NEWARK, N.J. -- (Business Wire)
To help address the changing financial challenges of retirement,
Prudential Annuities, the domestic annuity business of Prudential
Financial, Inc. (NYSE:PRU), today announced the launch of its new
Prudential Defined Income® variable annuity and Prudential Highest Daily
Lifetime Income® v2.1, the latest version of its innovative Highest
Daily variable annuity optional benefit.
Prudential Defined Income is a long-term retirement investment that
provides clients with the security of knowing exactly what their
guaranteed lifetime income will be, whether they take income immediately
or in the future.
Prudential’s new defined income product, available to investors as young
as age 45, invests 100 percent of the premiums in the AST Long Duration
Bond Portfolio, where returns accumulate on a tax deferred basis.
Prudential Defined Income offers:
- Guaranteed lifetime income growth: The income withdrawal amount
is guaranteed to grow every day until lifetime income begins, while
maintaining the flexibility of access to the investment.
- Defined lifetime income: The amount of income guaranteed for
life and the level of deferred income growth is known at issue.
- Flexibility and Control: Investors decide when to take income,
how much income to take, and continue to have access to their account
value if they need it. Provides investors with control of their assets
for legacy planning.
- Bond portfolio: Designed to create higher yield through
investment primarily in a diversified mix of longer-duration
investment grade bonds.
Prudential Defined Income provides investors in The
Retirement Red Zone® access to a higher level of
guaranteed minimum income than generally found with other variable
annuities. For example, at launch, PDI offers clients aged 65 a 5%
annual lifetime withdrawal rate based on their premiums and the
opportunity to grow their guaranteed income amount by 5.5% annually for
as long as they defer taking lifetime income. The product is also
designed so that these rates can be dynamically adjusted for new
contracts based on prevailing interest rates as well as other factors.
“Now more than ever, Americans need product alternatives that help them
transition from accumulation to retirement income. Prudential Defined
Income is our latest innovation: a bond-driven strategy that offers
income certainty, the benefit of the potential for higher expected
yields of the AST Long Duration Bond Fund, and age-based guaranteed
income rates,” says Bruce Ferris, head of Sales and Distribution for
Prudential Annuities. “Prudential Defined Income provides the income
certainty that many clients are seeking, while helping to alleviate
their concerns with equity market volatility. The addition of Prudential
Defined Income allows us to provide guaranteed income options for
investors that are both equity and bond based.”
Prudential Annuities also announced today the launch of Highest Daily
Lifetime® Income v2.1 and Spousal Highest Daily Lifetime Income v2.1,
which replaces Highest Daily Lifetime Income v2.0 and Spousal Highest
Daily Lifetime Income v2.0 benefits.
Prudential’s Highest Daily Lifetime Income benefits, available for an
additional fee with a variable annuity from Prudential issuing
companies, allow investors the opportunity to ‘lock in’ the highest
daily value of their annuity contract, for income purposes, each day the
market is open. The benefits offer a Protected Withdrawal Value (the
basis for guaranteed lifetime income) based on the Highest Daily account
value plus an immediate 5% annual compounded growth until the 10th
benefit anniversary or until lifetime withdrawals begin, whichever is
Depending on age at the first withdrawal of lifetime income, individuals
will receive between 3% - 6% of their protected withdrawal value
annually. Spousal versions are .50% lower for all age bands.
“Our Highest Daily benefits provide investors with a strong minimum
income guarantee, the benefits of daily lock-in of account value highs,
and the potential to benefit from rising equity markets,” said Ferris.
“Reflecting the current interest rate environment, we have continued to
adjust our Highest Daily benefit to ensure that it provides a compelling
value proposition both for clients and Prudential.”
Launched in 2006, Prudential Annuities’ Highest Daily suite of living
benefits offer daily lock-ins for retirement income purposes — and
immediately grow them until the first lifetime withdrawal or 10 years
from election. Key features include:
- Daily step-ups: 100% certainty in capturing portfolio gains for
income purposes, until first lifetime withdrawal.
- Daily benefit base growth: Benefit base grows every day
regardless of market conditions due to immediate credit of the growth
rate, until 10th benefit anniversary or the first lifetime
withdrawal, whichever is sooner.
- Innovative investment platform: Offering 19 actively managed
asset allocation portfolios that help to drive daily step-ups.
- Proprietary Risk Management: A proprietary mathematical formula
that monitors an investor’s account daily and automatically transfers
amounts between the chosen variable investment portfolios and the AST
Investment Grade Bond Portfolio.
- Highest Daily Death Benefit: Offers legacy protection through
an optional integrated death benefit that locks in account highs
daily, for an additional fee.
