Investors should consider the features of the contract, indexstrategies, and the underlying portfolios' investment objectives, policies, management, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectus, which can be obtained on theprospectus pageor from your ﬁnancial professional. Please read the prospectus carefully before investing.
Annuities are issued by Pruco Life Insurance Company , Newark, NJ (main office) and distributed by Prudential Annuities Distributors, Inc., Shelton, CT. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations.
This web page 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.
A variable annuity is a long-term investment designed for retirement purposes. Investment returns and the principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than the original investment.
Withdrawals or surrenders may be subject to contingent deferred sales charges and Interim Value of the index strategies. If the variable investment options are elected, the contract is subject to mortality, expense, and administration charges of 1.30%, and any applicable underlying fund expenses. 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 reduce the account value and death benefits.
The S&P 500® Index is a product of S&P Dow Jones Indices LLC ("SPDJI"), and has been licensed for use by Pruco Life Insurance Company. Standard & Poor's®, S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Pruco Life Insurance Company. Pruco Life Insurance Company's Product(s) is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.
It is not possible to invest directly in an index.
The iShares® Russell 2000 ETF is distributed by BlackRock Investments, LLC. iShares® and BlackRock®, and the corresponding logos, are registered trademarks of BlackRock, Inc. and its affiliates ("BlackRock") and are used under license. BlackRock has licensed certain trademarks and trade names of BlackRock to Pruco Life Insurance Company for certain purposes. Pruco Life Insurance Company's products and services are not sponsored, endorsed, sold, or promoted by BlackRock, and purchasers of such products do not acquire any interest in the iShares® Russell 2000 ETF nor enter into any relationship of any kind with BlackRock. BlackRock makes no representations or warranties, express or implied, to the owners of any products offered by Pruco Life Insurance Company or any member of the public regarding the advisability of purchasing any product or service offered by Pruco Life Insurance Company. BlackRock has no obligation or liability for any errors, omissions, interruptions or use of the iShares® Russell 2000 ETF or any data related thereto, or in connection with the operation, marketing, trading or sale of any Pruco Life Insurance Company product or service offered by Pruco Life Insurance Company.
All rights in the Russell®2000 Index (the "Index") vest in the relevant LSE Group company which owns the Index. Russell®2000 is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license.
The Index is calculated by or on behalf of Frank Russell Company or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of Prudential FlexGuard®. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from Prudential FlexGuard® or the suitability of the Index for the purpose to which it is being put by Pruco Life Insurance Company.
Invesco Capital Management LLC ("ICM") serves as sponsor of Invesco QQQ TrustSM, Series 1 ("Invesco QQQ ETF") and Invesco Distributors, Inc. ("IDI"), an affiliate of ICM serves as distributor for Invesco QQQ ETF. The mark "Invesco" is the property of Invesco Holding Company Limited and is used under license. That trademark and the ability to offer a product based on Invesco QQQ ETF have been licensed for certain purposes by Pruco Life Insurance Company and its wholly-owned subsidiaries and affiliates (collectively, "Prudential"). Products offered by Prudential are not sponsored, endorsed, sold or promoted by ICM or Invesco Holding Company Limited, and purchasers of such products do not acquire any interest in Invesco QQQ ETF nor enter into any relationship with ICM or its affiliates. ICM makes no representations or warranties, express or implied, to the owners of any products offered by Prudential. ICM has no obligation or liability for any errors, omissions, interruptions or use of Invesco QQQ ETF or any data related thereto, or with the operation, marketing trading or sale of any products or services offered by Prudential.
Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, and QQQ®, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use for certain purposes by Pruco Life Insurance Company and its wholly-owned subsidiaries and affiliates (collectively, "Prudential"). Prudential FlexGuard® ("Product") has not been passed on by the Corporations as to their legality or suitability. The Product is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).
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 product prospectus contains a more detailed description of the limited relationship MSCI has with Pruco Life Insurance Company and any related annuity contracts.
All guarantees including the benefit payment obligations arising under the annuity contract guarantees, any index strategy crediting, or annuity payout rates are backed by the claims-paying ability of the issuing company, and do not apply to the underlying variable investment options. Those payments and the responsibility to make them are not the obligations of the third-party broker-dealer from which this annuity is purchased or any of its affiliates.
FlexGuard and all product features are not approved for use in all states or through all broker-dealers
We do not provide tax, accounting, or legal advice. Please consult your own attorney or accountant.
Issued on the following contracts with Pruco Life Insurance Company:
Contracts: P-RILA/IND(10/21), issued in ID P-RILA/IND(10/21)-ID
Rider: P-RID-RILA-ROP(10/21) (or state variation thereof)
Endorsements: P-END-RILA-MRS(10/21), P-END-RILA-P2P(10/21), P-END-RILA-TPAR(10/21), P-END-RILA-SRP(10/21), P-END-PL(12/21) and P-END-TA(12/21) (or state variation thereof)
For Compliance Use Only:
FlexGuard is a retirement product that you and your financial professional can customize based on your unique needs. Unlike some annuities which offer little choice, FlexGuard offers you the opportunity to select from many options. It's like building your own annuity.
Indexed annuities—also known as "equity-indexed annuities" or "fixed-indexed annuities"—are complex financial instruments that have characteristics of both fixed and variable annuities. Indexed annuities offer a minimum guaranteed interest rate combined with an interest rate linked to a market index, hence the name.
Indexed annuities feature a guaranteed return plus a market-based return. The result is a greater potential upside than a traditional fixed contract, with less risk than a variable annuity. But before jumping into an indexed annuity, investors should read the fine print.
