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.
Categories: Uncategorized Tags: bond portfolio, daily lifetime, hd lifetime, highest daily, lifetime income, protected withdrawal, prudential annuities, prudential financial, spousal hd, spousal highest, variable annuities
NEWARK, N.J.–(BUSINESS WIRE)–Prudential Annuities, the domestic annuity business for Prudential
Financial, Inc. (NYSE:
PRU) today launched Legacy
Protection Plus, a new optional enhanced death benefit available on
Prudential’s Premier Retirement variable annuities. Legacy Protection
Plus is designed to help protect, grow and transfer wealth, creating a
legacy for beneficiaries.
“We carefully designed Legacy Protection Plus for investors who have
committed themselves to a lifetime of hard work, investing wisely and
planning for their retirement and beyond. Legacy Protection Plus offers
the ability to protect their legacy, benefit from tax deferral, and
guarantee their legacy will grow regardless of market performance,” said
Jim Mullery, head of Distribution and Sales for Prudential Annuities.
“In addition to being able to control how their payouts are distributed,
Legacy Protection Plus also allows investors who are passionate about a
charity or organization to name it as their beneficiary.”
Legacy Protection Plus offers:
Protection: A roll-up death benefit guarantee that protects an
investor’s legacy no matter how their investments perform.
Growth: Launching at a 7 percent guaranteed simple interest
roll-up rate, one of the highest in the industry, and credited on each
Investment Choices: Ability for investors to either allocate
assets into any of Prudential’s asset allocation models or build their
own custom portfolio, choosing from a range of high-quality investment
strategies to help meet their needs and goals.
Wealth Transfer: Beneficiaries will receive the greater of the
roll-up death benefit, up to 200 percent of the original investment,
or the account value.
Tax Deferral: Investments compound on a tax-deferred basis,
providing control over the timing of taxes as well as tax-free
Legacy Control: Investors have the flexibility to control how
and when their legacy is distributed.
Probate Efficiency: Annuities with properly named beneficiaries
pass outside the probate system, avoiding expense and delay.
“Today’s launch not only reinforces our commitment to the industry, but
showcases our growing range of valuable solutions that enable financial
advisors to help Americans meet their financial planning, retirement and
legacy needs,” said Mullery. Learn
more about Legacy Protection Plus.
About Prudential Financial, Inc.
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 news.prudential.com.
1The roll-up rate and a roll-up cap are set at the time the
contract is issued and will not change for the life of the contract. The
roll-up rate is no longer applied once the roll-up cap is reached.
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 from your financial professional. Please read the prospectus
carefully before investing.
Variable annuities are issued by Pruco Life Insurance Company (in New
York, by Pruco Life Insurance Company of New Jersey), Newark, NJ (main
office) 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.
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. Annuity contracts contain
exclusions, limitations, reductions of benefits, and terms for keeping
them in force. Your licensed financial professional can provide you with
Variable annuities offered by Prudential Financial companies are
available at a total annual insurance cost of 0.55% to 1.95% (depending
on the product chosen) with an additional fee related to the
professionally managed investment options. The benefit fee is in
addition to the fees and charges associated with the basic annuity.
All references to guarantees are backed by the claims-paying ability of
the issuing company and do not apply to the underlying investment
options. Prudential does not provide tax, accounting or legal advice.
Issued on contract/rider P-BLX/IND(2/10), P-CR/IND(2/10),
P-RID-DBROLL(5/17), et al. or state variation thereof.
Categories: Uncategorized Tags: death benefit, financial companies, financial professional, insurance company, investment options, legacy protection, life insurance, nyse pru, original investment, pruco life, prudential annuities, prudential financial, variable annuities
NEWARK, N.J.–(BUSINESS WIRE)–American households are entering retirement owing far more money on
their homes than previous generations and need to be wary of the
consequences like the inability to meet mortgage payments, according to
a white paper released today by Prudential Financial Inc. (NYSE:PRU)
The added housing debt could create problems down the road for retirees,
including the forced sale of their home when the first spouse dies,
according to the white paper, “Planning for Retirement: The Implications
of Carrying Higher Housing Debt into Retirement,” which is based on
research conducted by the Center for Retirement Research at Boston
Americans nearing, or in, retirement experienced an extraordinary
increase in housing debt between 1989 and 2013, far outpacing the
increase in home values, according to the Federal Reserve. For those
ages 65 to 74, the median home value increased 76 percent, while housing
debt increased by 393 percent.