Prudential Financial, Inc. (NYSE:PRU), a financial services leader, has
operations in the United States, Asia, Europe, and Latin America.
Prudential’s diverse and talented employees are committed to helping
individual and institutional customers grow and protect their wealth
through a variety of products and services, including life insurance,
annuities, retirement-related services, mutual funds and investment
management. In the U.S., Prudential’s iconic Rock symbol has stood for
strength, stability, expertise and innovation for more than a century.
For more information, please visit http://www.news.prudential.com/
Investors should consider the contract and the underlying portfolios’
investment objectives, risks,charges and expenses carefully before
investing. This and other important information is contained in the
prospectus, which can be obtained from your financial professional.
Please read the prospectus carefully before investing.
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
Annuities is a business of Prudential Financial, Inc.
Annuity contracts contain exclusions, limitations, reductions of
benefits and terms for keeping them in force. Your licensed financial
professional can provide you with complete details.
A variable annuity is a long‐term investment designed for retirement
purposes. Investment returns and the principal value of an investment
will fluctuate so that an investor's units, when redeemed, may be worth
more or less than the original investment. 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, other than from IRAs or employer
retirement plans, are deemed to be gains out first for tax purposes.
Withdrawals reduce the account value and the living and death benefits.
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.
The Protected Withdrawal Value is only used to calculate the guaranteed
lifetime income and the benefit fee. It is separate from the account
value and is not available as a lump sum withdrawal. The account value
is not guaranteed, can fluctuate, and may lose value.
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 more information.
The Highest Daily Lifetime Income Suite of Benefits uses a predetermined
mathematical formula to help us manage your guarantee through all market
cycles. Each business day, the formula determines if any portion of your
account value needs to be transferred into or out of the AST Investment
Grade Bond Portfolio (the "Bond Portfolio"). Amounts transferred by the
formula depend on a number of factors unique to your individual annuity
(i) The difference between the account value and the Protected
(ii) How long you have owned the benefit;
(iii) The amount invested in, and the performance of, the permitted
(iv) The amount invested in, and the performance of, the Bond Portfolio;
(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 is only used to calculate the
guaranteed lifetime income and the benefit fee. It is separate from the
account value and is not available as a lump sum withdrawal. The account
value is not guaranteed, can fluctuate, and may lose value.
Any amounts invested in the Bond Portfolio will affect your 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: We are not
providing investment advice through the formula. You may not allocate
purchase payments or transfer account value into or out of the Bond
Portfolio. See the prospectus for complete details.
Fixed income investments are 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.
The Prudential Defined Income Variable Annuity offered by Prudential
Financial companies is available at an annual product charge of 1.10%,
plus an additional benefit fee of 0.80%, for a total annual product
charge of 1.90%. We reserve the right to increase the benefit fee up to
a maximum of 1.50% at any time on or after the 5th annuity anniversary
on existing contracts. This would increase the total annual product
charge to a maximum of 2.60%. Note: There is also an additional fee for
the AST Long Duration Bond Portfolio.
Variable annuities offered by Prudential Financial companies are
available at a total annual insurance cost of 0.55% to 1.95%, with an
additional fee related to the professionally managed investment options.
Note: All products may not be available through all third party
broker/dealers. HD Lifetime Income is available for an additional annual
fee of 1.00% based on the greater of the account value and the Protected
Withdrawal Value.] Spousal HD Lifetime Income is available for an
additional annual fee of 1.10% based on the greater of the account value
and the Protected Withdrawal Value. HD Lifetime Income with Highest
Daily Death Benefit is available for an additional annual fee of 1.50%
based on the greater of the account value and the Protected Withdrawal
Value. Spousal HD Lifetime Income with Highest Daily Death Benefit is
available for an additional annual fee of 1.60% based on the greater of
the account value and the Protected Withdrawal Value. HD Lifetime Income
with Highest Annual Death Benefit is available for an additional annual
fee of 1.40% based on the greater of the account value and the Protected
Withdrawal Value. Spousal HD Lifetime Income with Highest Annual Death
Benefit is available for an additional annual fee of 1.50% based on the
greater of the account value and the Protected Withdrawal Value. Please
see the prospectus for additional information.
Issued on contracts: P‐BLX/IND(2/10), P‐CR/IND(2/10), P‐BBND(2/13) or
state variation thereof Issued on riders: P‐RID‐HD(2/13),
P‐RID‐HD(2/13)‐NY, P‐RID‐HD‐HDB (2/13), P‐RID‐HD‐HAB (2/13)‐NY,
Prudential Financial, Inc.
Lisa M. Bennett, 973-802-2894
Source: Prudential Financial, Inc.
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