Prudential Advanced Series Variable Annuities

Transcription

1 Financial Professional Guide Prudential Advanced Series Variable Annuities Product and Services Guide Ed. 11/2009

2 about prudential Why Prudential? For over 130 years, we ve been an American company focused on helping to grow and protect Americans wealth. More than 98% of Americans recognize the Prudential brand.* This should make your job easier considering you won t need to spend time selling the Prudential name. Your clients should feel comfortable knowing that Prudential companies are helping them meet their retirement goals. Prudential Financial is built on a proud heritage of life insurance and asset management expertise. We offer our individual and institutional clients a wide array of financial products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management and real estate services. We offer these products and services through one of the largest distribution networks in the financial services industry. Prudential Annuities is a business of Prudential Financial, Inc. Variable annuities are issued by Prudential Annuities Life Assurance Corporation and distributed by Prudential Annuities Distributors, Inc., Shelton, CT. Both are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations. All guarantees, including optional benefits, are backed by the claims-paying ability of the issuing company. Key Differentiating Factors for Prudential Prudential has distinguished itself in the financial services industry through: n Our ability to manage through the current market with our core business models remaining intact n Our diversified mix of businesses and risks n Our diverse mix of clients invested in a broad range of asset classes n Our global presence We re a company that truly understands the challenges facing today s retirees. That s because, in addition to being a provider of innovative financial products and investment solutions, we re also a leader in retirement research. We work hard to identify the trends and issues that might affect the financial well-being of retirees, both now and in the future. The additional insights we obtain through our research efforts, coupled with our historical perspective and deep-rooted knowledge of the financial markets, mean one thing: products and services that are specifically aligned with the needs and goals of Americans focused on retirement. * 2008 Prudential s Brand Image Study, Wave 39 conducted by Data Development Worldwide Prudential Financial, Inc. is a holding company that owns insurance and non-insurance operating companies. Prudential Financial and its subsidiaries represent: n One of the largest financial services institutions in the U.S. n A more than 130-year commitment to financial services n The second-largest life insurer in the U.S., based on total admitted assets (A.M. Best, as of 3/30/09) n Twelfth-largest institutional asset manager worldwide (Pensions & Investments, 12/31/08) n One of the largest fixed income managers in the U.S. n One of the top three institutional investors in traditional private placements 2

3 products at a glance Prudential Advanced Series Variable Annuities Bonus Variable Annuity ($10,000 minimum purchase payment) n 6.50% purchase credit: Available for first-year purchase payments n Additional purchase credits: Lower purchase credits are available in years 2-6 n Total insurance charge In years 1-10: 1.65% In years 11+: 0.65% Advanced Series XTra Credit SIX SM * n Liquidity: 10% of purchase payments within surrender charge period; no surrender charge after 10th annuity year n 10-year contract-based CDSC 4-Year CDSC Variable Annuity ($10,000 minimum purchase payment) n 2.75% loyalty credit: Paid at the end of the 5th annuity year n Total insurance charge: 1.65% n Liquidity: 10% of purchase payments within surrender charge period; no surrender charge after 4th annuity year n 4-year contract-based CDSC n Maximum issue age: 85 Advanced Series APEX II SM n Maximum issue age: 75 Advanced Series Advisor Plan SM III (ASAP III SM ) Lower-Cost Traditional Variable Annuity ($1,000 minimum purchase payment) n 0.50% loyalty credit: Paid at the end of the 5th annuity year n Total insurance charge In years 1-8 (1-7 in NY): 1.25% In years 9+ (8+ in NY): 0.65% n Liquidity: 10% of purchase payments within surrender charge period; no surrender charge after 8th (7th in NY) annuity year n 8-year (7-year for NY) contract-based CDSC Advanced Series Lifevest II SM (ASL II SM ) 100% Liquid Variable Annuity ($15,000 minimum purchase payment) n Total insurance charge: 1.65% n Liquidity: No surrender charge (no front-end or back-end sales charges) n Maximum issue age: 85 n Maximum issue age: 80 * Because XTra Credit SIX contains an investment credit, it may have higher fees and expenses and a longer contingent deferred sales charge (CDSC) period than other similar annuities without an investment credit. Over time, the higher expenses could be more than the value of the credits. Carefully consider the expenses along with the features to be sure this type of annuity meets your clients financial needs. See the product summaries on pages 4 and 5 for more details. Non-Qualified, IRA and Roth IRA inherited business now available n Help manage death benefit proceeds by spreading the distributions over the life expectancy of the beneficiary n Access to portfolio managers with expertise in traditional and alternative investment strategies n Maximum issue age: 70 Subject to state and firm availability. Please see prospectus for complete details. 3

