Horizon Annuity. Issued by Pruco Life Insurance Company (in NY, issued by Pruco Life Insurance Company of New Jersey)

04-0205 Horizon CB_v5cc 5/6/04 10:45 AM Page 3 Horizon Annuity MODIFIED GUARANTEED ANNUITY Enjoy principal protection and predictable earnings...
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Horizon Annuity

MODIFIED

GUARANTEED

ANNUITY

Enjoy principal protection and predictable earnings with long-term fixed interest rate options, additional interest rate credits, and protection for beneficiaries.

Annuities ARE NOT INSURED BY FDIC OR ANY ARE NOT A DEPOSIT OF OR GUARANTEED MAY LOSE VALUE BY ANY BANK OR ANY BANK AFFILIATE FEDERAL GOVERNMENT AGENCY

Issued by Pruco Life Insurance Company (in NY, issued by Pruco Life Insurance Company of New Jersey). IFS-A075122

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Strategic Partners Horizon Annuity SM

P R E D I C TAB LE E AR N I N G S W I T H F L EX I BL E F EAT U R E S

With so many fixed-rate and fixed-income investments available today, it’s important to find one that meets your specific needs. Now you can choose the Strategic PartnersSM Horizon Annuity issued by Pruco Life Insurance Company (in NY, issued by Pruco Life Insurance Company of New Jersey). This annuity can provide long-term investors with an alternative to traditional fixed income investments. The Horizon Annuity can help you: ■ Save for a specific financial goal ■ Balance your portfolio with a conservative investment ■ Generate income payments With the Horizon Annuity, you’ll get the security of a fixed investment, plus additional benefits that can only be found in annuities. The Horizon Annuity is a modified guaranteed annuity, also known as a Market Value Adjustment (MVA) annuity. LO C K IN A C OM P ET I T IV E R AT E

When you invest in the Horizon Annuity, you choose a guarantee period of 3, 5, 7, or 10 years and earn a competitive fixed rate based on that term. This rate is only guaranteed if the contract is held to maturity. Your interest is reinvested at your annual guaranteed rate until the end of your selected guarantee period. That means you avoid the risk of lower than expected returns due to fluctuations in interest rates over your selected guarantee period. The guaranteed rate will help you predict your earnings growth whether you’re investing a lump sum for the future or investing to reach a specific goal. The minimum guaranteed rate is 3%. A one-year rate is also available, but only for contract renewals. The one-year rate, if elected or defaulted to as a renewal option, will not carry a withdrawal charge, but will carry a market value adjustment for any funds withdrawn in excess of the interest earned in the previous contract year and withdrawn more than 30 days before the end of the guarantee period. All guarantee periods are not always available. Your financial professional can tell you which ones are currently offered. Guarantees are based on the claims-paying ability of the issuing company.

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MODIFIED GUARANTEED ANNUITY

S T R AT E G I C P A R T N E R S

SM

HORIZON ANNUITY

BU I L D AS S E T S FA S T E R W I T H TAX D E F ER R A L

Tax deferral is an important benefit of an annuity. You pay no taxes on annuity earnings until you withdraw them, so your money keeps working for you without being reduced by annual taxation. Keep in mind that withdrawal of taxable amounts will be subject to income tax, and prior to age 591⁄2, may be subject to a 10% federal income tax penalty. Financial professionals are not tax or legal advisers. You should consult a tax or legal adviser re g a rding your particular situation. Here is an example of how a tax-deferred investment can help your money grow faster than a taxable investment earning a similar return. Initial Investment Interest Rate Value After 10 Years of a Taxable Investment Value After 10 Years of a Ta x -De f e rred Investment Lump Sum Withdrawal from Tax-De f e rred Investment After Income Ta x

$100,000 6% $153,523 $179,085 $157,732

This chart compares hypothetical $100,000 taxable and tax-deferred investments, both earning 6% a year for 10 years. The taxable investment is assumed to pay a combined federal and state tax rate of 27% each year on investment re t u rns. The lump sum withdrawal from the tax-deferred investment is assumed to pay a combined federal and state tax rate of 27%. The combined federal and state tax rate may be higher due to amount of withdrawal. It is not meant to represent the perf o rmance of any p a rticular product, and does not include withdrawal charges of 7%, 7%, 7%, 6%, 5%, 5%, 4%, 3%, 2%, and 1% respectively, which would lower the perf o rmance shown. For expenses associated with the Strategic Partners Horizon Annuity, refer to the prospectus.

EA R N A N A D D IT I ON AL I N T E R ES T R AT E CR E DI T

Watch your assets grow quicker by increasing your interest rate up to 1% during the first contract year with the additional interest rate credit. If you elect a guarantee period of 5, 7, or 10 years and invest between $25,000 and $74,999, you’ll earn an additional 0.50%. If you invest $75,000 or more, you’ll earn an additional 1%. If we grant an additional interest credit, you’ll earn that interest rate during your first contract year. We may also offer an additional interest rate during the first year of the first renewal period unless the 1- or 3-year period is selected. C HO I C E O F O PT I ON S AT R E N EWA L

With the Horizon Annuity, your money will keep working for you. During the 30 days prior to the end of your guarantee period, you can: ■ Do nothing, and your contract will automatically renew for the same term at the current declared renewal rate ■ Choose a different term and rate for your contract ■ Make additional payments to your contract ■ Convert your contract to an income stream ■ Take a partial or full withdrawal without a withdrawal charge or MVA

