PRULIFE FOUNDERS PLUS UL

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1 CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS PRULIFE FOUNDERS PLUS UL PROTECTION AND FLEXIBILITY THAT CAN LAST A LIFETIME NOT FOR CONSUMER USE Ed. 12/2013 Exp. 06/12/2015

2 ONE WAY TO HELP MANY CLIENTS PruLife Founders Plus UL is a costeffective flexible premium permanent life product that offers an Index Interest option. All life insurance products provide death benefit protection. Some are more appealing to clients who want guarantees and others are more attractive to those who want the potential to accumulate cash value. This guide is designed to help you understand the key features of PruLife Founders Plus UL. It will also show you how to identify potential clients for this product and how to present the benefits to them. Material in the kit pocket: FAST FACTS CONSUMER BROCHURE MARKETING IDEAS Founders Plus is designed to offer meaningful guarantees and the potential to benefit from the long-term performance of the equities market. This combination of features makes Founders Plus one of the most versatile products on the market today. FIXED VARIABLE ACCUMULATION NEED CAUL IUL FOUNDERS PLUS As this chart illustrates, most life insurance products fall into a single category, but PruLife Founders Plus UL has the flexibility to help it meet many of your clients needs. It offers: PROTECTION NEED GUL Cost-effective death benefit protection Extended No-Lapse Guarantee Cash value accumulation potential

3 FLEXIBILITY THAT BENEFITS YOUR CLIENTS NOW AND IN THE FUTURE PRULIFE FOUNDERS PLUS UL While all life insurance products are designed to provide protection, most typically require clients to choose between guarantees and cash value accumulation potential. Founders Plus is a product that has the potential to offer both. If you have clients who need permanent death benefit protection and want cost-effective coverage, an extended No-Lapse Guarantee, and the potential to accumulate cash value, they should consider PruLife Founders Plus UL (Founders Plus). Founders Plus is one of the most versatile products on the market. It can help your clients preserve their assets and potentially enhance them. For example, the cash value could help to pay an expected or unexpected expense* or cover the costs associated with becoming chronically or terminally ill (when paired with an optional rider for an additional cost, subject to terms and conditions). Founders Plus can help your clients or their loved ones when they need it most. FLEXIBILITY & VERSATILITY FOUNDERS PLUS OFFERS A COMBINATION OF FEATURES AND BENEFITS THAT ALLOWS IT TO MEET THE NEEDS OF A WIDE VARIETY OF CLIENTS. * Life insurance policy cash values are accessed through withdrawals and policy loans. There are interest charges associated with loans. Loans and withdrawals cause a reduction in cash values and death benefits, may affect any guarantees against lapse, and may have tax consequences.

4 PruLife Founders Plus UL IS DESIGNED TO OFFER YOUR CLIENTS PROTECTION Founders Plus is a flexible premium current assumption universal life insurance product that offers an Index Interest option. It can give your clients permanent death benefit protection, competitive premiums, meaningful guarantees and the potential for cash value accumulation. It is designed for clients who want flexibility and value. PROTECTION No-Lapse Guarantee An extended No-Lapse Guarantee can provide your clients with guaranteed coverage as long as sufficient premiums are paid and other guarantee requirements are met. Chronic/Terminal Illness Our optional BenefitAccess Rider 1 allows the policy s death benefit to be advanced if the insured becomes chronically or terminally ill as certified by a licensed health care practitioner, and otherwise satisfies the terms of the rider. This rider is available at issue for an additional cost, and additional underwriting requirements apply. (State variations apply.) Living Needs Benefit SM This optional rider allows a portion of the policy s death benefit to be advanced if the insured is permanently confined to a nursing home, becomes terminally ill, or requires a life-saving organ transplant. There is no cost for the rider; however, a $150 processing fee ($100 in Florida) is charged per claim. 2 (State variations apply.) Enhanced Disability Benefit This optional rider, which is available for an additional cost, pays at least all monthly costs for insurance and riders if the insured becomes totally disabled as defined in the rider. Overloan Protection Rider This rider is designed to protect the policy from lapsing with an outstanding loan under the conditions described in the rider. There is no charge for this rider if it is not exercised, and it is only available on policies with Guideline Premium Test. 1 The BenefitAccess Rider is available for an additional cost. Additional underwriting requirements and limits may also apply. Obtaining benefits under the terms of the rider will reduce and may eliminate the death benefit. Benefits paid under the BenefitAccess Rider are intended to be treated for federal tax purposes as accelerated life insurance death benefits under IRC 101(g)(1)(b). Tax laws related to the receipt of accelerated death benefits are complex and proceeds may be taxable in certain circumstances. Receipt of benefits may affect eligibility for public assistance programs such as Medicaid. Accelerated benefits paid under the terms of the Terminal Illness portion of the rider are subject to a $150 ($100 in FL) processing fee. Clients should consult their tax and legal advisors prior to initiating any claim. A licensed health care practitioner must certify the chronic or terminal illness to qualify for benefits. Chronic illness claims will require recertification by a licensed health care practitioner. Other terms and conditions may apply. This rider is not long-term care insurance (LTC) and it is not intended to replace LTC. The rider may not cover all of the costs associated with chronic illness. The rider is a life insurance accelerated death benefit product, is generally not subject to health insurance requirements, and may not be available in all states. 2 The Living Needs Benefit SM is an accelerated death benefit and is not a health, nursing home, or long-term care insurance benefit. It is not designed to eliminate the need for insurance of these types. There is no charge for this rider. However, when a claim is paid under this rider, the death benefit is reduced for early payment, and a $150 processing fee ($100 in Florida) is deducted. If more than one policy is used for the claim, each policy will have a processing fee of up to $150 ($100 in Florida) deducted. Portions of the Living Needs Benefit payment may be taxable. Receiving an accelerated death benefit may affect eligibility for public assistance programs. The federal income tax treatment of payments made under this rider depends upon whether the insured is the recipient of the benefit and is considered terminally ill or chronically ill. We suggest that clients seek assistance from a personal tax advisor regarding the implications of receiving Living Needs Benefit payments. This rider is not available in Minnesota to new purchasers over age 65 until the policy has been in force for one year. The nursing home option is not available in Connecticut, Florida, Massachusetts, New York, or the District of Columbia. This rider is not available in Washington state. In Oregon, term policies must include the waiver of premium benefit to be eligible for this rider.