4 annuity Optional features living and benefits Prudential Advanced Series Variable Annuities Features & Benefits Target Market XTra Credit SIX Clients who want an immediate payment enhancement or a head start in saving for retirement APEX II Clients who are approaching retirement or who may have changing retirement goals Investor Credits Free Withdrawals Purchase credit based on year purchase payment is received Year Purchase 6.5% 5% 4% 3% 2% 1% credit During the first 10 annuity years: 10% of purchase payments After the 10th annuity year: 100% of the account value is free of CDSC 2.75% loyalty credit*, applied at the end of the 5th annuity year During the first 4 annuity years: 10% of purchase payments After the 4th annuity year: 100% of the account value is free of CDSC Minimum Purchase Payments Maximum Issue Age** (based on oldest of all owners or annuitant on entity-owned contracts) Maximum Annuitization Age Base Death Benefit (Death benefit protection terminates upon contract annuitization) Initial: $10,000 Additional: $100 Owner: 75 In addition, in NY, annuitant must be 85 or younger (applicable for non-entity owned contracts) 95 (90 in NY) The greater of purchase payments less proportional withdrawals, or account value (variable) plus interim value (fixed, before any applicable MVA is assessed), less an amount equal to all credits applied within 12 months prior to the date of death (No recapture on death in NY or CT) Initial: $10,000 Additional: $100 Owner: 85 In addition, in NY, annuitant must be 85 or younger (applicable for non-entity owned contracts) 95 (90 in NY) The greater of purchase payments less proportional withdrawals, or account value (variable) plus interim value (fixed, before any applicable MVA is assessed) Fees and Charges Total Insurance Charge Surrender Charges In years 1-10: 1.65% In years 11+: 0.65% 10 years: 9%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1% 1.65% 4 years: 8.5%, 8%, 7%, 6% For NY: 7%, 6%, 5%, 4% Applied only to purchase payments; based on the inception date of the annuity contract Applied only to purchase payments; based on the inception date of the annuity contract Annual Maintenance Fee $35 ($30 in NY) or 2% of account value, whichever is less $35 ($30 in NY) or 2% of account value, whichever is less (waived if account value is $100,000 or higher) * The loyalty credit is based on total purchase payments made during the first four annuity years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the fifth annuity anniversary. Since the loyalty credit is applied to the account value only, any guarantees that are not based on the account value will not reflect the loyalty credit. Please see the prospectus for more information on the loyalty credit. ** The issue age may vary by state and broker/dealer. 4

