Docstoc

Discovery Classicо Fixed Annuity

Document Sample
Discovery Classicо Fixed Annuity Powered By Docstoc
					                               Discovery Classic®
                               Fixed Annuity




                                    A tax-deferred investment program
                                    with a guaranteed rate of return.




0161052-00003-00 ED. 06/2011
Can You afford a Comfortable retirement?
These days, few people expect that Social Security or a company pension will provide for all their retirement
needs. And with the huge wave of baby boomers approaching retirement age, the Social Security system could be
strained.

What can you do today to prepare for a comfortable retirement? A regular program of saving and investing may help
build the wealth you’ll need to supplement your retirement income.



Will your Ira and 401(k) plans be enough?
You may already contribute to a traditional or Roth IRA, 401(k) plan, or self-employed retirement plan, and it’s
important to continue to do so. Since these programs allow you to contribute pre-tax income, they put more of
your money to work for you. There are limits, however, on the amount you can contribute to these retirement
programs each year, so you may need to look for additional ways to reach your goals.




Consider Discovery Classic
the power of tax Deferral
Discovery Classic Fixed Annuity offers a number of important benefits that can help you achieve your retirement
goals, including limited risk, steady growth with a guaranteed interest rate, and the power of tax deferral. Your
principal is guaranteed by The Prudential Insurance Company of America; however, a withdrawal charge during
the first six years may reduce principal.

Tax deferral is a powerful long-term investment strategy. Put simply, your earnings generally accumulate and
compound without being reduced by annual taxation. Over time, this helps your money grow faster than a taxable
investment earning the same annual rate of return. With a Discovery Classic Fixed Annuity, your money generally
continues to grow tax-deferred until you need it. If the contract is owned by a trust, a corporation, a partnership,
or similar entity, special rules apply that may eliminate the tax benefits attributable to a deferred annuity. Prudential
recommends that a tax advisor be consulted in such cases.




                                                            2 of 6
Flexibility to Manage Change
Important Discovery Classic Features
Flexibility in your contract can help you manage changes in your financial objectives or long-term goals. In addition to
safety of principal, tax deferral, and death benefit protection for beneficiaries, Discovery Classic offers you a variety of
features.

n Base Interest Rate - The initial base interest rate is the               n No Initial Sales Charge - Initial sales charges do not
  rate that is established by Prudential and assigned to a                   apply. All of your money goes to work for you immediately.
  purchase payment at the time it is made into the contract.                 It may be necessary, however, for Prudential to charge for
  All contract owners, regardless of the contract size, receive              state premium taxes if applicable to your contract. Your
  the same base interest rate. The base interest rate is                     licensed financial professional can tell you if premium
  guaranteed for one year from the date of the initial or                    taxes apply to Discovery Classic in your state.
  subsequent purchase payment. Additional interest rates
  may be available depending on the size of the contract.                  n Access to Assets - Each year, you can withdraw 10%*
                                                                             of your contract’s accumulated value, less previous
n Additional Interest Rate - During the first contract year,
                                                                             withdrawals, without charge. Withdrawals of more than
  all purchase payments are credited with an additional                      10% of your contract value during the first six years
  interest rate in conjunction with the base interest rate.                  (based on the contract issue date) may incur a withdrawal
  This additional interest rate is in effect for one year only.              charge of 6%, 6%, 5%, 5%, 4% and 2% respectively.
  This feature may not be available in all states.                           (These charges may be reduced for contracts issued with
                                                                             annuitants aged 83 and above.)
n “Bailout” Provision - Every base interest rate has a bail-
  out interest rate associated with it. If your renewal interest           n Automatic Withdrawal - You can withdraw money on a
  rate falls below the bailout interest rate for that purchase               regular basis to supplement your retirement income while
  payment, you can withdraw that purchase payment with                       keeping the rest of your assets working. However, you
  no withdrawal charge within 30 days of the renewal date.                   cannot reduce your contract value to less than $5,000
  Keep in mind that withdrawals of taxable amounts will be                   unless you completely surrender the contract. Early
  subject to income tax, and prior to age 591⁄2, a 10%                       withdrawals may be subject to a withdrawal charge.
  federal income tax penalty may also apply. For tax
  purposes, earnings are withdrawn first.                                  n No New Withdrawal Charge for Additional Purchase
                                                                             Payments - Additional purchase payments do not begin
n Issue Ages - Discovery Classic can be purchased
                                                                             a new withdrawal charge schedule.
  if you are between the following ages:
  1) Non-Qualified Assets - Ages 0-85                                      *The 10% withdrawal is non-cumulative. Withdrawals
  2) Qualified Assets - Ages 0-69; for ages 70-80,                          are taken from earnings first, and then from purchase
     a minimum distribution option must be elected                          payments.
     at issue, with documentation confirming that some
     other IRS-approved distribution option is in place.




