Prudential Defined Income VA

This unique variable annuity offers your clients a higher level of guaranteed monthly income than other VAs with living benefits. With our Defined Income VA, your clients benefit from a simplified approach to retirement planning, without exposure to the uncertainty of today’s equity markets. It can help your clients:

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Receive the highest guaranteed payout rates.

Prudential Defined Income VA delivers the highest guaranteed payout rate – at every age and every month – compared to other VAs with guaranteed lifetime withdrawal benefits.

Know at issue the exact amount of monthly payments.

No one can predict the direction of the markets, so it can be difficult to plan how and when clients will achieve their retirement investing goals. By defining their minimum guaranteed lifetime income payments from the moment of issue, Prudential Defined Income VA delivers predictability and simplifies retirement income planning.

Receive higher monthly payments by deferring income.

Our Defined Income VA offers clients the opportunity for growth beyond the minimum monthly income guaranteed at issue. The longer they defer receiving income, the higher their monthly payments in retirement will be.

Avoid exposure to uncertain equity markets.

Clients are keenly aware of the risks involved in the stock market. For those who want to avoid exposure to equity market uncertainty but would like a known level of growth for their retirement, Prudential Defined Income VA can help.

Lower cost.

Prudential Defined Income VA comes at a lower cost than generally found in other VAs with living benefits.

Find an attractive alternative for funds currently in fixed income or cash.

Given the uncertainty of the stock market, some clients may be more comfortable in fixed income or cash instruments like money market funds and CDs. But low interest rates may prevent them from reaching their retirement investment goals.

There are fees associated with the Prudential Defined Income VA and death benefit option.

The annual fee for the Prudential Defined Income VA is 1.10%, plus an additional benefit fee of 0.80% for a total annual fee of 1.90%.

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What is a variable annuity?

A variable annuity is a contract with an insurance company. It's a long-term investment designed for retirement purposes. Your client places money in professionally managed investment portfolios, where it accumulates tax-deferred. When they retire, their savings can be used to generate a stream of regular income payments that are guaranteed for as long as they live. In addition, variable annuities  may provide a guaranteed death benefit for your beneficiaries. Any such death benefit, however, may be impacted by withdrawals or other actions they take in connection with the annuity. You can help your clients determine if a variable annuity is suitable for them.

Why the company behind the annuity matters?

All references to income certainty and guarantees, including the benefit payment obligations arising under the annuity contract guarantees, rider guarantees, benefits, or annuity payout rates are backed by the claims-paying ability of the issuing insurance company. Those payments and the responsibility to make them are not the obligations of the third party broker/dealer from which this annuity is purchased or any of its affiliates. They are also not obligations of any affiliates of the issuing insurance company. All guarantees, including benefits, do not apply to the underlying investment options.

What are the limitations and restrictions I need to consider?

Annuity contracts contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. The optional benefits have certain investment, holding period, liquidity, and withdrawal limitations and restrictions. Optional living and death benefits may not be available in every state and may not be elected in conjunction with certain optional benefits. Please see the prospectus.

Asset allocation does not ensure a profit or protect against a loss. 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.

What are the withdrawal consequences?

Since the annuity is designed to provide a guaranteed income stream for retirement, there are limitations and restrictions when making withdrawals that are not intended for retirement income purposes. Withdrawals in excess of the Annual Income Amount impact the value of your benefit and can also affect the certainty of their income. An excess withdrawal occurs when your cumulative Lifetime Withdrawals exceed the Annual Income Amount in any annuity year. If an excess withdrawal is taken, only the portion of the Lifetime Withdrawal that exceeds the remaining Annual Income Amount will proportionally and permanently reduce your Protected Withdrawal Value and your Annual Income Amount for future years. If an excess withdrawal reduces the account value to zero, no further amount would be payable and the contract terminates.

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, sometimes referred to as an additional income tax. 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.

Understanding the costs associated with the Prudential Defined Income Variable Annuity (VA)?

The annual fee for the Prudential Defined Income VA is 1.10%, plus an additional benefit fee of 0.80% for a total annual fee 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 7th 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 Multi-Sector Fixed Income Portfolio.

What do I need to consider when investing in the Prudential Defined Income VA?

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.

An investment in an exchange-traded fund involves risks similar to those of investing in a broadly based portfolio of equity or debt securities traded on exchange in the relevant securities market. The investment return and principal value of ETF investments will fluctuate over time. ETFs that offer leverage or that are designed to perform inversely to the index or benchmark they track (or both) are highly complex financial instruments that are typically designed to achieve their objectives on a daily basis. Due to the effects of compounding, their performance over longer periods of time can differ significantly from the performance (or inverse of the performance) of the underlying index or benchmark during the same period of time.

Issued on Contracts: P-BBND(2/13), P-RID-LI-DB (3/13) et al. or state variation thereof.