Variable Appreciable Life® (VAL)

A B O U T Y O U R VA L P R E M I U M C H A N G E

IFS-A001248 Ed. 8/03

our Variable Appreciable Life® (VAL) insurance policy was designed with flexible premium payments and a choice of investment options to meet your changing goals and financial needs. VAL also has a premium change, which allows us to provide permanent life insurance with a death benefit guarantee at a modest initial premium. The death benefit guarantee states that, if all scheduled premiums are paid when due and no loans or withdrawals are made, the policy will not lapse regardless of investment performance. We provide this brochure to help explain the premium change for your VAL policy. The premium change is the point at which the scheduled premium in the policy changes. It is described in greater detail in the VAL prospectus and your policy. Since VAL is a modified flexible premium policy, we strongly suggest you discuss your premium payment options with your licensed financial professional.

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What is My Premium Change Date? Your actual premium change date depends on which company issued your VAL policy. You can identify whether you have a Pruco Life or Prudential policy by looking at the upper right-hand corner of the first page of your policy. If your policy was issued by:

Your premium change date will be:

The Prudential Insurance Company of America

on the policy anniversary after age 65 or 7 years after issue, whichever is later. Your policy generally starts with a number (9 or 7).

Pruco Life Insurance Company or Pruco Life Insurance Company of New Jersey

on the policy anniversary after age 65 or 10 years after issue, whichever is later. Your policy generally starts with a letter (R or Q).

What Will My New Premium Be? On your premium change date, we calculate a new scheduled premium. The new scheduled premium depends on a number of things, including premium payments made, investment perform-ance, and the Contract Fund value (minus any excess premium payments) on the premium change date. The new scheduled premium can never be more than the guaranteed maximum scheduled premium shown in your policy but may be higher than the initial scheduled premium.

However, the new scheduled premium will generally be at or close to the level of your initial scheduled premium if, prior to the premium change date, all of the following are true: n you have paid all scheduled premiums when due or you made them up with interest. n you have taken no loans or withdrawals. n our current level of charges has continued. n your Contract Fund has earned an average of 6%–7% net. After the premium change date (assuming no new loans or withdrawals), payment of the new scheduled premium when due will guarantee your policy against lapse regardless of investment performance. What Determines My Contract Fund Value? Your actual Contract Fund on the premium change date is affected by several factors, including: n Payment of scheduled premiums when due (or made up with interest): VAL is a modified flexible premium policy. You might choose to pay more or less than the scheduled premium or to skip some payments altogether. However, paying scheduled premiums when due (assuming no loans or withdrawals) will keep the death benefit guarantee in effect regardless of investment performance. n Payment of any unscheduled premiums: Unscheduled premium payments may accelerate the growth of your Contract Fund. Although any growth attributable to the excess premiums is taken into account in the recalculation on your premium change date, excess premiums themselves are not. n Investment results of your chosen investment options: You choose the investment option(s) in which to invest your net premiums. The value of your Contract Fund will fluctuate with the performance of the underlying investment option(s). Funds in the Fixed-Rate Option earn interest at a minimum annual rate of 4%, plus excess interes, if any, at a rate set by us. n Policy charges: Your policy is charged for administrative expenses, the cost of insurance, for maintaining the death benefit guarantee, for applicable sales charges, and for any additional benefits and riders. These charges may increase from current levels up to the maximum amounts set forth in the policy.

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Taking any withdrawals: A withdrawal* from your policy can affect the future payments required. There is a wide range of possible withdrawal patterns, and it is not possible to predict the effect of each withdrawal on future policy values. A small withdrawal may have little effect, but any withdrawal reduces your Contract Fund and could thus increase your new scheduled premium. Upon request, we will let you know the amount you can withdraw. Taking any loans: When you take out a policy loan,* an amount equal to your loan is transferred out of your investment options into a separate loan account. When a loan exists and is outstanding, the amount that was transferred out of the investment options remains part of the Contract Fund but no longer earns the rate of return of those investment options. The FixedRate Loan option carries an interest charge for the loan of 5.5% but is credited with interest at an annual effective rate of 4%. There is also a Variable Rate option with interest credited at 1% below the variable rate interest charge. Periodically, we increase the portion of the Contract Fund in the investment options by interest credits accrued on the loan.

What Happens to Any Additional Premiums that I’ve Paid? Your VAL policy offers flexible premiums. This means that your policy gives you the option of paying more, and in some situations less, than your scheduled premiums, subject to certain minimums and maximums.

* Life insurance policy cash values are accessed through withdrawals and policy loans. Loans are at interest. In general, loans are not taxable, but withdrawals are taxable to the extent they exceed basis in the contract. Loans outstanding at policy lapse or surrender prior to the death of the insured will cause immediate taxation to the extent of gain in the contract.Unpaid loans and withdrawals cause a reduction in cash values and policy benefits and negate any guarantee against lapse. For policies that are modified endowment contracts, distributions (including loans) are taxable to the extent of income in the contract, and an additional 10% federal income tax penalty may apply. You may wish to consult your tax advisor for advice regarding your particular situation.

To keep track of the premiums that are due and paid, each policy has a “premium account.” The premium account tracks the total scheduled premiums paid to date versus the total scheduled premiums due. Both are accumulated at 4%. The purpose of the premium account is to monitor the policy’s guarantee against lapse (also known as the death benefit guarantee). If the premium account has a zero balance, meaning, all scheduled premiums were paid when due and no withdrawals taken) or a positive balance (additional unscheduled premium payments made), then the policy will not lapse regardless of investment performance. Withdrawals are considered to be negative premiums in the premium account. On the premium change date, any excess premiums may be either applied toward future premiums due or withdrawn without canceling the guarantee against lapse. For example: Bob Smith has a VAL policy. On his premium change date, the total amount of premiums due on his policy is $10,000. Bob has paid all scheduled premiums when due, has made several unscheduled premium payments, and has taken no loans or withdrawals. His total premiums paid equal $12,000. Bob therefore has additional premium payments of $2,000, which can be used to pay future premiums or be withdrawn without canceling the guarantee against lapse (death benefit guarantee). Please remember that withdrawals are subject to fees as described in your VAL prospectus, and may also have tax consequences. You should consult with your tax advisor before making any withdrawals from your VAL policy.

How Can I Find Out How My Policy Is Doing? Shortly after the policy anniversary each year, we will send you an Annual Statement on your policy values. You will also receive a prospectus each May either by mail, or electronically. Your Annual Statement provides you with a detailed report of the transactions that occurred during the previous policy year. On the first page of your Annual Statement, you’ll find a quick overview of your policy values. Other pages generally list details including: n your investment options and values—including month-by-month increases or decreases in the value of your investment options. n premium allocations. n scheduled premiums that were due and paid. n the net rate of return on your investments. n projected values. n a month-by-month summary of your policy activity for the year. In March and August of each year, we send you a report on the investments in The Prudential Series Fund Inc. The Series Fund is the under-lying investment company that provides most of the investment options in VAL. The report pub-lished in March covers activity for the previous calendar year. The August report covers the first six months of the current year. You can generally get an update of your values at any time if you have enrolled for free online account access at www.prudential.com. Or, you can contact your licensed financial professional or the Customer Service Office for this information. We encourage you to review your VAL policy and meet with your licensed financial professional annually to discuss any questions you have.

This brochure must be preceded or accompanied by a current VAL prospectus. Prudential Financial and Appreciable Life are service marks of The Prudential Insurance Company of America and its affiliates. Prior to September 1988, Variable Appreciable Life (VAL) was issued by Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey, both located at 213 Washington Street, Newark, NJ 07102-2992. Beginning in September 1988, VAL was issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102-3777. All VAL was offered by prospectus only through Pruco Securities, LLC (member SIPC), 751 Broad Street, Newark, NJ 07102-3777. All are Prudential Financial companies, and each is solely responsible for its own financial condition and contractual obligations. All guarantees are based on the claims-paying ability of the issuing company.

©2005 The Prudential Insurance Company of America 751 Broad Street, Newark, NJ 07102-3777 www.prudential.com ALL RIGHTS RESERVED IFS-A001248 Ed. 01/2005 CAT 15M8847