Prudential Updates ‘Highest Daily’ Annuity Optional Benefits | Business Wire

NEWARK, N.J.–(BUSINESS WIRE)–Prudential Annuities, the domestic annuity business of Prudential

Financial, Inc. (NYSE:PRU), today adjusted its popular annuity optional

benefits, which allow investors to ‘lock in’ the highest daily value of

their annuity contract. Income purposes, each day the market is open.

Highest Daily Lifetimesm 6 Plus and Spousal Highest Daily

Lifetimesm 6 Plus can be purchased for an additional fee with

a variable annuity from Prudential issuing companies. They offer a

Protected Withdrawal Value based on 6% annual compounded growth on the

highest daily account value and daily opportunities to capture greater

lifetime income with a 4-6% income stream, depending on age at first

Lifetime Withdrawal, guaranteed for life.

The Highest Daily Lifetime 6 Plus optional benefits replace the Highest

Daily Lifetime 7 Plus benefits in all states where Highest Daily

Lifetime 6 Plus has been approved.

“The peace of mind that guaranteed retirement income can provide in

today’s uncertain economic climate is immeasurable,” said Stephen

Pelletier, president of Prudential Annuities. “Today’s announcement

reflects our commitment to offering these valuable guarantees, while

ensuring that in the event of significant market declines, the

protection we provide responsibly manages risk for our clients as well

as for our company.

“Highest Daily Lifetime 6 Plus offers one of the strongest lifetime

income guarantees in the industry,” Pelletier said.

Demonstrating the value investors are placing on retirement income

guarantees in light of the turbulent economy, overall election rates for

Prudential Annuities’ award winning optional living benefits on variable

annuities grew to 90% during the second quarter of 2009. Total account

values with guaranteed withdrawal benefits for life at the end of that

same period were $23.2 billion.

Educational Video Developed

To help investor’s learn more about guaranteeing their retirement

income, Prudential Annuities also announced today the launch of a new

website, www.retirementredzone.com/protect

, which features a seven-minute educational video, simple navigation,

and consumer-friendly language about HD Lifetime 6 Plus.

Key Features HD Lifetime 6 Plus and Spousal HD Lifetime 6 Plus include:

  • Daily Step Ups Before Withdrawals

    Begin: HD Lifetime 6 Plus and Spousal HD Lifetime 6 Plus

    give investors the opportunity to increase their Protected Withdrawal

    Value (the basis for guaranteed lifetime income) every day the market

    is open for trading. The Protected Withdrawal Value is determined by

    comparing every daily account value growing at an annual 6% compounded

    rate of return until an investor’s first Lifetime Withdrawal. The

    Protected Withdrawal Value is only available through withdrawals. It

    isn't available as cash or a lump sum.

  • Guaranteed Lifetime Income:

    HD Lifetime 6 Plus and Spousal HD Lifetime 6 Plus offer a lifetime

    annual income stream ranging from 4-6% of the Protected Withdrawal

    Value, with the potential for future increases and no annuitization

    required. (Annuitization at a particular age may be required by the

    terms of the base annuity.)

  • Proprietary Risk Management Model:

    HD Lifetime 6 Plus and Spousal HD Lifetime 6 Plus incorporate the

    fundamentals of a proven proprietary risk management model that

    monitors an investor’s account daily, and, only if specified by the

    model, systematically transfers amounts between the variable

    investment portfolios and the AST Investment Grade Bond Portfolio.

  • Post-Withdrawal Step-Up Opportunities:

    After Lifetime Withdrawalsbegin, HD Lifetime 6 Plus and

    Spousal HD Lifetime 6 Plus provide annual opportunities for increased

    income based on the account’s highest daily value.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with

approximately $580 billion of assets under management as of June 30,

2009, has operations in the United States, Asia, Europe. Latin

America. Leveraging its heritage of life insurance and asset management

expertise, Prudential is focused on helping approximately 50 million

individual and institutional customers grow and protect their wealth.

The company’s well-known Rock symbol is an icon of strength, stability,

expertise and innovation that's stood the test of time. Prudential’s

businesses offer a variety of products and services, including life

insurance, annuities, retirement-related services, mutual funds,

investment management. Real estate services. 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.

This material was prepared to support the promotion and marketing of

variable annuities available through Prudential. Prudential, its

affiliates, its distributors and their respective representatives don't

provide tax, accounting or legal advice. Any tax statements contained

herein weren't intended or written to be used. Can't be used for

the purpose of avoiding U.S. federal, state or local tax penalties.

Please consult your own independent advisor as to any tax, accounting or

legal statements made herein.

Your needs and the suitability of an annuity product should be carefully

considered before investing. When evaluating your needs, please consider

other variable annuities available from Prudential Financial companies.

Highest Daily Lifetime 6 Plus and Spousal Highest Daily Lifetime 6 Plus

use a predetermined mathematical formula to help manage your guarantee

through all market cycles. Each business day, the formula determines if

any portion of the 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

Withdrawal Value;

(ii) How long you've owned Highest Daily Lifetime 6 Plus or

Spousal Highest Daily Lifetime 6 Plus;

(iii) The amount invested in. The performance of, the permitted

subaccounts;

(iv) The amount invested in. The performance of, the Bond

Portfolio. And

(v) The impact of additional purchase payments made to and

withdrawals taken from the annuity.