5 annuity features and benefits ASAP III ASL II Advisors Choice 2000*** Clients who prefer a lower-cost, traditional annuity 0.50% loyalty credit*, applied at the end of the 5th annuity year Clients with unpredictable withdrawal requirements None Clients with unpredictable withdrawal requirements. Designed specifically for use with a Registered Investment Advisor. None During the first 8 annuity years (first 7 in NY): 10% of purchase payments After the 8th annuity year (7th in NY): 100% of the account value is free of CDSC Initial: $1,000 Additional: $ % of account value is free of CDSC Initial: $15,000 Additional: $ % of account value is free of CDSC Initial: $5,000 Additional: $100 Owner: 80 In addition, in NY, annuitant must be 85 or younger (applicable for non-entity owned contracts) 95 (90 in NY) Owner: 85 In addition, in NY, annuitant must be 85 or younger (applicable for non-entity owned contracts) 95 (90 in NY) 95 (90 in NY) Owner: none In addition, in NY, annuitant must be 85 or younger The greater of purchase payments less proportional withdrawals, or account value (variable) plus interim value (fixed, before any applicable MVA is assessed) The greater of purchase payments less proportional withdrawals, or account value (variable) plus interim value (fixed, before any applicable MVA is assessed) Prior to age 85: The greater of purchase payments less withdrawals, or account value (variable) plus interim value (fixed, before any applicable MVA is assessed) Age 85 or older: Account value Age 85 or older in NY only: Account value (variable) plus interim value (fixed, before any applicable MVA is assessed) A market value adjustment will be applied where applicable. In years 1-8 (1-7 in NY): 1.25% In years 9+ (8+ in NY): 0.65% 8 years: 7.5%, 7%, 6.5%, 6%, 5%, 4%, 3%, 2% 7 years (in NY): 7%, 6%, 5%, 4%, 3%, 2%, 1% Applied only to purchase payments; based on the inception date of the annuity contract 1.65% None 0.65% None $35 ($30 in NY) or 2% of account value, whichever is less (waived if account value is $100,000 or higher) $35 ($30 in NY) or 2% of account value, whichever is less (waived if account value is $100,000 or higher) $35 ($30 in NY) or 2% of account value, whichever is less (waived if account value is $50,000 or higher) *** May not be available in all firms. 5

6 Optional living living benefits Highest Daily Lifetime SM 6 Plus (HD Lifetime 6 Plus) Spousal Highest Daily Lifetime SM 6 Plus (Spousal HD Lifetime 6 Plus) Help grow your clients basis for retirement income through highest daily guarantees that lock in their highest daily values for income purposes 100% of the time. EVERY DAY COUNTS n Guaranteed lifetime income is based on 6% compounded growth of the annuity s highest daily value until the first Lifetime Withdrawal MINIMUM INCOME GUARANTEES* Guaranteed lifetime income is based on at least: n 200% of the account value at benefit election on the 10th benefit anniversary n 400% of the account value at benefit election on the 20th benefit anniversary * Minimum guarantees are for income purposes only and assume no Lifetime Withdrawals from benefit election. A Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value as well as the 200% and 400% guarantees. At time of withdrawal your client must specify the withdrawal is intended to be a Non-Lifetime Withdrawal. POTENTIAL FOR GREATER INCOME & FLEXIBILITY n Clients can take one Non-Lifetime Withdrawal that will not interrupt the daily lock-in and 6% compounded growth n Post-withdrawal step-ups are based on the annuity s highest daily value n Clients can receive lifetime income of up to 6%, depending on age at first Lifetime Withdrawal n With Spousal HD Lifetime 6 Plus, lifetime income continues uninterrupted and without reduction to surviving spouse upon death of first spouse hd lifetime 6 Plus Annuitant s age at first Lifetime Withdrawal Income percentage spousal hd lifetime 6 Plus Age of younger spouse at first Lifetime Withdrawal Income percentage 45 - less than % % % % 80+ 6% 85+ 6% Death Benefit Protection HD Lifetime 6 Plus terminates upon the death of the annuitant. With Spousal HD Lifetime 6 Plus, lifetime income payments continue uninterrupted to the surviving spouse, and only terminate upon his/her death. With HD Lifetime 6 Plus and Spousal HD Lifetime 6 Plus, your client s death benefit will be equal to the greatest of: 1. The basic death benefit under the annuity 2. The amount of any optional death benefit elected and remaining in effect % of the Annual Income Amount (not available in all states including NY and WA) If no Lifetime Withdrawals were taken, the Annual Income Amount is determined as of the date of death. If Lifetime Withdrawals were taken, the Annual Income Amount is determined as of the date we receive due proof of death. In the event that withdrawals reduce the account value to zero, or if annuity payments are being made at the time of the decedent s death, no death benefit will be payable under the annuity contract. With respect to Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator (LIA), we use the Annual Income Amount for purposes of the death benefit calculation, not the LIA amount. See the prospectus for complete details. 6

7 Optional living benefits Additional Feature n Lifetime Income Accelerator (LIA) an innovative optional feature designed to double the Annual Income Amount generated by HD Lifetime 6 Plus, should certain conditions render your clients incapable of caring for themselves, regardless of whether they re living at home or in a qualified nursing facility. Subject to eligibility, 36-month waiting period and 120-day elimination period. Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator is not long-term care insurance and should not be purchased as a substitute for long-term care insurance. The income your clients receive through the Lifetime Income Accelerator may be used for any purpose, and it may or may not be sufficient to address expenses they may incur for long-term care. Your clients should seek professional advice to determine their financial needs for long-term care. At a Glance Optional Benefit ANNUAL BENEFIT CHARGE* minimum issue age maximum issue age HD Lifetime 6 Plus Spousal HD Lifetime 6 Plus 0.85% 0.95% 45 (annuitant) 55/50 (older spouse/ younger spouse) May vary by broker/dealer and/or state HD Lifetime 6 Plus with LIA** 1.20% 45 (annuitant) 75 * Annual benefit charges are assessed quarterly against the greater of the account value and the Protected Withdrawal Value (adjusted for withdrawals and premiums). Fees will be taken pro-rata across all investment options. Please note that upon re-election, or upon a step-up after income begins, the fees may be higher. ** Not available in all states including CT, HI, IA, NY, UT and WA Important Considerations n n The investment options available with HD Lifetime 6 Plus and Spousal HD Lifetime 6 Plus allow your clients to invest in a wide variety of asset allocation portfolios, managed by some of the industry s most respected portfolio managers, or create a personalized portfolio by selecting from a broad spectrum of individual investment options. HD Lifetime 6 Plus and Spousal HD Lifetime 6 Plus can be elected post-issue on many variable annuities from Prudential companies and can be cancelled at any time. After cancellation, your clients will no longer be charged for the benefit. If cancelled, the benefit may be re-elected on any day beginning with the following business day (provided investment allocation requirements are in good order). Please note that clients lose any and all guarantees upon cancellation. New elections are based on the account value of the contract at the time of election. This summary is only intended to provide a snapshot of the HD Lifetime 6 Plus and Spousal HD Lifetime 6 Plus benefits. For complete details, please refer to the client brochure and the prospectus. Highest Daily Lifetime 6 Plus and Spousal Highest Daily Lifetime 6 Plus use a predetermined mathematical formula to help manage your client s 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 client s individual annuity and include: (i) The difference between the account value and the Protected Withdrawal Value; (ii) How long your client has owned Highest Daily Lifetime 6 Plus or Spousal Highest Daily Lifetime 6 Plus; (iii) The amount invested in, and the performance of, the permitted subaccounts; (iv) The amount invested in, and the performance of, the Bond Portfolio; and (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 (the basis for guaranteed lifetime income) is separate from the account value, and only available through withdrawals, not as a lump sum. Any amounts invested in the Bond Portfolio will affect your client s ability to participate in a subsequent recovery within the permitted subaccounts. Conversely, the account value may be higher at the beginning of the 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: Your client may not allocate purchase payments or transfer account value into or out of the Bond Portfolio. See the prospectus for complete details. Guarantees will be reduced by any withdrawals. Some withdrawals will reduce the guarantees proportionally. See the prospectus for complete details. When creating a personalized portfolio, certain subaccount limitations apply. In addition, investors must maintain a minimum 20% allocation to one or more of the eligible bond subaccounts and participate in a quarterly rebalancing program. For complete information, including available investment options, please refer to the product prospectus. Please note that HD Lifetime 6 Plus, Spousal HD Lifetime 6 Plus and HD Lifetime 6 Plus with Lifetime Income Accelerator may not be available in all states or with all broker/dealers. Lifetime Income Accelerator is not available with Spousal HD Lifetime 6 Plus. 7

