For the first time, you can generate lifetime income directly from your managed account. Helping you retire with confidence and live a better life, longer.
Issued by Pruco Life Insurance Company.
How ActiveIncomeSM works:
You and your advisor maintain full control of your investments while also designating a portion of your investible assets to lifetime income:
Pre-Income Stage:
Account Value will remain invested in your choice of underlying investment options and will increase or decrease based on investments.
You have flexibility to start taking income immediately, but deferring income will result in daily increases to your Income Percentage—providing more income potential for the future.
Income Stage:
Once you begin to take income, the Annual Income Amount will be determined, the Income Percentage gets locked in and is then multiplied by the Income Base.
The Annual Income Amount will fluctuate based on the net performance of the underlying investments. The Income Base is not affected by Income Withdrawals. But withdrawals in excess of the Annual Income Amount will negatively impact the future annual income.
Insured Stage:
Once the permitted withdrawals reduce the Account Value to zero, the Insured Income Stage begins.
At this point, the Annual Income Amount locks in and you receive a fixed, guaranteed payment equal to your last annual income payment—for the rest of your life.*
Footenotes
This is a hypothetical example for illustrative purposes only. It does not reflect a specific annuity, an actual Account Value, or the net performance of any investment.
The Income Base is a notional value that is not available for withdrawals.
*The Insured Income Payment equals the Annual Income Amount as of the day the account value is depleted, adjusted for any Excess Withdrawals that occurred in the current Contract Year.
Additional resources:
| Features | Specifications |
|---|---|
| Longevity Protection | Prudential ActiveIncomeSM Contingent Deferred Annuity helps your client meet longevity challenges head-on by seamlessly allowing guaranteed lifetime income to be incorporated into a retirement plan. Growth is offered through continued investment along with the protection of not being able to outlive your income. |
| Contract Fee | The annual fee is 1%. Contract Fees apply during the Pre-Income Stage and Income Stage and are assessed on a quarterly basis. On each date that we calculate your Contract Fees, they will be calculated based on your Account Value on that Valuation Day. |
| Purchase Payment | Minimum: $50,000 Maximum: $2,000,000. Accounts over $2,000,000 are subject to jumbo review. |
| Issue Ages | Ages 50 – 85, minimum is based on the age of the younger Owner/Annuitant. |
| Unused Annual Income Amount | Any Annual Income Amount not withdrawn during the year is carried over to allow for additional income in future years. This Unused Annuity Income also fluctuates based on performance of the investment options. |
| Excess Withdrawals | Withdrawals that exceed the greater of the Annual Income Amount and the RMD (if applicable) for a particular Contract Year, plus any Unused Annual Income Amount, are Excess Withdrawals. Excess Withdrawals reduce the Income Base by the ratio of the Excess Withdrawal amount to the Account Value immediately before the Excess Withdrawal and may significantly reduce the Annual Income Amount. |
| Portability options | Clients may transfer the account value to Prudential or another approved financial firm in order to continue receiving their Annual Income Amount. |
| Cancellation | Active Income can be canceled at any time upon request of the owner. Once canceled, it may be repurchased after 90 days, if it is available, at current rates. |
| Investment Options | A wide variety of Investment options available through your advisor's firm can be wrapped. Certain asset classes may be limited or restricted. |
| Death Benefits | Not applicable, because the assets remain invested in the managed account. |
| Surrender Value | Not applicable, because the assets remain invested in the managed account. |
| Surrender Charges | Not applicable, because the assets remain invested in the managed account. |
| Contract Designations | The Contract Owner must be the Account Owner and Annuitant. To receive Income on a joint income basis, the Annuitant and the Co-Annuitant must be spouses. If the Contract Owner is an entity, the entity must be the Account Owner and the Annuitant must have a beneficial interest in the entity. |
| Tax Deferral | CDAs do not offer tax deferral. Qualified Accounts may offer their own tax deferral. |
Footnotes
*Your Income Base will be negatively impacted by withdrawals in excess of the Annual Income Amount.
**Your Insured Income Payment equals the Annual Income Amount as of the day your account value is depleted, adjusted for any Additional Account Value Contributions that occurred in your current Contract Year. If your Account Value reaches $0 due to performance while you are in the Pre Income Stage your contract will be terminated. If your Account Value reaches $0 due to performance in the Income Phase you will enter the Insured Stage.
Disclosures
Registered annuities are long term investments designed for retirement purposes. Investors should consider the features of the contract before investing. Please read the prospectus carefully before investing. Prospective purchasers should also understand the underlying investments’ investment objectives, policies, management, risks, charges and expenses carefully before investing. This and other important information can be obtained from your financial professional.
It is possible to lose money by investing in securities.
Issuing company located in Newark, NJ (main office) and distributed by Prudential Annuities Distributors, Inc., Shelton, CT. Both are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations.
This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. If you would like information about your particular investment needs, please contact a financial professional.
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. You should carefully consider your financial needs before purchasing a registered annuity.
Contract and advisor fees will reduce performance.
Withdrawals in excess of the Annual Income Amount reduce the income you receive in future years and can also affect the certainty of the income. An excess withdrawal occurs when all or any portion of a withdrawal exceeds the remaining Annual Income Amount for that Contract Year and any Unused Annual Income Amount. The excess portion of the withdrawal proportionally and permanently reduces future Annual Income Amounts. If an excess withdrawal reduces the account value to $0, no further income is payable and the contract terminates.
The events that trigger Insured Income Payments from us may never occur. We set the Withdrawal Percentage and Deferral Credits for the Contract based on the average assumed lifetime of expected contract holders. You may only receive Insured Income Payments if you outlive this average future lifetime.
All annuity contract guarantees, including benefit payment obligations, are backed by the issuing company’s claims-paying ability. The third-party broker-dealer/agency, or any of its affiliates, selling this annuity are not responsible for making those payments, and none makes any representations or guarantees about the issuer’s ability to pay claims.
You may only receive Insured Income Payments if you outlive your life expectancy. Refer to the Prospectus for any additional risks to consider.
Not available through all registered investment advisors. If your investment advisor no longer services the product, you may be required to move your assets or lose the contract guarantees.
Issued on Contract: CDAZ
Issued on Rider: CDA01, CDA02
For compliance use only: 1086416-01
For compliance use only: 1086416-00001-01
For Compliance Use Only: