Prudential Premier Retirement

Transcription

1 Financial Professional Guide Prudential Premier Retirement Variable Annuities Products, Optional Benefits and Investments Guide Ed. 05/2010

2 Prudential Annuities, The Highest Daily Company * Dedicated to Being an Innovative Leader Prudential Annuities is a leader in variable annuities sales and distribution, and the only company to offer daily valued benefits that lock in an annuity s highest days to help increase retirement income. As an industry innovator, we ve analyzed the market and understand the complex retirement challenges facing your clients today. Our proprietary research has helped us define what we call The Retirement Red Zone, the critical years before and after retirement when poor investment performance can have a significant impact on investors portfolios. The insights gained through our ongoing research, coupled with our deep-rooted knowledge of the financial markets, mean one thing leading-edge products and services that can help you meet the retirement needs and goals of your clients. Committed to Your Business Our commitment to our partners was recognized with the receipt of the Boomer Market Advisor s 2009 Readers Choice Award for the category: from a service and support standpoint, the financial services company that makes you feel as if they are a true partner in your business as opposed to trying to sell you a product. And in 2009, for the 5th year in a row, we won the Boomer Market Advisor s Readers Choice Award for the category: the living benefit that best addresses the income and longevity issues your clients face. We also continue to provide you with the support and marketing tools you need to help you build your business. n We have a fully staffed and industry-experienced support team. n Our Chief Market Strategist, Dr. Quincy Krosby, is available to help you and your clients try to make sense of the current market environment, from economic trends to future market outlooks. n We have a full array of high quality marketing materials, including our Highest Daily Lifetime SM 6 Plus client-approved video that can assist you in presenting the highest daily story to your clients in a simple yet dynamic format. Recognized For Our Financial Strength In order to deliver retirement solutions for your clients, you need to know that you re working with a company that is financially strong now, and will be there in the future. The Financial Strength Ratings of the issuing companies of Prudential Annuities underscore that our position is solid and indicate that we have ample capital and liquidity to meet your clients needs. A.M. BEST COMPANY FITCH RATINGS STANDARD & POOR S MOODY S A+ A+ AA- A2 (2nd category of 15) (5th category of 21) (4th category of 21) (6th category of 21) Superior ability to meet ongoing obligations to policyholders Strong capacity to meet policyholder and contract obligations Very strong financial security characteristics Good financial security Variable annuities are issued by Pruco Life Insurance Company (in New York, by Pruco Life Insurance Company of New Jersey), Newark, NJ. Pruco Life Insurance Company of New Jersey is not rated by Moody s. All ratings are as of February 26, Ratings are intended to reflect the financial strength or claims-paying ability of the issuer and are not intended to reflect the investment performance or financial strength of the variable accounts, which are subject to market risk. The above ratings are subject to change and do not reflect any subsequent rating agency actions. We are committed to updating our material promptly after a ratings change. Please visit our investor relations site, for the most current ratings. * 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. 2 of 16

3 Help Your Clients Build a Secure Retirement STEP 1 START WITH THE APPROPRIATE ANNUITY PRODUCT Prudential Premier Retirement Variable Annuities feature a full complement of variable annuities to meet your clients needs X, B, L, and C Series. t STEP 2 ADD POWERFUL GUARANTEES Our suite of optional benefits, including our award-winning Highest Daily benefits, means Prudential Annuities is the only place where your clients have daily opportunities to lock in greater benefit values. t STEP 3 CREATE A UNIQUE INVESTMENT STRATEGY We provide you and your clients with asset allocation choices that are as simple or as sophisticated as needed, including access to alternative asset allocation portfolios. The products and benefits listed in this guide may not be available in all states or broker/dealers. All references to account value assume no investment in any available market value adjustment options. 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. All optional benefit fees are in addition to fees and charges associated with the basic annuity. Please see the prospectus for complete information. 3 of 16

