Give clients the confidence of 100% protection from market losses —so they can protect their life’s work and pursue growth at the same time.
How does PruSecure work?
With PruSecure, clients can pursue growth by choosing between an Index-Based Strategy, a Fixed-Rate Strategy, or a combination of both—and the percentage to allocate their money among these options.
Help clients select their growth crediting strategy
The Index-Based Strategy offers the potential for growth based on the performance of the market indices they choose, which is used to determine the amount of any interest credited to their account. Because different indices can respond differently to market conditions, PruSecure currently offers four indices to choose from within three index-based strategy options:
Cap Rate
Interest is credited based on the full index gain up to a cap.
Participation Rate
Credits interest based on a percentage of index gains.
Performance Trigger
Credits a fixed crediting rate if the index is at 0% or positive at term end.
Note: Clients may select the index (or indices) and the term, or duration period, for each strategy. At the end of each term, they can renew or reallocate their money among the strategies available at that time. Index availability varies by the strategy chosen.
Fixed-Rate Strategy
This option is not associated with any market index. The Fixed-Rate Strategy earns a fixed interest rate for a period of one year and renews annually. The interest rate is declared at contract purchase and may change upon renewal.
Clients can choose one or a combination of the indices below:
S&P 500®
A leading gauge of the U.S. equities market—the Standard & Poor’s 500 Index includes 500 of the largest companies on the New York Stock Exchange and NASDAQ.
MSCI EAFE
The MSCI EAFE is designed to measure the performance of a selection of stocks in 21 developed markets outside of the United States and Canada. The oldest international stock index, it is the most common benchmark in the United States for foreign stock funds.
Dow Jones® U.S. Real Estate Index
This index is designed to track the performance of Real Estate Investment Trusts (REITs) and other companies that invest directly or indirectly in the development, management, or ownership of real estate.
Bloomberg Commodity IndexSM
The Bloomberg Commodity Index tracks the futures prices of a broadly diversified set of physical commodities on various commodity markets. It is designed to minimize concentration in any one commodity or sector.
Renewal rates are impacted by changes in various economic factors and may be higher or lower than the initial rates, but never be less than the Guaranteed Minimum Interest Rate. The Guaranteed Minimum Interest Rate is set at issue and applies for the life of the contract. The Initial Guaranteed Rate, and subsequent renewal rates, will not be less than the Guaranteed Minimum Interest Rate. Please speak with your annuities wholesaler or call the sales team for more information.
Features | Specifications | |
|---|---|---|
Minimum premium payment | Initial: $10,000 | |
Issue ages | Minimum: None / Maximum: 85 | |
Latest annuity date | No later than the first contract anniversary on or after the oldest owner's or annuitant's 95th birthday | |
Crediting strategies & terms | Index Creditng Strategy | Cap Rate | Participation Rate | Performance Trigger Rate | ||||
|---|---|---|---|---|---|---|---|---|
| 1-Year | 3-Year | 5-Year* | 1-Year | 3-Year | 5-Year* | 1-Year | ||
| S&P 500®** | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | |
| MSCI EAFA** | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | |
| Dow Jones Real Estate Index** | ✔ | ✔ | No | ✔ | ✔ | No | No | |
| Bloomberg Commodity Index SM** | ✔ | ✔ | No | ✔ | ✔ | No | No | |
* The five-year index term can only be elected at contract issue and cannot be renewed.
** The websites referenced above are not endorsed or supported by any of the Prudential Financial companies. Marketing and training materials contained on these websites need to be approved by the Prudential Retirement Strategies marketing compliance unit prior to use.
| Minimum Renewal cap rate, participation rate, performance trigger rate and fixed rate | Index-Based Strategies
Fixed rate strategy
| |
|---|---|---|
Surrender charge options | 5 years: 9%, 9%, 8%, 7%, 6% (California: 8.25%, 8%, 7.75%, 7%, 6%) 7 years: 9%, 9%, 8%, 7%, 6%, 5%, 4% (California: 8.25%, 8%, 7.75%, 7%, 6%, 5%, 4%) Rates will vary based on the surrender charge period chosen. | |
Market value adjustment (MVA) |
| |
Free withdrawals | Year 1: No free withdrawals allowed in the first contract year, unless taken as a required minimum distribution that Prudential calculates After Year 1: Clients may withdraw up to 10% of the account value each year (based on the previous contract anniversary, after all index/interest credits are applied) without surrender charges or MVA.
| |
Other PruSecure Fixed Indexed Annuities
PruSecure Advisor Fixed Indexed Annuity
Available through registered investment advisors; offers similar features and options as the PruSecure Fixed Indexed Annuity.