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SM

HORIZON ANNUITY

If you choose to do nothing and have your contract automatically renew, and the new guarantee would end after you reach age 95 (in NY, later of age 90 or 10 years after contract date), we will renew your contract for a 1-year guarantee period. At the first renewal, the withdrawal schedule is reset at the beginning of the term. At the second and subsequent renewals, there is no withdrawal charge. State variations may apply. See the prospectus for details. AC C ES S T O Y O U R M O N EY

If, after the first contract year, you need to access your money outside the free withdrawal window at renewal, you may withdraw the interest credited during the previous contract year without a withdrawal charge or MVA. This charge-free withdrawal amount can be taken in monthly, quarterly, semiannual, or annual withdrawals. T h e re is a waiver of withdrawal charges and MVA for critical care if you become terminally ill or are confined to an eligible nursing home or hospital for a period of three consecutive months. Consult the prospectus for additional information. Waiver of withdrawal charges for critical care is not available in all states. The benefit is subject to the claims-paying ability of the issuing company. There is also a waiver of withdrawal charges and MVA for Individual R e t i rement Account re q u i red minimum distributions. Withdrawals of taxable amounts will be subject to income tax, and prior to age 591⁄2, may be subject to a 10% federal income tax penalty. When money is withdrawn more than 30 days prior to the end of the guarantee period, the MVA formula is applied along with applicable withdrawal charges. M AR K E T VAL U E A D J US T ME N T

If you choose to withdraw more than the interest earned in the previous contract year and you do so more than 30 days before the end of the guarantee period, your contract value will be subject to an MVA based on withdrawal amounts and current interest rates. If interest rates have decreased since your guarantee term began, the adjustment may increase the amount you receive. If interest rates have increased, the amount you receive decreases. The amount of the MVA is determined by a mathematical formula using the difference between the interest rate credited on the contract funds and the current rates offered by Pru c o Life Insurance Company (in NY, off e red by Pruco Life Insurance Company of New Jersey) at the time of withdrawal. The MVA can have a positive or negative impact on the accumulation value of your contract or on the amount withdrawn even when there is no change in interest rates.

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SM

HORIZON ANNUITY

PR O T E C T Y O U R S PO U S E O R B EN E F I C IA R I ES

With the Horizon Annuity, you can safeguard what you’ve invested for those who are counting on you. If your death occurs during the accumulation phase, the value of your contract will pass directly to your beneficiaries, avoiding the time and expense of probate. If the spouse is a joint owner or the beneficiary of a sole owner, he or she can elect to continue the contract with the same withdrawal charge schedule. The death benefit that may be payable if you die during the income phase of the contract is dependent upon the annuity or settlement option selected. See the prospectus for details. The death benefit guarantee is backed by the claims-paying ability of the issuing company. G UA R A N T EE D I N C O ME

If you are looking for a stable guaranteed income, you can “annuitize” your contract any time after the second contract anniversary. When you annuitize, your annuity changes from an accumulation vehicle to a payout vehicle, and you can receive payments based on your age and the value of your contract. The value used to determine payment amounts may be subject to withdrawal charges and MVA, if applicable. The payments will remain level, so you’ll always know how much income you’re getting. A portion of each payment is your original investment returned to you, so you’ll pay tax only on the part of your payout that is considered earnings (for nonqualified contracts). Because your earnings will be paid to you over time, you’ll spread out your tax liability and keep more of your money for whatever you want to spend it on. There are several payout options to choose from, including income for a specific period of time or a specific amount. You can even receive income for the rest of your life or the lives of a joint annuitant and you. K E EP A S S ET S I N VE S T E D LO N G E R

If you don’t need money from your annuity right away, it can continue to grow tax deferred until at least age 90 (for nonqualified assets). Other types of retirement plans, such as 401(k) plans, traditional IRAs, and annuities that are part of a qualified retirement plan also offer tax deferral, but generally require payouts (required minimum distributions) to begin at age 701⁄2, even if you don’t need the money.

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G R O W I N G A N D PR O T E C T I N G Y O UR W E ALT H W I T H PR U D EN T I A L F I N A N CI A L

P rudential Financial’s long history is a testament to the quality of service it has provided to customers for over 125 years. We received the 2001, 2002 and 2003 DALBAR Annuity Service Award, given to financial services firms that offer consistently outstanding customer service. Your annuity will be a part of this tradition. Today, Prudential Financial is recognized for its breadth of products and services in the United States and more than 30 foreign countries. It serves over 15 million customers worldwide, and is one of the largest providers of financial products and services in the United States, with total assets under management and administration of $464.7 billion as of December 31, 2003. Let us work with you as we have done with millions of others to help you reach your goals.

Prudential and its representatives do not provide tax advice. You should always consult competent tax advisors re g a rding the tax implications of this product, or any use of this product in your particular situation. Modified guaranteed annuities are subject to market fluctuations so that, in the case of early withdrawal, the contract value may be worth more or less than the original purchase payments. In addition, in the case of early withdrawal, a surrender charge may apply. Modified guaranteed annuities are long-term investments designed for retirement purposes. The contract’s p rospectus contains information relating to charges, expenses and complete details of coverage. This and other important information is contained in the prospectus, which can be obtained from your financial p rofessional. You should read the prospectus carefully before investing. Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Your licensed financial professional can provide you with costs and complete details. Strategic Partners annuities are issued by Pruco Life Insurance Company (in NY, issued by Pruco Life Insurance Company of New Jersey), both located at 213 Washington Street, Newark, NJ 07102-2992, and distributed by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, 14th Floor, Newark, NJ 071024077. All are Prudential Financial companies. Each company is solely responsible for its own financial condition and contractual obligations. Prudential Financial and the Rock logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ, and its affiliates. Contract #MVA-2002 WO# 04-0205 IFS-A075122 ORD01127 Ed. 04/01/2004

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