4 STEP 1 START WITH THE APPROPRIATE ANNUITY PRODUCT Prudential Premier Retirement Variable Annuities FEATURES & BENEFITS X SERIES* Target Market Purchase Credits The amount of any purchase credits applied to the account value may be recaptured under certain circumstances. May vary by state. Free Withdrawals Per annuity year Clients who want an immediate payment enhancement or a head start in saving for retirement 6% purchase credit (3% for ages 82-85) available on all purchase payments made in annuity years % of purchase payments (non-cumulative) Minimum Purchase Payments The ability to make additional purchase payments may vary by state. Initial: $10,000 Additional: $100 Age Requirements May vary by state and/or broker/dealer. Maximum issue age: 80 Latest annuity date: No later than the first day of the calendar month following the 95th birthday of the oldest of all owners and annuitants Minimum Death Benefit Death benefit protection terminates upon contract annuitization. Minimum death benefits exclude all purchase credits applied within 12 months prior to the date of death (recapture of purchase credits not applicable in certain states including NY). The greater of purchase payments less proportional withdrawals or the account value FEES & CHARGES Total Annual Insurance Charge In annuity years 1-9: 1.85% In annuity years 10+: 1.30% Contingent Deferred Sales Charge (CDSC) Applied as a percentage only to purchase payments; based on the inception date of each purchase payment. May vary by state. 9 years: 9%, 9%, 9%, 9%, 8%, 8%, 8%, 5%, 2.5% Annual Maintenance Fee Waived for purchase payments totaling $100,000 or higher. $50 ($30 in NY) or 2% of account value, whichever is less * Because this annuity contains a purchase credit, it has higher fees and expenses and a longer CDSC period than other similar annuities without a purchase credit. Over time, the higher expenses could be more than the value of the purchase credits. Carefully consider the expenses along with the features and benefits to be sure this annuity meets your clients financial needs. 4 of 16

5 STEP 1 START WITH THE APPROPRIATE ANNUITY PRODUCT B SERIES Clients who prefer a lower-cost, traditional annuity L SERIES Clients who are approaching retirement or who may have changing retirement goals C SERIES Clients who may need liquidity N/A N/A N/A 10% of purchase payments (non-cumulative) 10% of purchase payments (non-cumulative) 100% of account value is free of CDSC Initial: $1,000 Additional: $100 Initial: $10,000 Additional: $100 Initial: $10,000 Additional: $100 Maximum issue age: 85 Latest annuity date: No later than the first day of the calendar month following the 95th birthday of the oldest of all owners and annuitants Maximum issue age: 85 Latest annuity date: No later than the first day of the calendar month following the 95th birthday of the oldest of all owners and annuitants Maximum issue age: 85 Latest annuity date: No later than the first day of the calendar month following the 95th birthday of the oldest of all owners and annuitants The greater of purchase payments less proportional withdrawals or the account value The greater of purchase payments less proportional withdrawals or the account value The greater of purchase payments less proportional withdrawals or the account value In all annuity years: 1.30% In annuity years 1-9: 1.70% In annuity years 10+: 1.30% In annuity years 1-9: 1.75% In annuity years 10+: 1.30% 7 years: 7%, 7%, 6%, 6%, 5%, 5%, 5% 4 years: 7%, 7%, 6%, 5% No CDSC $50 ($30 in NY) or 2% of the account value, whichever is less $50 ($30 in NY) or 2% of the account value, whichever is less $50 ($30 in NY) or 2% of the account value, whichever is less 5 of 16