8 Optional living living benefits Provide principal protection with opportunities to lock in positive performance Highest Daily SM Guaranteed Return Option SM II (HD GRO SM II) n HD GRO II provides an initial guarantee that your clients account value will be equal to 100% of their purchase payments* 10 years after they elect the benefit (provided all contract provisions are met) n With HD GRO II, your clients have the opportunity to automatically lock in new guarantees each year based on their annuity s highest daily value PRINCIPAL Protection Upside Opportunity Flexibility AND CONTROL n Can be elected at contract issue or post-issue on many Advanced Series variable annuities n Does not require annuitizing or surrendering the contract to receive the guarantee amount n May be cancelled at any time. After cancellation, your clients will no longer be charged for the benefit. If cancelled, the benefit may be re-elected on any day beginning with the following business day (provided investment allocation requirements are in good order). May vary by state and broker/dealer. Please note that clients lose any and all guarantees upon cancellation. Fees may be higher on re-election. Optional Benefit Highest Daily Guaranteed Return Option II Guaranteed Return Option Plus II ANNUAL BENEFIT CHARGE** 0.60% At a Glance Minimum Issue Age None * If adding HD GRO II or GRO Plus II to an existing annuity, the base guarantee equals the account value at the time of benefit election. Guarantees are adjusted for any credits or withdrawals. All withdrawals will reduce the guarantee proportionally. ** Fees are assessed daily against the average daily net assets of the subaccounts. Benefit fees are in addition to fees and charges associated with the basic annuity. *** When creating a personalized portfolio, certain subaccount limitations apply and your client will need to maintain a minimum 20% allocation in one or more of the eligible bond subaccounts. For a list of available asset allocation portfolios and subaccounts, please refer to the prospectus. Highest Daily Guaranteed Return Option II (HD GRO II) and Guaranteed Return Option Plus II (GRO Plus II) use a predetermined mathematical formula to help manage your clients guarantees 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 certain AST Bond Portfolio Subaccounts (the Bond Portfolios ). Amounts transferred by the formula depend on a number of factors unique to your client s individual annuity and include: (i) The difference between the account value and the Guarantee Amount(s); (ii) The amount of time until the maturity of the Guarantee(s); (iii) The amount invested in, and the performance of, the permitted subaccounts; (iv) The amount invested in, and the performance of, the Bond Portfolios; (v) The discount rate used to determine the present value of the Guarantee(s); and (vi) The impact of additional purchase payments made to and withdrawals taken from the annuity. Therefore, at any given time, some, none, or most of the account value may be allocated to the Bond Portfolios. Transfers to and from the Bond Portfolios do not impact any guarantees that have already been locked in. Any amounts invested in the Bond Portfolios will affect your clients ability to participate in a subsequent recovery within the permitted subaccounts. Conversely, the account value may be higher at the beginning of the 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: Your clients may not allocate purchase payments or transfer account value into or out of the Bond Portfolios. See the prospectus for complete details. HD GRO II and GRO Plus II may not be available in all states or with all broker/dealers. 8 Guaranteed Return Option SM Plus II (GRO Plus II) n gro Plus II provides a base guarantee that the account value will be equal to 100% of your clients purchase payments* after seven years and on each anniversary thereafter (provided all contract provisions are met) n If the account value increases due to positive investment performance, your clients can lock in a higher guarantee while retaining the initial GRO Plus II guarantee n Your clients can elect to automatically step up the guarantee on any benefit anniversary where the account value is at least 7% higher than the current highest guarantee amount n Election of an enhanced guarantee supersedes any prior enhanced guarantee and begins a new seven-year waiting period Maximum Issue Age 84 (80 in NY); May vary by broker/dealer and state Investment Options Invest in one or a combination of professionally managed asset allocation portfolios or create a personalized portfolio by selecting from a broad spectrum of individual investment options***

