NEWARK, N.J.--(BUSINESS WIRE)--Prudential Annuities, the domestic annuity business of Prudential Financial, Inc. (NYSE:PRU), has launched the PruSecure Fixed Indexed Annuity. This is a single-premium, long-term protection solution that earns interest based on stock market performance and/or a fixed rate, with zero exposure to market downturns.
The PruSecure Fixed Indexed Annuity reinforces Prudential’s commitment to expanding options for individuals seeking a measure of security and growth potential for their portfolio. This annuity is Prudential’s entry into the fixed-indexed annuities (FIA) marketplace, a popular alternative in today’s low-interest-rate environment. FIAs benchmark interest rates to the performance of an index, like the S&P 500©, up to a “cap rate” and protect against a market downturn.
Investors fearful of down-market loss now hold $12 trillion in cash, CD and money market positions that currently offer little growth opportunity.1
“Many investors remember the 2008 financial crisis and continue to be concerned about market risk,” said Dianne Bogoian, head of product for Prudential Annuities. “Fixed-indexed annuities like PruSecure offer market downside protection plus upside opportunity—you don’t have to choose one or the other.”
Features aim to address consumer needs for protection and growth opportunity
The PruSecure Fixed Indexed Annuity offers financial advisors a way to protect their clients’ money and provide the opportunity for growth:
Trusted indexes: Interest can be benchmarked to performance of the S&P 500, MSCI EAFE, Dow Jones U.S. Real Estate Index or Bloomberg Commodity Index.
Greater opportunity: In addition to one-year index term options, PruSecure offers three- and five-year index term options, generally offering more upside protection. Initial cap rates provide up to a 32-percent return based on the chosen index, credit term, and surrender period.
Flexible strategies: Clients can mix and match indexes and crediting terms.
Legacy protection: Surviving beneficiaries will receive the current account value plus a portion of any growth earned before the end of the crediting term.
Simplicity: One crediting strategy—point to point—making it easier for advisors to explain and clients to understand.
Prudential’s unique book of business allows the company to balance mortality and longevity risk while offering expanded protection solutions to its customers. According to Bogoian, “Prudential has been meeting financial challenges for more than 140 years and built our reputation by being steadfastly committed to innovation, risk management and sustaining financial strength.”
Learn more about PruSecure at prudential.com/PruSecure.
1 JPMorgan Guide to the Markets, as of 9/30/2017.
About Prudential Financial
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of Sept. 30, 2017, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit news.prudential.com.
Annuities are issued by Prudential Annuities Life Assurance Corporation (PALAC) located in Shelton, CT (main office). PALAC, a Prudential Financial company, is solely responsible for its own financial condition and contractual obligations.
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.
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. Clients seeking information regarding their particular investment needs should contact a financial professional.
All references to guarantees are backed by the claims-paying ability of the issuing company.
CDs are FDIC-insured up to $250,000 per financial institution; there may be a penalty for early withdrawal. Fixed indexed annuities are not FDIC-insured, and may be worth more than the total purchase payments. Fixed indexed annuities also have limitations and surrender charges. It is not possible to invest directly in an index.
S&P 500® Index and Dow Jones® US Real Estate Index: S&P® and Dow Jones® are trademarks of Standard & Poor’s Financial Services LLC (“Standard & Poor’s”) and have been licensed for use by Prudential Annuities Life Assurance Corporation. PruSecure is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard and Poor’s makes no representations regarding the advisability of purchasing PruSecure.
Bloomberg Commodity IndexSM: “Bloomberg®” and “Bloomberg Commodity IndexSM” are service marks of Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”) and have been licensed for use for certain purposes by Prudential Annuities Life Assurance Corporation. Neither Bloomberg nor UBS Securities LLC and its affiliates (collectively, “UBS”) are affiliated with Prudential Annuities Life Assurance Corporation, and Bloomberg and UBS do not approve, endorse, review, or recommend PruSecure. Neither Bloomberg nor UBS guarantees the timeliness, accurateness, or completeness of any data or information relating to Bloomberg Commodity IndexSM
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 Disclosure Statement contains a more detailed description of the limited relationship MSCI has with Prudential Annuities Life Assurance Corporation and any related annuity contracts.
This material may not be approved in all states.
Issued on contracts: ICC17-FIAE(11/17) or FIAE/IND(11/17),, et al. or state variation thereof. Issued on endorsements: ICC17-FIA-P2P(11/17), ICC17-FIA-MVA(11/17), et al. or END-FIA-MVA(11/17) et al. or state variation thereof with schedules ICC17-FIA-P2P-SCH(11/17), ICC17-FIA-MVA-SCH(11/17), et al. or END-FIA-MVA-SCH(11/17) et al. or state variation thereof.