5 PRULIFE FOUNDERS PLUS UL FLEXIBILITY FLEXIBILITY VALUE SIMPLICITY Adjustable Premiums Clients have the potential to increase or potentially decrease their premiums depending on their situation and the product s performance. And because Founders Plus does not have company-imposed early year premium limitations beyond existing regulatory restrictions regarding the Definition of Life Insurance or MEC limits, it may be attractive for clients with larger cases. Access to Cash Value Clients can access the cash value of their policy through loans and withdrawals. 3 Enhanced Cash Value (ECV) Rider 4 This optional rider enhances the cash surrender value during the policy s early years. ECV, which can be purchased at an additional cost, could be attractive to clients considering purchasing business-owned or premium-financed insurance. 5 VALUE Tax-Free Death Benefit The death benefit of a life insurance policy is generally income tax free (pursuant to U.S. IRC 101(a)). Competitive Premiums Founders Plus generally offers death benefit protection at a lower cost when compared to many other permanent products. Potential Cash Value Founders Plus gives your clients the potential to accumulate and access policy cash values. Tax-Deferred Growth Any accumulation of cash value in a life insurance policy is tax deferred. Tax-Advantaged Access Clients receive tax-advantaged access to their policy s cash value through loans and withdrawals. 3 SIMPLE DESIGN Two Account Options Founders Plus gives your clients two potential ways to accumulate cash value within their policy. Clients can choose to place their policy value in either the Fixed or Plus Account and may change accounts depending on their needs (subject to transfer restrictions). It is important to note that, if clients are switching from the Plus Account to the Fixed Account, then it may take up to one year for all policy values to move. For additional information about the product and optional riders, please refer to the product Fast Facts. 3 Life insurance policy cash values are accessed through withdrawals and policy loans. Interest is charged on loans. In general, loans are not taxable, but withdrawals are taxable to the extent they exceed basis in the policy. Loans outstanding at policy lapse or surrender before the insured dies will cause immediate taxation to the extent of gain in the policy. Taking loans or withdrawals will reduce the policy s cash value and death benefit and might make it necessary for the policy owner to pay more into the policy than originally expected. A withdrawal could reduce the length of any guarantee against lapse that is in effect, and taking a loan will negate the guarantee. For policies that are Modified Endowment Contracts, distributions (including loans) are taxable to the extent of gain in the contract, and an additional 10% federal income tax penalty may apply. Clients may wish to consult a tax advisor for advice regarding their particular situation. 4 Not available in New York. 5 Prudential s sole role with regard to any premium finance arrangement is that of a product provider. Prudential is neither endorsing the use of the premium finance strategy nor the use of any premium finance concept sponsor.