Although variable annuities carry the potential of higher returns than fixed annuities, they don't offer a guaranteed payout.
In terms of debt, the company carries low leverage which is good. Standard & Poor's rates Prudential AA- and Fitch rates them A+. Prudential has over 1.3 million annuity contract holders.
An annuity is a long-term investment designed for retirement purposes. Investment returns and the principal value of an investment will fluctuate so that an investor's units, when redeemed, may be worth more or less than the original investment.
The advantages of indexed annuities include the potential to earn more interest and the premium protection they offer. The disadvantages include higher fees and commissions and caps on gains.
An indexed annuity pays a rate of interest based on a particular market index, such as the S&P 500. Indexed annuities give buyers an opportunity to benefit when the financial markets perform well, unlike fixed annuities, which pay a set interest rate regardless.
Suze: I'm not a fan of index annuities. These financial instruments, which are sold by insurance companies, are typically held for a set number of years and pay out based on the performance of an index like the S&P 500.
How much do they cost? Indexed annuities typically do not have an up-front sales charge, but there are often significant surrender fees—fees you pay if you need access to your money before the surrender period ends—and other hidden costs.
- Best Overall: Fidelity.
- Best Fixed Indexed Annuity: Allianz.
- Best Variable Annuity: New York Life.
- Best Straight Life Annuity: USAA.
- Best Term Certain Annuity: MassMutual.
- Best Multi-Year Guaranteed Annuity: American National.
In general, gains (or earnings) which are withdrawn from fixed index or multi-year annuities are taxed as ordinary income, not as capital gains. If your annuity is invested with qualified funds, such as monies rolled over from a 401k or IRA, then the full amount withdrawn will be subject to ordinary income tax.
Reasons Why Annuities Make Poor Investment Choices
Income annuities require you to lose control over your investment. Some annuities earn little to no interest. Guaranteed income can not keep up with inflation in certain types of annuities. The annuity might not provide a death benefit to your beneficiaries.
The standard death benefit for a deferred variable annuity is the greater of the contract value of any remaining assets at death, or the total premiums paid less distributions received by death. It is provided to the beneficiary.
Once your contract has matured, you can choose to keep your money in the annuity. You won't receive any checks from the life insurance company. That is, unless you opt to withdraw money on your own or start your income payments according to a definitive withdrawal schedule set by the insurer.
Unlike a 401(k) or an IRA, there are no limits on the amount that you can invest in an annuity. Whether you're considering a deferred or immediate annuity, the amount of money you should consider putting into an annuity depends on: Your immediate actual and potential financial needs. Your long-term financial goals.
Potential for greater returns – The main benefit is that variable annuities offer a chance for a higher return than other types of investments. The longer the investment remains in the annuity, the greater the chance of substantial growth.
For tax purposes, withdrawals are con- sidered as first coming from earnings, then from the return of investment. Earnings in your annuity contract are taxed as ordinary income, and if withdrawn prior to age 591⁄2, there may also be a 10% federal income tax penalty.
How Much Does A $100,000 Annuity Pay Per Month? A $100,000 annuity would pay you approximately $438 each month for the rest of your life if you purchased the annuity at age 60 and began taking payments immediately.
In most cases you can take up to 25% of the money you move into your guaranteed income for life, in cash, tax-free. You'll need to do this at the start and you need to take the rest as an income. Check out these annuity tips before you buy.
Annuities can provide a reliable income stream in retirement, but if you die too soon, you may not get your money's worth. Annuities often have high fees compared to mutual funds and other investments. You can customize an annuity to fit your needs, but you'll usually have to pay more or accept a lower monthly income.
For most deferred annuities , including fixed, variable, and fixed index annuities , you can often withdraw money from them before they start paying you back. So these rules may apply to early withdrawals from these types of annuities .
Unlike index funds, fixed index annuities are generally protected against loss of principal. This means you won't lose any of the money you put into a fixed index annuity. This protection against losses, however, comes at a cost. You won't receive the exact return of the market index.
Key Takeaways. A tax-sheltered annuity allows employees to invest income before taxes into a retirement plan. TSA plans are offered to employees of public schools and tax-exempt organizations. The IRS taxes the withdrawals, but not the contributions into the tax-sheltered annuity.
Unlike a variable annuity, which is a combination of an insurance and securities product, a fixed indexed annuity is strictly an insurance product. In an indexed annuity, your money earns interest based on an underlying financial benchmark to which the annuity contract is linked.
Cap Rate. A cap rate is the maximum rate (ceiling or cap) of interest the annuity will earn during the index term. For example, if the applicable index increases by 5% and there is a 3% Cap, the interest credited would be 3%.
- Make sure you are well educated before you start selling annuities. ...
- Selling annuities takes natural ability to problem solve. ...
- Know your competition. ...
- Ask questions. ...
- Propose strong solutions. ...
- Close the annuity sale and service your client.
Reality: Orman explains that a variable annuity will only save you on taxes in the short run. Though you do not pay taxes when you buy or sell a mutual fund within the annuity and you do not pay taxes on year-end distributions, there are other tax disadvantages.
In her 2001 book, “The Road to Wealth,” Suze Orman tells readers that “if you don't want to take risk but still want to play the stock market, a good index annuity might be right for you.”
We're just going to tell you right now that fixed annuities aren't worth your time. If you're saving up for retirement, the rate of return that fixed annuities offer just won't cut it. You can do much better than that with good growth stock mutual funds. Stay away!