9 optional death benefits Help your clients grow their legacy Combination 5% Roll-up & HAV Highest Anniversary Value (HAV) (Not available in New York and Washington) Guaranteed death benefit based on the greatest of*: n The highest anniversary value up to age 80 or the 5th contract anniversary, whichever is later Or n Total purchase payments plus any applicable credits less the sum of all proportional withdrawals Or n 5% compounded growth of purchase payments up to age 80 or the 5th contract anniversary, whichever is later Or n Current account value in the variable subaccounts plus the interim value in the fixed allocations before any applicable MVA is assessed n The highest anniversary value up to the contract anniversary on or after the contract holder s 80th birthday Or n Total purchase payments plus any applicable credits less the sum of all proportional withdrawals Or n Current account value in the variable subaccounts plus the interim value in the fixed allocations before any applicable MVA is assessed At a Glance Optional Benefit ANNUAL BENEFIT CHARGE** Maximum Issue Age Election Options Investment Options Combination 5% Roll-up & HAV Highest Anniversary Value 0.80% 0.40% 79 (75 with XT6) May vary by broker/dealer and state May be elected at issue only and cannot be cancelled May be elected at issue only. See the prospectus for cancellation rules Available with most Advanced Series investment options This summary is only intended to provide a snapshot of the optional death benefits. For complete details, please refer to the Optional Accumulation and Death Benefits brochure and the prospectus. Optional death benefits may not be available in all states or with all broker/dealers. Please note that for all optional death benefits, we will reduce the death benefit amount by any purchase credits applied within 12 months prior to the date of death. No recapture on death in NY or CT. * Guarantees will be reduced by any withdrawals. Some withdrawals will reduce the guarantees proportionally. Please see the prospectus for complete details. ** Fees are assessed daily against the variable account value. Optional death benefit fees are in addition to fees and charges associated with the basic annuity. 9

10 asset Optional allocation living benefits Take Advantage of Four Diverse Strategies TRADITIONAL Traditional asset allocation offers an active management style based on longer-term views of capital markets. n Multi-Manager & Single Manager n Stocks & Bonds n Domestic & International TACTICAL Tactical asset allocation offers an active management style based on shorter-term views of capital markets. n Active Asset Allocation Management n Multi-Manager n Traditional Asset Classes & Exchange- Traded Funds >> AST Aggressive Asset Allocation Portfolio* >> AST Capital Growth Asset Allocation Portfolio >> Franklin Templeton VIP Founding Funds Allocation Fund >> AST Balanced Asset Allocation Portfolio >> AST T. Rowe Price Asset Allocation Portfolio >> AST Preservation Asset Allocation Portfolio MORE AGGRESSIVE MORE CONSERVATIVE >> AST Niemann Capital Growth Asset Allocation Portfolio >> AST Horizon Growth Asset Allocation Portfolio >> AST CLS Growth Asset Allocation Portfolio >> AST Horizon Moderate Asset Allocation Portfolio >> AST CLS Moderate Asset Allocation Portfolio MORE AGGRESSIVE MORE CONSERVATIVE * Please note that your clients may not select the AST Aggressive Asset Allocation Portfolio with certain optional benefits. Please see the annuity prospectus for additional details. 10

11 asset allocation With annuities from Prudential companies, your clients can choose from 17 turnkey asset allocation options spanning four investment strategies: Traditional, Tactical, Quantitative, and Alternative. This comprehensive offering provides not only different and potentially complementary investment strategies, but also a wide range of potential risk/return characteristics. Please see the Investor Guide for more information on the risks associated with each portfolio. QUANTITATIVE Quantitative asset allocation offers a disciplined, quantitative approach to portfolio management. n Defined Mathematical Models n Market Index-Based n Removes Human Emotion from Process ALTERNATIVE Alternative asset allocation offers concepts used by some top university endowment fund managers. n Traditional & Non-Traditional Asset Classes (Domestic/Global Real Estate, Emerging Markets Debt, TIPS, Commodities, Private Equity, Currency) n Absolute Return Focus n Long & Short Positions >> AST First Trust Capital Appreciation Target Portfolio >> AST First Trust Balanced Target Portfolio MORE AGGRESSIVE >> AST Academic Strategies Asset Allocation Portfolio >> AST Advanced Strategies Portfolio >> AST Schroders Multi-Asset World Strategies Portfolio MORE AGGRESSIVE >> AST UBS Dynamic Alpha Portfolio* MORE CONSERVATIVE MORE CONSERVATIVE * Please note that your clients may not select the AST UBS Dynamic Alpha Portfolio with certain optional benefits. Please see the annuity prospectus for additional details. Alternative investments are speculative and include a high degree of risk. An investor could lose all or a substantial amount of his or her investment. Alternative investments are suitable only for long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. 11

12 investment Optional platform living benefits A Full Spectrum of Individual Investment Options Portfolio Category Placement (All portfolios are placed according to the investment objectives contained in the current prospectus.) Large-Cap Value AST AllianceBernstein Core Value AST AllianceBernstein Growth & Income AST American Century Income & Growth AST DeAM Large-Cap Value AST Jennison Large-Cap Value AST Large-Cap Value Portfolio management by Eaton Vance and Hotchkis & Wiley Capital Management ProFund VP Large-Cap Value* Wells Fargo Advantage Equity Income Large-Cap blend AST QMA US Equity Alpha Large-Cap growth AST Goldman Sachs Concentrated Growth AST Jennison Large-Cap Growth AST Marsico Capital Growth AST MFS Growth AST T. Rowe Price Large-Cap Growth ProFund VP Large-Cap Growth* MID-Cap Value AST Mid-Cap Value Portfolio management by Earnest Partners and Wedge Capital Management AST Neuberger Berman / LSV Mid-Cap Value Portfolio management by Neuberger Berman and LSV Asset Management ProFund VP Mid-Cap Value* MID-Cap blend MID-Cap growth AST Goldman Sachs Mid-Cap Growth AST Neuberger Berman Mid-Cap Growth AIM V.I. Dynamics ProFund VP Mid-Cap Growth* small-cap Value AST Goldman Sachs Small-Cap Value AST Small-Cap Value Portfolio management by JPMorgan Asset Management; Lee Munder Capital Group and ClearBridge Advisors ProFund VP Small-Cap Value* small-cap blend small-cap growth AST Neuberger Berman Small-Cap Growth AST Federated Aggressive Growth AST Small-Cap Growth Portfolio management by Eagle Asset Management Inc. Evergreen VA Growth ProFund VP Small-Cap Growth* There is no assurance the portfolio objectives will be achieved. Large-Cap = Companies within market capitalization range of the Russell 1000 Index Mid-Cap = Companies within market capitalization range of the Russell Midcap Index Small-Cap = Companies within market capitalization range of the Russell 2000 Index A manager with a value style seeks securities that are undervalued in price and have the potential to appreciate. A manager with a growth style seeks securities with the potential to grow faster than the rest of the market. A manager with a blend style invests in both value and growth securities. 12

13 investment platform Create a well-balanced portfolio from our breadth of investment offerings that include more than 100 portfolios covering major investing styles from over 40 portfolio managers. fixed income AST High Yield AST Lord Abbett Bond-Debenture AST Money Market AST PIMCO Limited Maturity Bond AST PIMCO Total Return Bond AST T. Rowe Price Global Bond AST Western Asset Core Plus Bond ProFund Rising Rates Opportunity* ProFund U.S. Government Plus* AST International Growth Portfolio management by William Blair & Company and Marsico Capital Management, LLC AST International Value Portfolio management by LSV Asset Management and Thornburg Investment international equity AST JPMorgan International Equity AST MFS Global Equity AST Parametric Emerging Markets Equity Evergreen VA International Equity Gartmore NVIT Developing Markets ProFund VP Europe 30* AST Cohen & Steers Realty AST Global Real Estate AST T. Rowe Price Natural Resources AIM V.I. Financial Services AIM V.I. Global Health Care specialty AIM V.I. Technology Evergreen VA Omega First Trust Target Focus Four The Dow DART 10 The Dow Target Dividend Global Dividend Target 15 NASDAQ Target 15 S&P Target 24 Target Managed VIP Value Line Target 25 Access VP High Yield* ProFund VP Asia 30* ProFund VP Banks* ProFund VP Basic Materials* ProFund VP Bear* ProFund VP Biotechnology* ProFund VP Bull* ProFund VP Consumer Goods* ProFund VP Consumer Services* ProFund VP Financials* Specialty PROFUNDS ProFund VP Health Care* ProFund VP Industrials* ProFund VP Internet* ProFund VP Japan 30* ProFund VP NASDAQ-100* ProFund VP Oil & Gas* ProFund VP Pharmaceuticals* ProFund VP Precious Metals* ProFund VP Real Estate* ProFund VP Semiconductor* ProFund VP Short Mid-Cap* ProFund VP Short Small-Cap* ProFund VP Short NASDAQ-100* ProFund VP Technology* ProFund VP Telecommunications* ProFund VP UltraBull* ProFund VP UltraMid-Cap* ProFund VP UltraSmall-Cap* ProFund VP UltraNASDAQ-100* ProFund VP Utilities* AST Academic Strategies Asset Allocation AST Advanced Strategies AST Aggressive Asset Allocation** AST Balanced Asset Allocation AST Capital Growth Asset Allocation AST CLS Growth Asset Allocation AST CLS Moderate Asset Allocation turnkey asset allocation AST First Trust Balanced Target AST First Trust Capital Appreciation Target AST Horizon Growth Asset Allocation AST Horizon Moderate Asset Allocation AST Niemann Capital Growth Asset Allocation AST Preservation Asset Allocation AST Schroders Multi-Asset World Strategies AST T. Rowe Price Asset Allocation AST UBS Dynamic Alpha** Franklin Templeton VIP Founding Funds Allocation Fund * ProFunds listed on pages 12 and 13 are only available on APEX II and Advisors Choice Advisors Choice 2000 may not be available with all broker/dealers. ** Your clients may not select the AST Aggressive Asset Allocation or AST UBS Dynamic Alpha portfolios with certain optional benefits. Please see the annuity prospectus for additional details. Please note that with certain optional benefits, guidelines for building your client s portfolio must be followed. All portfolios may not be available with all broker/dealers. These portfolios may contain different investments than similarly named mutual funds. 13