6 STEP OPTIONAL 2 ADD LIVING POWERFUL BENEFITS GUARANTEES Optional Income Benefits HIGHEST DAILY LIFETIME SM 6 PLUS (HD LIFETIME 6 PLUS) SPOUSAL HIGHEST DAILY LIFETIME SM 6 PLUS (SPOUSAL HD LIFETIME 6 PLUS) Key Feature Guarantee Whichever is greatest Step-ups Helps your clients grow their basis for retirement income through highest daily guarantees that lock in their highest daily values for income purposes 100% of the time. Capture the annuity s highest day AND grow that value at an annual 6% compounded rate until the first Lifetime Withdrawal Or Assuming no Lifetime Withdrawals, guaranteed lifetime income is based on at least: 1 - Double (200%) the account value at benefit election on the 10th benefit anniversary - Quadruple (400%) the account value at benefit election on the 20th benefit anniversary Automatic lock-in of the annuity s highest daily value until the first Lifetime Withdrawal 1 Issue Ages Minimum: 45 (annuitant) Maximum: May vary by state and broker/dealer Minimum: 50/55 (younger spouse/ older spouse) Maximum: May vary by state and broker/dealer Withdrawals Annuitant s age Income Age of younger Income at first Lifetime percentage spouse at first percentage Withdrawal Lifetime Withdrawal 45 < % % 80+ 6% % % 85+ 6% Annual Benefit Charge % 0.95% Flexibility Can be elected at contract issue or post-issue and can be cancelled at any time. After cancellation, your clients will no longer be charged for the benefit. Please note that clients lose any and all guarantees upon cancellation. If cancelled, the benefit may be re-elected on any day beginning with the following business day (provided the benefit is available and investment allocation requirements are in good order). New elections are based on the account value of the contract at the time of benefit election. Lifetime Income Accelerator (LIA) n An innovative optional feature available only with Highest Daily Lifetime 6 Plus designed to double the HD Lifetime 6 Plus Annual Income Amount, should certain conditions render your clients incapable of caring for themselves. n Clients can receive double the Annual Income Amount regardless of whether they re living at home or in a qualified nursing facility. n Subject to eligibility, 36-month waiting period and 120-day elimination period, which can run concurrently. n Highest Daily Lifetime 6 Plus with LIA is available for an annual benefit charge of 1.20%. 2 HD Lifetime 6 Plus with Lifetime Income Accelerator is not long-term care insurance and should not be purchased as a substitute. Clients should seek professional advice to determine their long-term care needs. The predetermined formula described on page 14 also applies to HD Lifetime 6 Plus with LIA. HD Lifetime 6 Plus with LIA is not available in all states including NY. 1 Minimum guarantees and step-ups are for income purposes only. A Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value as well as the 200% and 400% guarantees. Clients must specify the withdrawal as a Non-Lifetime Withdrawal. 2 Fees 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 variable investment options. Please note that upon re-election, or upon a step-up after income begins, the fees may be higher. 6 of 16

7 STEP 2 ADD POWERFUL GUARANTEES How HD Lifetime 6 Plus Helps Grow and Protect Retirement Income This line is the Protected Withdrawal Value (PWV), the basis for guaranteed lifetime income in retirement. Your clients may begin taking Lifetime Withdrawals at any time. HD Lifetime 6 Plus will lock in the highest day and grow it at 6% until the first Lifetime Withdrawal. Account Value Your client purchases an annuity with HD Lifetime 6 Plus. Your clients also have minimum guarantees Let s say their initial purchase payment is $100,000. If they defer taking withdrawals, their Protected Withdrawal Value will be at least: After 20 years: Initial purchase payment $100,000 After 10 years: 200% = $200, % = $400,000 The above guarantees equate to a minimum of 7.2% compounded growth of the Protected Withdrawal Value. In this example, assuming a 5% income amount, the Annual Income Amount would be $10,000/year for life after 10 years and $20,000/year for life after 20 years. The hypothetical examples above are for illustrative purposes only. They do not reflect a specific annuity, an actual account value or the performance of any investment. The Protected Withdrawal Value is separate from the account value and not available as a lump sum. 7 of 16

