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, for 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
, 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
is not 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, and 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 has 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, and 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 do not
provide tax, accounting or legal advice. Any tax statements contained
herein were not intended or written to be used, and cannot 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
(ii) How long you have owned Highest Daily Lifetime 6 Plus or
Spousal Highest Daily Lifetime 6 Plus;
(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.