Features | Specifications | |
|---|---|---|
Minimum premium payment | Initial: $10,000 | |
Issue ages | Minimum: None/Maximum: 85 | |
Latest annuity date | No later than the first contract anniversary on or after the oldest owner's or annuitant's 95th birthday | |
Crediting strategies & terms | Index Creditng Strategy | Cap Rate | Participation Rate | Performance Trigger Rate | ||||
|---|---|---|---|---|---|---|---|---|
| 1-Year | 3-Year | 5-Year* | 1-Year | 3-Year | 5-Year* | 1-Year | ||
| S&P 500®** | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | |
| MSCI EAFA** | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | |
| Dow Jones Real Estate Index** | ✔ | ✔ | No | ✔ | ✔ | No | No | |
| Bloomberg Commodity Index SM** | ✔ | ✔ | No | ✔ | ✔ | No | No | |
* The five-year index term can only be elected at contract issue and cannot be renewed.
** The websites referenced above are not endorsed or supported by any of the Prudential Financial companies. Marketing and training materials contained on these websites need to be approved by the Prudential Retirement Strategies marketing compliance unit prior to use.
| Minimum Renewal cap rate, participation rate, performance trigger rate and fixed rate | Index-Based Strategies
Fixed rate strategy
| |
Surrender charge options | 5 years: 2%, 2%, 2%, 2%, 2% 7 years: 2%, 2%, 2%, 2%, 2%, 2%, 2% Rates will vary based on the surrender charge period chosen. | |
Market value adjustment (MVA) |
| |
Free withdrawals | Year 1: No free withdrawals allowed in the first contract year, unless taken as a required minimum distribution that Prudential calculates After Year 1: Clients may withdraw up to 10% of the account value each year (based on the previous contract anniversary, after all index/interest credits are applied) without surrender charges or MVA.
| |
What is a fixed indexed annuity?
A fixed indexed annuity (FIA) is a tax-deferred financial tool designed for the long term. It offers a level of protection for clients' money against loss with the opportunity for it to grow based on the performance of a specific market index, or combination of indices. With an FIA, clients' money is not actually invested in any index, but rather may earn interest based on the index's performance. There may typically be upper limits known as cap rates and participation rates, on the amount of potential interest credited in a given period, as well as a floor that offers downside protection. For complete information about the annuity, please refer to the PruSecure Important Information disclosure statement.
Why does the company behind the annuity matter?
When the time comes for clients to use the benefits that are offered by an annuity, it is important to remember that all guarantees including the optional benefits are backed by the claims-paying ability of the issuing company.
Can Prudential help me determine if an annuity is right for clients?
It's up to you to determine if a fixed indexed annuity is suitable for clients. Prudential does not provide investment advice. The selections you choose together with clients are all dependent on their investment goals and their risk tolerance.
What happens if clients need access to their money?
After the first contract year, clients may withdraw up to 10% of the account value (based on the previous contract anniversary, after all index/interest credits are applied) without surrender charges or MVA. If they need more than the Free Withdrawal Amount or want to take a withdrawal in the first year, they can withdraw as much of the account value as they need, but keep in mind that surrender charges and a Market Value Adjustment (MVA) will apply. If they make a full withdrawal of the annuity, they will receive the greater of the account value (minus any surrender charges and adjusted by any applicable MVA) and the Minimum Guaranteed Surrender Value. Also, it's important to note that if they take a withdrawal or annuitize the contract, taxes will apply. The tax treatment will differ depending on whether they purchased the annuity with pre-tax (qualified) or after-tax (non-qualified) dollars. Clients should consult a tax advisor for more information.
There are limitations and restrictions when making withdrawals. 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 taken during the surrender charge period, excluding any Required Minimum Distributions (RMDs), will be subject to any applicable surrender charges and a Market Value Adjustment (MVA).
Does PruSecure charge fees?