8 STEP OPTIONAL 2 ADD LIVING POWERFUL BENEFITS GUARANTEES Optional Accumulation Benefits Key Feature Guarantee HIGHEST DAILY SM GUARANTEED RETURN OPTION SM II (HD GRO SM II) Provides account value protection with daily opportunities to lock in positive performance. Provides an initial guarantee that the account value will be equal to 100% of the purchase payments 1 10 years after election of the benefit (provided all contract provisions are met). GUARANTEED RETURN OPTION SM PLUS II (GRO PLUS II) Provides account value protection with opportunities to lock in positive performance. Provides an initial guarantee that the account value will be equal to 100% of the purchase payments 1 after 7 years and on each benefit anniversary thereafter (provided all contract provisions are met). Step-ups Automatically lock in new guarantees each year based on the annuity s highest daily value. In addition to any new guarantee, any previously locked in guarantee will mature 10 years from the day it was locked in. Manually lock in a higher guarantee while retaining the initial guarantee if the account value increases due to positive investment performance. Any new guarantee will replace any previously locked in guarantee, but the initial guarantee will remain intact. Any new guarantee will mature 7 years from lock-in. Issue Ages Minimum: None Maximum: 84; May vary by state and broker/dealer Withdrawals Guarantees are adjusted for any purchase credits or withdrawals. All withdrawals will reduce the guarantees proportionally. Annual Benefit Charge % 0.60% Flexibility Can be elected at contract issue or post-issue 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 the benefit is available and 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. With new elections the base guarantee equals the account value of the contract at the time of benefit election. Additional Feature N/A Your clients can elect to automatically lock in a new guarantee on any benefit anniversary where the account value is at least 7% higher than the current highest guarantee amount. 1 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 purchase payments (including any purchase credits) and withdrawals. All withdrawals will reduce the guarantee proportionally. 2 Fees are assessed against the average daily net assets of the subaccounts. Fees may be higher on re-election. The Highest Daily Guarantees on pages 6-8 each use a different predetermined mathematical formula to help manage your clients guarantee(s) through all market cycles. Please see page 14 for complete information on how your clients guarantees are managed. 8 of 16

9 STEP 2 ADD POWERFUL GUARANTEES Optional Death Benefits COMBINATION 5% ROLL-UP AND HAV Not available in all states, including New York HIGHEST ANNIVERSARY VALUE (HAV) Key Feature Helps your clients grow their legacy Guarantee Greatest of: The highest anniversary value up to age 80 or the 5th contract anniversary, whichever is later Or 5% compounded growth (roll-up) of purchase payments up to age 80 or the 5th contract anniversary, whichever is later Or The minimum death benefit described on pages 4 and 5 Greatest of: The highest anniversary value up to age 80 or the 5th contract anniversary, whichever is later Or The minimum death benefit described on pages 4 and 5 Step-ups Issue Ages May be elected at issue only and cannot be cancelled Withdrawals Annual Maximum: 79 May vary by state and broker/dealer Withdrawals reduce the roll-up value dollar-for-dollar up to the 5% dollar-for-dollar limit and reduce the highest anniversary value proportionally Annual Maximum: 79 May vary by state and broker/dealer Withdrawals reduce the HAV death benefit proportionally Annual Benefit Charge % 0.40% Please note that for all death benefits, the death benefit amount will be reduced by any purchase credits applied within the period that begins 12 months prior to the date of death and ends on due proof of death (may vary by state). Death benefit protection terminates upon contract annuitization. 1 Fees are assessed against the average daily net assets of the subaccounts. 9 of 16

10 STEP OPTIONAL 3 CREATE LIVING BENEFITS A UNIQUE INVESTMENT STRATEGY Intelligent and Innovative Investments With portfolio management from well-known brand-name and boutique specialty firms, we provide options for asset allocation that are as simple or sophisticated as your client needs them to be. With Prudential Annuities, you and your client can choose from 16 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. Traditional Strategy Tactical Strategy Quantitative Strategy Alternative Strategy Six portfolios offering management based on longer-term views of capital markets Four portfolios offering management based on shorter-term views of capital markets Two portfolios offering a disciplined, quantitative approach to portfolio management Four portfolios offering traditional and non-traditional investments, which can be less correlated to the market AST Capital Growth Asset AST CLS Growth Asset AST First Trust Capital Appreciation Target Portfolio AST Academic Strategies Asset Franklin Templeton VIP Founding Funds Allocation Fund AST Horizon Growth Asset AST First Trust Balanced Target Portfolio AST Advanced Strategies Portfolio AST FI Pyramis Asset AST CLS Moderate Asset AST Schroders Multi-Asset World Strategies Portfolio AST Balanced Asset AST Horizon Moderate Asset AST J.P. Morgan Strategic Opportunities Portfolio AST T. Rowe Price Asset AST Preservation Asset No assurance can be given that the objectives of the portfolio will be achieved. 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. Pyramis is a registered service mark of FMR LLC. Used under license. 10 of 16