14 Contact Information Contact List n Sales Support (Press 1) Call your annuity sales desk representative for more details about the products and optional benefits available in your state. n Retirement and Wealth Planning Group Advanced Retirement and Estate Planning, Charitable Remainder Trusts, Qualified Plans n Client Service Support Client Service Support Team Variable Annuities, Ext Client account information, death benefits, withdrawals, exchange business, problem resolution, compensation, broker services Third Party Investment Advisor (TPIA) and Registered Investment Advisor (RIA) Team, Ext n eservice Web site navigation/software applications n Submission of Business for Variable Annuities Please note that not all firms submit business directly to the carrier. Please check with your back office for more information. Regular Mail: Prudential Annuities P.O. Box 7960 Philadelphia, PA n Web Site Express Mail: Prudential Annuities 2101 Welsh Road Dresher, PA

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16 one corporate drive shelton, connecticut Certain investment options may not be available when enrolled in certain optional benefits. For more information, see the Allocation Instruction Form. 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 by contacting the National Sales Desk. Your clients should read the prospectus carefully before investing. Your clients needs and the suitability of an annuity product should be carefully considered before investing. Please consider other variable annuities available from Prudential Financial companies when evaluating their needs. Variable annuities are appropriate for long-term investing and designed for retirement purposes. Investment return and principal value of an investment will fluctuate so that an investor s unit values, when redeemed, may be worth more or less than their original cost. Withdrawals or surrenders may be subject to contingent deferred sales charges (CDSC). 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, for tax purposes, are deemed to be gains out first. Withdrawals reduce the living benefit, death benefit and account value. Prudential Annuities does not provide tax, accounting or legal advice. Please have your clients consult their own attorney or accountant. Tax deferral is provided by an Individual Retirement Account and other qualified retirement plans. A variable annuity contract should be used to fund a qualified retirement plan to benefit from the annuity s features other than tax deferral, including lifetime income payout option, the death benefit protection, and the ability to transfer among investment options without sales or withdrawal charges. Optional 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 additional information. While annuitization is not required to receive income under these benefits, there is a maximum date by which annuity payments must begin under the terms of the annuity. Fixed-income investing is 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. 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. Asset allocation does not ensure a profit or protect against a loss. Variable annuities are issued by Prudential Annuities Life Assurance Corporation and distributed by Prudential Annuities Distributors, Inc., Shelton, CT. Both 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. Reference to Prudential Annuities as the Highest Daily Company is for marketing purposes only and does not mean that Prudential Annuities is a corporation or any other legal entity organized under State or Federal law. Prudential, Prudential Financial, Prudential Annuities, the Rock logo and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America and its affiliates. ANNUITIES: NOT FDIC OR GOVERNMENT AGENCY INSURED MAY LOSE VALUE NOT BANK OR CREDIT UNION GUARANTEED ORD Ed. 11/2009 [WO# WF ]