Deferred Variable Annuity Features

Deferred variable annuities offer many features you may want to consider. They may be included as part of the contract, or they may be optional features or riders that you elect at the time of purchase. Some optional features carry an additional charge. This approach gives you the ability to select and pay for only the features you need. Optional features that can be added to contracts include asset allocation programs, enhanced death benefits, bonus credits, and living benefits. These features do not guarantee against day-to-day market fluctuations affecting the annuity contract value, and they may be affected by subsequent additions or withdrawals during the accumulation phase of your annuity contract.

Living Benefit Guarantees
Optional living benefits are special features that can add value to your annuity for an additional fee. Depending on your need, they can provide you with principal protection, guaranteed lifetime income, or a guarantee of return of principal through periodic withdrawals regardless of market performance.

Death Benefit Protection
Many variable annuities feature a guaranteed death benefit. If you should die during the accumulation phase, the issuing company will return the amount of your original purchase (less any withdrawals you’ve made) to your beneficiary, even if your annuity has declined in value. This death benefit avoids the costs and delays of probate. (Estate and income taxes may apply.) Many annuities also provide optional death benefits that can provide enhanced coverage for your beneficiaries for an additional cost.

Bonus Credit Feature
Some insurance companies offer variable annuity contracts with a bonus credit feature. These contracts promise to add a bonus credit to your contract value, based on a specified percentage (typically from 2 percent to 6 percent) of the initial Purchase Payment. The fees and expenses for bonus credit variable annuities may be higher, and the withdrawal charge periods may be both higher and longer than contracts that do not provide a bonus credit feature.

Asset Allocation Programs
Asset allocation is an investment discipline for dividing money among three major asset classes – cash and money equivalents, bonds, and stocks – to suit an investor’s risk tolerance, savings goal, and time horizon.

Investment Options
Variable:Variable investment options (subaccounts) offer you the ability to invest in a variety of investment types including stocks, bonds, and cash. None of these options are guaranteed, and they can lose money.

Fixed: With a fixed option, you would know from the start how much you will receive for the period of time you choose.

If you take a taxable withdrawal before age 591/2, you may have to pay a 10 percent penalty to the IRS on the amount of the gain withdrawn, in addition to your normal income taxes.

Prudential, its affiliates, their respective distributors and representatives does not provide legal or tax advice. You should contact your own tax or legal advisor in regard to your particular situation.

Certain optional features may not be available in all states. Optional features contain exclusions, limitation, and come with an additional fee to the basic annuity. Please see the prospectus for more information.

Investors should consider the contract and the underlying portfolios’ investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectuses, which can be obtained on the prospectus page or from your financial professional. You should read the prospectuses carefully before investing.

Annuities are issued by Prudential Annuities Life Assurance Corporation. Securities products are distributed by Prudential Annuities Distributors, Inc. Both Prudential Financial companies are located in Shelton, CT. Each is solely responsible for its financial condition and contractual obligations.

Prudential Annuities is a business unit of Prudential Financial.

Wachovia Corporation is the majority owner and Prudential Financial, indirectly through subsidiaries, is a minority owner of Wachovia Securities, LLC.

Prudential, Prudential Financial, the Rock logo, and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America and its affiliates.

© Copyright 2008 Prudential Financial, Inc. All Rights Reserved.


IFS-A135595 Ed. 08/2008