One of the advantages of PruSecure is that there are no annual contract or administrative fees. However, if clients withdraw any of their money during the first contract year or more than 10% of their money in any subsequent year during the surrender charge period, there may be a surrender charge. A positive or negative MVA may also apply.
What are the limitations and restrictions I need to consider?
At the time clients purchase the contract, they may select a 5- or 7-year surrender charge period, which is the amount of time they must wait until they can withdraw funds from their annuity without facing a penalty charge. Typically, the longer the surrender charge period, the higher the fixed rates and index-based cap rates and participation rates. During this period, if they withdraw any or all of the money from the annuity, surrender charges and a Market Value Adjustment will apply. (See Important Information Disclosure Statement for additional information about MVAs.) In cases where the duration of the index term is shorter than the length of the surrender charge period, clients may need to renew or reallocate their strategy selections one or more times before the surrender charge period ends. Upon renewal or reallocation, clients may continue with the same strategy and allocation, or choose from the other strategies and terms available at that time.
All products and/or options may not be available in all states or with all broker-dealers.
Annuities are issued by Pruco Life Insurance Company, a Prudential Financial company, located in Newark, NJ (main office).
Bloomberg Commodity Index reflects changes in a broad range of commodity futures prices, from crude oil and coffee to gold and cattle. Dow Jones® U.S. Real Estate Index is designed to track the performance of Real Estate Investment Trusts (REITs) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies.
MSCI EAFE (Europe, Australasia, Far East) is a widely accepted benchmark for international stock performance. It is a free float-adjusted market capitalization index that is designed to measure the equity market performance of 21 developed markets, excluding the U.S. and Canada.
Dow Jones® U.S. Real Estate Index is designed to track the performance of Real Estate Investment trusts (REIT) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies.
S&P 500® Index is a market capitalization-weighted index of the 500 widely held stocks often used as a proxy for the stock market. S&P chooses the member companies for the 500 based on market size, liquidity, and industry group representation.
S&P 500® Index and Dow Jones® US Real Estate Index: The "S&P 500® Index" and "Dow Jones® U.S. Real Estate Index" are products of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates ("SPDJI"), and have been licensed for use by Pruco Life Insurance Company. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC, a division of S&P Global ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). Pruco Life Insurance Company's Product(s) is not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such products) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500@ Index and Dow Jones@ U.S. Real Estate Index.
It is not possible to invest directly in an index.
MSCI EAFE Index: The annuity contract referred to herein is not sponsored, promoted, or endorsed by MSCI, and MSCI bears no liability with respect to any such annuity contract or any index referred to by any such annuity contract. The Disclosure Statement contains a more detailed description of the limited relationship MSCI has with Pruco Life Insurance Company and any related annuity contracts.
Bloomberg Commodity IndexSM: "Bloomberg®" and "Bloomberg Commodity IndexSM" are service marks of Bloomberg Finance L.P. and its affiliates (collectively, "Bloomberg") and have been licensed for use for certain purposes by Pruco Life Insurance Company. Neither Bloomberg nor UBS Securities LLC and its affiliates (collectively, "UBS") are affiliated with Pruco Life Insurance Company, and Bloomberg and UBS do not approve, endorse, review, or recommend PruSecure. Neither Bloomberg nor UBS guarantees the timeliness, accurateness, or completeness of any data or information relating to Bloomberg Commodity IndexSM.
Bloomberg U.S. Intermediate Credit Index: BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively "Bloomberg"). Bloomberg or Bloomberg's licensors, own all proprietary rights in the Bloomberg Indices. Bloomberg is not affiliated with Pruco Life Insurance Company nor approves, endorses, reviews or recommends PruSecure. Bloomberg does not guarantee the timeliness, accurateness or completeness of any data or information relating to the Bloomberg U.S. Intermediate Credit Index, and shall not be liable in any way to Pruco Life Insurance Company investors in or owners of PruSecure or other third parties in respect of the use or accuracy of the Bloomberg U.S. Intermediate Credit Index or any data included therein.
CDs are FDIC-insured up to $250,000 per financial institution; there may be a penalty for early withdrawal. Fixed indexed annuities are not FDIC-insured; they also have limitations and surrender charges.
For Financial Professional Use Only. Not for Use With the public.
This material is created for Financial Professional Use only.
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