Prudential Annuities, the domestic annuity business for Prudential Financial Inc., announced it has enhanced its Highest Daily Lifetime Five, a variable annuity optional living benefit that guarantees a 5% income stream every year for life.
Launched in November, the variable annuity rider offers investors the opportunity to increase their annuities' income potential every day the market is open up to 250 times a year for the first 10 years or until the first withdrawal.
The enhancements to the rider, which will be available March 19, include guaranteed minimum account balance, enhanced protected withdrawal value, 200% of the account value on the benefit effective date, 200% of the purchase payments, 100% of purchase payments made after the 12-month period following the benefit effective date but prior to the first withdrawal.
These enhancements apply at no additional cost to both new Highest Daily Lifetime Five contracts as well as contract holders who have already purchased the benefit.
The rider is available on many annuity products issued by American Skandia Life Assurance Corporation and Pruco Life Insurance Co., which are both Prudential Financial companies. As of December 31, 2006, account values with Lifetime Five amounted to $8.57 billion.
Prudential Financial, which is based in Newark, N.J., announced the enhancements on Thursday.