11 STEP 3 CREATE A UNIQUE INVESTMENT STRATEGY Help Manage Risk and Increase Your Client s Potential for Positive Return Each of Prudential Annuities 16 asset allocation portfolios has been constructed to be highly efficient as a standalone variable annuity investment option. However, depending on your client s unique needs, you may want to consider a combination of asset allocation portfolios. Prudential Annuities offers the flexibility to combine any of our 16 asset allocation portfolios in any percentages that you and your client deem appropriate. Working with your client, you can determine if one or a combination of portfolios is right for them. For more information on all of the portfolios on our asset allocation platform, see the Variable Annuity Investor Guide. AST FIRST TRUST CAPITAL APPRECIATION TARGET AST CAPITAL GROWTH FRANKLIN TEMPLETON VIP AST CLS GROWTH AST HORIZON GROWTH POTENTIAL RETURN (%) AST FI PYRAMIS AST ACADEMIC STRATEGIES AST FIRST TRUST BALANCED TARGET AST ADVANCED STRATEGIES AST BALANCED AST T. ROWE PRICE AST CLS MODERATE AST HORIZON MODERATE AST SCHRODERS MULTI-ASSET WORLD STRATEGIES AST J.P. MORGAN STRATEGIC OPPORTUNITIES AST PRESERVATION POTENTIAL RISK (%) Traditional asset allocation offers an active management style based on longer-term views of capital markets. Tactical asset allocation offers an active management style based on shorter-term views of capital markets. Quantitative asset allocation offers a disciplined, quantitative approach to portfolio management. Alternative asset allocation offers concepts used by some top university endowment fund managers. This illustration is hypothetical and is based on how we might expect these portfolios to perform over time, based on their risk and return characteristics as measured by standard deviation. These portfolios may contain different investments than similarly named mutual funds. 11 of 16

12 STEP OPTIONAL 3 CREATE LIVING BENEFITS A UNIQUE INVESTMENT STRATEGY Choose From Over 50 Individual Investment Options Your clients can also choose to create a well-balanced portfolio from our breadth of investment offerings that include more than 50 portfolios covering major investing styles from over 30 portfolio managers. Please see the Variable Annuity Investor Guide for a complete list of available individual investment options. Please note that with all optional benefits, guidelines for building your client s portfolio must be followed. 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 Jennison Large-Cap Value AST Large-Cap Value Portfolio management by Eaton Vance and Hotchkis & Wiley Capital Management AST Value Portfolio management by Deutsche Investment Management Americas, Inc. 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 MID-CAP VALUE AST Mid-Cap Value Portfolio management by Earnest Partners and Wedge Capital Management AST Neuberger Berman / LSV Mid-Cap Value MID-CAP BLEND MID-CAP GROWTH AST Goldman Sachs Mid-Cap Growth AST Neuberger Berman 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 SMALL-CAP BLEND SMALL-CAP GROWTH AST Federated Aggressive Growth AST Neuberger Berman Small-Cap Growth AST Small-Cap Growth Portfolio management by Eagle Asset Management Inc. 12 of 16

13 STEP 3 CREATE A UNIQUE INVESTMENT STRATEGY SPECIALTY AST Cohen & Steers Realty AST Global Real Estate Portfolio management by Prudential Real Estate Investors, a business unit of Prudential Investment Management, Inc. AST T. Rowe Price Natural Resources 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 AST High Yield Portfolio management by Pacific Investment Management Company LLC AST Lord Abbett Bond-Debenture AST Money Market Portfolio management by Prudential Investment Management, Inc. INTERNATIONAL EQUITY FIXED INCOME AST J.P. Morgan International Equity AST MFS Global Equity AST Parametric Emerging Markets Equity AST PIMCO Limited Maturity Bond AST PIMCO Total Return Bond AST T. Rowe Price Global Bond AST Western Asset Core Plus Bond TURNKEY ASSET ALLOCATION AST Academic Strategies Asset Allocation AST Advanced Strategies AST Balanced Asset Allocation AST Capital Growth Asset Allocation AST CLS Growth Asset Allocation AST CLS Moderate Asset Allocation AST FI Pyramis Asset Allocation AST First Trust Balanced Target AST First Trust Capital Appreciation Target AST Horizon Growth Asset Allocation AST Horizon Moderate Asset Allocation AST J.P. Morgan Strategic Opportunities AST Preservation Asset Allocation AST Schroders Multi-Asset World Strategies AST T. Rowe Price Asset Allocation Franklin Templeton VIP Founding Funds Allocation Fund 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. Certain investment options are not available with certain optional benefits. All portfolios may not be available at all broker/dealers. These portfolios may contain different investments than similarly named mutual funds. 13 of 16