                                                                  3 of 6
planning Your retirement With Discovery Classic
a steady Income stream During retirement
Rather than take a lump-sum payment, you may choose to withdraw your money systematically over time
to provide a steady source of income for your retirement. Discovery Classic has a number of payout options
available. The tax treatment of the payout depends on the type of payment option selected.

n Lifetime Income with 120 Payments Certain—Monthly payments for the rest of your life with a minimum of
  120 payments guaranteed.
n Annuity Payments for a Fixed Period—Regular payments for a designated period up to 25 years.

n Interest Payment Option—Receive the interest credited to your contract as income on a monthly or other basis
  while the principal stays intact.
Your choice may depend on the contract value, market conditions, and personal needs.


protect Your savings                                         If you are under age 591⁄2, a 10% federal income tax pen-
                                                             alty may also apply, so it is important to consult your tax
Your principal is guaranteed by The Prudential Insurance     advisor and plan any necessary withdrawals carefully.
Company of America, and a fixed rate of return protects      The rest of your money keeps working tax-deferred. The
your assets from market uncertainty.                         minimum contract value after withdrawals is $5,000.
You may withdraw a purchase payment without a
charge if the annual renewal interest rate relating to       protect the ones You love
that purchase payment falls below a predetermined            Discovery Classic will pay your designated beneficiaries
rate, known as the “bailout rate.”                           100% of the contract’s accumulated value—less any
                                                             withdrawals and withdrawal charges—should you die
low Minimum purchase                                         before your annuity payout begins. This guaranteed
                                                             death benefit may pass directly to your beneficiaries,
The Discovery Classic Fixed Annuity offers a low
                                                             avoiding the delays and costs associated with probate.
minimum initial purchase payment of $5,000.
                                                             Generally, your beneficiaries will be taxed on any gains
                                                             in your annuity contract. Always consult your tax or
Make regular Contributions                                   legal advisor about the estate tax and income tax
Regular contributions to Discovery Classic Fixed             implications of your particular situation.
Annuity will not extend your withdrawal charge               All guarantees are backed by the claims-paying ability
schedule. You can add to your annuity easily, at any         of the issuing company.
time, in amounts as little as $2,000 ($1,000 for qualified
contracts). Please note that annual and aggregate
limits on the amount you can contribute to your              Waiver of Withdrawal Charges
Discovery Classic annuity apply in Alabama, Iowa,
New Jersey, New York and Texas. Ask your licensed            For Critical Care
financial professional for additional details about limits   In the event of serious illness, waiver of withdrawal
that may apply to your contract.                             charges for the critical care feature can help by
                                                             allowing access to your money with no withdrawal
access to Your Money                                         charges should you become terminally ill with a life
                                                             expectancy of 12 months or less, or be confined to
You will always have access to your money. However,          an eligible nursing home or hospital for a continuous
withdrawals in excess of 10% of your contract value          three-month period. This feature is available at no
each year during the first six years may be subject to a     additional cost.
withdrawal charge. Generally, taxes are postponed until
                                                             Taxes may apply to withdrawals taken under this
your earnings are withdrawn. When withdrawals begin,
                                                             feature. This feature is not available in New York.
your earnings are usually withdrawn first and taxed as
                                                             Consult your contract for more information.
ordinary income.




                                                             4 of 6
Is Discovery Classic right for you?
There are important factors to consider in deciding whether to purchase
an annuity:

   A
n	 	 re you looking for a conservative investment that offers steady
   growth? Discovery Classic can help conservative investors obtain
   long-term tax-deferred growth at a guaranteed rate of interest, which
   can serve as an important conservative balance to your portfolio.

   W
n	 	 ill you need your money soon? While you can withdraw up to
   10% of your annuity’s value each year without charge, Discovery
   Classic should be considered a long-term investment.

Withdrawals of earnings from your contract are subject to ordinary
income tax, and if made prior to age 591⁄2, may be subject to an additional
10% federal income tax penalty. For tax purposes, earnings are deemed
to be gains out first. In addition, withdrawals of more than 10% of your
contract value during the first six years may be subject to a withdrawal
charge of 6%, 6%, 5%, 5%, 4% and 2% respectively.
one Corporate DrIve
shelton, ConneCtICut 06484




Why prudential?
From corporate boardrooms to our nation’s living rooms, Prudential Financial Inc.
has been taking on America’s toughest financial challenges for over 135 years.
And we’ll continue to do so tomorrow and beyond.
Prudential Financial’s long history is a testament to the quality of service it
provides to customers. We have received the prestigious DALBAR Annuity
Service Award each of the past five years. This award is given to financial
services firms that offer consistently outstanding customer service. Your
annuity will be a part of this tradition.
Prudential Financial companies, with more than $859 billion in assets under
management as of March 31, 2011, serve individual and institutional customers
worldwide and include The Prudential Insurance Company of America, one of
the largest life insurance companies in the United States. We offer a variety of
products and services, including life insurance, mutual funds, annuities, pension
and retirement-related services and administration, asset management, securities
brokerage, banking and trust services, real estate brokerage franchises and
relocation services.
Let us work with you as we have done with millions of others to help you reach
your goals.
For more information about Prudential Financial products and services, visit
www.prudential.com.
Annuities have limitations and withdrawal charges. For more information about
Discovery Classic, including charges, expenses, and complete details of
coverage, please contact your financial professional.




Discovery Classic Fixed Annuity is issued by The Prudential Insurance Company of America,
751 Broad Street, Newark, NJ 07102.
Prudential Annuities, Prudential, the Prudential logo and the Rock symbol are service marks
of Prudential Financial, Inc. and its related entities. All are Prudential Financial companies and
each is solely responsible for its own financial condition and contractual obligations.
Issued on contract FPDA-97




0161052-00003-00 ORD202610 ED. 06/2011
[WO# 271501]

				
DOCUMENT INFO
Shared By:
Stats:
views:5
posted:12/9/2011
language:English
pages:6
Description: Fixed Annuities