6 Two ways to grow policy values 12 One of the advantages of Founders Plus compared to traditional current assumption Universal Life products is that it offers a choice of two interestcrediting account options. Clients must choose one account at issue but can change their selection based on their needs and the product s performance. FIXED ACCOUNT OPTION The Fixed Account offers a competitive interest-crediting rate that could be attractive to clients who want a cost-effective policy and the flexibility of cash value accumulation. The Fixed Account interest-crediting rate is subject to change but will never fall below the guaranteed rate of 2.5%. The Fixed Account interest-crediting rate s ability to change gives Founders Plus the potential for greater cash value accumulation in a rising interest rate environment. However, there is no guarantee that interest rates, which are near historic lows, will go higher or that the Fixed Account interest-crediting rate will go higher if they do. PLUS ACCOUNT OPTION The Plus Account gives your clients more upside potential than the Fixed Account. The Plus Account combines the potential to earn both Basic Interest and Index Interest. The Index Interest potential is tied to the performance of the S&P 500, excluding dividends, subject to a 50% Participation Rate and an Index Growth Cap and Floor. The Plus Account uses a relatively simple annual point-to-point crediting methodology. The cap and floor help to smooth out volatility. The floor helps to reduce the impact of negative equity market performance. HOW PLUS ACCOUNT VALUES ARE CREDITED If your clients choose the Plus Account, amounts in the Plus Account accumulate at a Basic Interest crediting rate that is determined by subtracting 2.5% from the Fixed Account rate. In addition, index interest, which can range from 0% to the Index Growth Cap, may be credited. FIXED ACCOUNT ADJUSTMENT = BASIC INTEREST + INDEX INTEREST = PLUS ACCOUNT 2.5% 2.5% = 0% + 3.7% = 3.7% 4.0% 2.5% = 1.5% + 3.7% = 5.2% 5.5% 2.5% = 3% + 3.7% = 6.7% The 3.70% used in the chart above represents hypothetical Index Interest based on the historical S&P 500 performance over the 25-year period from , assuming the 50% Participation rate, a hypothetical 6% Index Growth Cap, and the 0% Floor. Actual Index Interest credited will vary between the 0% Floor and the currently declared Index Growth Cap set by the company. The guaranteed minimum Index Growth Cap is 3%. For additional information about how the Index Interest is calculated, please refer to the product s Fast Facts.

7 PRULIFE FOUNDERS PLUS UL Protecting account values This chart shows how a 50% participation rate, 6% cap and a 0% floor can help to smooth out volatility and protect the policy s value from market-based losses. This chart does not take into consideration the cost of insurance or policy charges, which are deducted from the account value monthly regardless of the policy s performance. THE 0% FLOOR PROTECTS ACCOUNT VALUES FROM MARKET-BASED LOSSES Clients who want the potential to accumulate cash value but have concerns about market volatility may appreciate the downside protection Founders Plus offers. YEAR When the S&P 500 return was 6... The index portion of the Plus Account would have credited % 0.00% % 0.00% % 6.00% % 4.50% % 1.50% % 6.00% % 1.77% % 0.00% % 6.00% % 6.00% THE ALTERNATE CONTRACT FUND The Alternate Contract Fund (ACF) is an alternative way to calculate the insurance benefit and the cash surrender value. Regardless of Plus Account performance, the ACF will guarantee a cumulative return of 1% annually on net premiums, deducting the same withdrawals and charges as the Contract Fund (other than the asset-based administrative fee). When the ACF is more than the Contract Fund, the ACF will be used in its place for most policy provisions, including the calculation of surrender value, available loan amount, amount at risk, and death benefits. The ACF also provides protection against lapse. If the ACF, net of any outstanding loans, is sufficient to cover monthly charges as they come due, the policy will not enter default. There is no guarantee that the ACF will be a positive value as charges and other reductions can deplete it. 6 The S&P 500 Index is a product of S&P Dow Jones Indices LLC ( SPDJI ). It has been licensed for use by The Prudential Insurance Company of America for itself and affiliates including Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey (collectively Pruco Life ). Standard & Poor s, S&P, and S&P 500 are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ). Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ). These trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Pruco Life. Pruco Life s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates. None of these parties make any representation regarding the advisability of purchasing such product(s). Also, they do not have any liability for any errors, omissions, or interruptions of the S&P 500 Index. S&P 500 index values are exclusive of dividends.

8 Client Profiles The simple and efficient design of Founders Plus makes it a life insurance product that can benefit a wide variety of clients. COST-CONSCIOUS CLIENTS Clients who want cost-effective death benefit protection and are considering other permanent policies such as a GUL may want to consider Founders Plus. It can help give them the protection they want, and the potential to accumulate cash value provides flexibility in case their needs change. For example: A young couple could overfund their policy and potentially accumulate cash value to help address future needs of their growing family. An older couple on a fixed income may find the potential to access cash value attractive. CLIENTS CONCERNED ABOUT A SERIOUS ILLNESS Clients who need death benefit protection and would need income if they became chronically or terminally ill may want to consider purchasing Founders Plus with an optional rider. Many clients are concerned about becoming a burden to their family and plan to use their savings to pay for their care. By purchasing Founders Plus with the optional BenefitAccess Rider at an additional cost, your clients could get death benefit protection or accelerate the death benefit to use as they choose, if they are certified as chronically or terminally ill and meet the other requirements of the rider. This rider is not long-term care insurance (LTC) and is not intended to replace LTC as the rider may not cover all costs associated with a chronic or terminal illness. BUSINESS OWNER CLIENTS Business owner clients may want to consider Founders Plus to fund a Key Person, Executive Bonus 162, or a Buy-Sell/Business Continuation agreement. In addition to providing death benefit protection, the policy has the potential to accumulate cash value, which, depending on the ownership structure, can be accessed by the business or the key person. And unlike a GUL product, Founders Plus offers potential cash value, which would appear as an asset on a business balance sheet. LGBT HOUSEHOLDS In addition to the need for death benefit protection that comes with buying a home, being in a committed relationship, or having children, members of this community often have additional financial challenges. For example, if their state or employer does not recognize their relationship, they could benefit from a policy that has the potential to accumulate cash value. Founders Plus could help to address their retirement, estate planning, or chronic care protection needs.

9 PRULIFE FOUNDERS PLUS UL The Financial Strength of Prudential Prudential Financial is one of the world s largest financial institutions, with $1.076 trillion in assets under management 7 and approximately $3.6 trillion of gross life insurance in force worldwide. 8 We have one of the most recognized brands in the United States: The Rock, an icon of strength, stability, expertise and innovation. 9 We are known for our ability to deliver on our promises to our customers. Prudential Financial is the second-largest life insurer in the United States (life and group combined) based on total admitted assets. 10 Our domestic insurance company subsidiaries financial strength is rated by the major independent rating agencies as follows: A.M. Best Company: A+ Fitch Ratings: A+ Standard & Poor s: AA- Moody s: A1 Moody s does not rate Pruco Life Insurance Company of New Jersey or Prudential Annuities Life Assurance Corporation. Ratings as of November 6, The above ratings are subject to change and do not reflect any subsequent rating agency actions. We have been building on a heritage of success for over 135 years and counting. 7 As of September 30, As of December 31, 2012, from the Prudential Financial, Inc Form 10-K. 9 Prudential s 2007 Brand Image Tracking Study. 10 At December 31, 2012, ranking for Prudential Financial, through its life insurance companies, according to A.M. Best. AAA (Extremely Strong) is the highest of 21 ratings that Standard & Poor s extends, the lowest being R (has experienced regulatory action), and is a measure of claims-paying ability. Aaa (offers exceptional financial security) is the highest of 21 ratings that Moody s extends, the lowest being C (having extremely poor prospects of ever offering financial security) and is a measure of financial security. A++ (Superior) is the highest of 16 ratings that A.M. Best extends, the lowest being S (Suspended), and is a measure of claims-paying ability. AAA (Exceptionally Strong) is the highest of 21 ratings that Fitch Ratings extends, the lowest being D (Distressed) and is a measure of insurer financial strength. Ratings are not an indication of any variable portfolios performance, which fluctuates with market conditions. Ratings are not a guarantee of future financial strength and/or claims-paying ability.

10 SAMPLE MATERIAL Please go to Pruxpress for convenient access to all of the material available for this product in addition to the samples in this pocket.

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12 Produced with the environment in mind Printed d on Recycled Paper with 10% Post-Consumer Waste The potential to build cash value in the Plus Account is based in part on the performance of the S&P 500 Index using an annual point-to-point basis based on a 50% participation rate, an index growth cap (subject to change), and a floor. Money that is placed in the Plus Account is not a direct investment in the S&P 500 Index. The Index Growth Cap is generally stated as a percentage, which is the maximum rate of index interest that will be credited at the end of the one-year Plus Account Segment, regardless of changes to the designated index. Founders Plus is not a variable contract or an investment contract. The Index Growth Cap is declared for each Plus Account Segment in advance of each Plus Account Segment start date. The Index Growth Cap may be raised or lowered at our discretion before the segment is created, but will not be lower than the guaranteed minimum Index Growth Cap stated in the policy (3% in all states). Once a Plus Account Segment is created, its Index Growth Cap will not change. Changes to the Index Growth Cap could result in different values than shown here. Changes are not tied to the performance of the underlying index and may be based on interest rates, market volatility, and other factors. Index Growth Caps and Floors may be different in selected states. PruLife Founders Plus UL is issued by Pruco Life Insurance Company in all states except New York where, if available, it is issued by Pruco Life Insurance Company of New Jersey. Both are Prudential Financial companies located at 213 Washington Street, Newark, NJ All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates. None of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company. This material is designed to provide general information about PruLife Founders Plus UL and is not a contract. It should be used with the understanding that we are not rendering legal, accounting, or tax advice. Such services should be provided by the client s own professional advisors. Accordingly, any information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. NOT FOR CONSUMER USE Prudential Financial, Inc. and its related entities Ed. 12/2013 Exp. 06/12/2015 [ ML# ] Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate.