverse and talented employees are committed to helping
individual and institutional customers grow and protect their wealth
through a variety of products and services, including life insurance,
annuities, retirement-related services, mutual funds and investment
management. In the U.S., Prudential’s iconic Rock symbol has stood for
strength, stability, expertise and innovation for more than a century.
For more information, please visit http://www.news.prudential.com/
Investors should consider the contract and the underlying portfolios’
investment objectives, risks, charges and expenses carefully before
investing. This and other important information is contained in the
prospectus, which can be obtained from your financial professional.
Please read the prospectus carefully before investing.
A variable annuity is a long-term investment designed for retirement
purposes. 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. 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. Withdrawals, other than from IRAs or employer
retirement plans, are deemed to be gains out first for tax purposes.
Withdrawals reduce the account value and the living and death benefits.
Annuity contracts contain exclusions, limitations, reductions of
benefits and terms for keeping them in force. Your licensed financial
professional can provide you with complete details.
Variable annuities are issued by Pruco Life Insurance Company (in New
York, by Pruco Life Insurance Company of New Jersey), Newark, NJ and
distributed by Prudential Annuities Distributors, Inc., Shelton, CT. All
are Prudential Financial companies and each is solely responsible for
its own financial condition and contractual obligations. Prudential
Annuities is a business of Prudential Financial, Inc.
All guarantees, including optional benefits, are backed by the
claims-paying ability of the issuing company and do not apply to the
underlying investment options.
Optional living and death benefits may not be available in every state
and may not be elected in conjunction with certain optional benefits.
Optional benefits have certain investment, holding period, liquidity,
and withdrawal limitations and restrictions. The benefit fees are in
addition to fees and charges associated with the basic annuity. Please
see the prospectus for more information.
Variable annuities offered by Prudential Financial companies are
available at a total annual insurance cost of 0.55% to 1.75%, with an
additional fee related to the professionally managed investment options.
Note: All products may not be available through all third party
The Highest Daily Lifetime Income suite of benefits uses a
predetermined mathematical formula to help us manage your guarantee
through all market cycles. Each business day, the formula determines if
any portion of your account value needs to be 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:
(i) The difference between the account value and the Protected
(ii) How long you have owned the benefit;
(iii) The amount invested in, and the performance of, the permitted
(iv) The amount invested in, and the performance of, the Bond
(v) The impact of additional purchase payments made to and
withdrawals taken from the annuity.
Therefore, at any given time, some, most, or none of the account
value 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. The Protected Withdrawal Value is only used to calculate
the guaranteed lifetime income and the benefit fee. 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.
Any amounts invested in the Bond Portfolio will affect your ability
to participate in a subsequent market recovery within the permitted
subaccounts. Conversely, the account value may be higher at the
beginning of the market recovery; e.g., more of the account value may
have been protected from decline and volatility than it otherwise would
have been had the benefit not been elected. Please note: We are not
providing investment advice through the formula. You may not allocate
purchase payments or transfer account value into or out of the Bond
Portfolio. See the prospectus for complete details.
Fixed income investments are subject to risk, including credit and
interest rate risk. Because of these risks, a subaccount’s share value
may fluctuate. If interest rates rise, bond prices usually decline. If
interest rates decline, bond prices usually increase.
PrudentialDarrell Oliver, email@example.com