14 IMPORTANT INFORMATION How We Manage Your Clients Guarantees Highest Daily Lifetime 6 Plus, Spousal Highest Daily Lifetime 6 Plus, Highest Daily Guaranteed Return Option II (HD GRO II) and Guaranteed Return Option Plus II (GRO Plus II) each use a separate predetermined mathematical formula to help manage your clients guarantee(s) through all market cycles. Each business day, the formulas determine if any portion of the account value needs to be transferred into or out of the AST Investment Grade Bond Portfolio for Highest Daily Lifetime 6 Plus and Spousal Highest Daily Lifetime 6 Plus, and into or out of certain AST bond portfolio subaccounts (the Bond Portfolios ) for HD GRO II and GRO Plus II. Highest Daily Lifetime 6 Plus and Spousal Highest Daily Lifetime 6 Plus use one predetermined mathematical formula, while HD GRO II and GRO Plus II use a different predetermined mathematical formula. For Highest Daily Lifetime 6 Plus and Spousal Highest Daily Lifetime 6 Plus, amounts transferred by the formula depend on a number of factors unique to your clients 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 AST Investment Grade Bond Portfolio; and (v) The impact of additional purchase payments made to and withdrawals taken from the annuity. For Highest Daily Lifetime 6 Plus, Spousal Highest Daily Lifetime 6 Plus, HD GRO II and GRO Plus II, at any given time, some, none, or most of the account value may be allocated to the AST Investment Grade Bond Portfolio or the Bond Portfolios, as applicable. Transfers to and from the AST Investment Grade Bond Portfolio or the Bond Portfolios (as applicable) do not impact any income guarantees that have already been locked in with Highest Daily Lifetime 6 Plus and/or Spousal Highest Daily Lifetime 6 Plus, or any guarantees that have already been locked in for HD GRO II and/or GRO Plus II. The Protected Withdrawal Value (PWV) only applies to Highest Daily Lifetime 6 Plus and/or Spousal Highest Daily Lifetime 6 Plus and is the basis for guaranteed lifetime income. The PWV is separate from the account value and not available as a lump sum. Any amounts invested in the AST Investment Grade Bond Portfolio or the Bond Portfolios will affect your clients ability to participate in a subsequent market recovery within the permitted subaccounts. Conversely, the account value may be higher at the beginning of the market 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 AST Investment Grade Bond Portfolio or the Bond Portfolios. Please see the prospectus for complete details. For HD GRO II and GRO Plus II, 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. 14 of 16

15 Contact Information n Annuity Sales Desk Call your annuity sales desk representative for more details about the products, optional benefits and investment options available in your state and firm.

16 ONE CORPORATE DRIVE SHELTON, CONNECTICUT 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 by contacting the National Sales Desk. Your clients should read the prospectus carefully before investing. A variable annuity is a long-term investment designed to create guaranteed income in retirement. Investment returns will fluctuate and the principal value, when redeemed, may be worth more or less than the original investment. Withdrawals or surrenders may be subject to contingent deferred sales charges. 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 can reduce the account value and the living and death benefits. Prudential Annuities does not provide tax, accounting or legal advice. Please have your clients consult their own attorney or accountant. Optional benefits may not be elected in conjunction with certain optional benefits and have certain investment, holding period, liquidity, and withdrawal limitations and restrictions. 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. Variable annuities are issued by Pruco Life Insurance Company (in New York, by Pruco Life Insurance Company of New Jersey), Newark, NJ 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. 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 The Prudential Insurance Company of America ORD Ed. 05/2010 [PPR WO# MS0210 SBA UBS0310]