Avoiding retirement debt
“It is a different world today for retirees,” said Jill Perlin, vice
president, Advanced Marketing, Prudential Individual Life Insurance.
“Americans are now carrying far more debt into retirement, particularly
housing debt, and need to protect their families.”
The easiest way for couples and individuals to guard against the risks
of debt in retirement is through life insurance, a tax efficient way to
provide extra income in retirement, pay off debt or provide an offset to
the income loss likely to occur when one partner dies, according to
Perlin said the higher level of debt is due in part to low interest
rates, easy access to home equity credit lines and mortgage refinancing
activity. “It is easy to accumulate debt and Americans are pretty
comfortable with borrowing money,” she said.
Perlin said things have changed on the income side of the equation as
well, with many households increasingly relying on dual incomes and
workers taking on the burden of funding their own pensions and retiree
healthcare coverage. With dual incomes, many couples enter retirement
with both able to collect Social Security benefits based on their own
“But the increased debt means the monthly payments will eat away at
their Social Security checks and the situation for many could become
especially difficult for couples when one of them passes away,” she
said. “Many people also will see their monthly pension reduced or
eliminated when their spouse dies.”
Unlike with previous generations, life insurance is now needed in
retirement for couples and individuals, Perlin said. Preceding
generations had little need to carry life insurance in retirement,
because they brought little debt into retirement, and the drop in
household Social Security income when one spouse died wasn’t as great as
it often is today. Individuals need life insurance if they want to
provide their beneficiaries with the means to pay off housing and other
“These factors create a much greater need for older Americans to
consider life insurance coverage to help ensure their family’s financial
security,” Perlin said.
Life insurance is a convenient way to build a cash reserve during
working years, and, many policies allow cash withdrawals to supplement
income and meet debt repayments, according to Perlin.1
In addition, death benefit proceeds can be used to pay off a mortgage or
home equity loan, easing the burden on the surviving spouse and giving
children some peace of mind about their parents’ financial situation.
For more information about Planning for Retirement: The
Implications of Carrying Higher Housing Debt into Retirement, please
1Outstanding policy loans and withdrawals will reduce
the policy cash values and the death benefit and may have tax
About Prudential Financial, Inc.
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 www.news.prudential.com.
Life Insurance is issued by The Prudential Insurance Company of America,
Newark, NJ and its affiliates. Prudential, the Prudential logo, and the
Rock symbol are service marks of Prudential Financial, Inc. and its
NEWARK, N.J.–(BUSINESS WIRE)–Prudential Financial, Inc. (NYSE:PRU) today reported third quarter
results. Net income attributable to Prudential Financial, Inc. was
$1.827 billion ($4.07 per Common share) for the third quarter of 2016,
compared to $1.465 billion ($3.16 per Common share) for the year-ago
quarter. After-tax adjusted operating income was $1.191 billion ($2.66
per Common share) for the third quarter of 2016, compared to $1.110
billion ($2.40 per Common share) for the year-ago quarter. Information
regarding adjusted operating income, a non-GAAP measure, is provided
For the first nine months of 2016, net income attributable to Prudential
Financial, Inc. was $4.084 billion ($9.02 per Common share), compared to
$4.907 billion ($10.56 per Common share) for the first nine months of
2015. After-tax adjusted operating income was $3.017 billion ($6.67 per
Common share) for the first nine months of 2016, compared to $3.758
billion ($8.09 per Common share) for the first nine months of 2015.
Adjusted operating income does not equate to net income as determined in
accordance with generally accepted accounting principles (GAAP), but is
the measure used by the Company to evaluate segment performance and to
allocate resources, and is the measure of segment performance presented
below. Consolidated adjusted operating income is a non-GAAP measure and
is discussed later in this press release under “Forward-Looking
Statements and Non-GAAP Measure.” A reconciliation of adjusted operating
income to the most comparable GAAP measure is provided in the tables
that accompany this release.
RESULTS OF ONGOING OPERATIONS
The Company’s ongoing operations include the U.S. Retirement Solutions
and Investment Management, U.S. Individual Life and Group Insurance, and
International Insurance divisions, as well as Corporate and Other
Operations. In the following business-level discussion, adjusted
operating income refers to pre-tax results.
The U.S. Retirement Solutions and Investment Management division
reported adjusted operating income of $1.018 billion for the third
quarter of 2016, compared to $732 million in the year-ago quarter.
U.S. RETIREMENT SOLUTIONS AND
Adjusted operating income
Significant items included above:
Impact of updated estimates of profitability driven by market
performance in relation to our assumptions
Charge for estimated costs related to potential contract